Measuring Productivity

By William R. Zollinger III, P.E., president and chief executive officer

Just like death and taxes, one thing is certain on any construction project: Labor hour expenditures never happen according to plan.

Frequently, lost productivity happens. But what causes it, and how do you anticipate it?

Labor deviation is anticipated legally, conceptually and contractually.

• Legally, recovery for lost productivity is permitted and multiple methods of proof exist, although the Measured Mile Analysis is the most widely accepted.


• Conceptually, companies have established standards, dedicated resources and published guides for measuring and monitoring labor hours.


• Contractually, one can allocate the risk and address labor deviation via change orders.

But what causes lost productivity?

Losses can be self–inflicted or from external disruptions. Insufficient job site supervision, inadequate crew size, equipment breakdowns or material delivery delays all cause self-inflicted lost productivity.

Externally, we often see changes in planned sequences, lack of coordination among trades, numerous and compounding changes, an acceleration of work or a shift in construction seasons.

Given the high probability of labor deviation, it’s best to establish a labor productivity measurement and monitoring program to enhance communication and transparency throughout the project rather than wait until the end and work backward.

One of the best ways to measure productivity is by employing a standard man–hour system. This measurement standard injects consistency and adjusts for local labor, project complexities and project schedules. Most importantly, the standard manhour system provides an early warning system, a comparison between trades and a management tool.

Reducing lost productivity is simple: Exercise better control over the schedule, progress, problems encountered and costs while also improving information quality and reporting concurrent with the project.

Utilize the CPM Schedule to better control your schedule, progress and costs. Time–scaled CPM Schedules are recognized as the most effective tool for conveying project work plans, ideas and options on any size or type of project. Combining a standard manhour measurement system with CPM Schedules effectively details the method, manner and sequence of the design, phasing and construction of a project. With resource-loaded CPM Scheduling, information flows transparently and in real time.

Managing work and issues on the front end reduces claims at the back end. Productivity measurement and monitoring will maximize your bottom line. You have greater control over risk, you reduce the final project cost, and you end up with a higher quality final product.

To learn more about how Buric’s CPM scheduling can help you save money and time on your next project call us at 440.247.3700.