Table of Contents for Construction Labour Planning- Excel
- Need of Construction Labour Planning
- Steps for Construction Labour Planning
- Measurement of Construction Labour Productivity
- Download Construction Labour Planning Excel
- Attrition Rate Consideration
- Cost Consideration
The construction activities are getting lean day by day. The construction manpower needs to be planned for each type of activity to ensure maximum utilization. This will save time and cost. The quality is also controlled by deploying skilled manpower to the job.
The construction sector is one of the biggest employers in the world. As per a 2014 report, the construction sector employs 8.6% of the total employees across the world. Another report indicates, India had 40 million construction sector jobs in 2013 & expected to grow to 67 Million by 2022. With the increasing construction activities, the need for skilled manpower will be more than ever.
In this article, I will guide you through the construction labour planning process. Starting with the need for labour planning, moving ahead with steps for construction manpower planning, measurement of productivity, the construction manpower planning template, attrition rate and the cost consideration. The article will be concluded with the final remarks on the various points explained.
2. Need of Construction Labour Planning
The construction projects operate under scope, time and cost constraints. Labour productivity is one of the key factors governing time & cost. The time taken by an activity is inversely proportional to the productivity of labour with a lower limit on minimum time. The labour cost is 30-50% of the total project cost (for my current project it comes around 35%).
The construction manpower planning has helped me ensuring the following aspects for my projects-
- Reduction in labour cost hence the overall project cost.
- Better quality of work.
- Timely completion of job, thus lesser delays, EOTs and delay claims etc.
- Better supervision of labour.
- Development of phase wise labour mobilization/demobilization plan.
- Labour accommodation facility development.
- Cash flow requirement generation for wages, incentives, food, etc.
The advantages of construction manpower planning are project-specific and depend upon the contract type. However, the multiple benefits can’t be ignored. The advantages also depend upon the efficiency of planning and its’ implementation.
3. Steps of Construction Labour Planning
The construction labour planning is done in conjugation with the project schedule development. The duration for an activity is estimated based on either of these methods. Considering the work to be done, the complexity of the job and the labour productivity the duration can also be estimated.
The below-stated points summarize the complete process of construction labour planning.
- Collection of Inputs- The input for construction manpower planning are the types of activities, work quantities, required skills and experience of labours, productivity standards, tentative project timeline, deadlines for the project and organizational template, if any.
- Assessment of Manpower Requirement- The manpower requirement is assessed from the historical data of previous projects of similar nature. If such data is unavailable, the calculations are to be made. The formula for the per day manpower calculation is-
- Sorting & Grouping- The manpower required for each of the activity is sorted as per their category i.e., carpenter, mason, fitter, welder, helper etc. Each category man-days are summed up.
- Plotting of Man-days on Project Timeline- Category wise man-days are plotted against the project timeline. The daily category wise requirement of manpower is be ascertained in this step.
- Manpower Levelling- The requirement of manpower for some days can be higher than other days. Hence, it is not possible to mobilize/demobilize the manpower so quickly. Thus, problem is tackled by preponing or postponing the non-critical activities as such that the daily demand becomes more or less same.
- Preparation of Mobilization Plan- The mobilization plan is prepared for the week / month. The levelled manpower is arranged to be mobilized to the site in batches as per the calculated requirement.
5. Measurement of Construction Labour Productivity
The construction labour productivity measurement is essential to monitor and control the progress. The productivity measurement ensures if the desired output is being achieved. If not, the corrective actions need to be implemented.
The productivity measurement is a ratio of output to input.
The output is the work done per day and the input is the number of man-days consumed to complete the work.
The unit of productivity is the work unit per day. The work units for different types of works are different. The concrete poured is measured in cubic-meter, shuttering in square-meter, excavation in cubic-meter, reinforcement bars tying in kg or MT, 9” thick brickwork in cubic-meter, 4.5” thick brickwork in square-meter etc.
6. Construction Labour Planning Excel
The construction labour planning Excel sheet attached herewith helps calculate the labour required for the day. The various types of works like shuttering, concrete pouring, reinforcement cutting-bending & tying, blockwork, plaster and tiling are covered. Each type of work has been detailed into various forms like foundation, columns, beams, soffits, slabs etc.
The input required for the construction labour calculation by the sheet is work quantity for the day and the working hours per day. The sheet calculates the labours and divides them into the category.
7. Attrition Rate Consideration
The attrition rate is the turnover rate. Out of all the labourers mobilized at the site, some do not stay back and work. There might be several reasons for them returning. Thus, the turnover can lead to a shortfall of manpower at work and hence delay in work as they cannot be replaced immediately (especially skilled labour).
A suitable attrition rate should be considered while mobilizing the manpower. The labours should be mobilized in excess as per the attrition rate. For example, if 100 Nos. manpower is required for the work and the attrition rate is 10%, the mobilization plan should be for 110 Nos. (100 + 100 x 10%) manpower.
The formula to calculate the attrition rate is as follows-
The attrition rate depends upon various factors. For my current project, the attrition rate is as high as 10% for the week and 25% for the month. This means 10% of the mobilized labour return within a week and 25% labourers return within a month. The high attrition is due to extreme weather, remote location, the higher price of commodities in the local market, connectivity, etc.
8. Cost Consideration
The cost involved in the labour aspect depends upon the contractual terms. For unit rate contract & lump sum contract, the client doesn’t have to worry about the labour wage, he only has to pay for as per the work executed. The contractor pays the wage or he can further sub-contract the work. For time & material contract, cost-plus contract and target cost contract, the client pays for the labour as per the usage.
The additional costs that are incurred other than the wages are the labour accommodation, transportation charges, insurances, workers’ license, food, incentives, additional allowances, bonus etc. The scope for these costs is also mentioned in the contract.
Construction labour planning has proved to be an essential and critical step in project planning. The over-estimates lead to additional cost and the lower estimates cause delay to the project. It is a key challenge for the estimator to maintain a perfect balance for manpower estimation.
The attrition rate for the manpower should be suitably adopted. Historical data for the similar nature of projects in the nearby locations of the project can be referred to for better estimates. Too high or too low assumptions shows the inability of the team to find the balance.
The direct and indirect costs for manpower are to be considered in the contract. For lump-sum and unit price contracts, the indirect costs should be covered in prices.
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