3 Ways to Improve Construction Productivity

By raising productivity, construction companies can make better use of resources, build higher-quality structures, and deliver more value to customers. This could, in turn, translate into higher profits and better wages for workers. Given that the construction industry is responsible for building the structures where we live, work, and travel, it is clear that construction’s productivity is an issue worth solving. Liberty Mutual provides three ways to tackle productivity issues, along with ways to mitigate the risks involved.

1. Technology and Digitization. Building Information Modeling (BIM) has been helpful to improve collaboration and coordinate workstreams throughout the phases of a project, but it’s not enough. Today, construction firms hoping to drive increases in productivity are introducing technology like wearables to improve worker safety, drones to scan, monitor, and map work sites, and virtual reality to train workers and provide engineers and construction managers with 3-D views of projects.
   • Mitigating risk – When introducing new technology, whether it’s to improve safety or streamline workflows, it’s important to evaluate the new risks these solutions could introduce. As well, you may need new insurance coverage or different limits of current coverage along with contingency plans if a solution fails to work properly. Here are a few considerations:
     • Shifting to digital solutions, like BIM for modeling work sites, could introduce new access points for data breaches and cyber attacks. Every digital innovation should trigger a fresh review of your cyber security best practices and your cyber insurance coverage and limits.
     • As design and build become more intertwined, determining fault in potential product or project defects becomes more difficult; professional liability insurance is likely to become more important.
     • When adding new technology, employee training and buy-in is essential to encouraging proper use and maintaining a safe work site.
2. Workforce Improvements. Labor productivity is a major reason for overall productivity losses in construction, according to the same McKinsey report. Workforce shortages are partially to blame as construction firms are having trouble finding and retaining skilled workers, and this nationwide shortage is increasing construction costs and delaying project schedules. Many firms are offering better pay rates and benefits to attract workers. Many contractors are taking matters into their own hands to get ahead of the curve – some trade firms are working with non-profits to provide apprenticeships for at risk youth, women, and veterans to help fill their own future labor shortages, while other companies are investing in vocational training programs to introduce the industry to students as part of their high school curriculums.
   • Mitigating risk. Construction firms are sometimes tempted to improve productivity by doing more with less – but when it comes to staffing, this can lead to injured workers, higher workers compensation claim costs, and expensive delays. Here are some precautions to be aware of:
     • When hiring, take necessary steps to verify that employees have proper qualifications and licensure (such as commercial driving license).
     • Provide training and personal protective equipment so employees can operate equipment and navigate work sites safely.
     • To reduce the risk of worker injuries, limit overtime work – including longer days and working on weekends – and try not to reassign teams to new jobsites where they may be unfamiliar with the project and equipment.
     • Ensure that different tasks and trades are given enough space to do a job safely and efficiently. Pushing multiple trades into the same small area creates higher levels of noise and distraction, and can increase the rate of accidents, as well.
3. Production-based Approach. Mass production can vastly increase overall production for many parts of the construction industry. The ability to construct the bulk of a project offsite in a factory, using prefabricated standardized components, is now within grasp. Studies of companies that have adopted a production-based system suggest that this method could boost productivity five to ten times, and the industry is starting to catch on. While a project-based approach might be more appropriate for certain classes like heavy construction, standardizing design specifications could also create more efficiency. Even taking simple steps, like keeping a design library on file, would improve productivity for individual firms of all sizes.
   • Mitigating risk. Implementing a production-based approach increases efficiency, but also involves additional risk as you adapt your supply chain to vendors, raw materials and components, and technologies. Here are some factors to consider:
     • When ordering mass-produced goods, vendors are everything. Carefully check the references of suppliers, and then put contracts and contingency plans into place. Ensure that your suppliers have professional liability insurance, and make sure you understand who will cover possible defects.
     • As you adapt to new relationships in your supply chain, you may also need different building locations and vehicles to produce and transport components. Consider potential vulnerabilities as you prepare your new setup.
     • 3-D printing has the potential to provide construction companies with efficiencies and cost reductions as it has for the manufacturing sector. However, construction defect claims and liability exposures are likely to increase with a production-based approach – especially if there is an issue with the design.

Firms that find creative ways to leverage new technology – including mass production – and to recruit and train new workers, can create a competitive edge in the decade to come. Read the full Liberty Mutual article here.