Labor productivity in heavy construction: impact on synfuels program employment

Abstract

This study focuses on variations in labor productivity in the heavy construction industry. Productivity is one of a number of factors likely to affect the speed and cost of constructing a synthetic fuels plant. The findings of this study are presented with reference to synthetic fuels plants, but they are relevant to other large energy facilities as well. The data were gathered through a detailed literature search and extensive in-depth interviews with consultants in heavy industrial construction, union officials, and management. In this manner the most important determinants of labor productivity were identified and ranked in terms of relative significance. The type of project under construction is the most important factor affecting the productivity of heavy construction labor. Projects characterized by the utility work syndrome are large, complex, relatively unique, highly regulated, and have cost-plus contracts and tight deadlines. Such projects generally have lower-than-average levels of labor productivity. Labor productivity is also lowered by worker and management morale problems, due to delays and design changes, and by high levels of unemployment among construction workers. Finally, boom town conditions, caused by workers moving to live near large projects located in rural areas, also are likely to result in below-average labor productivity.Syntheticmore » fuels plants are likely to have a number of these identified characteristics. Consequently, the findings suggest that labor productivity may well be a problem for the timely development of an economically competitive synthetic fuels industry. « less

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