Building Construction Cost Breakup

Major building construction cost is material cost and labour cost. Building construction cost breakup for constructing building is shown in detail below.

Total cost of construction can be divided into two following types:

  • Labour Cost – 35% of total cost
  • Material Cost – 65% of total cost

All major construction material and labour cost associated in a building construction is shown below.

Construction Cost Estimator

Construction cost breakup
Construction cost Breakup

Percentage Breakup of Construction Cost

The percentage of total cost of the building helps to make quick estimates easier. Major cost of material in building construction is cement and steel.

The percentage cost of building materials is approximately 65% of the total cost of building. Major cost heading in building construction are shown below:

  • Labour cost – 20% of building cost
  • Bricks cost – 12% of building cost
  • Cement cost – 20% of building cost
  • Steel cost -15% of building cost
  • Wood Cost – 13% of building cost
  • Supervision cost – 15% of building cost
  • Other Expenses – 5% of building cost

The above percentage of building cost is the approximate cost of building in general. The cost of building construction depends upon the location and local market rates and many other factors.

The cost of building construction is approximate cost. Below we have shown the cost of construction based on material and labour cost in general.

Material Construction Cost Breakup

Material construction cost breakup for building construction is shown below. Major cost of material in building construction constitute Cement, steel, sand and bricks.

Pie chart of material construction cost is shown below.

Major construction material and its percentage cost is listed below:

  • Cement cost – 17.9% of total material cost
  • Steel cost – 15% of total material cost
  • Sand cost – 11.4% of total material cost
  • Aggregate cost – 5% of total material cost
  • Bricks cost – 9.3% of total material cost
  • Wood cost – 7.1% of total material cost
  • Window cost – 5% of total material cost
  • Flooring cost – 9.3% of total material cost
  • Plumbing Cost – 8.6% of total material cost
  • Electrical cost – 4.3% of total material cost
  • Painting cost – 2% of total material cost
  • Other material cost – 5.1% of total material cost

Labour Construction Cost Breakup

Labour cost in construction depends upon the skill set of labour and prevailing market labour cost. Construction cost of labour can also be calculated based on per square feet rate or per square meter rate.

Shown below is the approximate cost of labour for particular work in both per sq. ft. and sq. m. rates.

Construction ItemRate per Sq. m.Rate per SqftPercentage
RCC Construction Work10239535%
Masonry and plaster work6466022%
Plumbing work162156%
Waterproofing work130124%
Carpentry Work8783%
Tile fixing work3233011%
Electrical work195187%
CATV Antenna points5452%
Painting work162156%
Departmental labour130124%
Labour construction cost break up

Major cost of construction is the RCC work of a building. 35% of the total cost of labour goes into RCC construction work.

After RCC work of beams, column and slab, masonary work is started which is second most costly work. Almost 22% of total cost of labour is attributed to masonry work.

After these 2 work is finished then comes the finishing activities like plumbing, electrical work, tiling and painting works.

Major Labour construction cost of building are as listed below:

  • RCC construction work – 35% of total labour cost
  • Masonry and plastering work – 22% of total labour cost
  • Plumbing Work – 6% of total labour cost
  • Water proofing work – 4% of total labour cost
  • Carpentry work – 3% of total labour cost
  • Electrical work – 7% of total labour cost
  • Tile fixing work – 11% of total labour cost
  • Painting work – 6% of total labour cost
  • Departmental labour – 4% of total labour cost

Frequently Asked Questions (FAQ)

What does “construction cost breakup” mean?

A construction cost breakup refers to a comprehensive breakdown of all the expenses involved in the construction of a building. It dissects the various components and elements of the project to provide a clear understanding of where the financial resources are allocated.

Why is understanding this important?

Understanding a construction cost breakup is crucial because it offers transparency and insight into the allocation of funds. It allows stakeholders to make informed decisions, plan the budget accurately, and manage resources effectively during the construction process.

How can one estimate construction costs accurately?

To estimate costs accurately, it’s important to gather quotes from suppliers and contractors for various components. Utilizing historical cost data, consulting industry professionals, and using construction cost estimating software can also help in arriving at a reliable estimate.

Do labour costs vary, and if so, why?

Yes, labour costs can vary significantly based on factors such as geographical location, the complexity of the project, local labour market conditions, and the availability of skilled workers. Labour costs are also influenced by factors like union regulations and prevailing wage rates in the area.

Are there strategies to control construction costs?

Absolutely. Some strategies include meticulous project planning, competitive bidding to get the best prices from contractors, value engineering to optimize costs without sacrificing quality, consistent monitoring of expenses throughout the project, exploring cost-effective material alternatives, and efficient project management to minimize delays and rework.

What do “soft costs” and “hard costs” refer to in construction?

Soft Costs: These are non-physical expenses related to the project, including design fees, permits, legal costs, insurance, and administrative expenses.
Hard Costs: These are direct expenses related to the physical construction, encompassing materials, labour, equipment, and construction-related fees.

How can unexpected costs during construction be managed?

It’s wise to allocate a contingency fund, which is a percentage of the total project cost, to account for unforeseen expenses or changes that might arise during construction. This cushion can help prevent budget overruns.

Can cost-cutting compromise the quality of construction?

Not necessarily. Cost-cutting can be achieved through smart choices like opting for cost-effective materials, optimizing the design for efficiency, and still maintaining high standards of quality by employing skilled professionals and adhering to best practices.

How does technology impact construction costs?

Technology, such as Building Information Modeling (BIM), project management software, and prefabrication techniques, can lead to cost savings by streamlining processes, reducing errors, improving communication, and enhancing overall project efficiency.

Are there differences in cost breakdowns for residential and commercial construction?

Yes, residential and commercial construction projects have distinct cost breakdowns due to variations in regulations, materials used, project scale, and functional requirements.

How often should cost estimates be updated?

It’s advisable to update cost estimates regularly, especially when there are changes in the project scope, design modifications, or unexpected cost fluctuations.

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