Labour Productivity in the Building Industry

The cost of labour in the building industry is in the region of 25 40 % of the cost of building. Hence the cost of labour is quite high and yet it is the main cause of variability in construction costs. The time used by workers on daily basis on productive activities averages about 30% of the total time available for construction work. The remainder of the time, i.e. about 70% is wasted on non-productive activities, delays and added activities. For a company in the building industry to remain competitive, it must try to improve the productivity of its labour. This paper reviews the literature on labour productivity in the building industry. It looks at the definitions, measurement, use, factors affecting and theories on improvement of labour productivity in the building industry. It is noted in the industry lacks generally agreed strategies for improvement of labour productivity. The paper further reviews the paradigms of innovation, benchmarking, and industrialization among the theories aimed at improving the productivity of labour in the building industry.

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