How to Estimate Man-Hour Productivity in Construction


To complete a job, general contractors hire skilled and unskilled laborers to complete specific tasks. Crew workers include framers to finishers and everyone in between. Estimating man-hour productivity is something many general contractors don't do but should. Not only does it help in bidding projects and managing labor costs, but it can also help in the event of a loss where a general contractor needs to estimate the productivity costs for a lawsuit or insurance claim.


  • Man-hours is still a widely used term, but in the interest of gender neutrality, other similar terms are in use including person-hours, labor-hours or worker-hours.

Define Labor Productivity

Every year, construction "cost books" are published to help contractors define current average hourly rates for various labor skills. They also contain estimates for the amount of time it takes to perform any one job. These numbers change based on improved techniques, equipment and tools, and they are adjusted for current wage standards.

For estimating purposes, a general contractor should make a determination of the average productivity efficiency rate. When a contractor estimates it takes four hours to complete framing a wall, and the contractor's framer completes it in three, the framer is producing faster than the published average.

Evaluating Labor Efficiency

Contractors must estimate labor hours, materials, wages and waste when considering a project estimate. Labor hours and wages are based on averages for certain skills.

A general laborer is paid less per hour than a skilled carpenter or mason. The local contractor licensing board is a good resource to obtain geographically pertinent rates for laborers. Obviously, a skilled contractor who has a crew he has worked with previously has a good idea of his crew's labor costs.

Consider Material Waste

Materials might depend on the project scope but considering material waste is important. A carpenter who can make efficient cuts of wood to reduce overall loss or waste helps save costs. The more waste, the more materials the general contractor needs to purchase.

Weighing Labor Efficiency and Materials Efficiency

For example, a skilled carpenter who is paid $18 per hour for eight hours using $100 in materials costs $244 for the day of work. An unskilled laborer working for $10 per hour might take 14 hours to complete the job and use $150 in materials costing $290 total. It makes more sense to hire the skilled laborer who does the job faster with less waste.

A contractor needs to consider the cost across his crew because someone who is paid significantly more might still be a better value to the crew than someone who is paid less but is slower and makes more mistakes.

Estimate the Job Productivity

Estimating productivity goes well beyond individual labor results. When bidding on a new project, a general contractor using the same crew can estimate the project productivity based on previous project results.

For example, assume costs on a project are as follows. If five laborers worked one 40-hour week, they worked a total of 200 man-hours. If the project yielded $5,000, the average cost is $25 per hour per laborer.

Estimate productivity using the percent average you determined earlier multiplied by the actual hours resulting in 140 hours per week of productivity on average. Determine project price based on average productivity, allowing for enough margin for unforeseen delays and general contractor profit.

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