by Jeffrey C Kadlowec, Registered Architect

The success of any construction project is dependent on a wide variety of performance indicators. These greatly affect the labor profitability of a construction company making them commonly discussed and well-debated topic [1]. Manufacturing industries are highly standardized and extremely automated under controlled conditions, so comparisons to this sector are not accurate or entirely relevant. The changing site conditions, variety of building trades, and numerous stakeholders with conflicting interests create an environment where strategic management becomes crucial.

Productivity has been important to competitiveness and prosperity since the beginning of industrialization [2]. It can be a significant source of advantage for companies, while contributing to the well-being of society. Due to the size of the industry, construction is an important and influential variable governing the economy.
Low productivity yields are often the result of inefficient management of construction resources [3]. Contractors and construction managers must be aware of methods for evaluating productivity of equipment and laborers. Maintaining control of these contributing factors can achieve the expected income levels.

Productivity improvement however is not simply a matter of completing as many task possible in the shortest time allowable. The key is focusing on a predictable work flow to match available workload with capacity [3].

Automatic identification systems were developed to acquire data from equipment sensors [4]. These include detection of motion, repetition and walking, along with estimation of posture, location and travel distance. This empirical data can then be charted and analyzed in order to determine productivity gaps and develop methods for optimization. Constant monitor of this data will provide notification of maximum rates, sustainable output levels and potential slowdowns.

Many construction projects are plagued by low labor productivity resulting in increased timelines and production costs. Given the rate of growth in large city centers and the continuing labor shortages, project managers often dictate mandatory overtime. Unfortunately, studies like [5] show that this commonly leads to further decreased in productivity and the obvious wage increases. These findings indicate that each worker on average experiences a 10% decrease in efficiency for every extra 10 hours per week of overtime. There is a cumulative effect to this decrease in efficiency, regardless of pay rates, dropping to roughly 25% in the second month.

In a formal study by [6], the goal was to determine the optimal productivity of construction workers on labor-intensive projects. The objectives were to identify influential factors, determine techniques for improvement and develop a framework for improving productivity. Utilizing a quantitative research method and implementing a questionnaire, it was determined that the leading factors were: 1) incentive for good performance, 2) opportunities to exercise skills, 3) likelihood of on-time payment, 4) management response to grievances, 5) knowledge of scientific techniques, 6) attitude towards job, 7) knowledge of career prospects, 8) promotion opportunities, etc. Focusing on providing or improving some these items will like have a positive impact on job-site productivity and performance.

References

[1] Hatzigeorgiou, Alexandros & Manoliadis, Ody. (2017). Improving Performance of Building Construction Projects: A New Approach of Labor Productivity Benchmarks.
[2] Pekuri, Aki & Haapasalo, Harri & Herrala, Maila. (2011). Productivity and performance management – Managerial practices in the construction industry. International Journal of Performance Measurement. 1. 39-58.
[3] Shehata, Mostafa & El-Gohary, Khaled. (2011). Towards improving construction labor productivity and projects’ performance. Alexandria Engineering Journal. 50. 321-330. 10.1016/j.aej.2012.02.001.
[4] Kasai, Ryuji & Goso, Takashi & Osawa, Tetsuro. (2023). Development of a program for automatic identification of productivity of construction workers. IOP Conference Series: Earth and Environmental Science. 1195. 012042. 10.1088/1755-1315/1195/1/012042.
[5] Badawi Saluy, Ahmad & Djamil, Masydzulhak & Madelan, Sugiyono & Primawanto, Sonny & Pangkey, Dicky & Kemalasari, Novawiguna & Mz, Masydzulhak. (2023). Analysis of Labor Overtime and Productivity in Construction Projects. 17. 559. 10.5281/zenodo.7073499.
[6] Bamfo-Agyei, Emmanuel & Thwala, Wellington & Aigbavboa, Clinton. (2022). Performance Improvement of Construction Workers to Achieve Better Productivity for Labour-Intensive Works. Buildings. 12. 1593. 10.3390/buildings12101593.