Assessing the Impact of Skilled Labor Shortages on Project Cost Performance
Publication: Construction Research Congress 2024
ABSTRACT
Over the past decade, there has been a notable increase in skilled labor shortages within the construction industry. This shortage has numerous negative consequences on construction projects, such as delays in completion, compromised quality, and higher costs. Therefore, the goal of this paper is to examine the extent of skilled labor shortages observed throughout the industry and their impact on the cost performance of construction projects. To achieve this goal, the authors identified 10 key construction trades that heavily rely on skilled labor. Subsequently, an industry survey was conducted to measure the extent of skilled labor shortages, as well as the effect of these shortages on project costs. The survey responses were subjected to statistical analysis, including the use of two sample Z-Test and Pearson’s correlation coefficient test, to investigate two aspects: (1) the level of skilled labor shortages and their cost impacts for each identified trade, and (2) the correlation between skilled labor shortages and the cost performance of construction projects. Results show that MEP trades have the highest skilled labor shortages, followed by civil works trades. Further, MEP trades also have the greatest impact on cost performance among the identified labor-intensive trades.
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Construction Research Congress 2024
Pages: 361 - 370
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Published online: Mar 18, 2024
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