Construction costs in the construction and public works sector

Construction costs include indirect costs such as non-productive personnel, general equipment, and installation expenses. They are essential to the good management of a construction project. This article provides a better understanding of them.

What are the different construction costs?

Construction costs are divided into several expenditure items. Here are the main ones.

Management costs for non-productive staff

The costs of managing non-productive personnel are related to employees who, without being directly involved in physical work, play a role in the success of the project.

They are the site manager and the construction manager, and other people who are not directly productive.

Material costs that cannot be assigned to a specific elementary work

Non-assignable material costs are the costs of equipment and tools commonly used on the construction site. They are not attached to a specific work.

• Fixed site installations: workshops, storage areas, concrete batching plants, precast areas, etc.
• Lifting equipment: cranes, material hoists, etc. They are essential for moving materials and equipment.
• Transport equipment: trucks used to move equipment or materials (be careful not to put back what is already taken into account in the Flat cost). 
• Common tools: frequently used tools, such as circular saws, theodolites, and vibrating needles.

Installation and folding costs

Installation and deployment costs also include several aspects.

• Installation and folding: this includes the labour, materials, and materials required.
• Bungalows: they can accommodate offices, dining halls, or even changing rooms dedicated to workers.
• Materials and supplies: they include everything necessary to secure the construction site and make it functional (fences, panels...).
• Network connections: before the start of work, the site must be connected to water, gas, gas, electricity, fiber and the main sewer network.

Additional construction costs

Additional site costs include additional expenses essential to management, safety and communication around the project.

• Permits and insurances: the administrative costs necessary to start the construction site and ensure its protection and that of its workers.
• Consumables: small supplies that are not detailed in the dry outlay.
• Signage and communication: the essential elements both to guarantee safety on the construction site and to promote the project to the public.
• Heating and lighting: essential in bungalows and other temporary workspaces to create a safe and comfortable work environment.
• Safety equipment: they include everything needed to keep employees safe, from protective clothing to personal equipment.
• Caretaking: some sensitive sites may require the presence of a guard.
• Essays: tests can be carried out to verify the quality and conformity of the structures.

Construction costs differ significantly depending on the body of state, the role and size of the company, or the type of project. It is necessary to evaluate them accurately.

Why is it important to know your construction costs?

Knowing how to assess and limit construction costs is essential for optimize the profitability of your sites. Rigorous monitoring and careful management make it possible to reduce superfluous costs And ofincrease your margins.

This therefore involves careful monitoring of expenses at each stage of the project. Of course, taking care not to compromise quality or safety on the construction site.

How do you know if your construction costs are too high?

It is essential to regularly review the evolution of construction costs. Here are some tips:

• Regularly compare the actual costs with the figures established in advance. If spending exceeds expectations, find out why and adjust your strategy.
• Use project management software. They provide a clear view of the progress of work and help control costs.
• After each construction site, recalculate indirect costs with the help of your accounting team. Review your ratios regularly.

Some software is designed to facilitate these aspects. This is the case of Alobees, which was specially developed for SMEs in the construction sector.

Thanks to Alobees, optimize the profitability of your sites

Alobees is transforming site management for construction professionals. The application, accessible on PC, mobile and tablet, makes traditional methods obsolete.

Here are some of its features:

• Centralization of documents: gather all important documents in one place (Learn more).
• Communication: facilitate exchanges thanks to dedicated sharing tools and project-based news feeds (Learn more).
• Scheduling management: adjust the use of your human and material resources (Learn more).
• Task tracking: keep precise control over the progress of the work (Learn more).
• Intervention management: access the agenda of your employees in real time and create detailed intervention reports (Learn more).
• Time control: monitor timesheets for optimal management of labor costs (Learn more).
• Management of payroll variables: simplify the collection of payroll variables specific to companions (Learn more).

Alobees is suitable for managing small and medium-sized businesses. The software allows up to 20% time savings : test the difference for free for 14 days!