Hello, everyone.

This is Enta.

At your company,For everyday useIf someone asked me that, how much would it be?

Let's break that down!

Average Annual Income of Public Construction Contractors

For example, the average annual income of workers in the construction industry

Construction Management Position: 6 million to 7 million yen

Field Workers: 4 million to 5 million yen

It is said that...

 

For a regular employee, let's assume an annual income of 5 million yen.

Although there are social insurance premiums and other costs, since this is a regular calculation, we will include them in the calculation.

Assuming work is performed on weekends and holidays throughout the year, the maximum number of construction days would be 250 (this is strictly a maximum).

Statutory Welfare Benefits (Company Share): Approximately 750,000 yen

The employer's share of social insurance (health insurance and employees' pension insurance), unemployment insurance, and workers' compensation insurance is calculated as approximately 15% of annual income.

Total Labor Costs: 5,750,000 yen

 

Addition of SG&A Expenses and Profit

Referring to the breakdown of public works cost estimates (common temporary facility costs, site management costs, and general administrative costs),

It is standard practice in the construction industry to add **30% to 40%** to labor costs. (This applies to both large and small/medium-sized companies.)

Item	Coefficient	Amount (Annual)	Notes
Labor Costs	1.0	5,750,000 yen	Salary + Statutory Benefits
Overhead Expenses and Profit	0.35	2,012,500 yen	Administrative expenses, supplies, vehicles, profits, etc.
Total Sales Target	1.35	7,762,500 yen	Annual Amount the Company Should Bill

Standard Daily Rate

250 working days per year

7,762,500 yen ÷ 250 days = 31,050 yen

Conclusion: Reasonable Pricing

• Minimum: 31,000 yen(I'll do it if I'm really bored—it doesn't benefit the company.)

• Reasonable Price Range: 33,000 yen to 35,000 yen(This is the absolute minimum if we're going to negotiate.)

• Target Price Range: 35,000 yen and up(Equipment. Taking into account equipment upgrades and contingency funds, I’ll stick with this general contractor!)

 

Even when compared to the “Public Works Design Labor Unit Rates (Reiwa 7/8 Fiscal Year Indicators)” for public works projects, the standard rate for many job categories is around 30,000 yen.

In order to guarantee an annual income of 5 million yen while also ensuring the company remains profitable,At least 35,000 yen (excluding tax)It is reasonable to accept the order at that price.

Or rather, since this is the bare minimum, if the budget is based on this, the unit price will definitely end up being unattractive. (For regular use)

 

If the major companies don't set their unit prices at this level, some contractors will definitely be unable to continue operating in the future.

However, from a cost estimation perspective, if this unit price is applied to a single trade, there is a very real possibility that the general contractor will not turn a profit.

Therefore, I think it would be safer to set the minimum unit price for contract work at 30,000 yen or more when doing your calculations.

There are benefits to buying in bulk, after all.

 

See you later.

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