Assessment of Human Resource and Material Cost Proportions in Building Construction Projects

Idrus Niapele; Amiruddin Muhammad; Fitriyanti Faruk

doi:10.62394/scientia.v4i2.260

Authors

Idrus Niapele Faculty of Engineering, Universitas Nuku
Amiruddin Muhammad Faculty of Engineering, Universitas Nuku
Fitriyanti Faruk Faculty of Engineering, Universitas Nuku

DOI:

https://doi.org/10.62394/scientia.v4i2.260

Keywords:

construction cost analysis, human resource cost, material cost, project management

Abstract

This study examines the proportional distribution of human resource (HR) and material costs in building construction projects, using the Rectorate Building construction at Nurul Hasan University as a case study. Efficient cost allocation is a critical component of construction project management, as imbalances between labor and material expenditures can lead to budget overruns, schedule delays, and compromised quality. Employing a quantitative descriptive approach, this research analyzes official project documents, including the Bill of Quantities (BoQ) and standardized unit price analyses, to determine the relative contributions of HR and material costs across major work categories. The findings indicate that material expenditures significantly dominate project spending, accounting for 80% of the total direct cost, while HR costs represent only 20%. Work categories such as reinforced concrete, masonry, roofing, and carpentry demonstrate strong material dependency due to the high cost of construction materials such as steel, cement, aggregates, timber, and prefabricated components. In contrast, preparatory and early-stage works show a higher proportion of labor costs, reflecting their reliance on manual activities. The study also evaluates indirect costs and contractor profit margins, revealing that non-resource expenditures constitute 10% of the total project value, and the contractor’s profit margin stands at 9.1%, both of which fall within acceptable industry standards. These results highlight that while material management plays a decisive role in cost efficiency, effective labor allocation and supervision remain essential for ensuring construction quality. Overall, the research offers valuable insights for practitioners seeking to improve cost control strategies in medium-scale building construction projects.

Downloads

Download data is not yet available.

References

Ajayi, S. O., & Oyedele, L. O. (2018). Waste-efficient materials procurement for construction projects: A structural equation modelling of critical success factors. Waste Management, 75, 60–69.

Ajayi, S. O., Oyedele, L. O., Akinade, O. O., Bilal, M., Alaka, H. A., & Owolabi, H. A. (2017). Optimising material procurement for construction waste minimization: An exploration of success factors. Sustainable Materials and Technologies, 11, 38–46.

Allwood, J. M. (2014). Squaring the circular economy: the role of recycling within a hierarchy of material management strategies. In Handbook of recycling (pp. 445–477). Elsevier.

Anggraini, E., Alqoisya, N., Nuraeny, I., Fauziah, L. F., Huda, M., & Hadiati, E. (2024). Human Resource Management Concept. Proceeding of International Conference on Education, Society and Humanity, 2(2), 1456–1465.

Aust, J., & Pons, D. (2020). A systematic methodology for developing bowtie in risk assessment: application to borescope inspection. Aerospace, 7(7), 86.

Caldas, C. H., Menches, C. L., Reyes, P. M., Navarro, L., & Vargas, D. M. (2015). Materials management practices in the construction industry. Practice Periodical on Structural Design and Construction, 20(3), 4014039.

Carter, W. K., & Usry, M. F. (2006). Akuntansi Biaya Jilid 1 (Edisi 13). Jakarta: Penerbit Salemba Empat.

Chase, J. P. (2001). Value creation in the product development process. Massachusetts Institute of Technology.

Chelsom, J. V, Payne, A. C., & Reavill, L. R. P. (2005). Management for engineers, scientists, and technologists. John Wiley & Sons Hoboken, NJ, USA.

Dang, G., & Pheng, L. S. (2015). Infrastructure investments in developing economies. Springer Science Business Media Singapore. DOI, 10, 978–981.

DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of human resource management. John Wiley & Sons.

Dionisio, C. S. (2017). A Project Manager’s Book of Forms: A Companion to the PMBOK Guide. John Wiley & Sons.

Ekholm, A., & Fridqvist, S. (1996). A Conceptual Framework for Classification of Construction Works. J. Inf. Technol. Constr., 1, 25–50.

Ervianto, W. I. (2013). Manajemen limbah dalam proyek konstruksi. Semin. Nas. Arsit. SCAN, 1–9.

Fewings, P., & Henjewele, C. (2019). Construction project management: an integrated approach. Routledge.

Gann, D. M., & Salter, A. J. (2000). Innovation in project-based, service-enhanced firms: the construction of complex products and systems. Research Policy, 29(7–8), 955–972.

Gulghane, A. A., & Khandve, P. V. (2015). Management for construction materials and control of construction waste in construction industry: a review. International Journal of Engineering Research and Applications, 5(4), 59–64.

Hussain, S., Maqbool, R., Hussain, A., & Ashfaq, S. (2022). Assessing the socio-economic impacts of rural infrastructure projects on community development. Buildings, 12(7), 947.

Jackson, S. E., & Schuler, R. S. (1995). Understanding human resource management in the context of organizations and their environments. Annual Review of Psychology, 46(1), 237–264.

Kerzner, H. (2013). Understanding best practices. Project Management Best Practices, 1–79.

Kerzner, H. (2023). Project Based Problem Solving and Decision Making: A Guide for Project Managers. John Wiley & Sons.

Lopes, J. (2012). Construction in the economy and its role in socio-economic development. In New perspectives on construction in developing countries (pp. 40–71). Routledge.

Miles, R. E., & Snow, C. C. (1984). Designing strategic human resources systems. Organizational Dynamics, 13(1), 36–52.

Pitkänen, A. (2024). The role of material management in construction projects: investigating material inventories and material waste.

Planning, H. C. N. S. (2004). Implementation. Beijing: China.

Project Management Institute. (2017). The PMI guide to business analysis. Project Management Institute.

Rajamani, M. R. (2021). Enhancement of 6M Methodology as a Design for Assembly Tool for Developing Effective Aerostructures Assembly Process Designs. SAE Technical Paper.

Safa, M., Sabet, A., MacGillivray, S., Davidson, M., Kaczmarczyk, K., Gibson, G. E., Rayside, D., & Haas, C. (2015). Classification of construction projects.

Soeharto, I. (1997). Manajemen proyek dari konseptual sampai operasional.

Vitalaya, F. L., & Muda, I. (2021). Cost Accounting: Its use with information technology systems. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 289–293.

Walker, A. (2015). Project management in construction. John Wiley & Sons.

Warfield, I., Hogg, C., Lee-Urban, S., & Munoz-Avila, H. (2007). Adaptation of Hierarchical Task Network Plans. FLAIRS, 429–434.

Wells, J. (2007). Informality in the construction sector in developing countries. Construction Management and Economics, 25(1), 87–93.

Wibowo, K. (2015). Cost Allocation Model In Construction Projects. International Conference on Coastal and Delta Areas, 1(2), 141–146.

Winch, G. M. (2012). Managing construction projects. John Wiley & Sons.

Wisnujati, N. S., Zuhriyah, A., Sangadji, S. S., & Suhardi, S. (2025). Management project performance in Indonesia’s food estate development: A stakeholder, institutional, and communication perspectiv. Journal of Project Management, 10(2), 417–428. https://doi.org/10.5267/j.jpm.2024.12.004