LABOR OVERRUNS

As the increase of projected Major Capital Projects for 2017-18 emerge with all its implications troubled projects are a likely result.  LABOR OVERRUNS are a typical component in troubled projects.

LABOR OVERRUNS – impact several project baselines. Cost, Schedule and Progress are at risk.

LABOR OVERRUNS – Labor Overruns are a major risk in any project with a significant labor component.

LABOR OVERRUNS – Early detection, correction and management require use of proper KPI’s.

LABOR OVERRUNS – Use of thoughtful KPI’s facilitate early/proactive corrective action.

LABOR OVERRUNS – Labor Shortages in 2017 and beyond will lead to upward pressure in labor rates.

LABOR OVERRUNS – Labor shortages in 2017 and beyond will lead a man-hour overruns (poor productivity).

McLaughlin & McLaughlin has assisted numerous troubled Major Capital Projects successfully over the years by providing cost effective business solutions and recovery plans.

 

It is important to note that McLaughlin and McLaughlin Project and Dispute Consulting LLC [M&M] is not a law firm and is not intending to provide legal advice.  M&M is a consulting firm providing (among other services) non-legal expertise in construction claims, dispute resolution and litigation support.   For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

CAPITAL PROJECTS MANAGEMENT – US Gulf Coast

Capital project construction forecasts (US Gulf Coast) concur regarding robust project activity and growth for calendar years 2017 and 2018.  These glowing forecasts are tempered with forecasts of craft labor, field supervision and project/construction management shortages.  Demand for experienced project resources is expected to exceed supply.  This is similar to Venezuela (post-nationalization), Canada (oil sands expansion) and other marketplace imperfections.  M&M has evaluated these forecasts and rationalized the supply and demand implications as well as professional managerial options and paths forward.  This is an emerging and dynamic managerial, consulting and legal business opportunity.  M&M’s recent and extensive work in the field at active job sites of large and complex projects confirms the emerging situation.  Here are a few topics, questions and/or observations:

  • Skilled, experienced and dynamic management will be required.
  • Cost and/or Schedule Certainty is clearly at risk regardless of the development and delivery system (PMI, CMAA, CII, AACE, IPA, proprietary or other systems).
  • Construction schedules will be driven or constrained by human resource shortages (field labor, engineering, project management).
  • Managerial planning and management must focus on:
    • Acquisition of adequate supervision and field labor force
    • Optimization of your field labor (and engineering labor).

 

It is important to note that McLaughlin and McLaughlin Project and Dispute Consulting LLC [M&M] is not a law firm and is not intending to provide legal advice.  M&M is a consulting firm providing (among other services) non-legal expertise in construction claims, dispute resolution and litigation support.   For further information on M&M services, please see www.McLaughlinandMcLaughlin.com.

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Labor/Labour Productivity –MCAA Publication (Part 13)

Changed Work, Productivity and Overtime

This is McLaughlin and McLaughlins Project Professional’s thirteenth posting regarding labor/labour productivity and disruption.  This contribution provides an overview of a construction industry publication that is extremely helpful and valuable for all stakeholders concerned with labor productivity and management.

The Subject Series regarding Labor/Labour Productivity and Disruption can be viewed here.

This publication is Change Orders, Productivity, Overtime, Mechanical Contractors Association of America (MCAA).

[Read more…]

PRODUCTIVITY SERIES REVIEW (reissue 3)

McLaughlin and McLaughlins Project Professionals blog has a series of posts regarding labor/labour productivity.  Over the last six months we have added to this popular series.  The first summary was posted in June 2011.  There was a reissue in October 2011, and again in November 2011.  Readership has continued to increase.  Consequently, we are reissuing this updated and expanded post as an overview of the labor/labour productivity series.

This Subject Series is being updated and new posts will be added over the coming weeks and months.

Productivity is a hot topic and has given rise to much discussion and debate in the project management world.  Labor productivity can be a competitive advantage or a managerial challenge (actually, both and more).  Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlins Productivity Series.  Below, we have the titles and links to each post followed by a brief summary of the content.  We intend to augment these posts with additional writings on the subject.

PRODUCTIVITY SERIES REVIEW (reissue 2)

McLaughlin & McLaughlin’s Project Professionals blog has a series of posts regarding labor/labour productivity. Over the last month we have added to this popular series.  The first summary was posted in June and the latest was a reissue in October 2011.  Readership has continued to increase.  Consequently, we are reissuing this updated and expanded post as an overview of the labor/labour productivity series.

Productivity is a hot topic and has given rise to much discussion and debate in the project management world.  Labor productivity can be a competitive advantage or a managerial challenge (actually, both and more).  Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlins Productivity Series.  Below, we have the titles and links to each post followed by a brief summary of the content.  We intend to augment these posts with additional writings on the subject. [Read more…]

Labor/Labour Productivity – Overtime Impacts (Part 10)

MANAGERIAL CONSIDERATIONS

This is the tenth posting regarding labor/labour productivity and disruption.  This contribution provides managerial considerations or issues regarding the impact of overtime on labor productivity.  The Subject Series can be viewed here.

The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management.  In general, some of the points of concern include:

  • “Project Management Plan – basis for the plan and related resource requirements”
  • “Changed Work – both prospective and retrospective planning and pricing”
  • “Delay Mitigation – planning and analyzing the options and related viability”
  • “Schedule Recovery – methods, options and viability”
  • “Forensic Analysis – claims for delay, acceleration and related impacts.”

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses.  Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs.  Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor.  It presents in engineering, programming, consulting and other professional man-hours. [Read more…]

Labor/Labour Productivity – Overtime Impacts (Part 9)

INDUSTRY STANDARDS

This is the ninth posting regarding labor/labour productivity and disruption. This contribution provides industry sources and references on the impact of overtime on labor productivity.  The Subject Series can be viewed here.

Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses.  Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs.  Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.

The impact of overtime on labor/labour productivity is not limited to construction field labor.  It presents in engineering, programming, consulting and other professional man-hours.

For this post, we will use United States definitions and standards as a baseline.  Many of the authoritative studies and analyses are done relative to US practices, if not US Gulf Coast (a common estimating standard or baseline).

However, these standards are relevant to the world open market. [Read more…]

PRODUCTIVITY SERIES REVIEW (reissued)

Project Professionals blog had a series of posts earlier this year.   Over the next several weeks, the intention is to add to this popular series.  This summary was posted in June.  Since June, the number of readers has increased significantly.  Consequently, we are reissuing this post as a kickoff and restart of the labor/labour productivity series.

Productivity has become a hot topic and has given rise to much discussion and debate in the project management world.  Labor productivity can be a competitive advantage or a managerial disaster.  Therefore, we believe that there is high potential benefit in a review of McLaughlin & McLaughlins Productivity Series.  Below, we have the titles and links to each post followed by a brief summary of the content.  We intend to augment these posts with additional writings on the subject.

 

[Read more…]

Construction Field Labor Productivity Improvement – Plan the Work Well

This is the sixth post regarding productivity in engineering and construction projects.  To review an index and links to the entire series, please visit Subject Series  page in this blog.  This post discusses planning the work and the related impact on construction field labor productivity.

Any discussion of construction field labor (worker) productivity must, of necessity, eventually involve the idea of planning the work.  Virtually every major project employs the expertise of several planners and schedulers to work the Primavera® scheduling program or some other comparable software.  Great effort is placed on getting just the right schedule assembled and in place – with the right number of activities and leveled manpower, etc.  However, all too often the schedule has been constructed in a near vacuum with little or no input or review from those who have to make it work in the field. [Read more…]