Knowing where the money goes tells you where effort pays. Most of it goes into materials, and most of the material money goes into a few items.
The Split
| Head | Typical share |
|---|---|
| Materials | 55 – 65% |
| Labour | 25 – 30% |
| Contractor margin and overheads | 10 – 15% |
Inside Materials
| Material | Role |
|---|---|
| Cement | Concrete, mortar, plaster — every stage |
| TMT steel | The frame |
| Walling (AAC, bricks) | Walls |
| Sand and aggregate | Concrete and mortar |
| Finishes | Tiles, fittings, doors, windows, paint |
Cement and steel are fixed by the structural design and bought in large quantities — the best place to save by buying well.
Labour
Labour is usually quoted per sq ft of built-up area for the whole structure and finishing, or per item (per m³ of concrete, per m² of plaster). Labour cost grows with complexity and time:
- Complex shapes and elevations take longer.
- Waiting for materials still costs the day.
- Rework after design changes is paid twice.
The Short Version
Two-thirds materials, one-third labour and margin. Buy cement and steel well, cut waste, keep the design simple and keep crews supplied — that is where the savings are.
