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.

D. Brown Management Profile Picture
Share

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:


Please contact us for a copy of the worksheet in the slide


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....

Aim for the Clouds - Looking at Your Objectives
As contractors plan their businesses, projects, production or improvement goals it’s important to look at objectives in two ways:
Cash Flow and the 5Cs of Credit - Capital
The 2nd of the 5Cs of Credit is how much capital you are putting at risk, along with your financial partner. Contractors should design and follow their own capital management policies appropriate for their business.
Org Structure Planning (2X)
We would never build a project room-by-room without having an overall design. Contractors must look at their organizational structures the same way, focusing on what they want to accomplish and designing the best way to get there.