Theory and Measurement in Construction Productivity

by Jeffrey C Kadlowec, Registered Architect

Construction 4.0 is the current transformation derived from the fourth industrial revolution (Industry 4.0) focused on addressing performance issues and enhancing productivity. Complexity, fragmentation and cultural barriers are growing challenges negatively affecting performance. Formally developing skills and standard procedures will provide the industry with the means to improve operations, reduce costs, and enhance quality [Siriwardhana 2023]. Combined research suggests that skills in a variety of areas, including general, digital, technical & non-technical, cognitive, emotional, social, and managerial must improve. Embracing and adopting digital technologies in automated environments will allow for better collaboration and significantly benefit design and construction to achieve productivity goals.

Measurement, comparison and analysis of activities throughout the construction industry over recent decades has established baselines for labor productivity. Numerical databases contain values and parameters expressed in quantities, while qualitative information written into construction specifications define acceptable levels of performance. Work content (WC) can be used to rate complexity from traditional single-story construction, through multi-story structures, to detail oriented high-rise buildings.

Disruption index (DI) and project management index (PMI) provide methods of calculating and comparing project performance [Thomas 1999]. Good project management and low design complexity lead to consistent labor productivity. Increases in design variability result in more disruptions and poorer performance. High levels of design, material and labor issues create a cumulative loss in productivity.

Productivity is defined as the amount output in units of value, quantity of goods or services produced from the inputs of resources including time, labor, materials, equipment and energy. Multi-factor productivity (MFP) incorporates a technology-related element from capital investment. Total factor productivity (TFP) encompasses additional variables of managerial practices and work environments into a complete and reliable measurement [Loosemore 2014]. Few changes to construction management have occurred over the past 50 years leaving large opportunities for improvement. Variations in the size of labor forces, inadequate training, continuous overtime, unplanned increases, poor management, fragmentation, interruptions, lack of detail planning, bad design choices, and contractual conflicts can impact productivity from 50 percent up to 500 percent. Better integration and communication between managers and skilled workers would lead to significant productivity improvements.

Measuring productivity at different levels throughout construction and manufacturing operations results in ratios of output based on total resource input (see Fig 1). Off-site construction is recognized as a means of innovation and improvement, producing building elements in factories thereby minimizing waste, increasing workflow and reducing on-site labor, time and costs. The manufacture of various components in high-volume under controlled conditions significantly enhances total performance through networks that can dynamically respond to product demand and resource availability [Arashpour 2016]. For these advantage to benefit final builds, the complexity of supply changes must be well understood with design choices made earlier and properly sequenced into the construction timeline.


Figure 1. Measurements of construction labor productivity [Ma 2016]

The construction industry remains a major contributor to gross domestic product (GDP) in many countries. Increasing productivity is essential to sustained growth and economic competitiveness, however reduced performance, resource scarcity and societal complexities are limiting factors threatening stagnation [Pan 2018]. Many cities that experienced rapid development in construction and infrastructure will face future challenges due to cost escalations from skill and labor shortages with an aging workforce. Rethinking productivity through a multi-faceted perspective will provide valuable insight to direct future developments of buildings, facilities and infrastructure projects (see Fig 2).


Figure 2. Theoretical systems approach to rethinking productivity [Pan 2018]

References
Arashpour, Mehrdad; Wakefield, Ron; Abbasi, Babak; Lee, EWM & Minas, James. (2016). Off-site construction optimization: Sequencing multiple job classes with time constraints. Automation in Construction. dx.doi.org/10.1016/j.autcon.2016.08.001.
Loosemore, Martin. (2014). Improving construction productivity: a subcontractors’ perspective. Engineering, Construction and Architectural Management. 21(3): 246-260. DOI 10.1108/ECAM-05-2013-0043.
Ma, Le; Liu, Chunlu & Mills, Anthony. (2015). Construction labor productivity convergence: a conditional frontier approach. Engineering, Construction and Architectural Management. 23(3): 283-301. DOI 10.1108/ECAM-03-2015-0040.
Pan, Wei. (2018). Rethinking construction productivity theory and practice. Built Environment Project and Asset Management. 8(3): 234-238. DOI 10.1108/BEPAM07-2018-125.
Siriwardhana, Senuri & Moehler, Robert. (2023). Enabling Productivity Goals through Construction 4.0 Skills: Theories, Debates, Definitions. Journal of Cleaner Production. doi.org/10.1016/j.jclepro.2023.139011.
Thomas, H Randolph & Završki, Ivica. (1999). Construction Baseline Productivity: Theory and Practice. Journal of Construction Engineering and Management. 125(5): 295-303.