This article deals with the strategic necessity to monitor and manage the workforce During the execution of a project, By distinguishing between it and the estimate techniques during the planning phase.

A unique system at the service of stakeholders

Check and manage the workforce It is essential for Main Contractor, contractors and clients, each with specific needs that must be met. Ma, on the other side, The estimate of the workforce is the most variable and uncertain parameter in determining costs, and key element also of the screening and contractual management.

The needs of the contractors, of general contractors and clients

I describe three main scenarios:

• Contractor and subcontractors who directly manage their workforce.
• Main Contractor or General Contractor who do not have a direct workforce, Apart from the construction management staff.
• Clients who must monitor human resources to evaluate the progress of the project e, in particular, The sustainability of ends (or the remaining duration of the activities).

A single and coherent system can only be designed by the client, well in advance of the tender phase. Must be integrated into the instructions to competitors and in contractual specifications, because it is part of the most Ampist-Systema controlled control.

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Manage the workforce as a contractor

If you are a contractor, Managing and controlling resources is a primary need. Direct costs estimates typically include three main categories:

• Materials
• Equipment
• Labor (labor)

As already mentioned, The key point is that the estimate of the necessary resources is the most variable parameter. In construction projects, can represent from 30% al 40% of the total direct cost. Managing the workforce means acting on two fundamental aspects:

• Estimate, measure and control productivity: work units produced per unit of time (es. 15 cubic meters per hour).
• Plan and monitor the use of resources over time and divided by job.

A concrete example

If the workforce represents the 35% of the total cost of the project and use the 25% more hours than expected, The impact on the budget will be:
0,35 × 0,25 = +8,75%
Result? If the expected profit was of the 10%, now it is reduced to only 1.25%!

Productivity control is also essential in SUM LINP contracts

One might think that in Lump sum contracts, where the price is fixed and predefined, the control of the productivity of the workforce is less relevant for the main contractor and the client. Actually, It is exactly the opposite.

Because productivity is critical for Main and General Contractor? Even if they do not manage the workforce directly, However, they must monitor the productivity of subcontractors to ensure that the works proceed according to the plans and that the completion estimates are realistic.

And for the client? The clients must also monitor it to verify the reliability of the estimates provided by the general contractors and subcontractors. A yield lower than the forecast can make the completion estimates (ETC) too optimistic, causing delays and contractual problems.

From productivity to Enedned Value: control as a prevention tool

The concept of Enedned Value it was developed precisely with the aim of stimulating the cost control. When the Department of Defense of the United States (DOD) introduced the Cost/Schedule Control Systems Criteria (C/SCSC) in the 1960s, The main objective was to create a system that allowed to constantly verify the correspondence between work performed, Costs incurred and real productivity.

L’idea alla base dell’Earned Value Management (EVM) it's simple: if constantly measure the productivity and the value of the work actually done, You can compare it with what is planned and identify any deviations before they become a serious problem.

That's why monitoring is also fundamental in Lump sum contracts: If the value produced is lower than expectations, it means that the initial estimates were not correct or that the performances are lower than expected. In both cases, Timely control allows you to intervene before the problem turns into a delay or economic loss.

Conclusion

Regardless of the role in the project, The control of the efficiency of the workforce is essential.

• The contractors must monitor it to avoid leaks of operating margin.
• Main and General Contractor must check the performance of subcontractors to prevent delays and extracosti.
• The clients must verify the production capacity of the contractors to make sure that the completion estimates are realistic.

The ENED Value Management is a powerful tool to keep everything under control.

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