The following terms and definitions will help with construction damages and labor productivity measurement and will be part of future Holloway Consulting posts here:

Construction Damages Experts

Labor Productivity Terms

Account – A record or identification scheme used to categorize information about a specific work item or activity. An account represents a discrete part or category of the work to be performed. For example, an account may contain the man-hours used in the erection of formwork for elevated slabs.

Control Account – A control account consists of a grouping of related accounts or activities where each account contains a unique degree of difficulty or level of effort required. For example, the accounts for wall, and slab formwork may be grouped into a single control account titled formwork.

Construction Cost Control Budget – The base estimate of man-hours, quantities, and productivity for an activity or account, the control budget is used for comparative purposes to evaluate performance.

Earned Value – This technique is used for calculating the percent complete of a control account. It uses a weighted average approach in which the weight assigned to each individual account in the control account is based on the initial man-hour estimate for the account compared to the sum of the initial estimated man-hours for all accounts included in the control account.

Forecasting – The process of projecting the total man-hours required to complete an account or activity is called forecasting. Forecasting is a part of performance evaluation.

Performance Evaluation – This process involves the comparison of the actual progress and productivity to the control budget. It includes the comparison of quantity installation rates and man-hour consumption rates.

Performance Factor – A measure of construction efficiency, which equals the planned productivity divided by the actual productivity. This ratio is sometimes called a PF value or a rate ratio. A ratio greater than 1.0 signifies better-than-planned performance.

Productivity – Man-hours required per unit of work, productivity is the input divided by the output, and is usually calculated for a finite time interval. It is also commonly called the Unit Rate.

Productivity Measurement – This process of quantifying the man-hours and quantities associated with an activity or account provides the measurements used in labor productivity calculations and performance evaluations.

Construction Damages Experts

Holloway will post Part II of this series soon. In the meantime, do you have a question or comment on labor productivity? Would you like Holloway to address a specific productivity-related issue?

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