TECHNICAL PAPERS
Sep 1, 2008

Modeling and Forecasting Construction Labor Demand: Multivariate Analysis

Publication: Journal of Construction Engineering and Management
Volume 134, Issue 9

Abstract

This paper presents the development of advanced labor demand forecasting models at project level. A total of 11 manpower demand forecasting models were developed for the total project labor and ten essential trades. Data were collected from a sample of 54 construction projects. These data were analyzed through a series of multiple linear regression analyses that help establish the estimation models. The results indicate that project labor demand depends not only on a single factor, but a cluster of variables related to the project characteristics, including construction cost, project complexity attributes, physical site condition, and project type. The derived regression models were tested and validated using four out-of-sample projects and various diagnostic tests. It is concluded that the models are robust and reliable, which merit for contractors and HKSAR government to predict the labor required for a new construction project and facilitate human resources planning and budgeting, and that the methodology used may be applied to develop equally useful models in other subsectors, and in other countries.

Get full access to this article

View all available purchase options and get full access to this article.

Acknowledgments

The writers wish to acknowledge with thanks the help given to them by the HKSAR government officers and interviewees for their generous collaboration and contributions in completing the questionnaires and providing invaluable information for the study. Support from the Hong Kong Polytechnic University is also gratefully acknowledged, in that it has enabled the continuation of this research and the dissemination of these results.

References

Agapiou, A., Price, A. D. F., and McCaffer, R. (1995). “Planning future construction skill requirements: Understanding labour resource issues.” Constr. Manage. Econom., 13(2), 149–161.
Ball, M., and Wood, A. (1995). “How many jobs does construction expenditure generate?” Constr. Manage. Econom., 13(4), 307–318.
Bell, L. C., and Brandenburg, S. G. (2003). “Forecasting construction staffing for transportation agencies,” J. Manage. Eng., 19(3), 116–120.
Belsley, D. A., Kuh, E., and Welsch, R. E. (1980). Regression diagnostics: Identifying influential data and source of collinearity, Wiley, New York.
Briscoe, G., and Wilson, R. (1993). Employment forecasting in the construction industry, Aldershot, Avebury, U.K.
Bromberger, N., and Diedrich-Fuhs, H. (2003). ‘Information system for early recognition of sectoral trends—Results obtained for the construction industry.” Early identification of skills needs in Europe, Cedefop Reference Series, 40, S. L. Schmidt, K. Schömann, and M. Tessaring, eds., Federal Ministry of Education and Research, European Centre for the Development of Vocational Training, Luxemburg.
Bromilow, F. J., Hinds, M. F., and Moody, N. F. (1988). The time and cost performance of building contracts 1976–1986, The Australian Institute of Quantity Survey, Sydney, Australia.
Chan, A. P. C., et al. (2002). “Demand and supply of construction personnel.” Final Rep., to the Consultancy Study on the Demand and Supply of Construction Personnel, to the ETWB of the HKSAR Government, Hong Kong.
Chan, A. P. C., Wong, J. M. W., and Chiang, Y. H. (2003). “Modelling labor demand at project level—An empirical study in Hong Kong.” Journal of Engineering, Design and Technology, 1(2), 135–150.
Chan, D. W. M., and Kumaaswamy, M. M. (1999). “Modelling and predicting construction durations in Hong Kong public housing.” Constr. Manage. Econom., 17(3), 351–362.
Chatterjee, S., and Hadi, A. S. (1988). Sensitivity analysis in linear regression, Wiley, New York.
Construction Industry Training Board (CITB). (1988). Factors affecting recruitment for the construction industry, Bircham Newton, Kings Lynn, Norfolk, U.K.
The Construction Workforce Development Forecasting Committee (CWDFC). (2002). 2003 construction trades outlook, The Construction Owners Association of Alberta, Alta., Canada.
De Vaus, D. A. (1996). Surveys in social research, 4th Ed., UCL Press, London.
Druker, J., and White, G. (1996). Managing people in construction, Institute of Personnel and Development, London.
Ehrenberg, R. G., and Smith, S. R. (2003). Modern labor economics: Theory and public policy, 8th Ed., Addison-Wesley, New York.
Fairweather, V. (1986). “Record high-rise, record low steel.” Civ. Eng. (N.Y.), 56(8), 42–45
Ganesan, S., Hall, G., and Chiang, Y. H. (1996). Construction in Hong Kong: Issues in labour supply and technology transfer, Aldershot, Avebury, U.K.
Gidado, K. I., and Millar, A. J. (1992). “The effect of simple overlap of the stages of building construction on the project complexity and contract time.” Proc., 8th Annual Conf., Association of Researchers in Construction Management (ARCOM), Salford, U.K., 307–317.
Gould, F. E. (2002). Construction project management, Prentice-Hall, Upper Saddle River, N.J.
Grunebery, S. L. (1997). Construction economics—An introduction, Macmillan, London.
Handy, C. B. (1985). Understanding organisations, 3rd Ed., Penguin, Harmondsworth, U.K.
HKCSD. (2005). Quarterly report on general household survey, the Census and Statistics Department, 1st Quarter, Hong Kong Government Printer, Hong Kong.
Kao, C., and Lee, H. T. (1998). “Demand for industrial management manpower in Taiwan: Viewpoints of quantity and skill.” Int. J. Manpower, 19(8), 592–602.
Kenkel, J. L. (1989). Introductory statistics for management and economics, PWS-Kent Pub. Co., Boston.
Lemessany, L., and Clapp, M. A. (1978). “Resource input to construction: The labour requirements of house building.” Building research establishment, current paper, CP 76/78, Garston, U.K.
McConnell, C. R., Brue, S. L., and Macpherson, D. A. (2003). Contemporary labor economics, McGraw-Hill, London.
Montgomery, D. C., Peck, E. A., and Vining, G. G. (2001). Introduction to linear regression analysis, 3rd Ed., Wiley, New York.
Norusis, M. J. (2002). SPSS 11.0 guide to data analysis, Prentice-Hall, Upper Saddle River, N.J.
Persad, K. R., O’Connor, J. T., and Varghese, K. (1995). “Forecasting engineering manpower requirements for highway preconstruction activities.” J. Manage. Eng., 11(3), 41–47.
Poon, S. W., Tang, S. L., and Cheung, C. M. (1996). “Estimating the demand for technicians in the Hong Kong construction industry.” Int. Conf. on Construction Training, Construction Industry Training Authority, Hong Kong, 160–165.
Proverbs, D. G., Holt, G. D., and Olomolaiye, P. O. (1999). “A method for estimating labor requirements and costs for international construction projects at inception.” Build. Environ., 34(1), 43–48.
Quantitative Micro Software, LLC (QMS). (2000). Eviews 4.0 users’ guide, Irvine, Calif.
Rosenfeld, Y., and Warszawski, A. (1993). “Forecasting methodology of national demand for construction labour.” Constr. Manage. Econom., 11(1), 18–29.
Rowlinson, S. M., and Walker, A. (1995). The construction industry in Hong Kong, Longman, Hong Kong.
Tam, C. M. (2002). “Impact on structure of labour market resulting from large-scale implementation of prefabrication.” Int. Conf. on Advances in Building Technology, M. Anson, J. M. Ko, and E. S. S. Lam, eds., Vol. 1, The Hong Kong Polytechnic University, Hong Kong Institute of Construction Managers, 399–403.
Tang, S. L., Poon, S. W., Ahmed, S. M., and Wong, F. K. W. (2003). Modern construction project management, Hong Kong University Press, Hong Kong.
Uher, T. E., and Loosemore, M. (2004). Essentials of construction project management, UNSW Press, Sydney, Australia.
Uwakweh, B. O., and Maloney, W. F. (1991). “Conceptual models for manpower planning for the construction industry in developing countries.” Constr. Manage. Econom., 9(5), 451–465.
Wong, J. M. W., Chan, A. P. C., and Chiang, Y. H. (2003). “Manpower forecasting in construction—Identification of stakeholder’s requirements.” C. J. Anumba, ed., 2nd Int. Conf. on Innovation in Architecture, Engineering and Construction, Centre for Innovative Construction Engineering, Loughborough University, U.K., 301–314.
Wong, J. M. W., Chan, A. P. C., and Chiang, Y. H. (2004). “A critical review of forecasting models to predict manpower demand.” Aust. J. Constr. Econ. Build., 4(2), 43–56.
Wong, J. M. W., Chan, A. P. C., and Chiang, Y. H. (2005). “The quality of projections: Manpower demand for the Hong Kong construction industry.” A. C. Sidwell, ed., QUT Research Week Int. Conf., Queensland University of Technology, Queensland, Australia.

Information & Authors

Information

Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 134Issue 9September 2008
Pages: 664 - 672

History

Received: Dec 6, 2006
Accepted: Dec 10, 2007
Published online: Sep 1, 2008
Published in print: Sep 2008

Permissions

Request permissions for this article.

Authors

Affiliations

James M. W. Wong
Doctoral Candidate, Dept. of Building and Real Estate, The Hong Kong Polytechnic Univ., Hung Hom, Hong Kong (corresponding author). E-mail: [email protected]
Albert P. C. Chan
Professor and Associate Head, Dept. of Building and Real Estate, The Hong Kong Polytechnic Univ., Hung Hom, Hong Kong.
Y. H. Chiang
Associate Professor, Dept. of Building and Real Estate, The Hong Kong Polytechnic Univ., Hung Hom, Hong Kong.

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share