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Labor Productivity & Cost Cutting
Scott Sedman makes some great points in his article titled Your Choice in Cost Control about where a contractor should choose to attack costs. Attacking overhead is fairly simple but will not always yield the intended results.
The article ran in Professional Builder magazine and was geared towards a home builder's cost structure. For subcontractors that have direct-hire labor the points about inefficiency during construction are even more prominent as shown in the chart below.
With the cost of labor being up to 70% of the total project costs for subcontractors working on improving the amount of time spent actually installing the work can have a huge impact on the bottom-line. Project Pre-Planning is one way to help minimize this non-installation time.
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Favorite Book 2007
The Toyota Way is my favorite book for 2007. It had so many good ideas that I could not keep up and ended up reading it again and even buying the Field Book to go along with it.
Download Elegant Solutions from Change This which provides some highlights of the Toyota Production System. Too many ideas that are applicable to contractors to even count!
Recent Posts
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- Broken Buildings, Busted Budgets
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