How to Measure Your Construction Business's Labor Productivity (2024)

Productivity = total output/total input (labor, materials, equipment, etc.)

The study used the task of erecting and reinforcement binding of a column, considering the two factors of skilled labor and change in site layout when calculating variables to productivity.

Regarding site layout, the study found that steel bars and stirrups were stacked away from the construction site, as well as not properly placed.

When steel bars and stirrups are placed separately, according to their diameter and size, the time required to find the correct bar can be minimized, resulting in the following time savings:

• Average time taken for erecting and reinforcement binding of a column without changes =200 min./column
• Average time taken for erecting and reinforcement binding of a column with changes in site layout =190 min./column
• Time savings =10 min./column

Regardingchanging semi-skilled labor with skilled labor,the study found atime and cost savings is possible, in addition to higher quality of work.

The following calculations assume the replacement of two semi-skilled workers with two skilled workers:

• Average time taken for erecting and reinforcement binding of a column without changes =200 min./column
• Average time taken for erecting and reinforcement binding of a column with change to skilled laborers =155 min./column
• Time savings =45 min./column

Applyingchanges in site layoutalong with changing semi-skilled labor with skilled labor combines fora considerable time and cost savings — something that easily can be seen with proper measurement of construction labor productivity.

A total savings of 55 minutes per column becomes exponential over the course of an entire project.

Before applying any changes in our example,two columnswere completed per day.

After applying the above changes,three columnscan be completed per day.

This shows a50% increasein labor productivity.

Measuring labor productivity and optimizing your jobsite based on those results is key to competing in today’s highly competitive market. To efficiently carry out this critical task, you need a strong toolset for capturing and analyzing labor data in the field — STRUXIis here to help.