KEY FACTORS AFFECTING LABOR PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY

Project Abstract

<p>          <b>ABSTARCT&nbsp;</b><br></p><p> Labor productivity is one of the least studied areas within the construction industry. Productivity improvements achieve high cost savings with minimal investment. Due to the fact that profit margins are small on construction projects, cost savings associated with productivity are crucial to becoming a successful contractor. The chief setback to improving labor productivity is measuring labor productivity. The main objective of this study is to assign a weight of importance to each of the top twelve factors affecting productivity. Experts at the University of Florida Rinker School of Construction compiled a list of the top twelve factors affecting productivity. A survey consisting of the twelve factors and a brief explanation of each was mailed to contractors listed on the ENR Top 400 (2006) in which they were asked to apply a weight to each of the twelve factors, totaling 100%. Results of this survey were then analyzed using the Delphi Method. These weights will be used in a future study to create a tool to help contractor’s grade productivity on their projects in the preplanning stage and plan improvements in the most beneficial areas. This productivity tool will be created by breaking each factor down into a list of activities. The project manager will assign a value to each activity representing how well their current project is achieving this activity. The total for each factor is then multiplied by its respective weight (generated in this study). The outcome of the tool will give a breakdown of areas for improvement along with values that allow for project managers to focus on the most beneficial areas. <br></p>

Project Overview

<p><b>1.0 INTRODUCTION</b><br></p><p><b>1.1 BACKGROUND OF STUDY&nbsp;</b></p><p> Construction is one of the nation’s largest industries. Construction accounted for 7 % of the nation’s GDP in 1997 (Tucker 1999). In 2004, the construction industry provided 7 million wage and salary jobs including 1.9 million self-employed and unpaid family workers (Bureau of Labor Statistics 2006). In 1999, the construction industry provided 6.4 million jobs and the total value of new construction for the same year was $764 billion (Langsford 2006). A successful construction project is one that is completed on time, within budget, meets specified standards of quality, and strictly conforms to safety policies and precautions. All of this is feasible only if the premeditated levels of productivity can be achieved. All the same, productivity, or lack there of, is one of the construction industry’s most prevalent problems.&nbsp;</p><p>Due to the nature of construction projects, its importance to society and the existing economic resources, more emphasis should be given to improving productivity. <br></p><p> <b>1.2 MAIN GOALS OF THIS STUDY</b></p><p>&nbsp;In the end, this study will provide a weight of importance for each of the most common factors affecting productivity. These weights will then be used by a group of experts to compose a questionnaire that will provide construction managers and decision makers with a productivity tool that will enhance project productivity. Unlike other currently existing productivity tools, this tool can be used in the planning stage and serve as a checklist to guarantee a more productive completion of projects. Keep in mind this is not intended to serve as a remedy for all problems that occur on construction projects, but as one of the necessary tools for success. The major intentions of this study are as follows:</p><p>&nbsp;• To assemble a list of the most notable factors affecting productivity within the construction industry today.&nbsp;</p><p>&nbsp;• To develop a weight for each individual factor based on the Delphi Method, with a total weight of 100 %.&nbsp;</p><p>• To create an example tool in which the weights derived will be used to help project managers and top decision makers assess the current productivity issues on their projects from the pre-planning stage through the project’s completion. <br></p><p> <b>1.3 STUDY OBJECTIVES</b>&nbsp;</p><p>&nbsp;The initial objective of this study is to identify the main factors associated with lost productivity on construction projects. In order to be aware of the problems associated with each factor, the problems must be completely understood. The top factors were identified by experts within the construction and human factors field of study from the University of Florida. Each of these factors will be thoroughly defined within the literature review section of this study. The next objective is to acquire a weight of importance for each of these factors.&nbsp;</p><p>In order to ensure that the weights are not discussed between respondents, a survey is distributed to 200 contractors listed on the ENR top 400 (2006), in which they are asked to assign a weight to each of the factors. Once these weights are established, a future study will further break down each factor into its components. These components will enable the project managers to give themselves a score from 1 to 10 for each of the components within each factor. The final score can then be evaluated to serve as a checklist to ensure increased productivity all the way up to the completion of the project. The main objectives of this study are as follows:&nbsp;</p><p>1. To expand upon the main factors affecting labor productivity a) Definition of the factor, and b) common problems associated with each factor.</p><p>&nbsp;2. To allocate a weight to each factor based on its importance c) Each weight will be derived by surveys distributed to experts, and d) the Delphi Method will then be used to compile the survey responses.&nbsp;</p><p>3. To compose a sample productivity checklist to serve as an example of how the weights will be used in the future. <br></p>