Labor productivity claims are some of the most contentious claims in the construction industry because it can often be difficult to demonstrate a causal link between the events that impact labor productivity and the direct costs in a project’s cost reports. Additionally, reliable labor productivity rates and other related data for specific activities are dependent on accurate reporting by field personnel during the project. As a result, expert assistance may be required to substantiate a cause-and-effect relationship between issues and the resulting labor productivity losses through implementing industry-accepted methods.
Interface Consulting has in-depth knowledge of labor productivity tracking and controls, impacts, industry studies, and quantification techniques. While each project has its own unique challenges and issues, Interface Consulting’s labor productivity analyses typically consider our experts’ experience in the field as project/construction management professionals; the testimony and interviews of key project personnel; available contemporaneous project documents (e.g., progress reports, daily reports, time sheets and labor records, etc.); our education and specialized training; and recognized industry labor productivity studies and reports. Our construction claims consultants specialize in labor productivity analysis and are experienced in the application of the following industry-recognized methodologies:
Each individual project should be studied to determine which of the above-referenced productivity analysis methodologies can be most accurately implemented. Furthermore, contractual agreements may stipulate specific requirements for the affected party’s potential recovery of labor productivity damages. The project facts, the nature of the events being analyzed, and the extent of available labor data aid in the methodology selection.
Causes of Labor Productivity Impacts
Construction labor productivity is typically measured as labor hours per quantity of material installed. Labor productivity loss is experienced when a contractor, or a particular crew, is not accomplishing the anticipated or planned production rates, whether due to its own errors or inabilities, impacts caused by the owner, or issues outside the control of either party. In other words, a loss of productivity is when it takes more labor than planned to do the original amount of work, thereby increasing project costs. Common causes of labor productivity impacts include, but are not limited to, mismanagement, site access restrictions, differing site conditions, defective plans and/or specifications, labor availability or turnover, rework, excessive overtime and/or shift work, changes in construction means and methods, overcrowding, out-of-sequence work, and inclement weather.
Interface’s Labor Productivity Services
Interface’s construction claims experts have extensive experience selecting and evaluating labor productivity issues, performing root cause analyses, and quantifying damages. Our consultants prepare and analyze labor productivity claims, present in mediations, and testify in litigation and arbitration proceedings on issues concerning labor efficiency and productivity loss.