Labor Productivity & Rates Flashcards
7 cards from real CPE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Labor Productivity & Rates flashcards as text
Which of the following best describes 'all-in' labor rate as used in construction estimating?
Answer: Base wage plus fringe benefits, payroll taxes, and insurance
The all-in rate includes base wages plus fringes, FICA, FUTA, SUTA, workers' comp, and liability insurance.
Weather delays on an outdoor project are best addressed in the estimate by:
Answer: Applying a weather day allowance to the schedule and escalating labor costs accordingly
Estimators should include weather day allowances based on historical climate data, which extends duration and increases labor costs.
A productivity loss factor due to overtime is most pronounced when workers operate at:
Answer: 60+ hours per week for multiple weeks
Research shows cumulative fatigue causes significant productivity decline when sustained overtime exceeds 50–60 hours per week over multiple weeks.
In the context of labor productivity, 'measured mile' analysis is used to:
Answer: Compare productivity in an unimpacted period versus an impacted period
The measured mile technique compares unit labor rates from undisturbed work periods against those from disrupted periods to quantify impact.
FICA taxes payable by the employer on each worker's wages represent approximately:
Answer: 6.2% Social Security plus 1.45% Medicare = 7.65% of gross wages
Employers match the employee's 7.65% FICA contribution (6.2% SS + 1.45% Medicare), making the employer burden 7.65%.
Site congestion on a large industrial project primarily affects labor productivity by:
Answer: Reducing crew efficiency due to interference, restricted movement, and coordination overhead
Congested work areas force crews to wait for space, reroute material paths, and coordinate with other trades, reducing net productive time.
When estimating labor for a T&M (time and materials) contract, the primary difference from a lump-sum estimate is:
Answer: Actual hours and rates are billed rather than estimated quantities times unit costs
Under T&M, the owner is billed for actual hours worked at agreed rates, eliminating the need for quantity-based unit cost estimates.