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Labour Costs

Labour accounts for an expenditure differently on different works. Usually, by labour costs, we mean those costs which the particular contractor spends himself on employment of the labour engaged on the work. For instance, to a road contractor, the cost of labour engaged on stone breaking at the quarry site is not of any material importance though the labour costs on spreading immaterial on road is of importance to him. The cost of labour depends on the extent of mechanistic on the work or the quantum of processing done 
on the building components. For instance, the cost of labour on a precast housing would be much less as compared to a conventional construction. Now-a-days, because of the management problems, stress is being laid on more and more mechanization. At the same time, the basic unit costs on more sophisticated construction has not gained wide acceptability. 

Normally, the labour cost component on finishing works are more. Though the labour cost component in normal works is in the range of 20% to 25%, the costs on labour in different subheads is different. Table gives a general idea of the break up. 
  Cost Component of Different Category
  Cost Component of Different Category 

Therefore, it is necessary to plan the category of workers for each work, judging the quality of work needed, importance of work and the quality of raw materials procured for the work. 

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