DEPARTMENT OF QUANTITY SURVERYING

FACULTY OF ARCHITECTURE, PLANNING & SURVEYING

REPORT B:

LABOUR COST

NAME : KHAIRUL AZMAN BIN ANUAR

MATRIX NO : 2013239324

GROUP : AP114 5F

INTRODUCTION

Construction and Manufacturing

OBJECTIVE

The objective of this report is:-

3.0 DEFINITION OF LABOUR

SOURCES OF LABOUR

The sources of labour in Malaysia can be divided into two categorized which is:

Sources of Labour

Local labour

Foreign labour

LABOUR CATEGORIES

SKILLED LABOUR

Skilled labourers are labourers who have certain skills in certain trades.

1) Bricklayer

2) Concreter

3) Masonry

4) Carpenter

5) Steel bar & welder

6) Plasterer

7) Pavior

8) Painter

9) Glazier

10) Plumber

11) Drain layer

12) Operator

13) Lorry driver

14) Bitumen worker

UNSKILLED LABOUR

The unskilled labourers have two categories:

i. Male

ii. Female

The rate for male unskilled labour is higher compared female unskilled labour. This is because

male unskilled labourers can do more work as compared female unskilled labour as they are

genetically more superior physically. The rate for unskilled labour (male) is a RM 50 to RM 65 while

the female is in between RM 45 to RM 60 per day.

Not only that, their rates depends on the task given to them whether they work under a foreman or

under a skilled labourer.

SUB-CONTRACT LABOUR

A subcontractor labour is a person or a company hired by a general contractor to

perform part of the work of a construction job and they do the specific work based on the

skills and expertise. The different of both sub contractorlabour and skilled labour can be seen

based on their different rate wages.

DIAGRAM 2.5 The diagram above shows 2 types of subcontractor

Domestic subcontractor

Nominated subcontractor

TYPES OF SUBCONTRACTOR

DOMESTIC NOMINATED

LABOUR BY TRADE

In the construction industry, labour is the important aspect for the contractor to ensure the

project is completed follow the plan. Labours can be divided into their own trades. There are

many trades can be found in the construction works. These trades are specified based on

their experienced and skilled in that works. The trade are:-

A) CONCRETER

The concreter is responsible in ensuring the concrete mixing for a building is

following the standard specification and they also responsible to ensure the

strength of the building the concrete test done.

B) BRICKLAYER

The bricklayer is expert in arrangement and bonding of bricks for the building

wall. They are expert in Flemish bond, English bond and stretcher bond.

Bricklayers build walls, chimneys and other structures from masonry units

such as brick, block, glass block or stone.

C) DRAIN LAYER

Drain layers are responsible for sewerage, sump, manhole and other things

concerning the sewerage system. It must be done perfectly to ensure that the

sewerage system in the building does not be in function when it is used.

The drain layer must be skillful in deciding the pitch for the drains and its

depth.

D) MASONRY

It is almost similar to bricklayer except the sizes of the bricks and stones are

different.The main purpose of the masonry is to prepare a rubble retaining wall,

arches, fair face, sundries and any masonry work such as lintel, jambs, and quoins.

Normally these works are done externally. These works must be done very carefully

as the main purpose of this is to make it look tidy and clean.

The skill that they must have is to properly arrange the stones and because of this,

they must know the installation inside out.

They must also prepare any shape required by the client or employer.

E) PLUMBER

A plumber is the trade that installs and connects pipes as there are many types of

pipes such as soil and waste pipe and service pipes.

The installation of cold-water pipes is included in the works of a plumber where the

work must follow the specifications of the provided drawings. After the work is done,

the plumber is to install pipes and equipments based on the layout plan. Examples of

the appliances used by this trade are auger, spanner, braces, bits, rules, blowtorches,

squares and electrical cutter.

F) CARPENTER

Carpenters in the construction industry are responsible for works concerning

woodwork such as window frame, installation of formwork, doorframe and

others.

G) PAINTER

This trade involved in paint work to external and internal surfaces like wall,

ceiling, frame, windows, doors and etc.Painter not just having the skill of

painting but also the knowledge of it. Painters first prepare the surface to be

covered, so that the paint will adhere properly. This may require removing the

old coat of paint by stripping, sanding, wire brushing, or water and abrasive

blasting.

H) BAR BENDER

Bar bender or also known as a steel bar bender is working by bending reinforcement

bars. Although reinforcement bar usually arrive ready to use, ironworkers from time to

time must cut bars with metal shears or acetylene torches, bend them by hand or

machine, or weld them with arc-welding equipment. They fasten the bars together by

tying wire around them using pliers. When reinforcing floors, ironworkers place

spacers under the bar to hold the bars off the deck. Some concrete is reinforced with

welded wire fabric.

I) ROOFER

In this trade, rooter is responsible to place the root finishes and the installation of the

trusses. The trusses must strong enough to support all load of the peaces or sheets

at rooting material. The bad installation might cause the leakage or bending. That’s

why, during the installation at the rooting material, the rooter must install it patiently

andfollow the manufacture’s instruction. It is important because the root is the top

element at building and open to the sunlight and rain.

J) PLASTERER

The role of a plasterer is to plaster the walls of building after the wall has been

constructed.

This work is normally carried out after the construction of the wall is completed and

the plaster is used to cover the brick wall for a smoother finish.

Special skills are needed to ensure that the plaster is laid out evenly. Floors and

ceilings are other examples of components that can be plastered.

Plastering works also include items such as ‘skirting’, ‘gutter’, ‘on cornices’, ‘curves’,

‘arches’, ‘column’ and ‘beam’.

The true purpose of plastering is actually to cover small spaces and holes in the wall,

floor or ceiling.

K) WELDER

Welder is involve in steel work where they will heat the steel until molten and

fused or soft enough to hammer or pressed together, the welder must wear

goggles for eye’s safety. They will use electrical power to heat the steel and

tie the reinforcement bar.

SCHEDULE RATES OF PRICE LABOUR PREPARED BY STATES

ITEM DESCRIPTION UNIT STATES

KUALA

LUMPUR

PAHANG PERAK TERENGGANU

1. GENERAL

LABOUR

DAY RM 60.00 RM 50.00 RM 50.00 RM 55.00

2. MASON DAY RM 85.00 RM 75.00 RM 95.00 RM 75.00

3. CARPENTER DAY RM 100.00 RM 80.00 RM 120.00 RM 80.00

4. JOINER DAY RM 100.00 RM 80.00 RM 120.00 RM 80.00

5. CONCRETER DAY RM 100.00 RM 70.00 RM 95.00 RM 75.00

6. STEEL BAR

BENDER

DAY RM 100.00 RM 80.00 RM 100.00 RM 80.00

7. PAINTER DAY RM 80.00 RM 70.00 RM 110.00 RM 75.00

8. PLASTERER DAY RM 80.00 RM 70.00 RM 120.00 RM 70.00

9. FITTER DAY RM 120.00 RM 80.00 RM 100.00 RM 60.00

10. WELDER DAY RM 85.00 RM 85.00 RM 100.00 RM 80.00

11. BRICKLAYER DAY RM 100.00 RM 75.00 RM 100.00 RM 75.00

GRAPH SHOWS PRICE LABOUR BY STATES

Chart above shows the distribution of labour rate between four difference region

which is Kuala Lumpur, Perak, Pahang and Terengganu. This three labour rate, priced on

2014 from 4 difference contractor which is Nine Hundred Builder Sdn. Bhd (Kuala Lumpur),

Teras Khidmat Niaga (Perak),Syarikat Yusof Yasin Sdn. Bhd (Terengganu) and Ijhraa Sdn.

Bhd.(Perak) .

From the figure , we can see that the labour prices at Perak are higher than labour

prices at Kuala Lumpur, Pahang and Terengganu for most of the trades. For example, the

labour price for a plasterer in Perak is RM120.00 while in Kuala Lumpur is RM 80.00,

Pahang and Terengganu are RM70.00 for both which it is lower than the price at Perak.

As a conclusion, the location of the project also affected the labour cost. Usually, the

price of labour in rural area is lower than in urban area. It is because the cost for living is

higher in the city. However, sometimes labour for project in a distant area is much higher to

cover overhead costs such as travel and communication.

FACTORS INFLUENCING THE LABOUR PRICES

Labour rate will change along with time. From analysis before we can see difference contractor will have several differences between their rates. This is due to below factors:

I. Location

The location of the project will influence labour prices. Examples, comparison between construction in cities and rural areas, most labour hired in city will get higher payment than labours working at rural areas. This is because, the cost of living in cities are much higher than rural areas and small town. Sometimes, labour rate can be higher when the location of the construction area is difficult to get labour.

II. High-risk project

The risky project will influence the price of labour. Workers generally receive higher

compensation when the task they must complete are more complex or difficult. It is because

the labours need to face the high-risk situation on site.As for the risk taken, the insurance

need to be cover the workers and highskill needed to handle a risky situation, as not many

labour is willing to take a big risk.

III. Competition among the contractors

There are many contractor companies in our construction industry. It is divided to a certain

level or class of contractors, followed by the reputation and experience of the contractors.

For the tender competition, contractors will tackle the client by offering them a lower rate for

labours. There is why the competition among the contractors also is the one of the factors

towards the labour rate.

IV. Labours market

 Local labour cant fulfill domestic demands thus government allow foreign labour to be

imported to work as labour. In some situation foreign labour wage is much lower than the

local labours but their imported fees has being a big issued, thus many contractor use illegal

foreign worker to cut their wages expenses.

.

V. Size of projects

 Sizes of projects also influence the labour price. For example, in multimillion projects the rate of labour usually expensive than smaller project depends on the difficulty of the projects as contractor want to avoid any losses if there is variance of works.

VI. Government policy

Malaysia Government by the Ministry of Human Resource has started that the labour rate for

the local labour must be higher than the foreign labours. The purpose of the policy is to

attract our local people to involve with the construction sectors. The policy also wants the

local labour to get the specialty. By this causes, it will be a different in the labour price rate in

the industry.

VII. Completion period

The completion period of a project could affect the labour price. The more time needed in

completion a project required the more cost on labour price. For those project which the

client want to complete in short period of time, the rates of labour will be increased. It is

because sometimes the labour will do extra work or overtime which require a payment.

VIII. Expertise

The labour cost is depends on their expertise and skills in performing a certain tasks. Skilled labour will get a higher amount of wages comparing with semi-skilled and unskilled labour. This is because skilled labour can perform their work perfectly and always do a complicated work such as bricklayer, carpenter, and others.

They have used all the energy to complete the work on times specified. Besides that, they have to work in night that is very risky and they are exposed with an accident. At least, the increasing of their rates will balance with their work. All these factors are considered to determine their rates