{"id":100656,"date":"2020-08-21T08:09:42","date_gmt":"2020-08-21T12:09:42","guid":{"rendered":"https:\/\/sjcivil.com\/?p=100656"},"modified":"2024-03-30T05:32:11","modified_gmt":"2024-03-30T09:32:11","slug":"quantifying-the-loss-in-labor-productivity-the-mcaa-factors","status":"publish","type":"post","link":"https:\/\/sjcivil.com\/quantifying-the-loss-in-labor-productivity-the-mcaa-factors\/","title":{"rendered":"Quantifying the Loss in Labor Productivity: the MCAA Factors"},"content":{"rendered":"<h3 id=\"h-executive-summary\"><strong>Executive Summary<\/strong><\/h3>\n<p>There are very few \u201ccourt-accepted\u201d ways a contractor can quantify his or her loss as a result of labor productivity, or lack thereof.\u00a0<a href=\"http:\/\/sjcivil.net\/learning-aid\/terms\/#m\">MCAA<\/a>\u2019s (Mechanical Contractors Association of America, Inc.) document\u00a0<em>PD 2 Factors Affecting Labor Productivity<\/em>\u00a0is one of the most widely used methods in practice. See here for the MCAA Management Methods Manual containing Bulletin PD2. [QR]\n<p><iframe loading=\"lazy\" style=\"border-radius: 12px;\" src=\"https:\/\/open.spotify.com\/embed\/episode\/4FqF7ZjNxXNqGCVU0BZsTJ?utm_source=generator\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h3 id=\"h-what-is-loss-of-labor-productivity\"><strong>What is loss of labor productivity?<\/strong><\/h3>\n<p>In construction there are dozens, if not hundreds, of ways that contractors can lose money. Some may be self-inflicted, and some may be caused by effects and conditions outside the control of the contractor. When events outside the control of the contractor cause the contractor to work inefficiently, a financial claim is born for that financial loss in labor.<\/p>\n<h3 id=\"h-what-kinds-of-labor-loss-are-we-talking-about\"><strong>What kinds of labor loss are we talking about?<\/strong><\/h3>\n<p>The MCAA has developed several causes of loss of productivity and attached to these causes a minor, average, and severe factor. The causes of loss of labor productivity follow:<\/p>\n<figure class=\"wp-block-table is-style-stripes\">\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\"><strong>MCAA\u2019s Bulletin PD2 \u2013 Factors Affecting Labor Productivity<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Stacking of Trades<\/td>\n<td>Morale and Attitude<\/td>\n<td>Reassignment of Manpower<\/td>\n<td>Crew Size Inefficiency<\/td>\n<\/tr>\n<tr>\n<td>Concurrent Operations<\/td>\n<td>Dilution of Supervision<\/td>\n<td>Learning Curve<\/td>\n<td>Errors and Omissions<\/td>\n<\/tr>\n<tr>\n<td>Beneficial Occupancy<\/td>\n<td>Joint Occupancy<\/td>\n<td>Site Access<\/td>\n<td>Logistics<\/td>\n<\/tr>\n<tr>\n<td>Fatigue<\/td>\n<td>Ripple<\/td>\n<td>Overtime<\/td>\n<td>Season and Weather Change<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Each of these factors are described in a narrative form inside the manual reference above.<\/p>\n<h3 id=\"h-how-is-the-loss-calculation-performed\"><strong>How is the loss calculation performed?<\/strong><\/h3>\n<p>The formula is pretty simple:<\/p>\n<p><strong>Step 1.<\/strong>\u00a0Gather the estimated change order craft hours for the activity.<\/p>\n<p><strong>Step 2.<\/strong>\u00a0Chose the factor(s) which affected your labor productivity (if there was more than one factor then they are additive).<\/p>\n<p><strong>Step 3.<\/strong>\u00a0Multiple Step 1 by Step 2.<\/p>\n<p><strong>Step 4.<\/strong>\u00a0The result of this multiplication in Step 3 is the impact to you in the number of manhours.<\/p>\n<p><strong>Step 5.<\/strong>\u00a0Multiply the number of manhours by the cost per manhour.<\/p>\n<p>Although the approach in the five steps listed above follows the directions from the manual, it is best for the user to read the manual and understand its applicability.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-101778 aligncenter\" src=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2020\/08\/qr-300x300.png\" alt=\"\" width=\"300\" height=\"300\" \/><\/p>\n<h3 id=\"h-does-it-work\"><strong>Does it work?<\/strong><\/h3>\n<p>Yes, this is a widely accepted method of calculating a loss in productivity and then converting the loss in hours to dollars. However, it\u2019s far from bulletproof. It\u2019s still very subjective. Most contractors do not have adequate documentation and any claim is up to severe scrutiny the opposing party.<\/p>\n<h3 id=\"h-my-story\"><strong>My Story<\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-101777 aligncenter\" src=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2020\/08\/etienne-girardet-sgYamIzhAhg-unsplash-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" \/><\/p>\n<p>I\u2019ve used this method before to calculate loss on a job. It has been effective. But, anyone who has been in construction claims knows that it will be subject to scrutiny as discussed above. I like to use it as a starting point for negotiation. The gold standard is the \u201cmeasured mile\u201d where we hope to say that \u201cwe should have laid 100 LF per day, but because you impacted me in x, y, and z ways, I only laid 75 LF per day. You owe me all costs resulting from that slower performance in work Mr.\/Ms. Owner.\u201d<\/p>\n<h4 id=\"h-work-safe\"><strong>Work Safe!<\/strong><\/h4>\n<p>&nbsp;<\/p>\n<div class=\"su-button-center\"><a href=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2020\/08\/2020.08.08.21-MCAA-Factors.pdf\" class=\"su-button su-button-style-flat\" style=\"color:#FFFFFF;background-color:#293a57;border-color:#212f46;border-radius:12px;-moz-border-radius:12px;-webkit-border-radius:12px\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color:#FFFFFF;padding:0px 30px;font-size:22px;line-height:44px;border-color:#6a768a;border-radius:12px;-moz-border-radius:12px;-webkit-border-radius:12px;text-shadow:none;-moz-text-shadow:none;-webkit-text-shadow:none\"> Download The PDF<\/span><\/a><\/div>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>Executive Summary There are very few \u201ccourt-accepted\u201d ways a contractor can quantify his or her loss as a result of labor productivity, or lack thereof.\u00a0MCAA\u2019s (Mechanical Contractors Association of America, Inc.) document\u00a0PD 2 Factors Affecting Labor Productivity\u00a0is one of the most widely used methods in practice. See here for the MCAA Management Methods Manual containing [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":104654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","iawp_total_views":12,"footnotes":""},"categories":[302,50],"tags":[652,653,654,655,385,656,304,657,658],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Quantifying the Loss in Labor Productivity: the MCAA Factors<\/title>\n<meta name=\"description\" content=\"There are very few \u201ccourt-accepted\u201d ways a contractor can quantify his or her loss as a result of labor productivity, or lack thereof.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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