A method for estimating labour requirements and costs for international construction projects at inception

Abstract

At project inception stage, a quick and reliable method of estimating labour resource requirements and cost, is desirable. This paper presents a fresh approach in that ambition. During inception, while design information is at a premium, cost forecasts should be within 20% of the final cost of the building. The method presented achieves this by utilising the productivity rates of contractors’ planning engineers for a ‘typical’ building type (in this instance, a concrete framed high-rise structure is featured). The estimated labour resource requirements for such a building constructed in France, Germany and the UK are calculated. Planned productivity rates form the basis of the estimate, these being used to generate a ‘Labour Estimate Factor’. This factor is defined as the man-hour requirements per square metre of the building’s gross floor area. Respective national all-in wage rates are then applied to forecast estimated budget costs, for construction in each international location. The calculations are based on a ‘typical’ design, hence, they are applicable to other buildings of similar type and form. Armed with relevant data, resource estimates could similarly be generated for alternative international locations, and, for different classifications of ‘typical’ building forms. The process will be of interest to practitioners and clients\\customers of the international construction industry.