On a typical construction project, there is one resource that dominates all other costs: labor. Up to 50 percent of the cost of construction can be attributed to the cost of the craft workforce. Not only is labor a significant cost on many projects, it’s also the most variable and the least understood. Construction sites are complex and rapidly changing, where unforeseen events like weather, equipment delays and worker turnover are all levers that can seriously impact productivity.
The construction industry often considers labor as a fixed cost, where little can be done to optimize craft performance and productivity. There’s some obvious reasons why this is the case. Construction is largely executed by subcontractors, where jobsite conditions and project execution are defined by planning and sequencing of work by contractors. Subcontractors are often not in control of all the factors that define project success.
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