Labor/Labour Productivity – Cumulative Impact (Part 14)

This is McLaughlin and McLaughlins Project Professional’s fourteenth posting regarding labor/labour productivity and disruption.  This contribution provides an overview of process alternatives that are 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.

It is widely recognized that changed work (sometimes called change orders – assuming that the contract is changed as a result) may have a negative impact on field labor productivity (lower productivity).  The impact of multiple changes may be recognized or sensed.  The challenges are both timely recognition and demonstration of cause and effect.  The publications listed below are some of the more useful and valuable references related to this cause and effect dynamic.

An article and related study published recently in Construction Lawyer has some valuable information and analytical process guidance that is very useful when considering potential impact to labor productivity resulting from changed work. [Read more…]

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

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 & McLaughlin’s 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 Productivity and Disruption – Managerial Considerations

This is the seventh posting regarding labor productivity and disruption. The Subject Series can be viewed here.  In large and complex projects, a prime contractor may or may not direct hire the field labor.  Often, the field labor is hired by major subcontractors (contractors hired by prime contractor).  Examples are civil, structural steel, mechanical, piping, electrical and controls.

For the prime contractor [or similarly for Owner/Employer], subcontractor productivity is seemingly not important or relevant.  This is particularly true if the subcontractor in question is on a fixed price or fixed unit price contract.  However, events that are created by Owner/Employer or Contractor that impact the subcontractor’s productivity create potential liabilities.  Further, once the subcontractor discovers the loss, a claim is likely to emerge.

Consequently, positive action is needed.  There is a legitimate need for the Owner/Employer and Contractor to be informed.  Managerial overlay, visibility and attention are components in the overall project management challenge. [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…]

Managing Risk Of Delay – Earned Value Management (Part 5)

This post is the fifth in a series of discussions regarding various aspects of time management.  More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management.  This post addresses some ideas regarding preparation and maintenance of time management related to overall bulk progress.  Some might refer to this as Earned Value Management.

The challenge associated with managing all (critical and non-critical path) work is common to virtually all Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects.  In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge.  Owner/Employer delays can be masked among the myriad of activities that are the responsibility of other (than the Owner/Employer) stakeholders.  Even when detected or disclosed, these variances to plan are often dismissed as simply consuming available float.  Hence, the Owner/Employer (or other stakeholder) may rationalize these variations as having no impact.  Of course, the reality is that these sorts of departures may (or may not) add risk or disruption to the project execution.  Further, they may delay forecasted completion.  The managerial challenge becomes detection, assessment and quantification (should it be appropriate to compensate the contractor for the impacts). [Read more…]

Productivity Calculations – Change Order / Variation Impact (Introduction – UK and related venues)

Often, productivity losses are associated with changed work or variations.  Dealing with the calculation of proper compensation for this loss can be particularly challenging.  Key industry resources or authorities may be helpful as a starting point.  Beyond the industry resources, skilled analytical work may be needed. [Read more…]

Productivity Calculations – Change Order / Variation Impact (Introduction – United States and Canada)

Often, productivity losses are associated with changed work or variations.  Dealing with the calculation of proper compensation for this loss can be particularly challenging.  Key industry resources or authorities may be helpful as a starting point.  Beyond the industry resources, skilled analytical work may be needed.

[Read more…]