How to set your labour rates in construction
Price by unit of work: per m² (tiling, paint, render), per point (electrics), per leaf (joinery) or per job. A fair price covers your time, your overheads and a margin — and stays legible to the client. Underpricing to win a job is the most common trap.
Labour is what you really sell. Costing it at random means working at a loss without knowing it. Here is how to set prices that hold.
Think per unit of work
Construction is costed per unit: the laid m² (tiling, paint, render), the point (sockets, switches in electrics), the leaf (joinery), the linear metre or the lump sum for a complete task. A clear unit price can be compared, defended and reused from one job to the next.
Cover time, overheads and margin
A good labour price covers three things: the time actually spent, your overheads (travel, small tools, consumables) and a margin that lets you live and invest. If your price only covers time, you are working at a loss.
The 30–40% benchmark
On a residential site, labour is commonly 30 to 40% of materials cost. It is a check that a quote hasn't forgotten to price it — not an absolute rule: very technical or very manual work falls outside that range.
Don't underprice
Cutting your price to win a job attracts clients who will always haggle and erodes your professional reputation. A clear, justified quote with a deposit beats being the cheapest.
Let the tool hold your rates
SangoImmo costs labour by trade with your rates (per m², per point, per job) and reapplies them to every quote. Your prices become consistent across jobs, in your currency.
Sources and references
- Method and tooling: the SangoImmo costing engine and editable quote — see the methodology.
- Business registration: each country's one-stop shop (CEPICI in Côte d'Ivoire, APIX in Senegal, CFCE/GUCE-type centres elsewhere). Procedures and fees are set nationally.
- Trade norms checked by the app: NF DTU codes of practice, SANS 10400, CEMAC/UEMOA-region practice. Verify local building permits with your council.
Frequently asked questions
- How do I set labour rates in construction?
- Per unit of work (per m², per point, per leaf, per job) covering your time, your overheads (travel, tools, consumables) and a margin. A useful benchmark: labour is commonly 30 to 40% of materials cost on a residential site.
- Should I charge per m² or per job?
- Per m² (or per point, per leaf) when the task is repetitive and measurable — it is legible and comparable; per job for a complete service. Many tradespeople combine both depending on the item.
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