Civil Construction Industry - Output Per Worker - Aussie Stock Forums

# Thread: Civil Construction Industry - Output Per Worker

1. ## Civil Construction Industry - Output Per Worker

I'm trying to find some sort of general benchmark for \$ value of output per worker in civil construction activities. For example, if a company has total revenue from construction works of \$x per annum, then how many employees should they have as a rule of thumb?

Looking at financial reports of major companies has thus far proved to be frustrating, since their use of sub-contractors makes it impossible to gain useful info by simply comparing the company's total revenue versus number of actual employees without knowing how much of the actual work was done by sub-contractors.

I understand that the varying cost of materials makes this a difficult thing to assess, but I'm just looking to get some sort of "feel" for what's reasonable as a measure of worker productivity.

Is there a "rule of thumb" which says that a construction project worth \$10 million will take so many hours of labour or something like that?

Anyone know how much the cost of building something like a road, or the NBN, would be for actual labour?

2. ## Re: Civil Construction Industry - Output Per Worker

Originally Posted by Smurf1976
I'm trying to find some sort of general benchmark for \$ value of output per worker in civil construction activities. For example, if a company has total revenue from construction works of \$x per annum, then how many employees should they have as a rule of thumb?

Looking at financial reports of major companies has thus far proved to be frustrating, since their use of sub-contractors makes it impossible to gain useful info by simply comparing the company's total revenue versus number of actual employees without knowing how much of the actual work was done by sub-contractors.

I understand that the varying cost of materials makes this a difficult thing to assess, but I'm just looking to get some sort of "feel" for what's reasonable as a measure of worker productivity.

Is there a "rule of thumb" which says that a construction project worth \$10 million will take so many hours of labour or something like that?

Anyone know how much the cost of building something like a road, or the NBN, would be for actual labour?
/year \$200-\$250,000 T/O / employee for us.
We deal in the 100K-400K bracket

Larger Companies

Can be on larger projects 1-5million so that can increase to \$500k
So a \$50mill a year company 100 employees.
We currently do around 3-4 mill a year with 14

3. ## Re: Civil Construction Industry - Output Per Worker

Cant find exactly what you are after, but RLB offer some pretty good data that might be of use.

http://rlb.com/index.php/australia-a...aland/research

4. ## Re: Civil Construction Industry - Output Per Worker

When I was running installation projects, the logistics were different for each one.

The cost of accommodation, board, lodging and meals varied hugely depending on location. (Broome was way dearer than Wiluna).
Costs incured due to terrain could be huge. Laying a cable at Denham, in sand, was quite different to cutting a trench in Mt Magnet (I'm still embarrassed at the condition we returned the ditch witch, we borrowed)
Labor cost was a constant, approx 150% of salary.
Materials and fabrication was a constant source of worry, you really had to keep an eye on costs, materials arriving late incurred extra costs to transport to site and time delays in schedule.
Fabrication was a whole new ball game, the biggest downfall for younger players, was expecting the product delivered would be exactly what you ordered.
Then it turns really pear shaped, what you get won't do the job, the company that supplied it don't want to know.
Meanwhile everyone is sitting on their bums looking at you for answers.lol

So the short answer is no there isn't a rule of thumb, that's why I'm always reluctant to buy engineering, construction company shares. IMO they are only one bad estimate from disaster.lol
Also worth mentioning a mate who like myself left construction 20 years ago to do similar work as yourself, retired and was picked up at 60 as a commissioning engineer on bling dollars.lol
I guess what I'm saying Smurph is there doesn't seem to be a lot of talent on the ground out there.IMO
Sorry for being so long winded.

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