Labor Productivity Analysis
When a contractor bids and is awarded a fixed priced contract, it typically assumes that it can achieve a certain level of labor productivity in performing the work such that the contract will be financially successful.
During construction projects, there are many events and circumstances that can negatively affect productivity including changes, excessive overtime, resources shortages, rework or errors and severe weather. When the anticipated rate of production is not achieved, project costs and schedules are negatively impacted.
When losses are suffered on a construction project, additional labor costs can be the largest element of those losses. Labor overruns can be attributed to numerous causes and factors. Proving and pricing lost productivity claims can be a difficult task. However, if certain basic fundamentals are present, accepted methods of analysis do exist. Additionally, from an owner’s perspective, analyzing and responding to a contractor’s productivity claim can be a difficult process.
Synergen has prepared and analyzed hundreds of productivity claims totaling hundreds of millions of dollars. Our productivity experts have been certified by courts and panels as experts in the field of labor efficiency and productivity loss. We have in-depth knowledge of productivity tracking and controls, impacts, industry studies, and quantification techniques. These techniques include:
• Total cost claims
• Modified total cost claims
• Industry studies (MCAA, CII, Business Roundtable, etc.)
• Measured Mile Analysis
• Discrete tracking and pricing of events
Synergen’s experts have analyzed the cause-and-effect relationship of complex construction issues affecting productivity in order to prepare and evaluate claims involving labor productivity loss. We have also negotiated on behalf of our clients, presented in mediations, provided expert witness testimony, and testified in arbitration and in court on matters involving labor efficiency and productivity loss.