Effects of productivity and overtime in building construction

Abstract

Construction industry is one of the major sectors contributing for infrastructure development in Ethiopian government; main investor in developing countries allocates a considerable amount of budget. Hence, productivity improvement in this sector will undoubtedly generate lots of benefits for all stakeholders of the country. The research title came from the problem statement that there is a need to enhance the construction management on productivity rate and overtime schedule. The researcher found Productivity rate & Overtime in building construction, a serious and an interesting issue. Most of the employees (skilled and unskilled) produce less at a regular working time in order to compensate the time wasted with overtime. They abuse the concept of overtime and they are using it as a means of income which leads the contractor a lot of loss. Therefore reducing the frequency of overtime requires a strong management and monitoring system. Productivity is a ratio of output per working hours. And overtime is work performed outside the ordinary hours listed in an award or agreement. Productivity and overtime have an inverse relationship. Overtime is usually paid at a higher rate. Overtime is often the best way to impress management (Client) and show contractors dedication to ensuring a project is delivered on time. Through proper management and satisfactory productivity, in some instance, mandatory overtime is a necessity for a contractor to meet its financial and