Construction is notorious for poor productivity. What contributes to this problem and how can we improve construction productivity on our projects?
Imagine if we could improve our labor productivity by just 5%. Not difficult one would imagine. If labor makes up 40% of a project’s cost then effectively you could save 2% on your project costs. 2% additional profit! Doesn’t sound like much? But if your profit margin was 10% then a 5% improvement in productivity could mean we now make 12% profit. Well that means we have increased our profits by 20%, and directors and shareholders would be more than happy with this. But improved labor productivity could also result in better equipment productivity, shorter construction times and reduced overheads leading to even more profits.
We often blame workers for the low productivity, which is sometimes the case. However, management can also play a significant role in improved construction productivity.
How can you improve construction productivity?
Here are some suggestions to improve construction productivity:
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Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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