3
$\begingroup$

I am currently into an estimating job for a small construction company. In my previous experiences, in calculating the labor cost for a certain job,

Labor cost = material cost * 0.45

I did this to simplify the computation. Are there any other specific labor factor for different job classification for the following class:

  1. concreting
  2. masonry
  3. carpentry
  4. painting
  5. steel
  6. rebars, etc.

that I can adopt?

Note: This will not involve equipment in the process.

$\endgroup$
3
  • 3
    $\begingroup$ This is very location-specific. Also, by the materials list I assume that you're only interested in concrete structures, but remember that the structure type (not just its difficulty) can be very relevant. I can't give percentages, but in Brazil labor costs for metallic structures are very high due to a lack of qualified personnel, while such costs for concrete are much lower due to the greater supply. $\endgroup$
    – Wasabi
    Sep 16 '17 at 0:52
  • $\begingroup$ We are currently into small concrete houses, that's why for now, it is my concern. How do you compute it, Sir @Wasabi, is it by actual labor rates * number of days * number of personnel? $\endgroup$ Sep 16 '17 at 0:54
  • $\begingroup$ Oh, I see. I have never worked outside the PH so I didn't know this one. Thank for the info @Wasabi. $\endgroup$
    – Jem Eripol
    Sep 16 '17 at 0:56
2
$\begingroup$

In the Philippines, there are 2 types of labor rates that we consider. We have provincial and non-provincial rates.

For non-provincial rates, we can go as far as 45% material cost, while on provincial rates, we only go up to 35% of the material cost. This is due to our present labor rules and regulations (which i hope should be changed soon).

But the above percentage varies according to the difficulty of work, e.g. painting and carpentry requires a lot of skills than concreting that's why I sometimes go as much as 60% for these type of jobs.

Hope this helps.

$\endgroup$
3
  • 1
    $\begingroup$ I will accept this answer as long as no one gets a better one. One question though, does this include the contractor profit in labor? $\endgroup$ Sep 16 '17 at 0:41
  • 1
    $\begingroup$ No, it does not. The percentage is purely for payment to the laborer, and does not include markups. $\endgroup$
    – Jem Eripol
    Sep 16 '17 at 0:42
  • 1
    $\begingroup$ I will take that one down. Thank for answering :) $\endgroup$ Sep 16 '17 at 0:43

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.