This article argues for, and goes into detail about, a growing need to incorporate human factors into cost estimates for construction project bids, especially given state governments‘ emphasis on promoting mental health and work-life balance for construction workers.
Eric Vigo
Managing Director and Founder of Rebooter Group
Originally authored by
KEY TAKEAWAYS
1. Human-centred (mental health) costs are running into the billions, and this may be having an effect on the cost of construction projects.
2. State governments are prioritising the mental health of construction workers, with the emphasis on five day working weeks.
3. Simple and relatively inexpensive changes in care for construction workers can be implemented rather quickly.
Starting in 2023, contractors in NSW and Victoria bidding on infrastructure projects must commit to a new “culture standard” that promotes better work-life balance and diversity. This initiative aims to tackle the industry’s deep-rooted challenges head-on, challenges that have long been overlooked and have come at a huge cost of $8 billion per year.
At the heart of this push is the call for better and more stable working hours, such as the implementation of a five-day work week. This change promises to bring much-needed flexibility and work-life balance to the predominantly male workforce, particularly for those with families who have long struggled to be present fathers. And it will likely attract female workers, who are highly underrepresented in the industry.
Research has shown that the industry’s long hours, unsafe conditions, and male-dominated culture contribute to high rates of injury, mental illness, suicide, and early death among workers.
Costs of ignoring the human side in construction
The human and financial costs of not reforming the industry are staggering1:
- Work-related issues cost $6.1 billion in 2018.
- Excessive overtime drained $708 million in productivity.
- Mental health problems cost $643 million.
- Construction worker suicides cost an estimated $533 million.
Projects or partnerships, especially those on large sites, that are initially costed by bidders without accounting for worker wellbeing and inclusivity, face imposing additional inefficiencies and escalating total costs. Those who proactively invest in creating a supportive environment and prioritize elements such as work-life balance, mental health support, and diversity will gain a competitive advantage over others who fail to incorporate these crucial factors into their costings.
Addressing Mental Health: A Crucial Priority
We argue that organisations or suppliers who do not take these human-skills issues into concern, to the appropriate level, cannot sweep this issue under the carpet as these costs are clear in showing what inaction brings.
6 ways to bring more human elements into the worksite and back office
1. Communication Mastery/Error Reduction
Effective communication is the backbone of successful construction projects. Conveying complex technical details with clarity to diverse stakeholders, including clients, team members, suppliers, subcontractors, and officials. Active listening, articulating ideas precisely, and resolving conflicts through open dialogue are what drives the effectiveness of good communication, and are what reduces the level of error.
2. Problem-Solving Skills
Professionals must swiftly identify and resolve unforeseen issues using critical thinking, creativity, and the capacity to work independently or collaboratively. Innovative solutions that circumvent project derailment are highly valued.
3. Leadership Role-Modelling
Successful construction projects require diverse teams working toward shared objectives. Powerful leaders make sound decisions under pressure, delegate tasks effectively, and motivate team members to achieve project goals through clear communication and support. And they do this through active listening and active acceptance.
Some companies, like Roberts Co, have already successfully implemented five-day schedules on major projects without increasing costs by using weekday overtime. Industry leaders believe verifying the new culture standard should integrate well with existing contractor accountability requirements on public projects.
4. Collaboration Mindset
Construction is a collaborative effort among internal teams and external stakeholders. This means the focus must be on idea-sharing, compromise, and conflict resolution to align efforts and meet deadlines cohesively. And that means postponing the need to throw out trigger words that shut down this idea-sharing so easily.
5. Adaptability and Resilience
The construction industry is ever-evolving, demanding professionals to adapt to new technologies, materials, methods, and regulations. Agility and flexibility enable them to think outside the box, devise creative solutions, and navigate challenges without disrupting project timelines.
6. Relationship Building
Construction projects are long-term investments for clients. Building strong, trust-based relationships through effective communication, empathy, and persuasion is essential to ensuring client satisfaction with the final product and fostering lasting partnerships.
IN SUMMARY
It is estimated that the government would need to build 60,000 homes each quarter, which would require a workforce of 90,000 people more than currently exists.
REFERENCES
1. Michael Bleby (8/9/2021), ‘Changing culture in construction would save $8b‘, Australian Financial Review’,
2. General Construction (18/10/2023), ‘The Top 8 Soft Skills That Lead to Success in the Construction Industry‘, CIC Construction’.
