Construction Update

Measuring Productivity Always Worthwhile

On the great job sites of medieval times — cathedrals, fortifications, shipyards — the owner was represented by the Clerk of the Works. This project manager advised his employer on construction issues and ensured that if money was wasted, it was the contractor’s.

But the Clerk’s calculations on the productivity of labor and equipment were broad. Peasant labor was cheap, pencils had not been invented and vast projects took time — the great cathedral at Chartres, at 66 years, was a rush job.

Speed and Precision

That was then — this is now. Today, productivity can be measured precisely and used immediately.

Productivity is work put in place — drywall panels hung, cubic feet of concrete poured, tons of steel erected — divided by the time it took to put it there, adjusted for conditions.

Many construction firms approach productivity vaguely. They use experience — static, often overbroad records in a file cabinet — to estimate new jobs. Some adjust for obvious differences — weather, materials, high work, etc. — but leave out others.

Then they proceed through the job making just one productivity calculation: total hours estimated versus total hours spent.

Choosing to Measure

Today’s tools permit more precise measurements. But the key is choosing to measure, not choosing a tool. Wireless tablets are hot, but low-tech fax machines work for a Midwestern road builder, whose managers fax in time and work-in-place data every night — and see productivity goals and adjustments on their desk next morning.

It’s worth the effort to collect productivity data, monitor it and use it to focus efforts and improve performance. Nowadays, companies that don’t do these things are ignoring a relatively simple tool by which they can bolster the bottom line.

Our firm can help you put a productivity measurement program in place and use the information you obtain to improve your business.

For more information about our services to the construction industry, Contact:
Mark Lund, Parter-in-Charge of Construction Services at 713.297.6907.

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.