Bulletin No.

PD 1
File: Productivity

Bulletin
Maintaining Control of Labor Productivity

INTRODUCTION Generally, most large mechanical contractors

maintain an estimating department comprised
In the mechanical contracting sector of the of estimating professionals that will not, in the
construction industry, as with all labor final analysis, be held responsible for the final
intensive trades, once the project has been labor expenditures on the project. Therefore,
bought out and the material and equipment it is important to conduct in-house project
purchase orders have been entered into the initiation meetings wherein the estimators can
job cost system, the largest single variable explain, in detail, what was included and
(and the most volatile component) that excluded in the estimate as well as defining
controls profit on the project is the any assumptions that were made in the
expenditure of labor hours. Therefore, one of preparation of the estimate. Furthermore, the
the keys to profitability on a project-by-project basis of the labor estimate, along with any
basis is maintaining control of labor factors or special productivity rates that were
productivity. used by the estimators, can be communicated
to the project management team.
Surprisingly, many labor intensive contractors
do not make any attempt to monitor and With so much profit or loss at stake, it is
control labor hour expenditures during the life important that labor-intensive contractors
of a construction project. All labor charges are make a management decision to track labor
recorded to one or two general project codes, expenditures on a specific and identifiable
such as “field labor” or “shop labor.” This basis on every major construction project. As
method of labor control may be adequate for set forth in this bulletin, the reasons offered
small and very simple projects with limited for not tracking field labor are varied and
risks of labor overruns. However, on large and generally lack substance. One excuse that is
complex projects that offer a mechanical frequently put forth regarding the
contractor the potential to lose thousands, or contemporaneous tracking of labor by
perhaps tens of thousands, of labor hours, a element of work is the difficulty in the field
system of general and summary level labor with ensuring reasonably accurate reporting,
tracking results in an unacceptable level of such as disseminating to the labor managers
risk. the meaning of the various labor codes. Since
the reporting may be unreliable, a contractor
It is not standard practice in our industry for may elect not to maintain reasonably detailed
the team that prepared the original estimate labor records. Other labor managers simply
to also be the team that manages its aver that tracking labor by multiple-labor
installation. codes on a regular basis is too much work
and the investment of resources is not

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 1

sufficiently rewarded by the value of the other definitions that will allow specific
information gained in the process. identification of the work on the contract
This bulletin will explore the arguments drawings. Each activity should be given a
supporting more specific and defined labor detailed and specific description of up to 48
2
tracking and some of the methods of characters in length in order to comport with
achieving greater control over the expenditure critical path method (“CPM”) schedules that
of craft labor on construction projects. are typically developed from the job plan
activity listing.
TERMS AND CONCEPTS USED IN
PROJECT PLANNING AND LABOR The recommended size of the activity (i.e.,
TRACKING the amount of work that is included in an
activity), and the resulting duration for the
Original Estimate—the collection of bid activity, are based on the principle of
forms, take off sheets, labor adjustment optimized tracking. Optimized tracking refers
1
sheets, material, equipment and labor pricing to the greatest reasonable degree of
documents and other, similar material that reporting accuracy that can be expected
comprise the bases for the final labor during the course of the project. The concept
estimate included in the lump sum bid for the of optimized tracking dictates the size of the
project. Obviously, an important historical set activity in the job plan, as well as in the
of documents regarding the original estimate project CPM schedule. In scheduling, the
are the bid set of drawings and specifications. general guideline regarding the durations of
3
erection activities for optimized tracking
Job Planning (the Job Plan)—the suggests a range of between three to 22 work
process whereby the estimators and/or the days for the majority of the activities defined
construction managers divide the original in the job plan. Obviously, some activities will
estimate into identifiable units of work to be only one or two days in length by
which can be assigned the materials and necessity. However the majority of the
equipment that must be installed and the activities in the job plan and schedule should
labor and construction equipment that is have durations that fall within the range of 3
required to complete each unit of work. to 22 work days. This range or duration for
the activities used in the schedule also
Activity—the basic unit of work in a provides for optimized tracking when these
construction job plan (and in the construction activities are also used in the job plan
schedule). The activity is the unit of work into reporting system.
which the overall original estimate is divided
for the purposes of tracking and managing _____________________
2
craft labor during the construction process. In today’s construction environment, the most
The original estimate is divided into activities widely used CPM scheduling software system is
during the job planning phase. Each activity is Primavera®. This software system allows activity
defined by specific geographic or contract descriptions of up to 48 characters in length,
boundaries such as: phase, building, floor, however the software allows for many additional
sectors and by other designations such as by fields into which the planner may place area, floor,
column lines, systems, rooms, crew codes or column line, crew identification, or other code for
information in order to track the activity with
greater particularity.
_____________________
1
For the purpose of increasing the competitive 3
nature of a bid, many mechanical contractors “Erection Activity” as opposed to procurement
“discount” the detailed labor estimate by some activities, such as “Fabricate and Deliver Chiller,”
factor or percentage. Any such adjustments which may have a duration of many months and
should be carefully documented in the bid file. will not be assigned field erection labor in the job
plan or in the schedule.
Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 2
The duration of an activity is calculated by created in its job plan comport with the
estimating the number of labor hours that will mechanical activities created by the prime
be required to complete the activity and by contractor. If the activity durations of the
estimating the crew size for the work. The prime contractor do not comport with those
duration is derived by dividing the total contained in the mechanical contractor’s job
estimated labor hours by the hours required plan, then a written request should be
for the crew per day. For instance, if the submitted to the prime contractor requesting
activity will consume 640 labor hours and the the required modifications. If the prime
contractor plans to utilize a crew of four contractor refuses the reasonable schedule
mechanics (i.e., totaling 32 hours per day), modification requests of the mechanical
the resulting duration for the activity would be contractor, the prime contractor should be
20 work days. placed on notice that the baseline master
schedule is not reasonable. Specifics should
Obviously and within reason, the more be provided in the written notice as to the
specific the activity data, the more valuable is activities and/or logic that are incorrect or
the reporting information. Therefore, it is inconsistent with the mechanical contractor’s
advisable to differentiate between the types of reasonable plan to prosecute its base
systems that may occur within the same contract work.
geographic area, resulting in more than one
activity in an area. For instance, if the Activity Identification (“ID”) Code—the
mechanical contractor has HVAC piping, unique numeric, or alphanumeric, identifier
plumbing piping and duct work within the that is given to each activity. The application
same area, each principal trade would have of activity IDs may be dictated by the
its work identified by separate activities. contractor’s job costing system, the labor
Similarly, if the mechanical contractor has performance software in use and by the
large bore weld joint carbon steel pipe, socket scheduling software that may be employed
weld small bore pipe and thin wall stainless on the project. In order to simplify the overall
steel pipe work, all in the same area or phase labor tracking operation on a construction
of the project, it is useful to divide this work project, it is important to utilize the same
into three discrete activities by type of piping codes for all cost, labor and schedule tracking
system based on the crews that will perform software systems. Having one single set of
the installation work. activity IDs for all control systems used on a
project will increase the accuracy of the
Furthermore, the activity should be defined reporting and reduce the overhead costs to
during the job planning phase such that the develop and update the systems.
work can be commenced and not halted until
the activity is completed. This is one of the Labor Performance Report (“LPR”)— the
characteristics of an efficiently planned report format that provides the planned and
construction project; namely that the activities the actual performance data for use by field
express continuity of work such that there is and office management during the life of the
no planned “start-stop-start” disruption project. There is not a single, “best” form of
contemplated in the baseline job plan or CPM this report and many mechanical contractors
schedule. have developed their own, highly effective,
version of the LPR. The LPR can take on
Once the mechanical contractor has many different forms and is called by different
developed its activities, this information names by various mechanical contractors,
should be shared with the prime contractor for but for the purpose of this bulletin, the report
integration into the project master schedule. If that provides the labor tracking information
the prime contractor has already prepared the will be known as the LPR. One example of an
overall master schedule, the mechanical LPR is shown below.
contractor must determine if the activities
Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 3
The code fields are identified from left to Planned Hours—the originally estimated
4
right as follows: (or re-estimated hours) hours to perform
the work
Activity ID Code—the unique identifier
for each activity CO Hours—estimated change order, or
scope change, hours
Activity Description—the definition of the
work that is to be performed

The Labor Performance Report (Example of Detailed Activities)

Activity Activity Planned CO Rev Last Current Earned PT C Act Wk Wk - Cw

ID Code Description Hours Hrs Plan %C %C Hours AH Hrs -2 1

7550 500 500 30 50 250 300 450 –75 –150 –200

Inst CHWS&R
Mains
Area B

7570 700 50 750 10 20 150 120 200 –40 –45 –50

Inst CHWS&R
Brnchs
Area B
7590 Connections 100 100 10 15 15 10 12 0 0 3
@ Mech
Equip

Revised Plan—the total of the original Current Actual Hours—the actual hours
estimated hours and estimated change order charged through the current reporting period
hours
Variance Week –2—the craft hour variance as
of two weeks prior to the current period
Last Percent Complete—the progress of the
5
activity at the previous reporting period Variance Week –1—the craft hour variance as
of one week prior to the current period
Current Percent Complete—the progress of Current Week—the current period craft hour
the activity at the current reporting period variance (– over budget / + under budget)

Earned Hours—the “should have spent” By maintaining a current and accurate job
hours (Revised Plan X Current Percent plan, the productivity of each activity of work
Complete) can be measured on a period-by-period basis
(usually measured by pay period). Once the
Previous Total Actual Hours—the actual activity ID codes, activity descriptions and the
hours charged as of the last reporting period planned hours have been input at the outset of
___________________ the project, the regular input data consists of:
4
Some mechanical contractors require that the (i) any revisions to the original job plan hours
construction team “re-plan” the project once it has ___________________
5
been transferred from the estimating department. The frequency of the reporting periods is generally
The construction team may find differences in the governed by the frequency of the pay periods of the
“construction estimate” as opposed to the original field craft labor, which is usually weekly or twice
estimate. The job plan should reflect the planned monthly. The longest effective reporting period in
hours determined by the team that will actually take terms of labor tracking and trending is
responsibility for the profitability of the project. approximately monthly.

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 4

(i.e., changes in. scope); (ii) the actual hours increase profit. There are other sound reasons
from payroll information; and (iii) the percent for a higher degree of labor control on
complete of the activity. In return for the input construction projects, which include:
of the above-listed data, the project team has
at its disposal a powerful tool that allows ■ Establishing, or verifying, the accuracy of
management to review with specificity the the contractor’s bidding units
areas of labor expenditure that exceed e
budgeted job plan labor hours. Most ■ Developing an early warning system that
importantly, it permits the project management will allow proactive management
team to identify specific activities of work that intervention
are indicating unproductive progress before ■ Mitigating, or documenting, the
the activity is complete, thus allowing the inefficiencies associated with non-
project management team to proactively contractor caused impacts as well as
address the forecast labor overrun before it accurately quantifying the associated
becomes an historical loss. costs.

THE PURPOSES OF, AND In fact, these reasons to track labor

METHODOLOGIES FOR, TRACKING expenditures contribute to the concept of
LABOR maintaining, or increasing, profit on the project.

The single, best reason to maintain better The job plan should be developed with the
control of field labor expenditures is to input and direct assistance of the field labor
supervisors (sometimes called the labor
Activity Boundaries Marked on the
Contract Drawings

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 5

superintendent or general foreman). The can be referenced during the project to ensure
inclusion of the principal labor managers that the actual labor hour reporting is accurate.
will increase the opportunity for accurate The form shown below has been used on large
labor reporting. An essential element of and complex projects to document the labor,
accurate labor reporting is the clear equipment and material required to perform
definition of the work included in an each activity. The form allows the contractor’s
6
activity. Documenting the elements of an planning team to record each set, or task,
activity is an essential ingredient in which will be required to complete the activity.
achieving accurate labor reporting. One ___________________
means of meeting this goal is to mark the 6

outlines or boundaries of each activity on Many mechanical contractors find it very valuable,
and highly profitable, to have the construction team
a set of contract drawings.
perform a re-estimate of the project before
commencement of the work. While time-intensive,
The graphic example below shows how this operation provides an invaluable learning
depicting the extents of a specific job plan experience for the project team concerning the
activity can provide relevant particulars of their specific project and will provide
documentation that can be constantly for a reasonably detailed job plan that relates to the
referenced during the life of the project. manner in which the project team will actually
prosecute the work. Another benefit of this process
In addition, other forms can be utilized to is the identification of long lead-time procurement
capture the details of each activity that items.

Activity Planning Form

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 6

Such records can substantially improve the foremen to determine whether the deteriorating
quality and accuracy of actual labor hour labor productivity has been caused by changed
reporting in the field. conditions, unanswered RFIs, other impact
events beyond the control of the mechanical
Any project reporting system requires an contractor or self-induced inefficiencies.
investment in terms of management resources.
If a contractor expects to derive valuable However, if the contractor does not institute
management information from any reporting quality control checks and reviews of the data
system, whether cost or labor efficiency, and the period-by-period coding of the actual
attention to detail and accuracy are a necessity. labor hours to the job plan activity ID codes, the
A “corporate culture” that supports accurate resulting inaccuracies arising from this neglect
cost and labor reporting is essential. may render the LPR unreliable. For instance,
some mechanical contractors offer a bonus to
Once the initial data has been input and labor managers for hours saved on the project.
collected, the contractor has the following data This program may have the unintended effect of
that must be accurately coded and input on a promoting the “balancing” of actual labor hour
period-by-period basis: charges each reporting period. If the craft labor
manager sees an activity ID code decreasing in
■ Actual field craft labor hours charged to efficiency (i.e., the negative variance increases
each activity ID code each period), there may be a temptation to
improperly reassign craft hours from the
■ Estimated scope change hours that must be inefficient code to a labor code that is reporting
input to update the job plan highly productive work. This sort of “balancing”
■ Current period percent complete progress by renders the LPR information suspect and
activity ID code unreliable.

The foregoing represents the ongoing data that Every reasonable effort should be engaged to
must be collected and entered into the LPR to ensure that the craft labor managers who
allow the report to provide a variety of output generally decide to which activity ID code actual
data that can be used by the project labor hours are assigned are charging the hours
management team proactively to address to the correct activity ID codes. This may even
productivity “events” that serve to reduce profits entail changing the contractor’s bonus incentive
and/or cause delays to the construction plans to move away from bonuses granted
schedule. The software cost for implementing purely on incremental reporting of labor
and maintaining a labor tracking and trending efficiency. In addition, the labor managers must
system is not the limiting factor for the use of be given the time and clerical support to allow for
such systems. Reporting systems as described accurate collection of the necessary data.
herein can now be accomplished using some of Whatever steps are employed to ensure
the more advanced features of Microsoft Excel®. accurate charging of actual labor hours will be
Therefore, the actual costs of the software and effort well spent in terms of providing an
computer platform to run such systems are no invaluable tool for the project management team
longer a bar to their implementation. It is simply to detect potential losses of labor productivity
reduced to the will of the mechanical contractor before they become significant.
to track the expenditure of its most valuable and
volatile resource—field labor. The primary goal of the labor tracking and
trending methods described herein is to increase
With an accurate LPR, the project management profit. The mechanism by which that goal is
team can readily and effectively evaluate the achieved is known as “proactive management.”
productivity of defined areas of the project Simply put, this sort of management occurs
including specific crews, labor managers or other when a project team is able to identify negative
defined features of the work. Often, inspection of trends within its labor budgets early enough to
the updated job plan activity ID codes will alert allow the manager to identify the discrete work
the project management team to inefficient labor activity in which the inefficiency is occurring and
trends that can be investigated by physically to take steps to totally remedy or mitigate, or at
observing the work and interviewing the labor least identify the source and location of, the

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 7

productivity loss. Assuming that the activity has thereof) can be computed on a period-by-period
been properly developed, it will have definable basis. This data, in combination with the
and specific geographical boundaries such that variances computed within the LPR, can be
the labor manager can walk onto the project and combined to create a curve or trend of labor
“stand” in the area of the activity. The presence productivity, as can be seen in the example
of such specific labor tracking and trending can below:
allow the manager to evaluate the potential
causes of the reported inefficiencies and take From this sample curve, the trend of the labor
the appropriate action before the loss becomes expenditures can be plotted and quickly
project-wide. evaluated by the project management team. On
this example, the total project percent complete,
LABOR PRODUCTIVITY TRENDING labor hours over/under budget and percent
variance are shown on one chart. These types of
In order to grasp quickly the overall labor easily assimilated graphic presentations can be
productivity on a construction project, it is augmented with other types of “roll up” trending
essential that the data be presented in a format reports that have their data derived from the LPR
that can be readily acted upon by the without any further input by the project team.
management team. Various summary reports Other sorts of “roll up,” summary level reporting
and trending curves can be produced from the that can be generated from the data described
LPR. For instance, from the summary of the previously herein includes the following
LPR, the total project (or the mechanical portion example:

Labor Productivity Variance Tracking & Trending Curve

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 8

Such summary level reports require no ■ Required crew size at the actual rate of
further input from that described herein and performance
can provide valuable management
■ Historical reporting on the activities that
information.
have been completed
From the above example, the following data ■ Trending of the active activities
can be derived:
These data can provide further insight into
■ Total hours ahead or behind the job plan the typically non-linear expenditure of labor
hours on a construction project and within
■ Total project percent complete in terms of
each discrete activity. The object of any
labor hours
reporting methodology and output reporting
■ Progress gained by period in terms of is to increase profits and eliminate the end-
labor hours of-project labor loss “surprise” that afflicts a
large number of otherwise sophisticated and
■ The progress (by percent complete) that
successful mechanical contractors.
must be achieved by period
■ Required crew size at the planned rate of
performance

Labor Performance Summary

Issue 12/10 12/17 12/24 12/31 1/7 1/14 1/21 1/28 2/4 2/11 2/18

Mechanical Work
Planned Hours 17908 18208 18208 17848 17848 18526 18526 18526 18526 19882 19882
Completed Hours 5867 6510 7190 7596 8075 8718 9280 9919 10602 11554 12310
Actual Hours 5734 6256 6941 7409 7902 8606 9282 10062 10870 11704 12491
Hours This Week 585 522 685 468 493 699 676 780 808 722 787
Variance (Hours) 133 254 249 187 173 112 –2 –143 –268 –150 –181
Variance (%) 2% 4% 3% 2% 2% 1% 0% –1% –3% –1% –1%
Effective Crew Size 16 15 19 13 14 19 19 22 22 20 22
Current & Complete 33% 36% 39% 43% 45% 47% 50% 54% 57% 58% 62%
Progress This Week (%) 3% 3% 4% 3% 3% 2% 3% 3% 4% 1% 4%
Progress: 4 Week Average 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Required % Comp./Wk 4% 4% 4% 4% 4% 4% 4% 4% 4% 5% 4%
Weeks Available Left 18 17 16 15 14 13 12 11 10 9 10
Job End Date 4/14 4/14 4/14 4/14 4/14 4/14 4/14 4/14 4/14 4/14 4/28
Req. Crew @ Plan Rate 20 20 19 19 19 21 21 22 22 26 21
Req. Crew @ Actual Rate 19 19 18 19 19 21 21 22 23 26 21
95–100% Activities (Plan) 420 420 420 420 861 2478 3095 4582 5559 6067 6749
95–100% Activities (Actual) 434 434 434 434 830 2419 2933 4600 5864 6065 6810
100% Better/Worse (Hrs.) 14% –14% –14% –14% 31% 59% 162% –18% –305% 2% –61%
100% Better/Worse (%) –3% –3% –3% –3% 4% 2% 5% 0% –5% 0% –1%

5–95% (Plan) 11842 12142 13792 15272 15272 10078 9428 8014 8111 9073 9196
% of Mech. Plan Action 66% 67% 76% 86% 86% 54% 51% 43% 44% 46% 46%

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 9

WHEN LOSS OF LABOR By referencing its estimate, or by taking off
PRODUCTIVITY CLAIMS ARISE systems by activity ID codes, the contractor
can equate labor hours to the quantity of
On some projects, the mechanical contractor material installed. A measured mile analysis
sustains a substantial loss of labor productivity requires knowing the actual hours expended to
for which the contractor seeks recovery from a install a unit of material; for instance, hours
prime contractor or owner. Each year, MCAA actually expended to install a linear foot of 14”
member firms incur hundreds of millions of ASTM A-53 schedule 40 butt weld pipe by
dollars in unplanned labor expenditures due to area or time frame. The vast majority of
loss of productivity impacts not caused by the mechanical contractors do not track materials
mechanical contractor. To the extent that it installed on a period-by-period basis.
can be demonstrated that the mechanical However, the materials and conditions of
contractor was not the cause of such losses, it installation can be readily analyzed by
may be necessary to develop a loss of reviewing the historical data that supports the
productivity claim. In some cases, the very job plan and the LPR. Assuming the
survival of the contractor may depend on the mechanical contractor has retained the records
success of such a request for equitable (such as contract drawings marked by activity
adjustment. ID code or the Activity Planning Form) that
provide the basis of each activity, the materials
Once the mechanical contractor’s estimate has installed in the activity can be estimated or, if
been eliminated as the source of the loss, the the Activity Planning Form has been used, the
mechanical contractor should determine what material data are readily available without the
other events cause the loss of productivity. need to reestimate the materials.7
Some commonly overlooked items are the
impacts of RFI’s, field change directives and Assuming that the contractor has accurately
“field fit-to-suit” conditions, which are seldom recorded the actual hours charged to each
incorporated into the compensation for change activity ID code, the hours required to install
orders. After careful evaluation of the events the material and equipment within an activity
that adversely affected the labor productivity are identifiable. With that information in hand,
on a project, the mechanical contractor has the a contractor can compare the labor required to
option of either absorbing the loss or preparing install systems in less impacted time frames or
a loss of productivity claim. One of the areas with the labor required to install similar
acceptable methods of computing loss of systems in the impacted time frame or area.
productivity is the “measured mile” method. The measured mile method is not dependent
This method is described in the MCAA’s upon the contractor’s estimate because it uses
publication “How to Use the MCAA Labor actual installation rates achieved on that
Factors.” Simply put, this methodology particular project site to form the basis of the
computes inefficiencies by measuring a productivity comparison.
contractor’s actual productivity rate achieved in
a time frame or area of lesser impact and As noted in “How to Use the MCAA Labor
compares the contractor’s actual productivity in Factors,” on some projects it will be impossible
a time frame or area of representative impact. to perform a measured mile analysis, even if
Among other information that is necessary in proper labor productivity data is available. On
order to perform a measured mile analysis, the
contractor must have available comparative ______________________
7
data in order to compute the varying To the extent that change orders have been
production rates. If the contractor maintained issued, the original estimate for materials must be
adjusted for the material items added by the
an LPR system similar to that described
change orders to create the “adjusted estimated
herein, then the data required to perform a quantities.” This is true for field labor as well.
measured mile analysis can usually be
compiled.

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 10

many projects, there is no identifiable ______________________
unimpacted, or less impacted, period thereby Prepared by Paul Stynchcomb of Brower, Kriz &
preventing the contractor from applying a Stynchcomb, LLC, with peer review performed by:
measured mile analysis. In such cases, the Ronald Pearson, President/CEO of The New Mech
Companies; Matthew Hahr, V.P. of John J. Kirlin,
MCAA factors described in “Factors Affecting
Inc.; Richard Freeman, Exec. V.P. of Stromberg
Labor Productivity” and “How to Use the Metal Works, Inc.; Robert Cox, Esq. of Watt,
MCAA Labor Factors” can be useful in Tieder, Hoffar & Fitzgerald; and Robert Windus,
estimating the cause and effect of various Esq. and Stuart Sakwa, Esq. of Moore & Lee, LLP.
sources of inefficiency such as “Reassignment
of Manpower,” “Crew Size Inefficiency,”
“Dilution of Supervision,” and “Overtime
Inefficiency.” This data and an explanation of
what a loss of productivity claim entails are
addressed in the other MCAA publications as
noted above.

CONCLUSION

Measuring labor productivity during the course

of a construction project requires discipline,
dedication of the labor management team and
an earnest desire to understand the somewhat
ethereal and amorphous concept of labor
inefficiency. The pursuit of this understanding,
however, can lead to more profitable
construction projects and avoidance of
substantial losses that are occasioned by
impacts causing loss of labor productivity.

Author’s Note
Obviously, the labor tracking and trending
concepts described herein were not originated
by the writer. I am compelled to credit many
experienced and highly profitable mechanical
contracting firms, well known within the MCAA
membership, for developing, testing and
proving the inestimable value of the labor
tracking and trending systems described in this
bulletin. The writer had the privilege of having
been employed by one such firm and had the
opportunity, on a first-hand basis, of
experiencing the hard work developing and
maintaining an accurate LPR system and also
of witnessing the material benefits that resulted
from this proactive management concept.

Paul L. Stynchcomb
Brower, Kriz & Stynchcomb, LLC

Copyright, Mechanical Contractors Association of America, Inc., Revised 2005. 11