Labour multiplier driven approach for budgeting project resources

Abstract

Manpower demand for construction projects is roughly budgeted based on planners’ personal experience. This research study explores an analytical way to characterise project labour demand profiles throughout project duration. Labour multiplier (LM) approach was advanced to characterise the labour demand profiles. Optimistic, most-likely, and pessimistic LM and labour demand profiles at 10 project stages are defined by using manpower and payment data derived from 91 completed public construction projects under 21 project types in Hong Kong. The root-mean-square-error and root-mean-squared-logarithmic-error are used to quantify the difference between the budgeted and the benchmarked manpower. A text-book example is successfully adopted to demonstrate the steps of the proposed approach, validated by two practical projects. This research is the first to study the use of LM to characterise optimistic, most-likely, pessimistic resource demand profiles for validating manpower resource budgets. Also, the approach provides a basis to evaluate the reasonableness of planned resource.