Complete project costs

How to calculate transport and landed material cost

Landed material cost equals the purchase cost plus the transport, loading, offloading, handling, taxes, losses, and other charges required to place the usable material at the project location. Calculate it using the actual route and load plan rather than a flat percentage where possible.

Geographic scope: Road-delivered construction materials in Zambia

Build the quantity and load plan

Calculate the quantity to purchase after allowing for measured need and justified wastage. Confirm how much the selected vehicle can legally and practically carry, then calculate the required trips.

Price the route

Record origin, destination, distance, road conditions, access constraints, fuel assumptions, return-load treatment, waiting time, and whether loading and offloading are included.

Allocate transport to the BOQ unit

Divide the total delivery cost by the usable delivered quantity. Add that amount to the supplier unit price using the same unit as the BOQ.

Test alternatives

Compare a lower supplier price from farther away with a higher local price. Also test vehicle sizes, consolidated deliveries, and supplier-delivered options before selecting the landed rate.

Method and limitations

General estimating method; obtain route-specific quotations and confirm vehicle capacity and site access.