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.

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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:


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Construction Labor Budget - Alternate Perspective
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Construction Labor Budget - Alternate Perspective
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Issue 8 of 9: Industry Trends
Construction Ownership Transition Issue 8 of 9: The Construction Industry is Seeing Large Shifts With Several Interrelated Trends. How well the company is positioned will have a huge impact on valuation and cash generation.
Succession Planning at All Levels
If a construction company is growing at 15% per year, then it will double in size about every five years. Therefore, in general, every position must be training at least two people that will be capable of succeeding them within five years.
Process Improvement and Cycle Times
When contractors grow inefficient processes usually get substantially more inefficient dramatically changing the Return on Investment (ROI) model. Saving a few minutes over 1,000 cycles per month means $60K+ potential savings over a couple years.