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…]