CEE 6141

Construction Operations and

Productivity

By

Dr. Balimu Mwiya

 Introduction:
• Construction is the worlds largest and
one of the most challenging industries.

• It is not known how the pyramids were

constructed, but it has been reported
that 100,000 workers were used.

• Historically:
– Written record – Greeks , Romans – written
job descriptions, division of labour
– Mechanical clock was invented –time studies
–industrial revolution
– Computerisation – track productivity more
efficiently
Today:
 Intro cont’d:
• Billion-dollar-plus megaprojects will
account for a greater share of these
developments.
• However, the industry does poorly
completing megaprojects on time, on
budget, and to specifications.
• Estimates:
– 98 percent of megaprojects suffer cost
overruns of more than 30 percent;
– 77 percent are at least 40 percent late.
THE PROBLEM:
 THE PROBLEM:
Lack of increase in construction
productivity is due to 3 theories:
1. increasing complexity of the
construction industry
2. Excessive nonproductive time of 45
percent is found on a typical
construction project
3. Excessive governmental regulations,
Inadequate investment and Reduced
research and development
 PRODUCTIVITY:
What is it?
• Dolman, Parham, & Zheng, (2007),
productivity is a measure in order to
know how much output is produced per
unit of input

• Diewert & Lawrence (2006) defined

productivity as the level of economic
output per unit of input and also per
worker.
 Definition cont’d
• Hwang and Liu, (2005), productivity is
an effective index that can indicate
output of construction work quantity
versus the input of resources.
• Prokopenko, (1987), defined the
productivity as “effective and efficient
utilization of all resources, labor, plant
and materials”.
• Jugdev, et al.,(2001), productivity is a
ratio between inputs and outputs.
 PRODUCTIVITY:

Definition from NCC??

Traditionally it a ratio
PRODUCTIVITY = OUTPUT/INPUT

Productivity vs Performance vs Production

vs Efficiency
 PRODUCTIVITY:
• Productivity is not the same as
performance.
• A worker can work strenuously but have
low productivity due to ineffective
working methods.
• On the other hand, productivity can be
high with low performance with the
assistance of automated equipment.
• Performance is usually regarded as the
product of the worker's ability and
motivation.
 PRODUCTIVITY:
• Sometimes productivity is regarded
synonymous with production.
• Production is the process of transforming
inputs (labor, material, capital, energy,
and equipment) into a good or service
such as a road or building.
• Total production may increase by
increasing an input factor; however,
productivity can remain constant or
change if the ratio of output to Input
changes.
 PRODUCTIVITY:
• Efficiency is simply the ratio of actual
productivity divided by the estimated
productivity.
• The main use of efficiency is in
comparing productivities of different
factors or of the same factors at
different times.
• This ratio allows the Construction
manager to compare the estimated
productivity with the actual productivity
 PRODUCTIVITY:

• What is the productivity of the ZCI?

• What is the performance of the ZCI?
• What is the efficiency of the ZCI?

• To improve productivity, we must be

able to measure it.
 PRODUCTIVITY:
Measure productivity for 2 main reasons

• Estimate cost of construction activities

• Estimate duration of construction
activities

From first principles:

Direct Costs- Labour, Material and
Equipment
 PRODUCTIVITY:

From first principles:

Direct Costs- Labour, Material and

Equipment
 PRODUCTIVITY:
• The three most prominent elements are:
1. Determine the quantity of work and material,
2. Identify the productivity rates to be used,
3. Calculate the unit cost of the resources.

• Of these three productivity is the most

subject to uncertainty.
• Forecasting or estimating of productivity
rates is the leading risk factor in a
construction estimate.
• Information for productivity rates can be
from numerous sources which include field
experience, books, and historical records.
 LABOUR ALL IN RATE
How to calculate labour-all-in-rate

Based upon Association of Building & Civil

Engineering contractors (ABCEC) and
National Union of Building, Engineering &
General Workers (NUBEGW)

Joint Industrial Council Collective

Agreement (2014 - 2015)
 LABOUR ALL IN RATE
How to calculate labour-all-in-rate
Average working weeks in Zambia
No of weeks in a
year 52
less annual
leave (includes
industry close
down) 4.8
less public
holidays 2.6
(UK has 46.2 working
44.6weeks)

2007working hours