Why is productivity poor in construction
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.
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How can you improve construction productivity?
Here are some suggestions to improve construction productivity:
Improving construction productivity is in your hands
Don’t be too quick to blame your workers for poor productivity. First look at management and ensure they are managing the project effectively and providing workers with the correct tools and skills. Even slight improvements in productivity can yield dramatic results in production, leading to improved quality, safety and profits. Managers need to be continually looking for ways to improve productivity, always checking there are no bottlenecks or roadblocks impacting productivity.
In Another 10 ways to improve productivity we look at more ways you can improve productivity on your construction projects.
#construction productivity #constructionmanagementtips #constructionprojectmanagement
This article was first published on the ClockShark website.
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