Effects of labor productivity on cost performance in construction projects

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University of Dar es Salaam
The main objective of this research is to find out how labor cost estimation is established from different contractors and to analyses the impact of labor productivity on cost performance. Questionnaires to contractors, consultants and interview to craftsmen along with field observation were main methods for data collection. Contractors prefer easier way of updating previous labor rates of similar works rather than building up hourly rates for items concerned. Field productivity rates were found to be lower than those recommended in construction manuals and books, estimators therefore tend to overstate productivity rate consequently understate schedule as well as cost budget. Contractors also keep cost-accounting records in monetary form and not in man-hours. Extent of training is one among the most important factors mentioned to affect productivity rate at sites but majority of craftsmen do not have formal training. It is concluded that lack of labor productivity data for Tanzania's environment hinders contractors from building up hourly labor rates hence relying on updating their previous information. Contractors are 1„rged to keep cost- accounting records in both man hours as well as in unit costs. Formation of trade unions is necessary to register and approve craftsmen. It is also possible to establish national and regional standard labor rates thus contractors will have no rooms in squeezing labor wages hence project performance will mostly depends on contractors' ability in dealing up with factors affecting site labor productivity. Earned value analysis (EVA) is a useful tool in measuring performance of projects as it provides "early warnings" for prompt corrective actions hence bed news does not age well.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class Mark (THS EAF HD9715.S34)
Construction industry, Employees, Management
Salim, A (2007) Effects of labor productivity on cost performance in construction projects, Master dissertation, University of Dar es Salaam.