Don't let overtime on your construction project eat your PROFITS

Often projects work excessively long shifts, or work weekends and public holidays. These longer hours are normally paid at overtime rates which could be anywhere from 50% to double the normal rate. Obviously the workers aren’t double, or even 50%, more productive during this time. In fact the opposite is normally the case, and as fatigue sets in the productivity declines. In addition, some of the supervision and management may be absent during this time which can result in workers being poorly managed and supervised.
Sometimes when overtime isn’t controlled, personnel will work on a weekend when they earn the overtime or penalty rates, and then take a day off in the week which would have been paid at normal rates.
Workers may be poorly controlled on weekends and they arrive on the project intoxicated, or they don’t work the hours they claim they have worked.
Another problem when work is carried out afterhours is that key personnel may be absent; for instance, if the crane operator decides not to work then other workers may be unable to do their work.
It’s therefore important when overtime is necessary that:
1. only work that has to be done after hours is performed
2. only those that are required for these tasks are allowed to work
3. the hours are carefully logged and monitored
4. there is adequate supervision present
5. the work areas and equipment are accessible
6. key personnel are present
7. the hours of individuals are monitored to ensure they don’t exceed the legislated hours, or the prescribed hours for the project
8. workers are monitored to ensure they don’t become fatigued
9. workers are paid correctly and in accordance with the prescribed overtime rates
10. all arrangements are in place for transport and access to the site
11. the client is aware work will be done after-hours
12. the project isn’t breaking any codes or regulations regarding noise restrictions or similar
(From the book 'Building a Successful Construction Company: The Practical Guide' by Paul Netscher)