BULDING PROJECTS LABOUR COSTS AND GENERAL GUIDE TO PROFESSIONAL FEES
These are general guide on charges for bulding projects in Kenya where the engineer is not the lead consultant based on the fifth schedule of the engineer’s scales of fees and excludes engineering systems such as internal fitouts/fittings, extensive civil works and large scale housing estates that are guided by other schedules within the regulation.
However, for ease of determining the possible cost of labour for your building project, other regulations including the scale of fees for architect’s and other general charges and costs within the industry have been provided. Note, the law allows for negotiation but not below the minimum limits with flexibility for repetitive work which are properly guided especially within the scale of fees for the engineers particularly for engineering services and engineers’ engagement.
Core Consultants
1. Architects charge a minimum of 6% project cost + VAT
They acts as lead designer and takes care of site analysis, project conceptualization,
outline design, scheme design, detailed design and occasional supervision.
2. Structural Engineers charge a minimum of 3.5% to 4.5% of project cost + VAT
Works closely with architects and take charge of project structures including design and supervision. They evaluate forces acting on building elements determining the optimal design for the support system and ensure the design is accurately implemented in the construction phase.
3. Quantity Surveyors charge a minimum of 3.5% of project cost + VAT
They use the architectural, structural, mechanical and electrical layouts to come up with bills of quantities and continue with cost appraisals throughout the construction period.
4. Electrical Engineers are paid a minimum of 2% to 2.5% of project cost + VAT
They design and inspect bulding project’s electrical layouts and the accompanying fittings
5. Mechanical Engineers charge a minimum of 2% to 2.5% of project cost + VAT
They handle design and inspection of project plumbing, drainage and ventilation systems including sanitary fittings
6. Civil Engineers are paid a minimum of 1% to 1.5% of project cost + VAT
They work closely with structural engineers to determine overall structure forces, analyze the geotechnical properties, bearing capacities of the project area material and design foundations, retaining walls, substructure elements and other civil works which are small scale in nature for a building project.
7. EIA Expert charge 1% of total project cost + VAT
They conduct Environmental and Social Impact Assessment, hold public engagements, prepare and submit reports to NEMA as well as address any issues raised by the authority.
Further, the regulations sets options for time based payment especially when engineers are not necessarily conducting works of engineering nature such as project management, public private partnership (PPP) proposal preparation, on-site construction monitoring and supervision, performance testing, investigative surveys, project appraisal, advise on works done by other engineering firms, project implementation, completion of works that were abandoned by the contractor and preparation of proposal. These time based charges for engineers for non standard professional engineering services depends on the experience level of the engineer for activities requiring hourly (upto 40hrs/1 week), daily (40 to 200hrs), or monthly (more than 200hrs) engagement.
The time based fees for engineers in Kenya are as follows across various professional categories
E5 category of engineers : Graduate engineers in Kenya supposed to earn a minimum of Kshs.4,500 per hour, Kshs.27,000 per day, or Kshs.450,000 per month
E4 category of engineers: consultants who are registered as professional engineers charge Kshs.7,000 per hour, Kshs.42,000 per day or Kshs.700,000 per month.
E3 category of engineers: senior engineers with post professional registration experience of at least 5 years are paid a minimum of Kshs.8,500 per hour, Kshs.51,000 per day or Kshs.850,000 per month
E2 category of engineers: the principals or directors of consulting engineering firms in Kenya will charge a minimum of Kshs. 10,500 per hour, Kshs.63,000 per day or Kshs.1,050,000 per month
E1 category of engineers: specialist engineers who are recognized as authorities in the field charge a minimum of Kshs. 12,500 per hour, Kshs.7,500 per day or Kshs.1,250,000 per month.
Project Management
1. Project management services charge 4%-9% of the total project cost + VAT
They offer feasibility analysis, fulltime on-site service supervision, procurement administration, schedule planning and tracking, contract administration, contract closeout appraisal, material testing and evaluation as well as change order management.
Auxiliary Consultants
1. Interior Designer charges 12%+VAT of the interior design works
These are purely for interior design works only
2. Land surveyor charge 1.6% +VAT of total cost of development
They provide site GPS, topographical and cadastral surveys as well as land subdivision administration
3. Facility Manager charge 1.6%+VAT total of building project
Prepare building maintenance schedules and subsequent maintenance management.
Contractor
Registered contractors take up around 30%-35% of the building costs
However, it is good to note the difference in labour rates across construction stages and building elements vary widely and demonstrated below.
Other General labour rates
1. Building Foreman charge between Kshs.2,000 – Kshs.3,000 per day (8hrs)
2. Skilled laborers/fundis charge between Kshs.1,000 – Kshs.2,000 per day (8hrs)
3. Non-skilled laborers/mtu wa mkono charge between Kshs.400 – Kshs.800 per day (8hrs)
General Elemental costs
a. Foundation labour costs add up to 40-50% of the corresponding material costs. Cumulatively, foundation labour and materials costs is about 11% to 16% of the total construction costs. They include site bushes and trees clearance, topsoil removal, site excavation, drainage areas grading, installation of concrete footings, foundation and retaining walls erection, foundation area backfilling and ground floor slab construction.
b. Superstructure works labour costs are about 20-30% of the corresponding material costs. The cost for these elements accounts for about 17% to 25% of the total construction costs. They include steel reinforcement bars, formwork, structural frames, slabs and roof trusses.
c. Roofing and interior finishing works labour charges are about 35-45% of the corresponding construction material. The total cost for interior finishes is about 23% to 32% of the total costs of construction. They include plumbing fixtures, electrical fixtures, interior plastering and painting, flooring, worktops and cabinets, interior trims, interior doors and windows, interior walls and partitions, interior insulations and celling boards
d. The general costs of exterior finishes is about 13% to 18% of the total construction costs. They include exterior walls, exterior cladding, windows and doors, exterior plastering and painting and roofing.
e. The Mechanical, electrical and plumbing (MEP) systems cost about 10% to 14% of the total project costs. They include plumbing ducts, pipes and chambers; draining pipes, channels, ducts and chambers, water tanks, septic tanks, manholes, cesspit, rainwater harvesting systems, soak-way, bio-digester, refuse chute, water pumping and heating system, electrical pipes, cables and air conditioning system, solar panels, lightning arrestor and fire hose reels and cabinets.
Conclusion/General Rule of the Thump
Therefore, the labour cost for a building projects regardless on the choice of contract approach whether traditional general contracting, Design and Build or Construction Management will range from 25% to 50% of the total construction costs.