Depending mainly on the terrain and soil conditions, road standards, machine, labour costs, road construction costs may vary considerably. Since road construction techniques are similar throughout the world, one can easily derive reasonable cost estimates once the main conditioning factors have been identified, by applying figures from similar road construction projects. We should decompose labor and machine costs into various components to simplify the process for estimating and forecasting road costs.
Decomposition can be done in the following ways
1- Crushing gravel
2- Gravelling, grading and compacting
3- Construction and environment protection works (bridges, retaining structures and soil stabilization works).
4- Miscellaneous work (like transport, delivery and minor earth works)
5- Project servicing costs0
As soon as the costs are estimated for the different components, unit costs (costs per m, per m3, per piece of construction work) should have been generated to simplify the cost estimating process.