**1. Introduction**

Productivity in its broader sense is the association between a given output and the resources used to produce it; this relationship represents the global productivity factors, expressed as a fraction, of which the numerator is a measure of output and the denominator a measure of all factors combined. The combination of the factors of production (capital, labour, raw materials and power) is always heterogeneous, and values must be introduced to find an expression for it [1]. It is easier to relate output to a single factor than to a combination of factors. Labour is the factor considered in most cases, but it may be capital or a given raw material, for example.

Productivity is defined by the *Concise Oxford English Dictionary* "as the effective power of production and the proportion which goods are produced". In this definition, it can be deliberated that the main resource in productivity is the workforce.

Construction operatives are the most productive resource; therefore, productivity in the construction industry is dependent primarily on human performance and effort [2]. Construction labour productivity is an important productivity index due to the numerous human labour required to carry out and complete

a task. Researchers in the field of economists will agree on the significant of productivity to an industry, an individual enterprise or the national economy; however, there has not been any agreement on the actual measurement techniques of productivity.

The Bureau of Labor Statistics (BLS) updated the productivity measures for four infrastructure construction industries in 2017. These industries were only recently published due to difficulties in measuring worked hours and output [3]. The US construction sector in 2017 contributed a large portion to the economy with 4.3% of GDP and 6.1% of all industry employment which was attributable to the sector. Recently, the BLS noted that the infrastructure industries comprise about 10.5% of the entire industry sector's employment.

#### **1.1 Productivity concepts**

There have been several construction labour productivity (CLP) definitions that point towards the various perception of the productivity in the construction industry. The European Association of National Productivity Centres [4] defined productivity "as how resourcefully and efficiently goods and services are being formed, efficiently in this setting be doing things right or utilizing resources to achieve anticipated results". Productivity is also defined by the American Association of Cost Engineers [5] "as a labour efficiency of relative measure, either bad or good when related to a recognised base or norm." "The comparative nature of construction productivity generate most challenges in tracing it as a complete significant over time, it is feasible to gather information on the arrangement of the recognised base, or yardstick" [6]. However, the professionals in the construction industry and project managers defined labour productivity as a proportion of expected over actual productivity; this is mathematically expressed as

ual productivity; this is mathematically expressed as

$$\text{Performance Ratio (PR)} = \frac{\text{Actual Productivity}}{\text{Expected Productivity}} \tag{1}$$

When a PR is higher than the unity, it means that the daily-based quantities require more work hours than the normal average day baseline; also, it implied that the productivity of that day was worse than the baseline productivity [6]. The importance of this method is that progress is based on the constructed work and not the hour work utilised and productivity can be measured despite the type of work done. The Bureau of Labor Statistics [7] well defined labour productivity as productivity per real worked hours, and these hours refer to the really worked hours, and this quantity discounts holidays, trip and sick leave; nevertheless, it comprises salaried and voluntary overtime.

Productivity measures how capitals are hired efficiently; it is defined "as the quantity of a specific amount of input per unit of labour to a specific measure of output and usually measured as total output divided by the numbers of units of labour employed to produce that output" [8]. Labour productivity in the construction industry can be described as the man-hour output per day, which is often reduced by poor provision of inadequate tools and equipment; delayed, unclear or inadequate instructions; unbalanced work gangs; wrong working method; inadequate incentives; and non-delegation of authority from senior supervisors to lower supervisors.

Productivity definitions seem to be dependent on the context and the researcher's opinion on the study. Previous studies on engineering, technology and economics classified productivity into three broad industry groups; these various groups defined productivity from their various viewpoints [9].

**53**

*Measuring Infrastructure Skills Productivity DOI: http://dx.doi.org/10.5772/intechopen.85953*

Definitions of productivity are aimed at explaining the meaning of the term, while measured descriptions in the previous case are used as a base of measure-

From the above background, productivity can be defined as the volume correlation relating to work hour utilisation and production. It is also the correlation relating to amounts of input hours used by an organisation to produce output:

Labour productivity <sup>=</sup> output produced \_\_\_\_\_\_\_\_\_\_\_\_\_\_ input work <sup>−</sup> hour (2)

From Eq. 2, output can be described as any process of the outcome, either a product or service, whereas input work hour consists of the hours utilised in a process. However, the relationship between a variety of output components and work hour is very complex. Measurement of construction skills productivity presents

Several challenges have been recognised by diverse researchers for declining labour productivity under the classifications of incomplete documentation, design changes, supply chain fragmentation and inefficient project management as the most important drivers affecting productivity in the mid-rise private development in Australia [11]. Ugulu and Allen [12] carried out an experimental examination on the importance of on-site craft gangs' learning productivity and found an average improvement of learning rate of 94.21% gains as illustrated in **Table 3**. The study additionally discovered that on-site learning is a huge factor influencing productivity of construction craft gangs. In a related study, Tanko et al. [13] developed a framework for value management (VM) implementation, exploring the current construction practice factors that will improve construction productivity, the study found that people, environment, government and information are important factors that can be used by construction stakeholders to improve construction produc-

An investigation on productivity of panelised and long span timber construction using time lapse photography on five active case study construction sites to measure installation productivity was conducted by Forsythe, Brisland [14], using net crane time as the basis for measuring productivity, being the time dedicated purely to crane cycles involved directly in installing prefabricated timber panels; 521 cycles

that panelised prefabricated timber construction offers a fast and productive site

Labour productivity measurement in the construction industry is a difficult task; in most cases labour productivity is usually taken to mean productivity. This stems from the fact that projects in the construction industry are labourintensive using basic equipment [15]. Productivity described the quantification of how well operatives use available resources to produce outputs from inputs [15]. The American Association of Cost Engineers [5] described productivity as when associated with standard or to a recognised base as the relative measure of labour

The BLS [3] opined that the increase in labour productivity during the 2000–2005 period was primarily driven by a large rise in output. Beginning in 2005, output fell through 2009 at a speedy rate than the worked hours, leading to a sharp reduction in productivity of labour during that period. The productivity of labour

of panels. The study found

ment; the main objective is to increase and productivity [10].

practitioners and academics with a variety of challenges.

tivity practices in the Nigerian construction industry.

were measured relating to the installation of 5592 m2

**2. Measuring construction productivity**

installation process [14].

efficiency is either good or bad.

#### *Measuring Infrastructure Skills Productivity DOI: http://dx.doi.org/10.5772/intechopen.85953*

*Infrastructure Management and Construction*

the entire industry sector's employment.

actual productivity; this is mathematically expressed as

defined productivity from their various viewpoints [9].

**1.1 Productivity concepts**

salaried and voluntary overtime.

of productivity.

a task. Researchers in the field of economists will agree on the significant of productivity to an industry, an individual enterprise or the national economy; however, there has not been any agreement on the actual measurement techniques

The Bureau of Labor Statistics (BLS) updated the productivity measures for four infrastructure construction industries in 2017. These industries were only recently published due to difficulties in measuring worked hours and output [3]. The US construction sector in 2017 contributed a large portion to the economy with 4.3% of GDP and 6.1% of all industry employment which was attributable to the sector. Recently, the BLS noted that the infrastructure industries comprise about 10.5% of

There have been several construction labour productivity (CLP) definitions that point towards the various perception of the productivity in the construction industry. The European Association of National Productivity Centres [4] defined productivity "as how resourcefully and efficiently goods and services are being formed, efficiently in this setting be doing things right or utilizing resources to achieve anticipated results". Productivity is also defined by the American Association of Cost Engineers [5] "as a labour efficiency of relative measure, either bad or good when related to a recognised base or norm." "The comparative nature of construction productivity generate most challenges in tracing it as a complete significant over time, it is feasible to gather information on the arrangement of the recognised base, or yardstick" [6]. However, the professionals in the construction industry and project managers defined labour productivity as a proportion of expected over

Performance Ratio (PR) <sup>=</sup> Actual Productivity \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Expected Productivity (1)

When a PR is higher than the unity, it means that the daily-based quantities require more work hours than the normal average day baseline; also, it implied that the productivity of that day was worse than the baseline productivity [6]. The importance of this method is that progress is based on the constructed work and not the hour work utilised and productivity can be measured despite the type of work done. The Bureau of Labor Statistics [7] well defined labour productivity as productivity per real worked hours, and these hours refer to the really worked hours, and this quantity discounts holidays, trip and sick leave; nevertheless, it comprises

Productivity measures how capitals are hired efficiently; it is defined "as the quantity of a specific amount of input per unit of labour to a specific measure of output and usually measured as total output divided by the numbers of units of labour employed to produce that output" [8]. Labour productivity in the construction industry can be described as the man-hour output per day, which is often reduced by poor provision of inadequate tools and equipment; delayed, unclear or inadequate instructions; unbalanced work gangs; wrong working method; inadequate incentives; and non-delegation of authority from senior supervisors to lower

Productivity definitions seem to be dependent on the context and the researcher's opinion on the study. Previous studies on engineering, technology and economics classified productivity into three broad industry groups; these various groups

**52**

supervisors.

Definitions of productivity are aimed at explaining the meaning of the term, while measured descriptions in the previous case are used as a base of measurement; the main objective is to increase and productivity [10].

From the above background, productivity can be defined as the volume correlation relating to work hour utilisation and production. It is also the correlation relating to amounts of input hours used by an organisation to produce output:

$$\text{Labor count} = \text{input} \times \text{amount}$$

$$\text{Labor productivity} = \frac{\text{output produced}}{\text{input work} - \text{hour}} \tag{2}$$

From Eq. 2, output can be described as any process of the outcome, either a product or service, whereas input work hour consists of the hours utilised in a process. However, the relationship between a variety of output components and work hour is very complex. Measurement of construction skills productivity presents practitioners and academics with a variety of challenges.

Several challenges have been recognised by diverse researchers for declining labour productivity under the classifications of incomplete documentation, design changes, supply chain fragmentation and inefficient project management as the most important drivers affecting productivity in the mid-rise private development in Australia [11]. Ugulu and Allen [12] carried out an experimental examination on the importance of on-site craft gangs' learning productivity and found an average improvement of learning rate of 94.21% gains as illustrated in **Table 3**. The study additionally discovered that on-site learning is a huge factor influencing productivity of construction craft gangs. In a related study, Tanko et al. [13] developed a framework for value management (VM) implementation, exploring the current construction practice factors that will improve construction productivity, the study found that people, environment, government and information are important factors that can be used by construction stakeholders to improve construction productivity practices in the Nigerian construction industry.

An investigation on productivity of panelised and long span timber construction using time lapse photography on five active case study construction sites to measure installation productivity was conducted by Forsythe, Brisland [14], using net crane time as the basis for measuring productivity, being the time dedicated purely to crane cycles involved directly in installing prefabricated timber panels; 521 cycles were measured relating to the installation of 5592 m2 of panels. The study found that panelised prefabricated timber construction offers a fast and productive site installation process [14].
