Quick answer: A labour-only contract in Lahore costs about PKR 600 to 850 per sq ft for grey structure in 2026, but you buy and manage all materials yourself. A with-material contract costs about PKR 2,800 to 3,800 per sq ft and the builder supplies materials to an agreed specification. Labour-only is cheaper on paper only if you can buy materials at good rates, control wastage and supervise the site daily. For most homeowners, a well-written with-material contract gives better value and lower risk.
What Is a Labour Rate (Labour-Only) Contract?
In a labour-only contract, the contractor (thekedar) provides masons, steel fixers, carpenters and labourers, and is paid per square foot of covered area. The owner purchases cement, steel, bricks, sand, crush, pipes and all other materials, arranges delivery and stores them on site.
Typical labour rates in Lahore (2026)
| Work | Approximate labour rate |
|---|---|
| Grey structure (complete shell) | PKR 600 - 850 per sq ft of covered area |
| Finishing labour (all trades) | PKR 700 - 1,500 per sq ft |
| Plaster only | about PKR 28 - 40 per sq ft of wall |
| Tile fixing | about PKR 25 - 60 per sq ft, depending on tile size |
Rates vary by area, project size and contractor experience. Check exactly what each rate includes, such as shuttering material, scaffolding, water and electricity.
What Is a With-Material Contract?
In a with-material contract, the builder supplies both labour and materials at a fixed rate per sq ft or an itemized BOQ price. The contract should name every material, such as cement brand, steel grade, brick class, sand and crush source, and concrete ratios. Our A, A+ and A++ specification guide shows what a properly written specification looks like.
Side-by-Side Comparison
| Factor | Labour-only | With-material |
|---|---|---|
| Headline rate | Lower | Higher (includes materials) |
| Owner's time | Very high: daily buying, checking, storing | Low to moderate: stage inspections |
| Price risk | Owner carries all material price rises | Builder carries it, unless an escalation clause applies |
| Wastage control | Owner's responsibility; labour has little incentive to save | Builder's responsibility |
| Quality accountability | Split: disputes over whether material or workmanship failed | Single point of responsibility |
| Theft and storage losses | Owner's loss | Builder's loss |
| Best for | Owners with time, experience and supplier contacts | Busy professionals, overseas owners, first-time builders |
The Hidden Costs of Labour-Only Contracts
- Retail material prices: Individual buyers rarely get the rates that builders get for bulk and repeat purchases.
- Wastage: Over-mixing cement, broken bricks and offcut steel can add 5 to 10 percent to material cost.
- Idle labour: If materials arrive late, work stops and the schedule slips.
- Your time: Visiting suppliers and the site daily has a real cost, especially for working professionals.
- Quality failures: Poor materials or ratios cause cracks and seepage that cost far more to fix later. See common structural defects.
Example: 10 Marla Grey Structure (3,400 sq ft)
| Item | Labour-only | With-material |
|---|---|---|
| Labour | PKR 20 - 29 lakh | PKR 95 lakh - 1.05 crore (standard specification) |
| Materials bought by owner | PKR 68 - 75 lakh at good rates | |
| Wastage, transport, storage, idle days | PKR 4 - 8 lakh | Included |
| Realistic total | PKR 92 lakh - 1.12 crore | PKR 95 lakh - 1.05 crore |
Once wastage and management are counted, the gap usually narrows to a few percent, or disappears, while the owner's risk and workload are much higher. See the full 10 marla cost guide.
How to Protect Yourself in Either Contract
- Use engineer-approved drawings and an itemized BOQ.
- Write down material brands, grades and ratios.
- Tie payments to completed, inspected stages.
- Keep a retention amount (for example 5 percent) until defects are cleared.
- Agree how price escalation, variations and delays are handled.
Use our construction contract checklist and quality checklist before signing.
Planet Builders offers with-material grey structure and turnkey contracts with written specifications, so you get fixed accountability for both materials and workmanship.
Frequently Asked Questions
What is the labour rate per sq ft in Lahore in 2026?
Grey-structure labour typically costs PKR 600 to 850 per sq ft of covered area, and finishing labour PKR 700 to 1,500 per sq ft, depending on scope.
Is labour-only construction really cheaper?
The headline rate is lower, but after wastage, retail material prices and management time, the saving is usually small and the risk is much higher.
Who is responsible for quality in a labour-only contract?
Responsibility is split. The contractor answers for workmanship and the owner for materials, which often leads to disputes when defects appear.
Can I switch from labour-only to with-material during the project?
Yes, at a stage boundary such as after grey structure, as long as the work done so far is inspected and documented.
Not sure which contract suits you? Talk to Planet Builders & Interiors for a clear comparison based on your project.