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Covid-19 causing extra 15% productivity loss on UK sites

23 June 2020

The impact of the covid-19 pandemic is causing extra productivity losses of around 15% on UK construction sites.

The virus has triggered programme delays and spiralling costs that have aggravated the sector’s underlying performance problems, according to consultancy Suiko, part of Turner & Townsend.

Using data from 70 medium-sized UK construction projects, Suiko modelled that a £20m commercial real estate project with an 81-week programme before the pandemic would typically suffer productivity losses of 20%.

Now, a project of this scale is seeing this rise to 35% productivity losses with project completion delays of up to 32 weeks and increases of around £600,000 in preliminary costs alone.

Analysis of 45 projects delivered during the pandemic showed that that labour shortages together with the impact of social distancing is accounting for around 7% of productivity losses. A further 1% is being lost through the poor transfer of design information while remote working. In addition, late material deliveries or unavailability is leading to another 7%, according to Suiko.

Pinch points in the domestic materials supply chain are also continuing to impact productivity with delays being reported in the arrival of plasterboard and aggregates, it added.

Stephen Gallagher, principal consultant at Turner & Townsend said that poor planning and inefficiency was a major contributor to the problem: “UK construction has systemic productivity challenges. In particular, the final phases of a project are typically the most inefficient as contractors are often behind schedule and must throw extra labour at sites to try and get buildings finished on time. This usual fix will not be possible with social distancing and reduced labour.

“In the age of covid-19 the internal fit-out phase is the most challenging because numerous trades are working on site (often out of sequence), and there is a high volume of and variety of materials arriving to site.”  

Turner & Townsend called on the construction industry to mitigate the impact of covid-19 by embracing digital platforms, offsite construction methods and adopting the ‘lean’ approaches used by the manufacturing sector to boost performance.

Gallagher said: “Boosting construction’s productivity is key to supporting the UK’s wider economic recovery. With low productivity and low margins, the construction sector has poor resilience to weather the immediate and long-term consequences of covid-19 on the economy.

“Short-term, the sector needs to look at whether it can recover lost productivity on-site through smarter working practices. Lean can help increase productivity whilst dealing with lower resource levels, by removing large amounts of process “waste”. Planned versus actual progress can be demonstrated in three dimensions using photo-realistic representations of activity on site and validated using the contractors’ 4D schedule in order to increase efficiency. By embracing modern methods of construction, the covid-19 impact on resource levels can be mitigated by taking processes off site.

“These solutions have been present for some time, but their adoption is now urgent. We need to see a complete mindset shift to close the productivity gap.”