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(EST-3995) (Presentation Only) Uncovering the Mystery: Dialing in the Productivity Impact to Project Field Labor Cost

TCM Section(s):
Venue: 2023 AACE International Conference & Expo

Abstract: A critical need exists to understand and communicate the influence of craft labor productivity in our cost estimates, project cost management, and normalization of data collection for future estimates.

The impact to cost (and schedule) from field craft productivity continues to increase in both cost and complexity. It's a different world than it was 50+ years ago when popular labor databases were printed and widely accepted. Many influences are continually increasing labor costs globally. Some of the significant changes are intentional, a result of new technology, occur from cultural shifts in society, or a result of natural causes (flooding, pandemic, etc.).

This presentation identifies a major new cost estimating concept for determining field productivity adjustments and normalizing historical cost data collections.

A sharable tool in Excel is demonstrated for the development and application of Labor Productivity Factors specific to each project supporting both competitive and predictive cost estimates.

Questions addressed:

  • What is the Base Labor Productivity Factor (LPF) of 1.0 used in an estimate BEFORE the application of a project-specific multiplier? How much additional LPF is already built-in to that 1.0 library database (Estimator book values)?
  • Is there SOMETHING ELSE BESIDES hands-on productivity that significantly impacts the field labor cost estimate (and schedule)?
  • What are the ranges to consider? Which are DIRECTLY instigated (often unintentionally but at a high cost) by the Plant Owner/Investor?How are strategies developed and documented for developing Labor Productivity Factors, enabling optimized construction and operation decisions?