This is the seventh posting regarding labor productivity and disruption.<\/strong> The Subject Series<\/a> can be viewed here.\u00a0 In large and complex projects, a prime contractor may or may not direct hire the field labor.\u00a0 Often, the field labor is hired by major subcontractors (contractors hired by prime contractor).\u00a0 Examples are civil, structural steel, mechanical, piping, electrical and controls.<\/p>\n For the prime contractor [or similarly for Owner\/Employer], subcontractor productivity is seemingly not important or relevant.\u00a0 This is particularly true if the subcontractor in question is on a fixed price or fixed unit price contract<\/strong>.\u00a0 However, events that are created by Owner\/Employer or Contractor that impact the subcontractor\u2019s productivity create potential liabilities.\u00a0 Further, once the subcontractor discovers the loss, a claim is likely to emerge.<\/p>\n Consequently, positive action is needed.\u00a0 There is a legitimate need for the Owner\/Employer and Contractor to be informed.\u00a0 Managerial overlay, visibility and attention are components in the overall project management challenge.<\/p>\n Case Studies<\/p>\n The following case study is in another post; but, is repeated as a relevant example.\u00a0 The first real project that I managed (after leaving military service) was (oddly enough) in a shipyard.\u00a0 Our company was a subcontractor in a multiple ship build.\u00a0 Prior to my arrival, the crews had completed 17 installations.\u00a0 The man-hour consumption was approximately 17 thousand per ship.\u00a0 I spent many hours in the work spaces (hot, humid and dirty) looking at the work and talking to the workers.\u00a0 Changes were implemented.\u00a0 The managerial considerations included both internal changes as well as changes at the interface between the prime contractor and the subcontractor.\u00a0 The last unit consumed six thousand man-hours (compared to the 17 thousand prior) for the same work.<\/p>\n In another case, on a large piping and mechanical erection contract, the subcontractor was to receive equipment and materials as free issue.\u00a0 Major delays in deliveries and subsequent issue<\/strong> impacted the subcontractor\u2019s ability to plan and manage the work.\u00a0 Productivity issues were identified; but, not resolved contemporaneously.\u00a0 This led to a major dispute.<\/p>\n In yet another case, both mechanical work and electrical work were subcontracted.\u00a0 Major variances to plan occurred in material deliveries (prime contractor) and free issue services (Owner\/Employer).\u00a0 Productivity tracking<\/strong> was not performed.\u00a0 Ultimately, both subcontractors recognized the impact and submitted (untimely) claims<\/strong>.\u00a0 Contemporaneous recognition and corrective action opportunities were missed.\u00a0 This led to major disputes.<\/p>\n Take Away<\/p>\n Regardless whether it is owner\/employer, prime contractor, subcontractor or vendor\/supplier, a thoughtful Project Execution Plan<\/strong> (PEP) is an essential part of the planning function.\u00a0 An element of the PEP<\/strong> should address labor productivity<\/strong> considerations including managerial considerations.\u00a0 Key Performance Indicators (KPI<\/strong>\u2019<\/strong>s)<\/strong> that are aligned with the stakeholder and the objectives should be selected and implementation means and methods identified.<\/p>\n Sources of guidance are linked through the Resource Center\u00a0Link<\/a> page. \u00a0\u00a0Some of the key sources are:<\/p>\n Taking a few concepts and recommendations from the above sources, a partial list follows:<\/p>\n It is important to note that McLaughlin and McLaughlin<\/strong> [M&M]<\/a> is not a law firm and is not intending to provide legal advice.\u00a0 M&M<\/a> is<\/strong> a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support.\u00a0 The Resource Center is for the convenience of blog visitors and M&M<\/a><\/strong> does not offer this for commercial purposes.\u00a0 For further information on M&M<\/a><\/strong> services, please see<\/em> <\/em>www.McLaughlinandMcLaughlin.com<\/a><\/em><\/strong>.<\/em><\/p>\n This is the seventh posting regarding labor productivity and disruption. The Subject Series can be viewed here.\u00a0 In large and complex projects, a prime contractor may or may not direct hire the field labor.\u00a0 Often, the field labor is hired by major subcontractors (contractors hired by prime contractor).\u00a0 Examples are civil, structural steel, mechanical, piping, […]<\/p>\n","protected":false},"author":2,"featured_media":541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"yes"},"categories":[3,8],"tags":[25,7,100,52,99,39,72,103,104,81,101,102],"jetpack_featured_media_url":"https:\/\/projectprofessionals.org\/wp-content\/uploads\/2011\/05\/MP900216043.jpg","_links":{"self":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/540"}],"collection":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/comments?post=540"}],"version-history":[{"count":5,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/540\/revisions"}],"predecessor-version":[{"id":551,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/posts\/540\/revisions\/551"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/media\/541"}],"wp:attachment":[{"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/media?parent=540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/categories?post=540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/projectprofessionals.org\/wp-json\/wp\/v2\/tags?post=540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\n