"even a 10% improvement in efficiency can result in an additional 5% profit" Labour is often a major component of the costs on a construction project. It sometimes accounts for more than 50% of the costs, meaning even a 10% improvement in efficiency can result in an additional 5% profit. Of course the converse is true, and if labour is 10% less efficient than expected then the profit is reduced by 5%. But it’s usually more than just the direct costs of the workers. Low productivity means more workers are required, which adds additional costs for accommodation, transport, mobilisation and supervision. Poor productivity also impacts the construction schedule which can result in the client imposing penalties for late completion, as well as the contractor incurring additional overhead costs. Poor labour productivity is sometimes obvious when there are people standing idle on the construction site. However, often the poor productivity isn’t picked up before there are delays to the construction schedule, or the cost reports show labour losses. Usually by then it’s too late to rectify the problem. It’s imperative to analyse why there’s poor productivity. There’s some truth in the saying ‘a busy worker is a happy one’. Workers who are idle tend to chat to colleagues, even influencing and interrupting others who are working, and start to see and create problems where there weren’t problems before. (Read next week's article Why is there poor productivity on your construction project? which discusses the possible causes of poor productivity.) #constructionproductivity #constructionprojects #constructionmanagement "A combination of theory and actual..very detailed approach." Reader review of Construction Project Management on Amazon Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
Visit to read more. The books are available in paper and ebook from most online stores including Amazon. © 2022 This article is not to be reproduced for commercial purposes without written permission from the author. construction management construction project management
1 Comment
15/8/2023 10:21:55 am
This post really got me thinking! I love how you presented a unique perspective on the topic. It's always great to see different viewpoints being explored.
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