Labour-only contract or turnkey: which costs less?

When you build a house you'll usually choose between two kinds of contract. With a labour-only contract you buy the materials and the contractor supplies the workers. With a turnkey (material + labour) contract the contractor handles everything for a per-sq-ft price.

What each typically costs

• Labour-only for the grey structure: typically ₹300–₹500 per sq ft built-up, plus the materials you buy.
• Turnkey construction, mid finish: typically ₹1,800–₹2,800 per sq ft built-up, all-in.
• Basic finish is about ₹1,400–₹1,800 per sq ft built-up, and premium about ₹2,800–₹4,500 per sq ft built-up.

These are all-India ranges; your city may be higher or lower. The cost guides show prices for every state and district.

Labour-only: more control, more work

• You choose the brands and see every bill, so you know exactly what went into the house.
• You can save the contractor's margin on materials.
• But you have to order on time, check deliveries and control wastage — delays and losses cost money.
• It works best if you, or someone you trust, can visit the site often.

Turnkey: one price, less hassle

• One contract and one point of contact.
• The contractor takes on material price changes during the agreed period — check the contract for an escalation clause.
• Quality depends on the brands and specifications written into the contract, so list them in detail.

How to compare quotes fairly

1. Make sure every quote uses the same area basis — built-up or carpet.
2. Ask for brands and grades for cement, steel, tiles, wiring, plumbing and paint.
3. Check what's excluded: compound wall, sump, borewell, approvals and interiors are common exclusions.
4. Compare payment schedules, not just the rate.