Webinar #22: How to Estimate the Impacts of Overtime on Labor Productivity – John Koontz

June 23, 2020
In this webinar, John Koontz explains the three types of overtime typically found in construction and talks about the three universally accepted methods of calculating overtime impact costs.

People are not machines. Running an engine for 16 hours will result in twice the output achieved by running it for 8 hours… but the same math does not apply to our workforce. It is a well-known fact that working longer hours each day, and more days per week, results in reduced worker productivity. However, while it is easy to calculate the difference between overtime premiums and straight time labor costs on a spreadsheet, calculating the real costs of productivity impacts caused by extended periods of overtime work is less clear-cut. So how do we explain, estimate, and account for this lost productivity? In this webinar, John Koontz explains the three types of overtime typically found in construction and talks about the three universally accepted methods of calculating overtime impact costs. Most importantly, he covers the preferred and most effective method of OT impact calculation, which incorporates all three methods. We can’t always avoid overtime, and we certainly can’t avoid the productivity impacts that result from working extended hours – but we can learn to use the information contained in the 2020 Edition of the MCAA Change Orders-Productivity-Overtime Primer to make a solid case for recouping impact costs associated with working overtime.

Additional Resources:

This webinar was recorded June 23, 2020.

Related Articles
Each week, MCAA will highlight one or more of the educational resources that are free to MCAA members as a benefit of membership. This week, we focus on MCAA’s WebLEM+Plus, a systematic approach to labor estimating that’s proven successful for hundreds of mechanical contractors in generating hundreds of millions of dollars in annual construction.…
When you log in to the WebLEM on Monday, you will be automatically redirected to a new MCAA member landing page for the WebLEM+Plus, which is the next generation of our most valuable resource. …
MCAA's most valuable resource, the WebLEM, is now more valuable than ever! It has been expanded into the WebLEM+Plus. Better yet, just like the WebLEM, the new WebLEM+Plus is free to MCAA members as a benefit of membership.
MCAA's most valuable resource, the WebLEM, is about to get even more valuable! It is being expanded and transformed into the WebLEM+Plus. Better yet, just like the WebLEM, the new WebLEM+Plus will be free to MCAA members as a benefit of membership!

MCAA's Fabrication Conference, powered by @msuitetech is going to Seattle, November 2-4, 2022 with a tour of one of the country’s most dynamic mechanical contractors, @McKinstryCo. Mark your calendars – Registration opens on August 15th at 9am Eastern!

Learn about the next evolution of infrastructure & attend MCAA's webinar on Clean Energy: Geothermal Energy Exchange on August 18 at 3pm ET. MCAA President Robert M. Bolton will be joined by subject matter expert on geothermal HVACR technologies, Jay Egg. http://ow.ly/yfWJ50KaVPs

Looking for the latest from Morris Group International and @setonsafety? Find it in MCAA’s Virtual Trade Show!

http://ow.ly/vlpe50K40Y8

Load More...