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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

  1. A subcontractor's bid includes labor at $85,000. The general contractor applies a 10% markup on labor for supervision. The supervision cost added is:

    Answer: $8,500

    Supervision markup = $85,000 × 10% = $8,500.

  2. During peak construction seasons in a hot labor market, which factor most commonly reduces field productivity?

    Answer: Craft labor shortages leading to use of less-experienced workers and higher crew turnover

    Tight labor markets force contractors to hire less-skilled workers and face higher turnover, both of which reduce crew productivity.

  3. A productivity adjustment for working in a confined space (e.g., a crawlspace or tank) typically ranges from:

    Answer: 10–30% reduction in output

    Confined space work restrictions on movement and tool use typically reduce productivity by 10–30% depending on severity of confinement.

  4. The Mechanical Contractors Association of America (MCAA) publishes labor productivity adjustment factors. These factors are primarily used for:

    Answer: Adjusting baseline piping and mechanical labor units for project-specific conditions

    MCAA factors provide quantified adjustments for conditions like overtime, stacking of trades, schedule compression, and adverse weather affecting mechanical labor.

  5. When multiple contractors are working in the same area simultaneously ('stacking of trades'), the expected productivity impact is:

    Answer: Reduced productivity due to interference, restricted access, and safety coordination requirements

    Stacking of trades creates congestion and interference that forces crews to wait, resequence, or work around each other, reducing efficiency.

  6. A labor escalation clause in a multi-year contract is primarily designed to protect the contractor against:

    Answer: Wage rate increases negotiated in future union contracts beyond the estimate date

    Labor escalation clauses shift the risk of future wage increases—due to new union agreements or market conditions—from the contractor to the owner.

  7. If a journeyman electrician earns $52/hour base and the fringe package is $18/hour, what percentage do fringes represent of the total all-in wage?

    Answer: 25.7%

    Fringe percentage of total all-in = $18 ÷ ($52 + $18) = $18 ÷ $70 = 25.7%.