CEP Labor & Equipment Productivity Flashcards

What is a 'wage rate' in construction labor cost estimating?

Answer: The base hourly pay rate established for a specific craft trade classification

The wage rate is the base hourly compensation for a craft worker in a specific classification and forms the foundation of all labor cost calculations.

What does 'labor burden' refer to in construction cost estimating?

Answer: Payroll taxes, insurance, benefits, and other employer costs added on top of the base wage rate

Labor burden includes FICA taxes, federal and state unemployment insurance, workers' compensation, health benefits, and other employer-paid costs beyond the base hourly wage.

What is the purpose of 'productivity adjustment factors' in construction estimating?

Answer: To modify baseline production rates for site-specific conditions such as weather, congestion, elevation, or supervision quality

Productivity adjustment factors modify reference production rates from sources like RS Means to reflect actual site conditions that enhance or reduce efficiency.

What is the 'overtime impact' on labor productivity for sustained extended hours?

Answer: Sustained overtime decreases hourly productivity due to cumulative fatigue, often reducing total weekly output below what straight-time would achieve

Research consistently shows sustained overtime causes fatigue-driven errors and slowdowns, making prolonged overtime schedules often less cost-effective than adding crew.

What is 'prevailing wage' in the context of US construction estimating?

Answer: The minimum hourly wage and fringe benefits required on federally funded construction projects under the Davis-Bacon Act

The Davis-Bacon Act mandates that contractors on federally funded construction pay the locally prevailing wage rate and fringe benefits determined by the US Department of Labor for each craft.

How do 'labor market conditions' affect the accuracy of a construction cost estimate?

Answer: Tight labor markets drive up wage rates and reduce skilled worker availability, requiring upward cost adjustments and increasing schedule risk

In tight labor markets, competition for skilled workers drives wages higher and extends recruitment timelines, directly increasing labor costs and schedule risk on the project.