In response to an accelerated schedule, or to exploit the benefits of good weather, maximize equipment use, avoid penalty clauses or to achieve bonus clauses, beat strike or rate increase deadlines, in emergency rebuilding, or in outage work situations, contractors often implement overtime. Overtime is often preferred because it can produce a higher rate of progress without the coordination problems realized with shift work and the additional craftsmen needed for overmanning. However, overtime introduces additional problems including: fatigue, low morale, a higher cost per unit (typically a time and a half wage rate), a higher accident rate, increased absenteeism due to workers reaching 40 hours earlier in the week, and a phenomenon first described by the U.S. Army where workers tend to pace themselves to adjust for a longer work day or week. This phenomenon emerges because workers expend effort and energy at a rate established by a long period(s) of adaptation. When work hours are extended, it has been noticed that workers tend to adjust their pace (subconsciously) as to accomplish the same amount of work as would be completed in a typical eight hour day.

The most common response by contractors to an accelerated or compressed schedule is the implementation of overmanning. Overmanning is preferred because it can produce a higher rate of progress without the fatigue problems of overtime and the coordination problems realized with shift work. However, overmanning introduces additional problems including: site congestion, stacking of trades, the dilution of supervision, a higher cost per unit hour (a result of additional crew members being inadequately trained), a higher accident rate, and supply chain inefficiencies (due to materials and tools being consumed at a much faster rate). The aforementioned problems confront contractors with a significant increase in total costs since they act to reduce productivity per manhour.

When schedule acceleration or compression occurs, and overmanning is used, the contractor is entitled not only for the direct costs of the extra workers but also for the impact costs caused by the productivity losses present with overmanning. Hanna Consulting Group can help you recover the cost of these productivity losses using quantitative analysis techniques, developed by our consultants for the specialty trades industry in conjunction with NECA (National Electrical Contractors Association), MCAA (Mechanical Contractors Association of America), and SMACNA (Sheet Metal and Air Conditioning Contractors). Take advantage of HCG’s expertise in overmanning in the preparation of your next claim for impacts from schedule acceleration.

Another possible response by contractors to an accelerated schedule is the implementation of a second shift. Shift work is sometimes preferred because it can produce a higher rate of progress without the immediate fatigue problems of overtime (via a fresh crew) and the congestion problems realized with overmanning. In addition, premium payment to a second shift is typically lower than that of overtime. However, shift work introduces additional problems including: extensive worker coordination, increased absenteeism and turnover, the unavailability of higher management, a higher cost per unit hour (as a result of paying for the shift differential), a higher accident rate, and interruptions of the workers’ natural biorhythms resulting in fatigue. (Simply stated, humans are designed to work during the day and sleep at night. Working incongruously with natural preferences affects both an individual’s health and job performance.)

The problems associated with the use of shifts confront contractors with a significant increase in total costs since they act to reduce productivity per additional manhour. When shift work is implemented in response to owner mandate or schedule acceleration not due to your actions, you are entitled to compensation beyond the direct wage costs. The productivity inefficiencies that occur due to using shift work should also be compensated for by the owner. In preparing an additional request for payment or a claim, Hanna Consulting Group can help you recover your full costs using accepted methodologies that the consultants at HCG developed in coordination with major specialty contractor organizations. Let us use our expertise for you.