The calculation or estimation of labor productivity impacts is one of the most contentious topics in the construction industry. Disputes related to labor productivity often lead to dispute resolution forums such as mediation, arbitration, and/or litigation because labor productivity losses are often difficult to distinguish contemporaneously. Additionally, labor productivity rates and other related data are often not tracked on construction projects with any degree of precision. As a result, substantiating a cause-and-effect relationship between project disruption issues and resulting labor productivity losses and establishing entitlement to recovery for lost labor productivity often requires analysis by a qualified construction labor productivity expert.
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. In other words, a loss of productivity occurs when it takes more labor and equipment to accomplish the same amount of work, thereby increasing project costs. There are many common causes for labor productivity impacts on a construction project, stemming from owners, contractors, and construction managers. Common causes include, but are not limited to, mismanagement and maladministration; site access restrictions; differing site conditions; defective plans and/or specifications; changes in the work; labor availability; turnover; rework; testing/inspections; overtime and/or shift work; interferences; changes in construction means and methods; over crowding; out-of-sequence work; and inclement weather.
Courts, arbitration panels, and mediators often rely upon construction labor productivity experts to analyze project records, identify the root cause of labor productivity issues, quantify associated labor productivity losses, corroborate the cause-and-effect relationship, and establish entitlement to damages. Interface Consulting’s construction labor productivity experts have in-depth knowledge of productivity tracking methods and quantification techniques and extensive experience evaluating labor productivity issues, performing root cause analyses, and quantifying damages. Additionally, our consultants also serve as construction labor productivity experts and have testified in US federal and state courts and numerous arbitrations administered under AAA, LCIA, UNCITRAL, and ICC forums concerning labor efficiency and productivity loss.
Interface Consulting’s experts have 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 experience in the field as project/construction management professionals; testimony and interviews of key project personnel; contemporaneous project documents (e.g., progress reports, daily reports, time sheets and labor records, etc.); our education and specialized training; as well as recognized industry labor productivity studies and reports. Our labor productivity experts specialize in labor productivity analysis and may utilize the following industry-recognized methodologies, where appropriate:
It should be noted that the selection of a particular productivity analysis methodology depends on the project facts, the nature of the events being analyzed, the nature and extent of available labor data, and may vary from project to project. Each of the above-referenced productivity analysis methodologies has inherent advantages and disadvantages. Interface Consulting has extensive experience handling construction labor productivity claims and our construction claims consultants are skilled at tailoring our productivity analysis approach to suit a project’s needs and constraints.