Research / Context statistics
Context
Figures that frame a disease rather than measure it, such as a typical planned margin. Never counted as a cost.
Figures that frame a disease rather than measure it, such as a typical planned margin. Never counted as a cost.
Updated 2026-11-02 · release v6 · all five diseases
Every figure
| Figure | Of | What it measures | Where | Confidence | Source |
|---|---|---|---|---|---|
| 46.5% | of construction cost | Outsourced services as a share of input costs, Australian construction industry | Australia | moderate | Infrastructure Australia (2024) |
| 21.3% | of construction cost | Employee labour costs as a share of total expenses, heavy and civil engineering construction, Australia 2024-25 | Australia | moderate | Australian Bureau of Statistics (2025) |
| 27.4% | of construction cost | Equipment and fuel as a share of the cost of road construction, Australia (2013 survey of road works) | Australia | moderate | Bureau of Infrastructure, Transport and Regional Economics (BITRE) (2013) |
| 31.8% | of construction cost | Labour as a share of the cost of road construction, Australia (2013 survey of road works) | Australia | moderate | Bureau of Infrastructure, Transport and Regional Economics (BITRE) (2013) |
| 40.8% | of construction cost | Materials as a share of the cost of road construction, Australia (2013 survey of road works) | Australia | moderate | Bureau of Infrastructure, Transport and Regional Economics (BITRE) (2013) |
| 9.89% | of contract value | Planned gross margin on Australian civil and transport work | Australia | moderate | Love, Irani, Smith, Regan & Liu (2017) |
| 1.98% | of contract value | Head office overhead as a share of the contract | Australia | low | O'Leary & Vaz-Serra (2025) |
| 1.7% | of construction cost | Diesel as a share of the cost of New Zealand heavy and civil construction, 2020 | New Zealand | moderate | New Zealand Infrastructure Commission / Te Waihanga (2023) |
| 10.1% | of construction cost | Direct equipment inputs as a share of the cost of New Zealand heavy and civil construction, 2020 | New Zealand | moderate | New Zealand Infrastructure Commission / Te Waihanga (2023) |
| 17.6% | of construction cost | Direct materials as a share of the cost of New Zealand heavy and civil construction, 2020 | New Zealand | moderate | New Zealand Infrastructure Commission / Te Waihanga (2023) |
| 41.8% | of construction cost | Intermediate service inputs, including installation work and engineering services, as a share of the cost of New Zealand heavy and civil construction, 2020 | New Zealand | moderate | New Zealand Infrastructure Commission / Te Waihanga (2023) |
The evidence
9.89%of contract valuePlanned gross margin on Australian civil and transport workAustraliaModerate confidenceContext
What it is. Mean margin excluding overheads, of contract value.
Range 6% to 9.89% (across studies)
Sample. 67 projects from one Australian contractor (9.89%); 8 Australian transport projects (almost 9%); six years of one contractor's ledgers (6% to 9%).
What it is not. Two of the three sources are one contractor's data each, and all three are the same research group. The docs page rounds this to 9%.
Where it came from
- Love, Irani, Smith, Regan & Liu (2017), Cost Performance of Public Infrastructure Projects: The Nemesis and Nirvana of Change-Orders · free copyaccepted manuscript, p.25 · source record
- Love & Ika (2021), The 'context' of transport project cost performance: Insights from contract award to final construction costsabstract, via IDEAS/RePEc (the full text returned 403) · source record
- Love, Ika, Ahiaga-Dagbui, Locatelli & Sing (2019), Make-or-break during production: shedding light on change-orders, rework and contractors margin in constructionabstract (margins of 6% to 9%) · source record
1.98%of contract valueHead office overhead as a share of the contractAustraliaLow confidenceContext
What it is. 1.98% of contract value, head office overhead.
Range 0.99% to 1.98% (scenario)
Sample. 30 senior Australian estimators, mostly building work.
What it is not. Our multiplication of two figures, one of them a UK 2002 number cited second-hand. Use your own rate if you have it.
Our arithmetic. Head office is 9.9% of preliminaries (table 4); preliminaries are 10% to 20% of the contract sum (introduction, citing Chan & Pasquire 2002). 9.9% x 10% = 0.99%; 9.9% x 20% = 1.98%.
Where it came from
- O'Leary & Vaz-Serra (2025), Challenges in pricing preliminaries costs for contractors: An Australian case studytable 4; introduction · source record
No context figures match this filter. Clear the filter.