Construction Labor Budget - Alternate Perspective

Improving craft labor productivity in construction will significantly reduce risk while providing a long-term competitive advantage for the contractor.

D. Brown Management Profile Picture
Share

It will provide job security and opportunities for every member of the team from the apprentice on the front-line through the senior management.  

Field Productivity: Your Project Budget an Alternate Perspective. Invoice representing the impacts of minimization.

For most contractors time spent on actual installation is less than 65% of the day.  The labor studies that form the foundation for the estimating unit databases we all use provide details for how time is spent in the field.  

As contractors focus on creating the “Perfect Day” for their field they must look at every step in their value stream focusing on minimizing all work that does not directly add value to the customer.

Sometimes it is important to backup and look at this non-installation time from the project level rather than seeing it as embedded in every labor unit detail.  This perspective allows you to make bigger decisions impacting productivity including:


Please contact us for a copy of the worksheet in the slide


Labor Productivity
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Labor Productivity
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow
If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.
Changes in Construction Survey
Changes are a part of the construction process with many underlying causes. While we have all heard the average of 10% changes on construction projects, it is interesting to look at an industry study for validation.
Incentive Compensation for Contractors - Behaviors
This is the fun part where you see actual behavioral change across your team and with your customers. The benefits accumulate slowly but build exponentially as objectives are achieved.