Adjusting for Working Conditions

You might be wondering, “If I adjust my labor units to account for these variable factors, how will I ever get a job?” Here's the thing: if you choose not to apply any of these labor-unit adjustments for fear that your price will be too high, and you get the job, you will really be in trouble. It's better to not get a job that is priced correctly than to get a job and just break even, or worse yet, lose money. The following are some final considerations when adjusting labor units.

Repetition Factor

When you perform the same function over and over again, you complete the task a little faster than the previous time which can significantly improve your labor productivity. Consider the following labor adjustments if you have any repetitive work:

Restrictive Working Conditions

Sometimes, due to an accelerated schedule, you will have multiple trades working together in the same room or space (stacking). This forces the trades to work around each other, often resulting in conflict and decreased labor productivity.

Author’s Comment:?The NECA research report,?Factors Affecting Labor Productivity of Electrical Contractors?has a section about the stacking of trades.

Schedule

The construction schedule must be taken into consideration when you prepare the estimate. Labor units in all manuals are based on the fact that the job will be properly staffed with sufficient qualified persons, using proper tools, who are properly supervised on a project of normal duration. In addition, labor units are based on the fact that the job will be run in an efficient manner where the employees work no more than 8 hours per day.

When the project follows an abnormal project progress schedule, abnormal project completion date, or when the project progress schedule is substantially revised, there is a loss of productivity. The magnitude of the productivity loss is related to the circumstances of the particular project involved.

Extended-duration jobs resulting from delays due to factors such as weather or poor job management can cause a reduction in labor productivity and an increase in careless mistakes.

Author’s Comment:?NECAnet.org has a research report entitled?Normal Project Duration.

Accelerated.?A job that is projected to run on an accelerated schedule requires the electrical contractor to have more manpower on-site than would be typical. This applies not only to the electrical contractor but also to the other trades. This can result in the contractor needing to hire “temporary” staff that might not be as well-trained or motivated to produce as the “permanent” staff.

An accelerated production schedule can cause havoc in scheduling material and tools to be on-site when needed and the impact on labor productivity must be taken into consideration when too many workers are in the same area at the same time. Do not forget to consider the negative effects of in-creased supervision pressure and the possible poor productivity of temporary staff.

There is no specific labor adjustment factor for an accelerated schedule, but you should consider its effect on your labor productivity.

Example:?What is the crew size for a six-week project that has estimated labor of 1,200 hours?

Crew Size = Total Hours/Number of Weeks/40 hours per week

Crew Size = 1,200 hours/six weeks/40 hours

Crew Size = Five electricians.

If you accelerate the schedule to three weeks, you will need twice as many electricians, and your labor productivity will likely decrease resulting in an increase in labor cost for the job. You may also have to include overtime to meet the compressed scheduling.

Author’s Comment:?NECAnet.org has a research report entitled?Project Peak Workforce Report.

Shift Work

When scheduling shift work, take into consideration the lifestyles of your employees. Generally, single employees without parental responsibility prefer to work the second shift (3 p.m. to 11 p.m.), whereas married employees given the choice between second or third shifts, prefer the third shift (11 p.m. to 7 a.m.). But check with each employee and see what they prefer and, where possible, try to accommodate them.

Teamwork

If the general contractor does not coordinate effectively, that deficiency is going to cause everyone problems and probably cost you money. When there is stress between the various trades, you can expect problems and a reduction in labor productivity. When possible, try to stimulate and encourage positive teamwork habits between the trades.

Successful electrical contractors provide an incentive plan or reward system to encourage field labor to attempt to complete the project within the labor budget. The incentive plan can be paid time off, or perhaps a bonus, based on the number of hours saved compared to the budgeted hours.

Author’s Comment:?NECAnet.org has a research report entitled?Field Incentive Systems for Electrical Construction.

Weather/Temperature

Labor units are based on environmental (weather) conditions, which do not reduce labor productivity. Optimum labor efficiency is achieved when the working temperature is between 35°F and 80°F with a relative humidity below 50 percent. Studies have shown that extreme temperatures cause workers to concentrate on their discomfort rather than on the job to be performed, with an increase in accidents, deterioration in workmanship, and lower labor productivity.

Cold.?Extremely cold conditions cause a significant reduction in labor productivity because of the need for frequent warm-up breaks. Working in extremely cold environments is very uncomfortable and it often leads to head colds or a feeling of being run-down.

Heat.?Elevated temperatures cause a decrease in labor productivity due to the time required to wipe body perspiration from one’s face and hands, and from perspiration getting on work surfaces making it difficult to handle material, equipment, and tools. When the temperature is elevated, electricians be-come fatigued, belligerent, and irritable (let’s not go there). They also suffer from diminished powers of concentration under these conditions.

Author’s Comment: NECAnet.org has a report available entitled?The Effect of Temperature on Productivity.

The above content is extracted from?Mike Holt's Electrical Estimating Program.

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Mike Holt is an author, businessman, educator, speaker, publisher and?National Electrical Code? expert. He has written hundreds of electrical training books and articles, founded three successful businesses, and has taught thousands of electrical code seminars across the US and internationally. His company, Mike Holt Enterprises, has been serving the electrical industry for over 40 years, creating and publishing books, DVDs, online training and curriculum support for electrical trainers, students, organizations, and electrical professionals.?

Mike has devoted his career to studying and understanding the?National Electrical Code?and finding the easiest, most direct way to share that knowledge with others. He has taught over 1,000 classes on over 40 different electrical-related subjects to tens of thousands of students. His knowledge of the subject matter, coupled with his dynamic and animated teaching style, has made him sought after from companies like Generac, IAEI, IBEW, ICBO, NECA, and Fortune 500 companies such as IBM, Boeing, Motorola, and AT&T. He is a contributing Editor for?Electrical Construction and Maintenance?Magazine (EC&M) and formerly Construction Editor to?Electrical Design and Installation?Magazine (EDI). His articles have been seen in?CEE News,?Electrical Contractor?(EC)?International Association of Electrical Inspectors?(IAEI News),?The Electrical Distributor?(TED) and?Power Quality?Magazine (PQ).