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Dear Friends
Is there any relation between Contract value & Mandays or Manhour .
Can we get a rough manhours with the contract value .I saw my PM is making some
calculation with the contract value for getting manhours ..
Please guide ..
Regards
Arun
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In my example the rate would be $1,000,000.00/26,923 = 37.14 $ contract work / m-hour, we get 2.6 times of contract value with what they get per m-hr. But it is not as simple; it has to do with the salaries as well as the relative cost of equipment and materials at your country and with the type of work. The prior reference seems like related to electrical works and here our ratio would be even higher for such jobs, even when salaries for electrician are above those of a general construction worker the cost of electrical materials and equipment is very high, an electrician m-hr will produce something in the order of $60.00 of electrical construction work. For exactly the same job the contract amount ratios vary from location to location even after using a common currency of reference.
Estimators use as reference historic unit costs unique of their location but they recognize using productivity based on volume of work is more universal and timeless. Value of money changes with time due to inflation, labor rates vary from country to country, it is a better practice to use production rates in volume of work per m-hr, or even better production per unit of time for a complete crew whose productivity is usually not linear with the crew size. Two drivers using two 10 cm trucks will not move the same dirt per hour as if using two 20 cm trucks. Two planes will not get me to New York at half the time a single plane, maybe nine women will give birth to a child within a month as a proof sometimes the linear relationship works.
It is a shame, most scheduling software do not work with production rates based on volume of work directly, the same way estimators do their work.
Hi Arun
In addition to Rafel and Mike explanation
If we take the contract price and divide it by the man hours on the job we get the rate per hour that we achieved on this job. Obviously if we came out pretty close to the rate that we estimated this job at, then we are happy. If this job was estimated at $55/hour and we only managed to hit $35/hour. Then we need to find out why this job exceeded the budget that we established for this job.
Check the below link
http://targetconstruct.com/?cmd=cms__view&article_id=40&PHPSESSID=8b8bbd3eeb2df481c3100c6cf0a9b379
Contract Value / Man-Hours rate is 14.9$/Man-hour for all the projects the carried out
Regards
Shahul
Mike,
Because of the way these averaga were computed by us you are correct, same goes with your 15% O&P number, good point. The project overhand labor is already included on the 35%, labor on general office overhead is on the 15%, both agree with your statement.
Best regards,
Rafael
Hi Rafael
Your 35% labour ratio is OK for the net construction cost but you need to remove the OH&P first.
1,000,000 x (1-15%) = 850,000 x 35% / 11.05 = 26,923 approx hours.
Best regards
Mike Testro
Arun,
The following can be a figure particular to my location, it is a Ballpark figure but good for a general idea, not to be used on a detailed schedule.
For Residential construction ~ 35% of total construction cost is labor.
Therefore for a $1,000,000.00 Residential construction job ~$350,000.00 is labor cost.
Our average construction labor cost per hour is about $8.50 x 1.30 = 11.05$/m-hr with 30% for labor burden.
For the above job this translates to:
350,000$/(11.05$/m-hr) = 31,674 m-hr
This is a ratio for the overall construction cost for residential construction, for different trades the ratio varies but you can figure it out from your historical records and apply these to different trades to get a better distribution, you can apply these rations to your BOQ as well but still will be a rough estimate.
If you can get a copy of the detailed estimate where costs are broken down by activities and within activities by Labor, Equipment, Materials, Subcontracts and Other then you will be able to make a good man-hour estimate for each activity.
Best regards,
Rafael
Thank you Shahul
I gone through the links But still I have Doubts.
Could u breif me to find out the Manhours for a 1 milliion dollar Contract Value..
Project duration is 20 Months.
Please help..
Regards
Arun
Thank you Raf
Hi Arun
There is a relation between contract value and manhours ,both are interrelated ,contract value determines or gives you general idea about the manhours to be used in the project,have look at below links
http://www.ehow.com/how_7448805_calculate-manhours.html
http://www.ehow.com/how_6566042_calculate-project-costs.html
Regards
Shahul
There is some correlation and you can get rough estimates only, good for a rough check on a preliminary schedule.
These ratios will vary and will depend on many factors such as construction type, payroll contribution that might vary from location to location, the selected means and methods to execute each activity, special conditions particular of the job etc.
If you cannot build it you cannot plan it, there is no such thing as a remote control planner, the planner must get into the details and discuss them with the persons who will determine the methods and crews particular for each activity or trade. Not even the scheduler if different from the planner shall work by remote control.
I guess your PM is looking for a shortcut to comply with some contractual requirements but I doubt he will use the plan for other purposes, most probably he will improvise on a daily basis. If he is experienced his improvisation will be better than that of a remote control planner, not to mention a remote control scheduler. If you cannot plan it and the PM has not enough time for the planning then this might be his best option.
Many of our jobs are not even resource loaded as we are required to use whatever scheduling software the Owner/Architect wants, not what we use and know, we usually end up with the remote control scheduler option. At the end of the month we deliver nice CPM reports printed in Technicolor, charts and colored S curves we do not use, we frequently manage our jobs using black and white Excel.
Our scheduling culture is among the worst, but do not blame the GC, in any case blame the Owners, their Architect/Engineer and our institutions who take the driver's hand out of the driving wheel and give it to a remote-control operator. A culture that is perpetuating the worst possible practice.
Email: PPadmin@planningplanet.com
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