Last Updated on August 28, 2023 by Showrooms Online

Productivity in Residential Construction

Productivity in residential construction is getting a lot of attention because even families with decent incomes cannot now afford to buy a house.

Plus, relevant productivity information that could assist in making residential construction more efficient is hard to come by. Productivity data from single family residential, multi family residential, infrastructure and industrial construction needs to be separated since these are very different industries within the construction sector. In fact, new home builders, custom home builders and renovators also face different productivity issues, even though they are more similar .

productivity in residential construction

Image by Gerd Altmann from Pixabay

Measuring Productivity

An effective process for measuring productivity. in any industry, is difficult to design. Construction productivity is even more difficult to measure than in other economic activities. Many factors that affect construction productivity are outside of the control of the contractor ie material costs, labour availability, and regulations. The effort required to transform residential construction practices is outside the capability of individual firms. The leadership in construction productivity needs to come from governments and industry associations.

The fragmented residential construction industry is comprised of a large number of smaller firms. Productivity studies across the construction industry do not provide the actionable insights needed to fix the productivity issues of everyday residential contractors.

The complexity of Productivity in Construction is outlined in this McKinsey research:

“McKinsey research finds seven levers can fix construction’s productivity problem, but they require a new approach from all players. We heard from industry leaders about which barriers to change are most likely to fall first.”

Planning and Continuous Improvement

Productivity in residential construction does, however, need to be seriously improved and the difficulty is not an excuse for inaction by individual contractors. Project management and lean construction practices are the key.

planning

Project management planning. cost control and scheduling are essential for a successful project on time and on budget with quality workmanship. Project management has never been easier with the wealth of software available to facilitate planning and collaboration. There is. however, a need to plan in more detail and to measure progress, update and communicate the plan frequently.

Lean construction is becoming the standard, demanded by owners, for large commercial and industrial projects. Residential construction can reduce waste, downtime and rework by applying the basic principles of lean construction. Residential projects are even more vulnerable to cost increases and loss of profits caused by a number of smaller adverse hiccups.

Productivity Starts With Design

Improved productivity is facilitated by the constructability of the design. This is a major advantage of the design build approach to a project vs the design bid build approach. The design build approach also helps shorten the project time and saves costs.

Productivity Also Depends on the Owner

The homeowner is a valuable project team member. An educated owner, understanding and participating in the process, helps define the detailed scope of work and has realistic expectations from playing a role in the planning process. Go slow to go fast. Good communications and avoiding design changes during construction will eliminate most causes of cost overruns and time delays. The working relationship between the owner, the designers, and the contractor will be greatly enhanced, no surprises. Most conflicts in construction projects are avoidable.

Insights into Construction Productivity a recent Showrooms Online blog