| Topic : Smart construction engineering |
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Construction Planning & Management
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Activity:
Question posted: 03 09 2009 11:44:55 +0000,
4 answers, 283 views, last activity
07 06 2010 20:18:08 +0000
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Why focus on labour for increasing productivity ? How Clients can benefit from it ??
In Construction domain, in spite of Heavy Mechanization, Around 95% of the activities within the Project Duration are labour intentsive.
As accuracy in estimating the Material Costs forms the prime factor in Cost Budgeting, similarly Labour Productivity forms the prime factor in calculating ETC (Estimate to Complete) Duration of every activity in the project.
Labour Productivity is affected mainly due to Wrong Logical sequencing and Poor Crew Mobilization Plan resulting in
1. Labour Resource available at spot, and is IDLE, since preceeding activity not completed.
2. Lack of Timely Delivery of Supporting Informations/ Instructions and Material Resources
Reduction in labor cost will lead to lower cost for the clients. Lets take a project worth 15million lasting for 12 months, if we can increase the labor productivity by 25% , the time taken to complete the project will reduce cost by say 8-10%, which shall decrease the cost by say 5-7%. Taking labor cost is 30% of total cost with no change in profit margin.
This shows that how increase in labor productivity will help client in completing the project before time and decreasing cost...
In any construction project, labor cost is up to five times greater than any other cost. So obviously labor is starting point for any improvement or improving the productivity of any construction project. And how it can benefit Clients ? Higher productivity will lead to lower cost , better value of money and a higher return on investment.
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