Productivity

The productivity of construction industry is at a very low level as compared to other industries. Statistics show that in decade of 70s, the increase in construction productivity was minimum at 0.8% as compared to 5.4% for public utilities, 4.6% for transportation and 2.4% of all industries taken as an average. 

Several reasons can be assigned to the cause of low productivity in construction sector; Haber and Levinson in their study have categorized them into following two broad categories : 

1. supply characteristics, and 
2. demand characteristics. 

The supply characteristic include the immobility of construction projects, less than optimal working conditions and diversity of product. On the demand side, the construction industry is subjected to heavy fluctuations in demand (seasonal and cyclic). But the single most important reason of low productivity is scarcity of trained and skilled human resource at a level of management from CEO to operatives. 

The need for better level of technology and practice, systematic planning and work programming and effective management is therefore self evident. Higher quality human resource is needed for wide ranging aspects to be taken into account, e.g. site investigation, market survey, bidding for works, mode of construction, supervision and control of man, maternal, equipment and finance, monitoring the progress of execution, providing necessary controls of time, cost and quality, designing, implementing and maintaining an effective management information system from conceptualization to completion of project and its subsequent maintenance during the stipulated period, settlement of contractual obligations and disputes and the realization of outstanding dues. These problems are magnified many times in recently introduced new concepts of contracting, e.g. BOT, BOOT and BOO in infrastructure sector. 

The system productivity of construction industry can thus be considered as a complex interaction of following three productivity factors : 

1. planning, 
2. designing, and 
3. performance (execution). 

The system management can thus be looked upon as a process of coordinating and communicating the entire project process of feasibility, design, planning, scheduling, contracting, executing and controlling with the objects of maximizing system productivity (e.g, minimizing cost and duration).