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(INT-1024) Establishment of Sino-Foreign Strategic Alliance in the Chinese Construction Industry

Primary Author: Ms Laura Hodges
Co-author(s): Ms Emily Crowley

Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Employing qualified workers is a huge burden on contractors and construction owners. Nowhere is the problem more acute than in the availability of skilled laborers. New equipment and increased productivity has reduced the impact of labor on total project costs; however this has further increased demand for skilled laborers. Is the labor force prepared to supply this additional skilled labor when contractors already experience shortages of qualified workers – at least in some parts of the world?
Global capital projects have been moving strongly forward over the past few years, placing pressure on workers and materials alike. Demand is fuelling wage increases and higher benefits, significantly increasing total compensation packages. Is the only choice for contractors to pay above-average wage gains for skilled workers? Does the shortage extend to all parts of the world?
We will present our analysis of key determinants of wage escalation. In the end, estimators will be better prepared to navigate global labor costs and accurately align costs with budgets.