Unreal can automatically combine meshes to reduce draw calls if they use the same material, so if you have stuff that just uses some solid colors it can definitely help to use a single material with a color swatch texture for them so that they’re all using one material and can be combined into fewer draw calls
Here’s a screenshot of what I mean:
There’s a texture that has a grid of all of the colors needed, I just made it in Photoshop, and you don’t need it to be all that high resolution.
You then need to select the mesh/polygons that you want to be a specific color and UV map them so that the UV’s are on the color that you want that to be. In 3ds Max, I just use the Unwrap UVW Modifier and then use Planar mapping with the selection (to group the selection together) and then a position and scale it over the color I want in the texture. It’s OK if the polygons overlap, you’re just applying a basic solid color texture.