Large contractors are putting a new standard for productivity measurement to the test in the hope of producing better project process controls. The new standard, which was adopted last fall as ASTM E2691, focuses on methods for continuously measuring productivity losses to allow for corrective actions during a project. Measurement system promises better project information on productivity. Perry Daneshgari, a management consultant based in Flint, Mich., who developed the standard in conjunction with the National Institute of Standards and Technology (NIST), says the standard measures work performed compared to construction-put-in-place. Daneshgari says companies often are mistakenly “measuring production, not productivity.”
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.