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Project Labor Costs – Controlling Construction Labor Costs Risk Factors

by | Mar 8, 2018

Construction Management – Taking Control of Project Labor Cost Factors

Eliminate the greatest construction project risk factor; take control of project labor costs. This is a simple statement with one huge mountain of a catch. Effective management of daily construction labor expenses is typically the most difficult aspect of construction project management

In the processes of accounting, estimating, material orders, safety management, QC and other general construction operations, errors do sometimes occur. Yet the associated cost factors are generally easy to identify, correct and control. However, to effectively remove the daily obstacles that hinder reliable control of project labor costs is not so simple a process. There are too many variables, too many opportunities for misstep and too many places where workers, supervisors and jobsite scheduling clash and burn.

Here are a few pointers to help you take develop a comprehensive project schedule that efficiently promotes control of all costs, including project labor cost factors.

Construction Labor Management – Characteristics of Effective Scheduling

By clearly identifying what must be accomplished, the effective time frame to completion and which parties are responsible for the task, a functional construction project schedule promotes reliable project management. It’s about coordination between workforce, assets and materials. And it revolves around a system of defined and traceable metrics made effectual by a qualified project manager. According to "A Work Tracking System For Construction" as published by Stanford University in 2013, the characteristics of a good schedule should include the following concepts:

Fully Developed: A functional project schedule covers the full scope of the project, leaving no stones unturned.

Covers the Term: Effective scheduling applies from proceed date to contractual completion date.

Complies With Defined Contractual Conditions: Functional scheduling supports contract milestones, including compliance with all defined details of said contract.

Provides Build Instructions: Function project schedules align to the order of project build sequencing.

Evokes Practical Activity Durations: Efficient workforce and asset scheduling considers jobsite conditions, resource availability and a reasonable sense of productivity.

Defines Relationships: Better logistics of people and plant allows for a more efficient jobsite. Efficient activity associations eliminate redundancies. 

Defines A Sensible Critical Path: Efficient construction operations scheduling defines a clear and concise critical path, thereby eliminating complex or multiple directions of operations.

Considers The Broad Scope: Functional scheduling must take into account all angles of the operations, including details involving procurement and material deliveries.

Makes Resource Sense: Eliminate diminishing returns. Sound scheduling enables project managers to identify excessive concentrations of people and assets.

Controlling Project Labor Costs

Effective logistics of workforce and assets promotes a better jobsite productivity, safety and compliance. Real-time digital reporting promotes cost-effective scheduling of all project resources. To learn more about controlling construction project labor costs, read “Cloud-Based Multi-Resource Scheduling for Construction Contractors," by the Assignar construction software team.

 

Rick is a Growth Marketing Manager at Assignar.

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