Topic No. 12 Compute labor productivity and cost in Construction project.pdf

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1. Topic No. 12
Compute labor productivity and cost in
Construction project
Hassan A. Abas, Ph.D., P.E.
UniversityofPrinceMugrin
College of Engineering
Department of Civil Engineering
CE 473 Construction Cost Estimation and Visibility Studies
Spring -2024
1

2. Hassan A. Abas, Ph.D., P.E.
2CE 473 Construction Cost Estimation and Visibility Studies
Outline
➢Introduction.
➢Factors Affecting Labor Productivity
➢Calculation of Labor Productivity
➢Estimating Labor Cost
➢Practical Example

3. Hassan A. Abas, Ph.D., P.E.
3CE 473 Construction Cost Estimation and Visibility Studies
Introduction
➢Laborproductivityinconstructionisameasureoftheoutputperhourofwork.
➢It'simportantforprojectmanagersandestimatorstounderstandandcalculatelabor
productivityaccuratelyasitdirectlyaffectstheproject'stimelineandbudget.

4. Hassan A. Abas, Ph.D., P.E.
4CE 473 Construction Cost Estimation and Visibility Studies
Factors Affecting Labor Productivity
1.SkillLevel:
Theexperienceandskillleveloftheworkforcecansignificantlyinfluenceproductivity.
2.WorkConditions:
Environmentalconditions,siteaccessibility,andsafetymeasures.
3.ToolsandTechnology:
Availabilityandefficiencyoftoolsandtechnologyused.
4.WorkComplexity:
Complexityandfamiliarityofthetasks.
5.ManagementEfficiency:
Qualityofplanning,supervision,andmanagementpractices.

5. Hassan A. Abas, Ph.D., P.E.
5CE 473 Construction Cost Estimation and Visibility Studies
Calculation of Labor Productivity
➢Laborproductivityinconstructionisdefinedastheamountofworkaccomplishedper
laborhourexpended.
➢Itisacrucialmetricforestimatingprojectcostsaccurately,schedulingprojecttimelines,
andassessingworkforceefficiency.
Formula for Labor Productivity
The general formula for calculating labor productivity in construction is:
➢Thisformulahelpsindetermininghowefficientlylaborresourcesarebeingutilizedto
produceworkoutputs.

6. Hassan A. Abas, Ph.D., P.E.
6CE 473 Construction Cost Estimation and Visibility Studies
Calculation of Labor Productivity
UnitsofWorkCompleted
The"UnitsofWorkCompleted"canvarybasedonthetypeofworkbeingdone.
Examplesofunitsinclude:
1.Cubicmetersofconcretepoured.
2.Squaremetersofformworkplaced.
3.Numberofbrickslaid.
4.Metersofpipeinstalled.
Thechoiceofunitdependsonthespecifictaskandthestandard
measurementpracticesintheproject'sgeographicallocation.

7. Hassan A. Abas, Ph.D., P.E.
7CE 473 Construction Cost Estimation and Visibility Studies
Calculation of Labor Productivity
LaborHoursExpended
➢"LaborHoursExpended"referstothetotalhoursworkedbyalllaborersonaspecific
task.
➢Thisshouldincludeallproductivehoursand,insomeanalyses,mayalsoconsidernon-
productivetime(suchasbreaksandsetuptime).

8. Hassan A. Abas, Ph.D., P.E.
8CE 473 Construction Cost Estimation and Visibility Studies
Calculation of Labor Productivity
Step-by-StepCalculationExample
1.GatherData
Collectdataontheamountofworkcompletedandthehoursworked.Forinstance:
•Task:Excavation
•Volumeexcavated:300cubicmeters
•Laborhoursused:150hours
2. Apply the Productivity Formula
Using the gathered data, calculate the productivity:
3.AnalyzetheResult
Theresultindicatesthateachhouroflaborleadstotheexcavationof2cubicmetersofsoil.
Thisproductivityratecanbecomparedagainstindustrystandardsorhistoricaldatato
evaluateperformance.

9. Hassan A. Abas, Ph.D., P.E.
9CE 473 Construction Cost Estimation and Visibility Studies
Estimating Labor Cost
➢Estimatinglaborcostsaccuratelyisessentialforconstructionprojectmanagement,asit
directlyinfluencesthefinancialplanningandprofitabilityofaproject.
➢Laborcostestimationinvolvescalculatingthetotalcostassociatedwithemployinglabor
tocompleteaspecifictaskorproject.
➢Thisestimationnotonlyincludeswagesbutalsoencompassesotherrelatedexpenses.

10. Hassan A. Abas, Ph.D., P.E.
10CE 473 Construction Cost Estimation and Visibility Studies
Estimating Labor Cost
ComponentsofLaborCosts
1.DirectWages:Thisisthebasichourlywageorsalarypaidtotheworkers.
2.Overtime:Paymentsforworkdonebeyondregularworkinghours,oftenatahigherrate.
3.BenefitsandAllowances:Includeshealthinsurance,pensioncontributions,travel
allowances,andotheremploymentbenefits.
4.PayrollTaxesandSocialSecurity:Employercontributionstosocialsecurityandother
mandatorytaxes.
5.TrainingCosts:Costsassociatedwiththetraininganddevelopmentofemployees,which
ensuretheycanperformtherequiredtasksefficiently.

11. Hassan A. Abas, Ph.D., P.E.
11CE 473 Construction Cost Estimation and Visibility Studies
Practical Example
ProjectOverview
AconstructioncompanyinRiyadhistaskedwithbuildingamulti-storyresidential
building.Theprojectincludestheconstructionofthestructuralframework,whichinvolves
pouringconcreteanderectingthesteelreinforcementfor20floors.
Task:ConcretePouringforFoundationandFloors
Duration:3months
Workforce:50constructionworkers
Wage:SAR50perhour
OvertimeRate:1.5timestheregularwage
WorkingHours:
•Regular:8hours/day
•Overtime:2hours/day
DaysWorked:26days/month
Scenario: Construction of a Residential Building in Riyadh, Saudi Arabia

12. Hassan A. Abas, Ph.D., P.E.
12CE 473 Construction Cost Estimation and Visibility Studies
Practical Example
Step 1: Calculate Labor Productivity
Gather Data
•Task: Pouring concrete for the foundation and floors
•Total Concrete Poured: 5,000 cubic meters
•Labor Hours Used:
Total Labor Hours:
Productivity Calculation

13. Hassan A. Abas, Ph.D., P.E.
13CE 473 Construction Cost Estimation and Visibility Studies
Practical Example
Step 2: Estimating Labor Cost

14. Hassan A. Abas, Ph.D., P.E.
14CE 473 Construction Cost Estimation and Visibility Studies
Practical Example

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Hassan A. Abas, Ph.D., P.E.
CE 473 Construction Cost Estimation and Visibility Studies