If a schedule is loaded with direct man-hours and got the consent of the Engineer. Cost of the project=direct resources+indirect resources+materials. Therefore the cost of the direct man-hour can be deduced as cost of materials and indirect resources should be available. If any type of disruption occurs, therefore:
actual spent man-hours on site in a certain period = planned manhours + disrupted manhours + lost manhours
The lost manhours are those caused by decreased efficiency and productivity unrelated to the factor of disruption but depending mainly on the learning curve. In a specific type of project, Contractor should have known and classified his overall learning curve. Hence, lost man-hours can be estimated based on the learning curve percentage i.e. lost manhours are equal to 10% of the productive hours or learning curve is at 90% for example.
If substantiated records and time sheets are available to register the actual spent hours on site during a certain period, we can calculate the disrupted manhours as formulated above and having the cost of the direct man-hour, the cost of disruption is deduced.
What do you think about this approach?
Regards,
Jihad
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