Labor is often the biggest cost variable on a construction project. Just over half the field hours are related to actual installation. Understanding how time is spent on average in the field is the first step to improving field productivity.
estimating field productivity labor productivityFor a contractor to truly improve their field productivity, they must start with understanding how the time is spent. Depending on the trade, project, and the labor, study the time spent on actual installation ranges from 50-64%.
estimating field productivityThis outcome-based scoreboard keeps everyone focused on what matters. Avoid metric overload and diffusion of resources. All other metrics throughout all levels of the organization fall into a hierarchy below these with priorities changing over time.
business management business planning cash flow metrics scoreboard successionContractors can improve their field productivity significantly just through deliberate talent management processes. While the process of continuous forced differentiation seems harsh it is actually the kindest thing you can do for everyone on the team.
An improvement of a few minutes per day to actual installation time compounded monthly is worth about $800K per year for a $25M contractor. What is it worth to you? Improvements to field productivity can be viewed as 4 major stages of a pyramid.
labor productivityWhat would it be worth for your company to improve your field productivity? There is an incredible amount of low-hanging fruit to be picked when it comes to improving labor productivity.
labor productivityContractors build things and that comes down to the men and women in the field. They are the ones adding the value to the raw materials and that is ultimately what the customer is paying for.
foreman training labor productivityThe rate a contractor can grow is the average speed the team learns and teaches at. We are all teachers and we are all students. There are many things that we can do to improve ourselves on both sides of that equation.
Construction contracting is a highly competitive business in a rapidly changing market. The “Invisible Hand” of the market is constantly demanding that construction projects are delivered:
JFK used words effectively to reframe mindsets to great effect with lessons all leaders can use. What can you take away from this for your next communication with your team?