It may be preaching to the choir, but the topic of tracking labor hours per scheduled task completions is worth repeating.
How does a construction project end up with a positive project outcome? It’s not brain surgery! Make sure that the labor hours estimated for tasks are actually being expended (and not exceeded) and that the tasks are completing by their early finish dates (Performance Based Scheduling). You will see a project that is on time, on budget, making a profit, getting an occupancy permit, and having many other successful project outcomes. Get in, get done, and get out!
Notice that this does NOT mean that you should start tasks prior to their early start dates. There may be instances when starting tasks early makes sense; however, if the logical relationships between activities are correct, starting tasks early will probably cause negative impacts to someone else on the job because you’ve changed the plan that everybody else anticipated following. Changing the planned approach to the project could increase costs and cause delays. Work the plan that everyone on the construction team is in agreement with, and work it to the early dates.
Likewise, with labor hours. There are times when throwing more bodies into a task or working selective overtime makes sense. That said, the estimated labor hours for each activity task exist for a reason; so you shouldn’t try to accelerate tasks without consciously considering the possible impact to the labor hours that will be spent. The estimated labor hours represent the budget for each task, and every time you go over budget you risk losing money (this includes the Owner getting exposed to change orders or claims for additional costs).
Labor hours are the primary controllable cost on a project, and knowing (on a weekly basis) where and when labor hours are being expended isn’t just good project management – it’s good business! Your project managers and superintendents should have their finger on the pulse of “labor hours budgeted vs. labor hours expended” activity by activity. They should be acutely aware of this on a daily basis so they can track, catch, and adjust for deviations on a weekly basis.
If you don’t know the status of your labor hours, and if you are not prepared to work the schedule to the early dates, then you are not in control of your destiny on the project. Not controlling your project means that you won’t know if you made or lost money until it’s too late.
We tell our clients that they should be making money on purpose. Working the plan, while controlling labor hours is a good way to do just that. Our project management and project oversight services are the perfect, affordable tool to help your team stay on track!
Every business gets caught up in the constant frenetic state of focusing on day-to-day challenges, meeting deadlines and finding yourself not moving forward on the goals that you have set for individuals and the company at large.