The dry payout

The calculation of the dry disbursement is necessary for the development of any estimate. It also has other functions, such as serving as a basis for preparing a construction site and improving its profitability. This article details the method and gives tips for using it effectively.

Dry disbursement: definition

The dry outlay corresponds to direct expenses related to the execution of each of the works. Before a construction site, the quantity surveyor “figures” each of them to assess its cost.

Encryption is divided into three elements:

• The workforce,
• The materials,
• The hardware.

In other words, the sum of the dry disbursement of each of the structures and trades corresponds to total immediately required costs to carry out a construction project. It is required to assess The profitability of a construction site.

A component of the cost of production

The dry payout is integrated into the cost. It therefore does not take into account the company's margins or fixed costs (which will be added later). For greater clarity:

• Dry disbursement + Construction costs = Total disbursement.
• Total disbursement + Structure costs = Cost price.
• Cost + gross margin = Sales price excluding taxes.

The dry disbursement method is essential in the preparation of the estimate and for the effective management of resources. It also allows you toEvaluate the profitability of a construction site.

The calculation of the dry disbursement

The calculation of the dry disbursement of a project is therefore as follows:

Dry disbursement = Labor cost + Supply cost + Material cost.

To do this costing, start by detailing each element:

• Labor cost: Multiply the hourly rate by the number of hours required for the work.
• Cost of supplies: Calculate by multiplying the unit price by the original quantity used plus the loss coefficient.
• Hardware cost: Determine the rental price or depreciation amount.

Example of a dry outlay for the construction of a brick wall

1. Labor cost:

Hourly rate: €40.

Estimated time: 8 hours.

Labor cost = €40/hour x 8 hours = €320

2. Cost of supplies:

Bricks: €0.50 per unit, 400 required.

Mortar: €10 per bag, 3 bags required.

Polyane: €2 per meter, 10 meters required.

Cost of bricks = €0.50 x 400 = €200

Mortar cost = €10 x 3 = €30

Polyane cost = €2 x 10 = €20

Total cost of supplies = €200 + €30 + €20 = €250

Prices are generally entered in the company's database. If needed, Batiprix can be used to access average material prices.

3. Hardware cost:

Rental of a concrete mixer: €50/day.

Material cost = €50 (for one day)

Total dry payout:

Dry outlay = Labor cost + Supply cost + Material cost

Dry payout = €320 + €250 + €50 = €620

The conditioning of unit prices can complicate the calculation of the cost of supplies. Some construction companies base their method on ratios and coefficients.

The dry payout is the basis for calculating overall profitability

The dry payout is fundamental for the preparation of the construction site by the construction manager and the site manager. An accurate calculation reduces the verification time and has a positive impact on the project:

• Basic calculations: The dry outlay establishes the initial cost of implementation. It helps determine the selling price and adjust margins.
• Precision and profitability: An accurate estimate increases the probability of profitability. A mistake can reduce profits or affect competitiveness.
• Frequent debates: the quantity surveyor and the construction manager often debate this calculation. Their collaboration is essential for an accurate assessment.

The dry disbursement is essential for the financial management of a construction site and therefore for optimize the overall profitability of the construction project. But it is important to look at other parameters to improve the performance of your construction business.

Alobees helps you optimize the profitability of your construction sites

Alobees is a construction site management software, available on PC, mobile and tablet. It simplifies and clarifies the management of your projects. Its intuitive interface offers a detailed view of the progress of work and improves financial management.

Thanks to Alobees and its hours management, simplify the calculation of your cost prices, thus allowing you to capitalize in order to optimize your future dry outlays.

Alobees improves site management in several ways:

• Centralization of documents: easily access all your important documents to make quick and informed decisions.
• Accessibility: stay connected with site information whether you're in the field, in the office, or on the go.
• Optimized communication: easily share critical information. This reduces the risk of misunderstandings and delays.
• Scheduling and monitoring tasks: organize and track work accurately for efficient use of resources.
• Timesheets: keep an eye on the schedule of your teams. This makes it easy to monitor labor costs.
• Simplifying payroll: manage the payroll variables of your staff, for less complex salary management.

Alobees is designed to meet the requirements of construction professionals. The software is accessible at a low cost, €40 per month for the Standard version and €80 for the Pro version, with an additional charge of €10 per user. Try Alobees free for 30 days and change your approach to construction sites!