labor and material 

requirements

for public housing

construction

Bulletin No. 1402

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREAU OF LABOR STATISTICS 

Ewan Clague, Commissioner

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labor and material 

requirements

for public housing 

construction

Bulletin No. 1402

May 1964

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREAU OF LABOR STATISTICS

Ewan Clague, Commissioner

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P refa ce

This study of labor and m aterial requirem ents fo r con stru ction of 

public housing is the fifth in a se rie s of studies of various types of co n stru ction that m ight be affected by governm ent action. P reviou s studies have been 

m ade of labor and m aterial requirem ents for sch ools, highw ays, F ed eral 

office buildings, and hosp itals. C urrently in various stages of preparation 

are studies of civ il w orks activities of the C orps of E ngineers (such as co n ­

struction of dam s and le v e e s, and dredging of channels) and other segm ents 

of the housing industry (such as private on e-fa m ily and colleg e student h ou sing). Other studies are in planning stages.

The studies are being conducted in the Bureau of L abor S tatistics, 

D ivision of P rodu ctivity M easurem ent, under the general d irection of 

Leon G reen berg, A ssistant C om m ission er fo r P rod u ctivity and T ech n ologica l D evelopm ents. This bulletin was prepared by Stanley F. M iller and 

Philip Jaynes under the su pervision of Jam es F . W alker. H erm an J. Rothberg 

was in charge of collectin g and tabulating the statistical data.

The Bureau w ishes to acknow ledge the generous cooperation of the 

Housing and Home Finance A gen cy, the P ublic Housing A dm inistration, and 

the loca l housing authorities of the sev era l States fo r making available data 

fo r tabulation to determ ine on -site labor requ irem en ts. The Bureau also 

w ishes to thank the various con tra ctors who supplied data on m aterials and 

equipment used, from which o ff-s ite labor requirem ents w ere calculated.

i

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C O N T E N T S

Page

In tro d u ctio n ............................................................................................................. 1

Nature of the s u r v e y ...................................................................................... 2

G eneral survey findings and c h a r a c te r is tic s ........................................... 4

Building c h a r a c t e r is t ic s ....................... 6

Building c o s t s ................................................................................................. 9

O n -site m an-hour r e q u ir e m e n ts .............................................................. * 11

R equirem ents by o c c u p a t io n ...................................................................... 14

A pprentice m a n -h o u r s .................................................................................. 17

G eneral and sp ecial trades con tra ctors m a n -h o u r s .......................... 17

The cost of d irect w a g e s .............................................................................. 20

O ff-site e m p lo y m e n t .......................................................................................... 24

B u ild ers1 o ff-s ite em p lo y m e n t.................................................................. 25

E m ploym ent in transportation, trade, and s e r v i c e ......................... 26

"L a st m anufacturing stage1' e m p lo y m e n t........................................... 26

E m ploym ent in secon dary a c t iv it ie s ............................... 26

C onstruction t i m e ......................................................................................... 27

E m ploym ent by construction p e r i o d s ................................................... 27

M aterials u s e d ................................................................................................. 27

Appendix. Scope and m ethod of s u r v e y ................................................... 39

C h a ra cteristics of the universe and selection of the sam ple . . 39

M an-hour estim ates . .................................................................................. 39

C ollection of on -site m an-hour d a t a ....................................................... 40

O ff-site m a n -h o u rs .............................................................. 40

Secondary em ploym ent in all in d u s tr ie s ............................................... 41

Total m an-hour r e q u ir e m e n ts .................................................. 41

T ables:

1. C ost per square foot and per dwelling unit for public

housing p ro je cts, by selected ch a ra cteristics and

region , 1959-60 .................................................................................. 8

2. O n -site m an-hour requirem ents for public housing p ro je cts,

by selected ch a ra cteristics and region, 1959-60 ................ 12

3. O n -site m an-hour requirem ents per $ 1 ,0 0 0 for public

housing p ro je cts, by p roportion of low er skilled m anhou rs, region,and type of structure, 1959-60 ........................ 13

4. O n -site m an-hour requirem ents per $ 1 ,0 0 0 of public

housing con stru ction cost and percent distribution, by 

occupation and region , 1959-60 ................................................... 15

5. O n -site m an-hour requirem ents per $ 1 ,0 0 0 of public

housing con stru ction cost and p ercen t distribution, by 

occupation and type of structure, 1959-60 ............................ 16

6. A pprentice m an-hours as a percent of total m an-hours

w orked on public housing construction, by occupation,

region,and type of structure, 1959-60 ....................................... 18

i n

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7. A verage num ber of subcon tractors per public housing

p roject, by selected ch a ra cteristics and region ,

1959-60 ................... 19

8. P ercen t of total on -site m an-hour requirem ents for public

housing construction, by type of con tra ctor, region,

and type of structure, 1959-60 ................................................... 22

9. A verage on -site earnings for public housing

construction p ro je cts, by selected ch a ra cteristics

and region, 1959-60 ...................................... 23

10. A verage num ber of w eeks requ ired for construction of

public housing p rojects, by selected ch a ra cteristics

and region , 1959-60 .......................................................................... 29

11. P ercen t of on -site em ploym ent for public housing

construction in each tenth of total construction tim e,

by region and type of structure, 1959-60 ............................... 30

12. Cost of m a terials per $ 1,000 of public housing

construction contract, by type of m aterial and

region, 1959-60 ................................................................................. 32

13. C ost of m aterials per $ 1,000 of public housing

construction contract, by m a jor m aterials group

and type of structure, 1959-60 36

Charts:

1. D istribution of 236 m an-hours for each $ 1 ,0 0 0 of public

housing construction contract, 1959-60 ................................... 5

2. P ercen t distribution of on -site w ages and m a terials used

for each $ 1,000 of public housing construction

contract, 1959-60 .............................................................................. 7

3. P ercen t of on -site m an-hours w orked in each d ecile of

construction tim e, 1959-60 31

IV

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LABO R AND M A TE RIAL REQUIREMENTS FOR 

PUBLIC HOUSING CONSTRUCTION

Introduction

New construction is a m a jor com ponent of the N ation's output of 

goods and se rv ice s and an im portant sou rce of em ploym ent. Jobs are crea ted 

not only at con stru ction sites but a lso in m any m anufacturing, trade, se rv ice , 

and transportation industries which m ake, sell, and deliver m a terials r e ­

quired in construction p r o c e s s e s . B ecause of its fa r-rea ch in g em ploym ent 

im pact, a vigorou s con stru ction industry is regard ed as a significant aid in 

avoiding c y c lic a l unem ploym ent.

The Bureau of L abor Statistics has undertaken a series of studies in 

ord er to m easu re labor requirem en ts for various segm ents of the con stru ction industry. C onstruction of public housing w as selected for study because 

this segm ent rep resen ts one which could be significantly affected by govern ­

m ental action.

The P ublic H ousing A dm inistration in its 16th annual rep ort indicates 

that a ssista n ce had been provided, from 1937 through 1962, to m ore than 

1,800 com m unities for construction of about 645,000 dwelling units to p r o ­

vide suitable living quarters fo r low -in com e fa m ilies. At the end of 1962, 

som e 119,000 additional units w ere in planning or construction stages. E x ­

penditures fo r con stru ction of public housing (F ed era l p rogra m s plus State 

and lo ca l program s) am ounted to approxim ately $840 m illion during 1961. 

During the y ea r, about 52, 000 new public housing units w ere started. Annual 

expenditures fo r new, private residential units averaged $15. 6 b illion over 

the past 5 y e a rs. P ublic housing expenditures over the sam e p eriod averaged 

$ 800 m illio n .1

The 1960's w ill be y ea rs of unprecedented population growth. Housing 

needs w ill in crea se tre m e n d o u sly --it is estim ated that by 1969, the annual 

net gain in household form ation m ay reach 1 .3 m illion . By 1970, the count 

of households m ay show a net gain for the decade of 9. 2 m illion . 2

With the expected a ccelera tion of p rogra m s for highway construction 

and for urban renew al, lo s s e s to the p resen tly existing housing supply can be 

expected to ex ceed the 300,000 a year average for the 1950's. Some portion 

of 16 m illion fa m ilies who w ere ill-h ou sed in I960 w ill of n ecessity be r e ­

housed during the decade. Continuation of the volum e of housing production 

at the I960 lev e l would leave the country far short of its needs. To m ake any

^ . S . Departm ent of C om m erce, C onstruction R eview , July 1962. 

2HHFA, 16th Annual R eport, 1962, p. 13.

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significant p ro g re ss tow ard m eeting these needs, it is estim ated that p rod u ction m ust reach the annual rate of 2 m illion dwelling units by the end of the 

decade. Public housing, should it m aintain its h isto rica l share of this rate, 

w ould be producing 100,000 units annually.3

The m a jor share of our in creasin g housing needs w ill have to be p r o ­

vided by new con stru ction . This new construction w ill involve builders, p r e ­

fa b rica tors, m a terial p rod u cers, m ortgage len d ers, and others, as w ell as 

F ed era l, State, and lo ca l governm ents.

Nature of the Survey

This rep ort is based on findings o f a survey of 31 public housing p r o jects w hich w ere adm in istered by the P ublic H ousing A dm inistration. P ro je c ts 

w ere selected in variou s States to be representative of four broad geographical 

region s of the conterm inous United S ta tes.4

The survey w as designed p rim a rily to determ ine m an -h ou rs requ ired 

by a fixed dollar volum e ($ 1, 000) of public housing construction. M an-hou rs, 

as defined by the survey, include both on -site con stru ction em ploym ent and 

o ff-s ite em ploym ent requ ired to produce and d eliver m a terials used in con ­

struction . Data for on -site labor include m an -h ou rs for su p ervisory, engineering, cle r ic a l, and custodial em ployees at con stru ction sites and those 

for w ork ers in each construction trade. Data w ere also obtained on w ages 

paid and tim ing of em ploym ent. Inform ation for o ff-s ite labor includes em ­

ploym ent in activities of con tra ctors such as office and w arehousing; building 

m a terials and equipm ent m anufacture and distribution; and finally, em p loym ent in all other industries w hich are a ffected d irectly or in d irectly by p r o ­

duction and distribution of building m a terials from raw m a terials to the final 

m anufacturing stage.

C ertain types of em ploym ent, how ever, are not co v e re d by the survey. 

M an-hours expended on preparation of plans and sp ecifica tion s for p ro je cts 

are excluded, as is labor tim e involved in installations by public utility em ­

p loy ees, site preparation, landscaping, and street and sew er w ork not cov ered

3HHFA, 14th Annual R ep ort, I960, p. 16.

4The States included in each of the region s are as follow s: N ortheast- - 

C onnecticut, M aine, M assachusetts, New H am pshire, New J ersey , New Y ork, 

Pennsylvania, Rhode Island, and V erm ont; N orth C e n tra l--Illin o is, Indiana, 

-Iow a, Kansas, M ichigan, M innesota, M issou ri, N ebraska, North Dakota, Ohio, 

South Dakota, and W isconsin; South--A labam a, A rkansas, D elaw are, D istrict 

of Colum bia, F lorid a , G eorgia, Kentucky, Louisiana, M aryland, M ississip p i, 

North C arolina, Oklahom a, South C arolina, T en n essee, T exas, V irginia, and 

W est V irginia; W e st--A rizo n a , C alifornia, C olorado, Idaho, Montana, Nevada, 

New M ex ico, O regon, Utah, W ashington, and W yom ing.

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by construction con tra cts. E stim ates w ere m ade of labor generated by 

m oney expended fo r co n tra cto rs1 overhead. The m a jor p ortion of such o v e r ­

head con sists of adm inistrative sa la rie s. O verhead item s, such as rent, 

bonds, insurance, taxes (including p ayroll ta xes), w elfare paym ents, and 

office supplies generate rela tively little em ploym ent. E m ploym ent created 

by the respending of w ages and p rofits of w ork ers and their e m p lo y e rs- - 

the m u ltiplier e ffe ct--w a s not con sidered within the scope of this study.

Although the p rim a ry ob jective of this study was the determ ination of 

labor requirem ents fo r con stru ction of public housing p ro je cts in the United 

States, exam ination of regional d ifferen ces was undertaken. P ublic housing 

con stru ction in ev ery region of the country is fa ced with the sam e basic 

p rob lem , but it is dealt with in different w ays. The p rob lem is to provide 

the d esired num ber and quality of dwelling units at the low est p ossib le cost. 

This requ ires that design and con stru ction of p ro je cts be adapted to the p a r ­

ticu lar ch a ra cteristics of each lo ca lity --th e costs of labor and m a teria ls, 

the amount of space available, and other fa ctors such as clim ate and top og ­

raphy. Since all of these ch a ra cteristics vary fro m region to region, the 

type of p ro je ct constructed w ill d iffer. In the N ortheast region , for instance, 

the p rim a ry need is fo r large num bers of dwelling units located in congested 

m etropolitan a rea s. This requirem en t, com bined with high wage rates, has 

lead to the construction of m u ltistory rein forced con crete buildings. Such 

buildings are m ost econ om ica l because they use a m inim um amount of space 

and perm it m axim um use of labor saving techniques in construction. In a 

different region , such as the South, the rein forced con crete structure m ay 

not be the m ost econ om ica l. L oad-bearin g m ason ry or wood structures are 

favored fo r southern p ro je cts because there is le ss need to con serve sp ace, 

wage rates are low er, and average p ro je ct size is sm all. In other regions 

of the country, there is a m ore even distribution of structural types, r e fle c ting m ore lo ca l variation in housing requirem ents and con stru ction conditions.

B ecause of variations in m an-hour requirem ents betw een regions and 

within regions by structural type, caution m ust be used in p rojectin g the r e ­

sults of this study to future y e a rs. If the regional or structu ral distribution 

of p ro je cts changes in the future, then average m an-hour requirem ents would 

a lso change.

A m ore detailed d escrip tion of the scope of the survey and m ethod of 

sam ple selection is given in the appendix.

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G eneral Survey Findings and C h a ra cteristics

C onstruction of public housing p ro je cts in 1959-60 created 236 m anhours of em ploym ent fo r each $ 1 ,0 0 0 of con stru ction contract cost. E m p loym ent at the construction sites accounted fo r 114 m a n -h ou rs, while 122 m anhours w ere required for various o ff-s ite a ctiv ities. (See chart 1 .) The latter 

included all em ploym ent required to produce and d eliv er m aterials and equipment installed by on -site w ork ers in addition to the em ploym ent required by 

construction con tra ctors fo r adm inistrative, w arehousing, and certain other 

o ff-s ite operation s. O ff-site m an-hours (except those fo r the construction 

industry) are developed from cost data relating to the value of m aterials used 

at construction sites (including rental costs or d epreciation charges fo r co n ­

struction equipm ent). Total m an-hour requirem ents w ere distributed as 

follow s:

M an-hours p er $ 1 ,0 0 0 of 

con stru ction contract

Total . . . . . . . ...............................

O n -site c o n s tr u c t io n ..............................

O ff-s it e .......... . ..............................................

C onstruction . ................................. .. . . .

M anufacturing . . ......................................

T ransportation, trade, and serv ice 

Other industries (including m ining)

Num ber P ercen t

236 100

114 48

122 52

12 5

64 28

36 15

10 4

A verage con stru ction cost (excluding site p reparation and planning 

costs) of public housing p ro je cts studied was about $ 1 .3 m illion . C on stru ction of these p rojects was a ccom p lish ed during the p eriod fro m ea rly 1959 to 

m iddle 1961; how ever, the greater portion took place during 1959-60. Length 

of construction tim e fo r the average p ro je ct studied was 58 w eek s, thus p r o ­

viding the equivalent of continuous w ork fo r about 74 w ork ers (83 m a n -y ea rs) 

at construction sites, and fo r a slightly le s s e r amount of em ploym ent in 

o ff-s ite a c tiv itie s .5

5The annual em ploym ent estim ate of con stru ction w ork ers is based 

on 50 tim es the 1959 average em ploym ent in contract building con stru ction 

w ork of 35.8 hours p er week as rep orted in the B ureau's Earnings and Hours 

S eries. F or other types of em ploym ent, 2,000 hours w ere con sid ered as 

1 y e a r fs em ploym ent.

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Chart 1. Distribution of 236 Man-Hours for Each $1,000

of Public Housing Construction Contract, 1959-60

Transportation,

Trade and Services

t

Last Manufacturing

Stage

Manufacturing

Transportation,

Trade and Services

*■

All Other

Industries

PRIMARY

> MAN-HOURS

(192)

SECONDARY

> MAN-HOURS

(44)

UNITED STATES DEPARTMENT OF LABOR

BUREAU OF LABOR STATISTICS

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During recent y ea rs, about $800 m illion have been expended annually 

fo r construction of public housing. At the current rate, th erefore, such con ­

struction has created about 51,000 jobs annually fo r on -site activities and 

approxim ately 49,000 fo r related o ff-s ite w ork. In ord er to m eet the a n ticipated annual need for public housing, construction and related em ploym ent 

would need to be substantially greater than current le v e ls.

The study d isclosed wide variations in m an-hour and m aterials r e ­

quirem ents among p ro je cts , reflectin g d ifferen ces in size of p ro je ct, g e o ­

graphical location , and loca l p ra ctice s. M arked d ifferen ces w ere noted in 

such related item s as average hourly earnings and site w ages as a p ercen tage of construction cost. M aterial purch ases am ounted 47 .5 percent of the 

construction dollar expended, while wages fo r on -site m an-hours w ere 35.5 

p ercen t. (See chart 2 .) Earnings for on -site labor fo r all p rojects averaged 

$ 3. 14 per hour.

Building C h a ra cteristics

The 31 housing p rojects selected fo r study varied in size from one 

with 10 dwelling units to one containing alm ost 1,000. Square feet of flo o r 

area ranged from 9,000 to over 1 m illion . C onstruction contract costs 

ranged from $ 113,000 to about $11 m illion . C onstruction costs per square 

foot and per dwelling unit ranged from about $8 to $15 and approxim ately 

$ 8 ,0 0 0 to $ 1 3 ,0 0 0 , resp ectiv ely . C osts per square foot and p er dwelling 

unit by region and by selected ch a ra cteristics are presented in table 1. 

A verage size and construction cost of p rojects studied w ere as follow s:

A verage

Number of dwelling units ........................................................................ 125

F loor area (square fe e t )........................................................ ....... . 124, 000

C onstruction contract c o s t.............. ....................................................... $ 1 ,3 2 4 , 000

C onstruction cost per dwelling u n it................................................... $ 1 0 ,5 98

C onstruction cost per square fo o t........................................................ $ 10. 68

P ro je cts can be cla ssified by structural type into three ca teg ories: 

rein forced con crete, load-bearin g m ason ry, and w ood. Each of the three 

types has a slightly different m ixture of m an-hour and m aterials re q u ire ­

m ents associated with its construction. R ein forced con crete is generally 

used fo r construction of m u ltistory, elevator-equ ipped buildings. A ll of 

the rein forced con crete p rojects w ere located in m etropolitan a rea s, co m ­

pared to 50 percent of the wood and 38 percen t of the load -bearin g m ason ry 

p ro je cts .

R ein forced con crete p rojects represented 45 p ercen t of all dwelling 

units, follow ed by load-bearin g m ason ry, 30 p ercen t, and w ood with 13 p e r ­

cent. P ro je cts containing a m ixture of structural types w ere constructed of

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Chart 2. Percent Distribution of On-Site Wages and Materials Used

for Each $1,000 of Public Housing Construction Contract, 1959-60

UNITED STATES DEPARTMENT OF LABOR

BUREAU OF LABOR STATISTICS

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Table 1. C ost p er Square Foot and per Dwelling Unit fo r P u blic Housing P r o je c ts ,

by Selected C h aracteristics and R egion, 1959-601

United States South Other reg ion s2

C h a ra cteristic C ost p e r - -

Square

foot

Dwelling

unit

Square

foot

Dwelling

unit

Square

foot

Dwelling

unit

A ll p ro je cts . . ...................... $ 1 0 .6 8 $10,5 98 $ 9 . 36 $ 9 ,4 0 2 $1 1.5 1 $11,3 41

C onstruction cost group:

Under $ 1 ,0 0 0 ,0 0 0 .................

$ 1 ,0 0 0 , 00 0-$ 1 ,9 9 9 , 999 . . . 

$ 2, 000, 000 and o v e r ............

$ 10.92 

10.73 

10.65

$ 10,155 

10,966 

10,661

$ 10.04 

10.24 

7. 60

$ 9,462 

10,249 

8 ,495

$ 12. 07 

11.06 

11.57

$ 11,722 

11,458 

11,221

Type of stru ctu re:3 

R ein forced con crete . • 0 • <> . 

L oa d -b ea rin g m a son ry • . . •

WOOd............ .. • O 0 • • O O . . 0 . • O

11.32 

9.63 

10. 12

11,188

9,962

9,792

9. 13 

9.9 8

9,409

9,385

11.32 

11.21 

10.45

11,188 

11,833 

10,848

1Although con stru ction on som e p rojects extended into 1961, m ost con stru ction was p erform ed 

in 1959-60.

in s u fficie n t data to w arrant separate presentation by ch a ra cteristics fo r the other three 

reg ion s.

3D oes not include two p ro je cts having a m ixture of different types of stru ctu res.

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m ixtures of w ood and rein forced con crete units. The N ortheast region had 

a preponderance of rein forced con crete p ro je cts, loca ted near such cities 

as New Y ork and Philadelphia. In the North Central and W estern region s, 

the three structural types w ere m ore evenly distributed. T here w ere no 

rein forced con crete p ro je cts in the South; m ost of the dwelling units w ere 

constructed of loa d -b ea rin g m a son ry. The type of structure used by p r o jects in the different region s is strongly dependent on the extent to which 

construction takes place in m etropolitan a rea s. In the South, 79 percent 

of all p ro je cts studied w ere located in nonm etropolitan areas; in regions 

outside the South, only 12 p ercen t of the p rojects w ere in such area s.

About on e-fifth of all p rojects con sisted of buildings constructed 

with w ood floorin g (m ostly for second story flo o rs in tw o-storied buildings). 

C oncrete cov ered with resilien t tile was used in all buildings, except in 

two p ro je cts, for ground lev el flo o r s . Buildings in about 50 percent of the 

p ro je cts w ere constructed with built-up roofin g placed on con crete or w ood. 

T hose in the other half had wooden roofs cov ered with asbestos shingles. 

R oofing on buildings in one p ro je ct was cla y tile placed on con crete. A rea s 

for adm inistrative activities or com m unity se rv ice s w ere provided for in 

on e-sixth of the p ro je cts .

Building C osts

Table 1 presents two different m easu res of building cost, exp ressed 

as co st per square foot and cost per dwelling unit. The relationships shown 

vary slightly because of d ifferen ces from the national average of 992 square 

feet per dwelling unit. The follow ing tabulations show labor and m aterials 

costs per square foot by regions and by structural types.

Labor and m aterials cost per square foot b y --

______________________ region_______________________

United N orth- North

States east Central South W est

T o t a l ...................................... $ 1 0 .6 8 $ 1 0 .9 1 $ 1 2 .2 5 $ 9 .3 6 $ 1 2 .9 0

L abor c o s t ............................... 3.79 4 .0 1 4 .5 6 3.14 4 .6 0

M aterials c o s t . ..................... 5 .0 7 4 .8 6 5 .6 3 4 .7 4 6 .6 2

O verhead and p r o f it s .......... 1.82 2.04 2.06 1.48 1.68

__________________Type of structure______________

R ein forced L oa d -b ea rin g

con crete m ason ry W ood

T o t a l ...................................... $ 1 1 .3 2 $ 9 .6 3 $ 1 0 .1 2

L abor c o s t ............................... 4. 19 3.45 3.18

M aterials c o s t ........................ 5.00 4 .8 2 5. 11

O verhead and p r o f i t s .......... 2. 13 1.36 1.83

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The d ifferen ce in cost betw een regions probably resu lts from the 

interaction of severa l fa cto rs . H igher costs in the W estern and North C entra l regions m ay be due in part to greater distances fro m sou rces of supply 

fo r som e m a teria ls, with consequent higher shipping co sts. L ow er costs 

per square foot in the South could result fro m a com bination of low er wage 

costs and sm a ller expenditures fo r such item s as insulation and heating 

plants, because of the m ild er clim ate. C ost is influenced by the type of 

building con stru cted, as reflected not only by the b a sic structural type, but 

by d ifferen ces in design qualities and durability. C osts p er dwelling unit by 

region are as follow s:

Cost per dwelling unit

United S t a t e s ............ $ 1 0 ,5 9 8

N o rth e a s t................... 11,192

North C e n t r a l.......... 11,367

S o u th ............................ 9,402

W est.......................... . . 11,951

C ost figu res shown in this study apply to con stru ction cost only. They 

do not include expenses fo r planning, acquisition of land, or site p reparation . 

A ls o , these figu res re fe r to initial cost. In ord er to m ake com p arison s b e ­

tween different structural types as to which is m ost econ om ica l, one would 

a lso have to con sid er lon g-ran ge fa cto rs. The p ro je ct type w hich is cheapest 

to construct m ay not be the best value, because of le s s e r durability or higher 

m aintenance costs in the long run.

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On-Site M an-H our R equirem ents

M an-hour requirem ents per dollar of construction cost are obtained 

by dividing total on -site m an-hours rep orted by total construction cost. This 

resu lt is in turn m ultiplied by 1, 000 in ord er to determ ine requirem en ts for 

each $ 1,000 of construction cost. F or p rojects studied, m an-hour re q u ire ­

m ents varied from a low of 64 to a high of 192. The United States average 

was 114 (table 2).

The m ost significant regional variation was the high num ber of m anhours req u ired for p ro je cts in the South. T here w ere at least three reason s 

for this. F irst, southern p rojects had a sm all average size . This m eant 

that there was le ss opportunity to use laborsavin g equipm ent and p roced u res. 

Second, m ost of the p ro je cts con stru cted in the South w ere built of loa d - 

bearing m ason ry. This structural type tends to have higher m an-hour r e ­

quirem ents than w ood or rein forced con crete. The South's in crea sed u tilization of labor took place m ostly in the unskilled and sem isk illed ca teg ories 

(table 3). In this region, there was le ss tendency to use m ore labor on 

southern p rojects in skilled ca teg ories, such as carpentry or bricklaying, 

p ossib ly because it is m ore difficult to substitute equipm ent for skilled la b or, 

w hereas a ditchdigging m achine can be substituted for an unskilled ditchdigger.

When labor requirem ents are ex p ressed as m an-hours per 1,000 square 

feet or per dwelling unit, the picture is slightly different. R egional variations 

are in the sam e d irection but of le s s e r m agnitude. M an-hour requirem ents in 

the South are 43 p ercen t higher per $ 1 ,0 0 0 of con stru ction contract cost; 17 

percent higher per 1,000 square feet; and 19 percent higher per sw elling unit 

than the average fo r the rest of the United States.

M an-hour requirem en ts appear to be low er for la rg e r p ro je cts. The 

reason for this is that such p rojects a fford greater opportunity for the use of 

laborsaving equipm ent, such as cra n es, h oists, and con v ey ors. A lso, org a n ization and m anagem ent m ay be m ore efficien t on the la rg er p ro je cts. It appears that the factor of p ro je ct size exerts itse lf m ost strongly on the v ery 

sm all p ro je cts, which have quite high m an-hour requirem en ts, and on the very 

large p ro je cts, w here substantial savings in m an-hour requirem ents are 

achieved. F or p rojects in the in term ed ia te-size range there is not as strong 

a relationship between size and m an-hour requirem en ts.

A nother source of variations in m an-hour requirem en ts is type of 

structu re. R equirem ents are low est for rein forced con crete, next highest 

for wood, and highest for loa d -b ea rin g m ason ry. It is not cle a r, how ever, 

whether these variations are due to inherent structural d ifferen ces, or if 

they are m ainly a resu lt of adjustm ents to regional variations in wage ra tes. 

W here com p arison s within the same region are p ossib le, loa d -b ea rin g m ason ry 

has slightly higher m an-hour requirem ents than the other structural types. A 

com p arison of m an-hour requirem ents between w ood and rein forced con crete

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T able 2. O n-Site M an-H our R equirem ents for P ublic Housing P ro je c ts ,

by S elected C h a ra cteristics and R egion, 1959-601

United States South Other region s

M an-hours p e r - -

2

C h a ra cteristic

$ 1 ,0 0 0

of

cost

1,000

square

feet

D w elling

unit

$ 1 ,0 0 0

of

cost

1,000

square

feet

D w elling

unit

$ 1 ,0 0 0

of

cost

1, 000 

square 

feet

D w elling

unit

A ll p r o j e c t s .......................... 113. 7 1, 214 1, 205 142. 1 1, 331 1, 336 99. 1 1, 140 1, 124

C onstruction co st group:

Under $ 1 ,0 0 0 ,0 0 0 .............. 139.8 1,492 1,419 160. 3 1,609 1, 516 102.4 1, 236 1, 200

$ 1 ,0 0 0 ,0 0 0 -$ 1 , 9 9 9 ,9 9 9 . . 116. 1 1,246 1, 273 127.9 1, 309 1, 311 108.9 1, 204 1, 247

$ 2, 000,000 and o v e r .......... 99. 2 1,057 1,058 121. 6 924 1,033 94. 8 1,096 1,064

Type of stru ctu re:3

R ein forced c o n c r e t e .......... 94. 2 1,066 1,054 — — 94. 2 1,066 1,054

L oa d -b ea rin g m a son ry . . . 137. 9 1, 326 1, 374 143. 6 1, 311 1, 351 122. 7 1,376 1,452

W o o d ....... ................................... 124.5 1, 260 1, 219 138. 5 1, 382 1, 300 93.0 971 1,008

1Although con stru ction on some p rojects extended into 1961, m ost construction was p erform ed 

during 1959-60,

in s u fficie n t data to w arrant separate presentation by ch a ra cte ristics for the other three 

reg ion s.

3D oes not include two p ro je cts having a m ixture of different types of stru ctu res.

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Table 3. O n-Site M an-H our R equirem ents per $ 1 ,0 0 0 

for P u blic H ousing P rojects, by P rop ortion of L ow er Skilled M an-H ours, 

R egion yand Type of Structure, 1959-601

P ercen t low er sk illed 

m an -h ou rs of total

M an-hours per $ 1 ,0 0 0 of 

con stru ction co st

A ll

types

R ein forced

con crete

L oa d -

bearing

m ason ry

W ood

United States, t o t a l............ 113. 7 94. 2 137. 9 124. 5

25.0 and u n d e r .......................... 96.0 85.8 122. 7 89.5

25. 1 to 35.0 ............................... 115.0 108.4 134.4 106.4

35. 1 to 4 5 .0 .............. ............... 138.7 138. 9 138.5

45. 1 and over . . . . ............ .. . . 160.4 - - 160.4

South, total .......................... 142. 1 _ - 143.6 138. 5

25.0 and tin d e r ..........................

25.1 to 35.0 ............................... 134.4 134.4

35. 1 to 4 5 .0 ............................... 138.7 138.9 138.5

45. 1 and o v e r ............................ 160.4 - - 160.4

Other reg ion s, 2 total .... 99.1 94. 2 122. 7 93. 0

25.0 and u n d e r ............................ 96.0 85. 8 122. 7 89.5

25. 1 to 35.0 ................................ 108.2 108.4 106.4

35. 1 to 4 5 .0 .................................

45. 1 and o v e r ............................... - - - “ — —

1Although construction on som e p rojects extended into 1961, m ost 

construction was p erform ed in 1959-60.

in s u fficie n t data to w arrant separate presentation by ch a ra cteristics 

for the other three reg ion s.

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is not as definite. F or the United States as a w hole, rein forced con crete has 

low er m an-hour requ irem en ts, but this is due la rg ely to the influence of high 

m an-hour requirem en ts for w ood structures in the South. The two types have 

v ery sim ila r labor requirem en ts outside the South. It is interesting to note 

the sharp d ifferen ces in m an-hour requirem ents for w ood structures between 

the South and the re st of the United States. The low er m an-hour requirem ents 

in region s other than the South are partly due to greater use of p refabricated 

w all and r o o f section s.

T here is le s s d ifferen ce between region s in m an-hour requirem en ts 

for loa d -b ea rin g m a son ry stru ctu res. This suggests that there m ay be le s s 

scope for the introduction of labor saving techniques in the construction of 

these buildings. It m ay be m ore difficult to m ake use of such innovations as 

p refa brica tion in the construction of loa d -b ea rin g m a son ry stru ctu res. C om ­

p arison of m an-hour requirem en ts by region s is shown in the follow ing tabulation:

R egional com p arison s of m an-hour requirem ents

United

States

N ortheast

North

C entral South W est

M an-hours p e r - - 

$ 1,000 of con tract c o s t .. .

1, 000 square f e e t.................

D w elling u n it..........................

113.7 

1, 214 

1, 205

9 5 .9

1,046

1,073

106.0 

1, 299 

1, 205

142. 1 

1, 331 

1, 336

9 8 .4 

1, 270 

1, 176

R equirem ents by O ccupation

R egional variations in m an-hour requirem ents for different trades 

(table 4) re fle ct d ifferen ces in design, w ork p ra ctice s, and wage ra tes. The 

sharpest con trasts are noted in the division between skilled and unskilled 

w ork ers. The South had about 45 percent of all m an-hours p erform ed by 

unskilled and sem isk illed w ork ers, as com pared with 25 to 28 percen t for 

the other reg ion s.

Within the skilled category, regional variations are m ost d irectly 

related to d ifferen ces in structural types. The distinctive ch a ra cteristics 

of re in fo rce d con crete construction are high m an-hour requirem ents for 

lath ers, iron w ork ers, and plum bers; with low requirem en ts for carp en ters 

and p ainters. L oa d -b ea rin g m ason ry construction has high requirem ents 

for b rick la y ers. W ood construction has high requirem ents for carpen ters 

and painters and low requirem ents for electricia n s and plum bers (table 5).

The relative proportion s of skilled and unskilled labor used depend 

partly on the type of structure being built and partly on the lev el of w ages. 

Low w ages m ake it econ om ica l to use greater quantities of unskilled la b or.

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Table 4. On-Site Man-Hour Requirements per $ 1,000 of Public Housing Construction Cost and Percent Distribution,

by Occupation and Region, 1959-601

Occupation

United States Northeast North Central South West

Man-hours

worked Percent Man-hours

worked Percent Man-hours

worked Percent Man-hours

worked Percent Man-hours

worked Percent

All occupation s....................... 113.7 100.0 95.9 100.0 106.0 100.0 142. 1 100. 0 98.4 100.0

General supervisors ................ 2. 8 2.5 1.9 2.0 3. 6 3.4 3. 7 2. 6 2.1 2.1

Professional, technical, and

clerical ...................................... 1.7 1.5 1.7 1.8 2. 2 2. 1 1. 2 • 8 2.0 2.0

A sbestos w o r k e r s ....................... .5 .4 .7 .7 .8 .8 . 2 1 . 3 . 3

Bricklayers.................................. 8.6 7.6 7. 1 7.4 6.8 6.4 13. 2 9*. 3 1. 6 1.6

Carpenters.................................... 21.8 19.1 15.9 16.6 21. 6 20.4 25.8 18. 1 31.9 32.5

Cement f i n i s h e r s ....................... 3.5 3. 1 3.4 3. 6 3. 1 2.9 3.5 2. 5 4. 1 4. 2

Electricians .................................. 4.7 4.1 4.9 5. 1 5. 2 4.9 4. 3 3. 0 4. 7 4.8

Elevator m e c h a n ic s ................ . . 3 . 3 .7 . 7 .4 .4 (2/) ( 2 1 )

. 1 . 1

G l a z i e r s ......................................... .4 .4 .4 .4 .8 .8 ” . 1 . 1 . 7 .7

Lathers........... ............................... 3.6 3.2 6.4 6. 7 2.4 2. 3 1.7 1. 2 1. 2 1.2

Operating engineers.................. 3. 1 2.7 2. 1 2. 2 3. 7 3.5 3.8 2. 7 3.6 3.7

Ornamental ironworkers . . . . . 1.0 .9 1.9 2.0 1. 2 1. 1 . 1 . 1 . 2 . 2

P a i n t e r s ......................................... 5.0 4.4 4.0 4. 2 4. 1 3.9 6. 5 4. 6 5. 3 5.4

P la ste re rs........................... .. 4. 1 3.6 4.6 4. 8 3.7 3.5 3.9 2. 7 3. 2 3. 3

P lum bers...................................... 8.9 7.8 10.4 10.8 11.5 10.8 6.2 4. 4 7. 3 7.4

Reinforcing ironworkers......... 1. 1 1.0 1.3 1.4 1. 3 1.2 .7 . 5 1. 8 1.8

R o o f e r s ........................................... .9 .8 .7 .7 . 3 . 3 1.5 1. 1 .8 .8

Sheet-metal w o rk e rs......... .. 1. 1 1.0 .7 . 7 2.4 2. 3 .7 . 5 1. 3 1.3

Soft floor la y e r s ......................... . 3 .3 .2 . 2 (2/) (2/) .6 ,4 .6 .6

Structural iro n w o rk e rs............ . 2 .2 (2/) (2/) 1.0 .9 . 1 . 1 .4 .4

Tile s e t t e r s .................................. . 2 .2 . 1 . 1 . 1 . 1 .4 . 3 . 1 . 2

Truckdrivers.............................. 1.0 .9 .7 . 7 1.0 .9 1. 1 . 8 1. 3 1.3

Helpers and ten ders......... .. 5.4 4.7 5.2 5.4 4.9 4.6 6.6 4. 6 2.8 2.8

L ab o rers . ......................... .. 29.9 26.2 17. 1 17. 9 2]. 9 20.7 51.6 36. 2 18. 9 19.2

Custodial w o rk e rs.................... 1.4 1.2 2.7 2. 8 1.0 .9 .4 , 3 .8 .8

Other.................................... 2. 2 1.9 1. 1 1. 1 1.0 .9 4.2 3. 0 1. 3 1.3

1Although construction on some projects extended into 1961, most construction was performed in 1959-60. 

2L e s s than 0.05 percent.

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Table 5. On-Site Man-Hour Requirements per $ 1,000 of Public Housing Construction Cost and 

Percent Distribution, by Occupation and Type of Structure, 1959-601

Occupation

Reinforced concrete Load-bearing masonry Wood

Man-hours Percent Man-hours Percent Man-hours Percent

All occupations ....................... 94. 2 100.0 137.9 100.0 124.5 100.0

General supervisors ................ 2. 2 2. 3 3. 3 2.4 4.0 3. 2

Professional, technical, and

c l e r i c a l ...................................... 2. 1 2. 2 1.3 .9 .9 .7

Asbestos workers ....................... .6 .6 .4 . 3 . 1 . 1

Bricklayers . ............................... 6.6 7.0 13.8 10.0 6. 9 5.5

C arp en ters.................................... 13.0 13. 8 26. 1 18.9 33. 3 26.7

Cement fin ish e rs...................... 4.0 4. 2 3.0 2. 2 3.0 2.4

E lec tric ian s............................. 5. 1 5.4 4 .8 3.5 2.8 2. 2

Elevator m echanics.................. . 8 .8 -- --

Glaziers ........................................ .4 .4 . 1 . 1 . 1 . 1

Lathers.......................................... 6.0 6.4 2. 3 1.7 .4 . 3

Operating engineers.................. 2. 5 2.6 3. 3 2.4 4. 2 3.4

Ornamental ironworkers . . . . . 2.0 2.1 . 1 . 1 . 1 . 1

P a in t e r s ........................................ 3.4 3. 6 6. 1 4.4 8. 1 6. 5

P laste re rs................................... 4.4 4.6 4.7 3.4 1. 8 1.4

Plumbers ............................. 11. 3 12.0 7.8 5.7 5.5 4.4

Reinforcing ironworkers......... 1.5 1.6 .8 .6 . 1 . 1

Roofers................................. .. .5 . 5 1.5 1. 1 1. 1 .9

Sheet-metal w o rk e rs................ .6 .6 1.2 .9 .9 .7

Soft floor l a y e r s........................ . 2 . 2 .5 .4 .8 .6

Structural ironworkers........... . 1 . 1 . 1 . 1 (2/) (2/)

Tile sette rs................................. . 1 . 1 .4 . 3 .4 . 3

Truckdrivers............................... .6 .6 1.3 .9 1.3 1.0

Helpers and tenders.................. 6. 3 6. 7 6.9 5.0 1.8 1.4

L a b o r e r s........... .......................... 16.6 17. 6 44.5 32. 3 41.8 33.6

Custodial w o rk ers.................... 2. 6 2. 8 .8 .6 . 1 . 1

Other........... ................... .8 .8 2.9 2. 1 5.0 4.0

1 Although, construction on some projects extended into 1961, most construction was 

performed in 1959-60.

2L e ss than 0.05 percent.

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If wage rates are higher there is a stronger incentive to substitute la b o rsaving equipm ent and techniques for unskilled w o rk e rs. T here is probably 

le ss scope for the replacem ent of sk illed w ork ers, even if w ages are quite 

high. The present nature of building con stru ction is such that m ech an ization cannot be ca rrie d as far as it can in m any other in du stries. Future 

expansion in the con stru ction industry m ay crea te a need for m ore m ech a n ization in ord er to satisfy housing demand at low cost.

A pprentice M an-H ours

A ppren tices in form a l, re g iste re d apprenticeship p rog ra m s6 accounted 

for 3.7 p ercen t of total o n -site m an -h ou rs and 6 .0 percen t of skilled m anhours (table 6). A pprentice g la ziers and electricia n s accounted for a greater 

proportion of skilled m an -h ou rs for their cra ft than all o th e rs--1 2 .9 and 

120 2 percen t, resp ectiv ely . The greatest p roportion of apprentice m an-hours 

w ere rep orted in the W est. F orm a l apprentice training p rogram s do not exist 

or are ju st evolving for three occupations w orking on public housing p r o je c t s -- 

asbestos w ork ers, elevator m ech a n ics, and operating en gineers. Training in 

these occupations is usually a ccom p lish ed on an inform al basis by a ssistin g a 

journeym an in his w ork until the trainee is con sid ered as fully qualified to p e r ­

form at journeym an lev el of p roficie n cy . In som e instances, predeterm ined 

tim e p eriod s of on -th e -jo b training are requ ired to becom e eligible for upgrading to journeym an status. This crite ria has usually been in form ally established 

through lo ca l w ork p ra ctice s. W ork ers in a learning status, whether designated 

as "im p ro v e rs " in the case of asbestos w ork ers, "h e lp e rs’1 in elevator in sta lla ­

tion, or " o ile r s " in equipm ent operation, are grouped with h elp ers and tenders 

for this rep ort. High rates of apprentice m an -h ou rs are usually a ssociated 

with som e sm aller cra fts or with those cra fts w here there is a shortage of 

skilled journeym en .

G eneral and Special T ra d es C on tractors M an-H ours

E m ployees of general con tra ctors accounted fo r about on e-h a lf of all 

m an-hours w orked. This ratio was som ewhat low er in the N ortheastern and 

North C entral region s, and higher in the South and W est. P ro je cts w ere on 

the average sm aller in the two latter reg ion s. Sm aller p ro je ct size m eant 

that m ore of the w ork was done by the general con tra ctor, because in m any 

lin es there was insufficient w ork to m ake issuing subcontracts w orth w hile. 

L arge p ro je cts on the average use m ore su bcon tractors and have a sm aller 

p roportion of the w ork done by the general con tra ctor. This is illu strated in 

table 7 and in the follow ing tabulation, w here the average num ber of subcontra ctors in crea ses from 15 for the sm allest size cla ss to 33 fo r the la rg est.

M ultistory rein fo rce d con crete p rojects used m ore subcon tractors 

for a given p ro je ct size . This m ay be due to different structural ch a ra cteris tics , or perhaps the p ra ctice of subcontracting is m ore highly developed in 

large m etropolitan a reas w here the m u ltistory p ro je cts are located.

6A bona fide apprenticeship p rogram re g iste re d with a State A p p ren ticeship C ouncil which is recog n ized by the F ed era l C om m ittee on A pprenticeship, 

U. S. Departm ent of L abor, or a program reg istered with the Bureau of 

A pprenticeship and Training, U. S. Departm ent of L abor.

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T able 6. A pprentice M an-H ours as a P ercen t of Total M an-H ours W orked

on P u blic H ousing C onstruction, by O ccupation, R egion, and Type of Structure, 1959-601

O ccupation

R egion Type of structure

United

States

Northeast

North

Central South W est R ein forced

con crete

L oa d -

bearing

m ason ry

W ood

A ll w o r k e r s ............................ 3. 7 4 .0 3.9 2 .9 6.0 4. 1 3. 7 2.0

Skilled trades only . . . 0 . • . . . 6.0 5.9 5 .9 5. 6 8 .5 6. 5 7. 2 3.4

B r ic k la y e r s ................................. 4. 8 5.9 4 .6 4 . 1 7. 8 4.5 5 .7 3.7

C arpen ters .................<>................ 4 .9 7. 1 5.0 3. 1 5 .9 7. 2 4 .5 1.8

C em ent f i n i s h e r s ...................... 8. 1 12. 3 8.7 2. 1 11.0 11.0 3 .4 7. 1

E le c t r ic ia n s ............ 12. 2 . 5 10.2 28.7 12. 8 2. 8 26. 6 29. 2

G l a z i e r s .......................... ............. 12.9 29. 8 2. 2 1.8 5 .8 26. 3 6 .5 —

L a t h e r s ........................................... 8.7 6. 7 13.6 12.6 15.0 9 .0 12.4 —

O rnam ental iron w ork ers . . . . 3.0 3. 5 1.7 - - 1.6 3.5 - - ~ -

P a in t e r s ......................................... 3.9 4 .9 7 .4 1.3 7 .0 4 .4 4 .0 1. 1

P la s te re rs . , . . ................. .. . . . 4. 8 4. 3 5. 2 3.4 13.4 4. 3 5.7 3. 6

P lu m b e r s ................. . . . . o . . . . 9.0 7.9 7.5 8.5 21.4 8.8 10. 6 6.8

R ein forcin g iron w ork ers . . . . 3.0 - - 12. 2 3.0 . 1 11.9

R o o fe rs ........................................... 8. 7 3.9 8 .9 12.4 .4 — 12.4 13.4

Sheet-m etal w ork ers . . . . . . . 9.6 2. 1 3.8 30.6 5.6 5. 1 20. 7

Soft flo o r la y ers . . . . . . . . . . . 5.7 21.9 3.9 , 17.4 6.4 7.3

Structural iron w ork ers ..... 7.0 8.8 _ _ 4.5 3.0 — —

T ile setters . ............ ..

»

4 .4 2. 2 — — 5 .8 - - - - 5 .8 - -

A lth ou g h con stru ction on som e p rojects extended into 1961, m ost con stru ction was 

p e rfo rm e d in 1959-60.

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Table 7. A verage Num ber of Subcontractors per P ublic Housing P ro je c t, 

by Selected C h a ra cteristics and R egion, 1959-601

C h a ra cte ristic United States South Other re g io n s2

A ll p r o je c t s...................................... 20 14 28

C onstruction c o st group:

Under $ 1 ,0 0 0 ,0 0 0 .......................... 15 14 31

$ 1 ,0 0 0 ,0 0 0 - $ l , 999,999 .............. 27 30

$ 2, 000, 000 and o v e r................... . 33 37

Type of stru ctu re :3

R ein forced concrete . . . ............... 33 33

L o ad -b earin g m a s o n r y ................. 17 15 22

W ood....................................................... 15 13 22

1Although construction on som e p rojects extended into 1961, m ost 

construction was p erform ed in 1959-60.

in su fficie n t data to warrant separate presentation by ch a ra cteristics 

for the other three reg ion s.

3D oes not include two p rojects having a m ixture of different types of 

structu res.

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A verage num ber of 

su bcon tractors per 

public housing p ro je ct 

by region

United S t a t e s ........................................ 20

N o rth e a s t............................................... 29

North C e n t r a l...................................... 28

S o u th .............................. 14

W e s t ........... ............................................ 26

M asonry, plum bing and heating, and plastering and lathing w ere the 

three la rg est subcontracting groups, accounting for about 54 percen t of the 

total m an -h ou rs for sp ecial trades su bcon tractors (table 8). P ro je c ts with 

w ood buildings had a sm aller proportion of total m an-hours for each of these 

three trades than did the other structural types. On the other hand, m anhours of painting subcon tractors w ere rela tiv ely m ore im portant for the w ood 

structural type.

The South used few er subcon tractors than did the other region s for 

com parable p ro je cts, p ossib ly because m ost of the southern p ro je cts w ere 

loca ted in nonm etropolitan a rea s.

The C ost of D irect W ages

W ages paym ents for on -site m an -h ou rs averaged 35.5 percen t of 

con tract co st fo r all public housing p ro je cts studied. Total wage paym ents 

are the product of m an-hours w orked and average wage ra tes. The ratio 

of wage paym ents to contract cost was rem arkably constant, not only in 

term s of regional a vera ges, but for individual p ro je cts as w ell. Half of the 

p ro je cts studied had a ratio between 32 percent and 37 p ercen t. The con ­

stancy of this ratio m eans that high m an-hour requirem en ts are a ssocia ted 

with low w ages and vice v ersa . This indicates that con stru ction techniques 

are adapted to regional d ifferen ces in labor conditions through use of m ore 

or le s s m echanized equipm ent.

Table 9 shows average hourly earnings for on -site m an -h ou rs w orked. 

P ro je cts con stru cted in the South had a m arkedly low er average. T here w ere 

two significant reason s for this. F irst, wage lev els are generally low er in 

the South than in other reg ion s. Second, wages tend to be low er in non m etropolitan a reas of a given geographic region . The m a jority of the southern p r o jects w ere loca ted in nonm etropolitan a rea s, while m ost p rojects in other 

region s w ere in m etropolitan a rea s. So the usual d ifferen ce in wage rates 

is accentuated. A com p arison of hourly earnings by region is as follow s:

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R egional com p arison of hourly earnings

United

States

N ortheast

North

Central South W est

A verage hourly earnings . . 3. 14 3.84 3.51 2. 36 3. 63

W ages as a percent of 

con tract c o s t .............. .. o . . 35.5 36. 8 37. 2 33.5 35. 7

Wage rates appeared higher for m ultistory, rein forced con crete 

p ro je cts, com pared to other type p rojects in the sam e reg ion s. This m ay 

be because all of the rein forced con crete p rojects w ere located in m e tr o ­

politan a rea s, while som e of other type p rojects w ere not. There m ay also 

be d ifferen ces in the average skill lev els required for construction of the 

various structural types, leading to d ifferen ces in average wage rates.

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T a b le 8. P e r c e n t of T o ta l O n-Site M an-H our R e q u ire m e n ts fo r P u b lic H ou sin g C on stru ction ,

by T ype of C o n tracto r, R egion ,an d T ype of S tru c tu re , 1959-6Cr

Type of contractor

Region Type of structure

United

States

NortheastNorth

Central South West Reinforced

concrete

Loadbearing

m asonry

Wood

All t y p e s ............................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

G e n e ra l ...................................................................... 49. 2 42. 6 38.9 56. 9 57.0 39. 8 52.2 60.0

Special trades ..................... . . ............................ 50.8 57.4 61.1 43. 1 43.0 60. 2 47.8 40.0

C o n c r e t e .................................................................. 2.4 1. 1 3.9 3. 1 .7 2.4 2.5 3.6

E l e c t r i c a l ............................................................ 4. 3 5. 1 5.1 3.3 5.0 5. 2 3.8 2. 6

M a s o n r y .................................................................. 8. 3 10. 3 8.8 7.6 2.7 11.9 8.8 2.7

P a i n t i n g .................................................................. 4. 1 4.0 4.4 3.8 5.5 3. 6 3.7 6.1

Plastering and lath in g .................................. 7. 1 10. 9 6.9 4.8 4. 1 10.6 6.6 . 2

Plumbing and heating ..................................... 12. 3 13.8 16.0 10.0 10.8 14. 7 11.6 8. 6

Roofing and sheet m e t a l .......................... . 1. 3 . 9 .7 1.7 1.7 .6 2.0 . 9

Site preparation and excavation ............. 2. 3 2. 3 4. 7 1.4 1.7 2.9 3.7 1.6

Structural and ornamental i r o n ............. 1.4 2.5 1.7 . 2 2. 3 2. 8 . 2 . 1

All other types .................................................. 7.4 6.6 8.9 7. Z 8. 3 5. 6 4 .8 13.5

Although construction on some projects extended into 1961, m o st construction was perform ed in 1959-60.

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T able 9. A verage On-Site Earnings fo r P ublic H ousing C onstruction P ro je c ts , 

by Selected C h a ra cteristics and R egion, 1959-601

C h a ra cteristic

United States South Other reg ion s2

A verage

hourly

earnings

W ages as 

percen t of 

con tract

A verage

hou rly

earnings

W ages as 

percen t of 

contract

A verage

hourly

earnings

W ages as 

p ercen t of 

contract

A ll p r o j e c t s ............................ $3. 14 35.5 $ 2 . 36 33.5 $ 3.71 36. 8

C on stru ction co s t group:

Under $ 1 ,0 0 0 ,0 0 0 ........ $2.48 34.7 $2.14 34. 3 $3.47 35. 6

$ 1 ,0 0 0 ,0 0 0 -$ 1, 999, 999 . . . 3.07 35.6 2.55 32. 6 3.44 37.5

$ 2, 000,000 and ov er ............ 3. 65 36. 2 2.71 32.9 3.88 37. 3

T ype of structu re:

R e in fo rce d co n cre te . ...... 3. 93 37.0 - - - - 3.93 37.0

L oa d -b ea rin g m a son ry .... 2. 61 35.9 2.41 34. 6 3. 22 39.5

W ood • o . o .......................... *. . • 2.52 31.4 2. 22 30. 8 3.5 2 32.7

A lth ou g h con stru ction on som e p rojects extended into 1961, m ost con stru ction w as 

p e rfo rm e d in 1959-60.

in s u ffic ie n t data to warrant separate presentation by ch a ra cte ristics for the other 

three reg ion s.

3D oes not include two p ro je cts having a m ixture of d ifferen t types of stru ctu res.

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O ff-Site E m ploym ent

F or each 114 m an -h ou rs of em ploym ent p erform ed at construction 

sites of public housing p ro je cts, 122 additional m an -h ou rs w ere req u ired to 

produce and distribute n e ce ssa ry construction m a teria ls, supplies and equipm ent. Thus a total of 236 m an-hours w ere generated for ev ery $ 1, 000 e x ­

pended for construction cost.

O ff-site em ploym ent is generated in m any p la ces, but can be c la s s ified in the follow ing ca teg ories:

1. C onstruction in d u stry --o ff-site : adm inistrative, estim ating,

cle r ic a l, and w arehousing a ctiv ities.

2. M anufacturing activities producing fabricated produ cts, raw 

m a teria ls, and equipm ent.

3. T ransportation, w arehousing, and distribution of fabricated p rod ­

u cts, raw m a teria ls, and equipm ent.

4. A ll other industries d irectly or in d irectly affected by production 

of fabricated produ cts, raw m a terials, and equipm ent. V arious interindustry transactions eventually affect all additional industries such as agricultu re, 

fo re stry , and m ining.

T here are other types of em ploym ent related to con stru ction a ctiv ities which this study did not attempt to co v e r. G roups of w ork ers who would 

be affected by construction of public housing p ro je cts, but w ere not con sid ­

ered for this rep ort, would include em ployees of a rch itectu ral firm s, utility 

com pan ies, and State and lo ca l governm ent. These em ployees and their fu n ctions w ere not generally included in construction con tract c o s ts . A large area 

of em ploym ent, also excluded from calculations of m an-hour effects, is that 

crea ted by respending and investing of w ages and p rofits arisin g in various 

areas of econ om ic activity within the scope of this study.

Although the ratio of on -site to o ff-s ite em ploym ent requirem en ts is 

com m only used in analyzing em ploym ent requirem en ts in the construction 

industry, another type of distinction based upon the econ om ic relations of 

la b or-g en era tin g areas is also useful. T h erefore, em ploym ent requirem ents 

have also been divided into p rim ary and secon dary m an-hour needs. A s 

shown in the follow ing tabulation, p rim ary m an-hour requirem en ts per $ 1,000 

of construction cost, estim ated at 192, a rise in activities at the site and those 

m ost d irectly related to the construction activity. Included in these, in addition to site em ploym ent, are o ff-s ite con stru ction em ploym ent, em ployees of 

m anufacturing industries rep resen ted at the nlast stage of m anufacturing” 

for m a terials p rio r to shipm ent to construction sites, and em ployees in tra n sportation, trade, and serv ice organizations dealing in m a terials used at these 

construction sites.

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M an-hours per $ 1 ,0 0 0 of 

construction contract cost

Total P rim a ry Secondary

T otal . .................................................................. 236 192 44

O n -site construction ••••••.......................... 114 114

O ff-s it e .................................................................... 122 78 44

C o n stru ctio n ...................................................... 12 12

M anufacturing..................... ............................. 64 39 25

Transportation, trade, and se rv ice s . . . 36 27 9

A ll other (including m in in g )........................ 10 - - 10

Secondary m an-hour requirem ents have been defined as those a s s o ­

ciated with all other requirem ents related in d irectly to needs at the sites. 

Such a ctivities, totaling 44 m an-hours or approxim ately 19 percent of total 

m an-hour requirem en ts, affect all parts of the econom y as the im pact of 

prim ary activity is re fle cte d in demand for basic m a terials and related 

transportation, trade, and s e r v ic e s .7

Som e industries are rep resen ted in both p rim ary and secondary 

se ctors. F or exam ple, the sand and gravel industry furnishes m aterial 

d irectly to the construction industry and also to the rea d y-m ix ed con crete 

industry which in turn sells to the construction industry.

B uilders' O ff-Site E m ploym ent

An exact study of o ff-s ite em ploym ent of con tra ctors was not attem pted, since it was alm ost im possible to relate accu rately such em p loym ent to p ro je cts being studied. B uilders' o ff-s ite em ploym ent was occu pied 

not only with p ro je cts studied but also with other current or future p ro je cts.

The estim ate of 12 o ff-s ite m an-hours for each $ 1,000 of construction 

contract is based on the differen ce between construction w orker em ploym ent 

and total em ploym ent in the construction industry. 8 This estim ate also includes unreported hours for a few self-em p loyed craftsm en who m ay have 

w orked at con stru ction sites.

7Secondary m an-hours w ere estim ated on the basis of a study m ade 

by the Bureau of 1947 interindustry relationsh ips. See W. Duane Evans and 

M arvin H offenberg, "T h e Interindustry R elations Study for 1947, " R eview 

of E con om ics and S ta tistics, V ol. X XXIV (M ay 195 2), C am bridge, M ass, 

pp. 97-142. F or m ethods em ployed, see appendix.

A d m in istra tiv e, engineering, estim ating, and c le r ic a l w ork ers 

accounted for about 14 p ercen t of total em ploym ent in the construction industry. About on e-fou rth of this em ploym ent was involved at construction sites. 

Em ploym ent and E arnings Statistics for the United States 1909-60, (BLS 

Bulletin 1312, 1961).

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Com bining this em ploym ent with on -site em ploym ent resu lts in an 

estim ate of 126 m an-hours of em ploym ent in the con stru ction industry for 

each $ 1, 000 of public housing construction.

E m ploym ent in T ransportation, T rade, and S ervice

D istribution of con stru ction m a terials from producing industries r e ­

quires em ploym ent of w ork ers in transportation, w arehousing, and trade 

in d u stries. The estim ate of 27 hours of p rim a ry em ploym ent per $ 1,000 of 

con stru ction con tract is based on the d ifferen ce between p ro d u ce r's value 

and d elivered value of m a terials used at construction sites. This estim ate 

includes only distribution of m a terials from p rod u cers to con stru ction sites 

and excludes distribution of m a terials am ong industries p rior to shipment 

of com pleted produ cts.

"L a st M anufacturing Stage" Em ploym ent

M anufacturing is the sector of the econom y m ost affected, other than 

the con stru ction industry, by construction of public housing. It is estim ated 

that 39 m an -h ou rs w ere required for each $ 1 ,0 0 0 of total construction co n ­

tra ct to produce con stru ction m a terials used in building public housing p r o je cts. T his estim ate, how ever, includes only em ploym ent requ ired in the 

last m anufacturing p ro ce ss of m a te r ia ls .9 E m ploym ent generated by this 

activity is distributed in m any industries affected d irectly by construction 

activity. F or exam ple, it includes saw m ills cutting rough lum ber for form s, 

and establishm ents m aking m illw ork item s from lum ber, but does not in ­

clude em ploym ent in saw m ills producing lum ber for m illw ork produ cts. The 

latter is included in estim ates of secon dary em ploym ent d iscu ssed below .

E m ploym ent in Secondary A ctivities

In addition to 39 m an-hours p reviou sly noted for p rim a ry em ploym ent 

for each $ 1,000 of public housing con stru ction con tract in fa ctories producing 

con stru ction m a teria ls, an additional 25 m an-hours w ere requ ired in secon d ­

ary m anufacturing a ctiv ities.

T ransportation, trade, and serv ice industries requ ired 27 m an-hours 

to m anufacture and transport m a terials to and from the industries affected 

in d irectly . These industries as a group requ ired 9 m an -h ou rs for each 

$ 1,000 of construction contract to m eet the needs of secon dary business 

activity.

Other business a ctivities, prin cipally agricu ltu re, forestry , and 

m ining, accounted for the rem aining 10 m an-hours of secon dary requ irem en ts.

in c lu d e d in the bill of m aterials w ere supplies and the expended value 

of construction equipm ent used by con tra ctors.

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C onstruction T im e

A verage con stru ction tim e for the p rojects surveyed was 58 w eeks. 

Individual p rojects v a ried from a low of 30 w eeks to a high of 122 w eeks. 

The strongest influence on construction tim e appeared to be p ro je ct size.

It took an average of 47 w eeks for construction of p rojects in the sm allest 

cost ca tegory, while those p rojects in the la rg est ca tegory requ ired 94 

w eeks (table 10). P ro je c ts constructed of w ood appeared to have a shorter 

average construction tim e than did rein forced con crete or load -bearin g m a ­

sonry p rojects of the sam e size. This m ay be due to greater use of p refa b ­

rication and faster erection of the basic building fra m e. C onstruction tim e 

for com parable p rojects was generally shorter in the South, probably b e ­

cause the m ild er clim ate perm itted construction to continue year round. 

A verage num ber of w eeks requ ired for construction follow s:

United States . ......................... 58

N ortheast ......................... . . 78

North Central .......................... 85

S o u th ........................... 46

W e s t ............................................. 61

E m ploym ent by C onstruction P eriod s

In ord er to m easure the distribution of em ploym ent, the construction 

tim e for each p ro je ct was divided into 10 equal p eriod s, and data on the num ­

ber of m an-hours w orked w ere tabulated for each of these p eriod s. This 

perm itted the com bination of m an-hours for p ro je cts of various sizes in ord er 

to obtain typical em ploym ent patterns. The typical pattern is for em ploym ent 

to start slow ly, build to a peak in the m iddle d eciles, then taper off tow ards 

the end (table 11). T h ere w ere no rad ical departures from this pattern, a lthough construction of w ood fram e buildings cam e to a faster peak, with 30 

percent of total em ploym ent in the third and fourth d e cile s. R ein forced con ­

crete m an -h ou rs stayed at a high level later than did those of the other stru ctural types. Chart 3 shows on -site m an-hour requirem ents per $ 1,000 of 

construction cost by d ecile.

M aterials U sed

C ost of m a terials (table 12) represen ted approxim ately 4 7 .5 p ercen t 

of total con stru ction cost for all public housing p ro je cts surveyed. These 

costs also include depreciation charges or rental costs for construction 

equipm ent, as w ell as costs of sm all amounts o f supplies consum ed and m a ­

teria ls or fixed equipment in corporated in stru ctu res. About 61 percent of 

the p ro je cts fell within 5 percent of the average for all p ro je cts. The p e r ­

centage of p rojects within certain ranges is as follow s:

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P ercen t m a terials cost of P ercen t of

total con stru ction cost p ro je cts

4 0 .9 to 4 4 . 9 ..................................... 20

4 5 .0 to 49. 9 ...................... 35

5 0 .0 to 5 4 . 9 ..................................... 35

5 5 .0 to 5 7 . 8 ..................................... 10

The d ifferen ce between total con stru ction co st and the sum of m a teria ls and on -site wage costs for all p ro je cts am ounted to about 17 p ercen t. 

This d ifferen ce rep resen ts the total of those overhead costs which cannot 

be attributed to sp ecific p r o je c ts --s u c h as adm inistrative o ff-s ite sa la ries, 

expenses of central o ffice and yard operation s, insurance and taxes, plus 

other overhead, and p rofit.

Table 13 p resen ts costs of m a jor m a teria ls groups by type of stru ctu re. M aterials cost is ex p re sse d in term s of d olla rs per $ 1 ,0 0 0 of co n stru ction con tra ct expenditure. This m ay be translated into percentage term s if 

the read er p r e fe r s . F or instance, $475 of co st per $ 1 ,0 0 0 of expenditure is 

equivalent to 4 7 .5 p ercen t of total con stru ction expenditure. Although m a teria ls requirem en ts are ex p ressed as a ratio of co st in the tables, in som e 

w ays this is not a true m easu re of m a terials requ irem en ts. F or a p ro je ct 

with a given num ber of dwelling units, m a teria ls cost as a percentage of total 

co st w ill be affected by whether labor costs are high or low , since labor costs 

are a lso a com ponent of the total. M aterials requirem en ts are ex p ressed b e ­

low in term s of cost per 1, 000 square feet, so that the elem ent of labor cost 

w ill not affect com p a rison s.

Re gion

M a teria ls cost per

1,000 square feet

United S t a t e s ................................... $ 10, 680

N o r th e a s t........................................... 10,910

North C e n t r a l................................. 12,250

S o u th ................................................... 9, 360

W e s t ............................................... .. . 12, 900

Type of structure

R ein forced c o n c r e t e ..................... 11, 320

L oa d -b ea rin g m a s o n r y .............. 9, 620

W o o d ................................................... 10,120

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Table 10. Average Number of Weeks Required for Construction of Public 

Housing Projects, by Selected Characteristics and Region, 1959-601

Characteristic United States South Other regions2

All p r o je c t s ................................... 58 46 78

Construction cost group:

Under $ 1,000, 000 ....................... 47 43 60

$ 1,000, 0 0 0 -$ l,9 9 9 , 999 ......... 73 61 90

$ 2, 000, 000 and o v e r ................... 94 64 102

Type of structure:3

Reinforced concrete ................... 84 84

Load-bearing m a so n ry .............. 54 48 76

W ood ................................................... 46 42 58

1Although construction on some p rojects extended into 1961, m ost 

construction was perform ed in 1959-60.

insufficient data to warrant separate presentation by characteristics 

for the other three regions.

3Does not include two p rojects having a m ixture of different types of 

structures.

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T a b le 11. P e r c e n t o f O n -S ite E m p lo ym en t fo r P u b lic H ou sin g C o n stru c tio n in E a c h T enth of T o ta l

C o n stru c tio n T im e , by R egion and T yp e o f S tr u c tu r e , 1 9 5 9 -6 0 1

R egion and P e rc e n t of o n -site m an -h o u rs in --

type of stru c tu re F i r s t

tenth

Second

tenth

T h ird

tenth

F o u rth

tenth

Fifth

tenth

Sixth

tenth

Seventh

tenth

Eighth

tenth

Ninth

tenth

L a s t

tenth

R egion

U nited S t a t e s .............................. 3. 6 8. 7 12. 0 13. 2 13. 8 14.0 1 2 .4 10. 5 7. 5 4. 3

N o r t h e a s t ...................................... 4. 1 7. 7 9 .9 11.7 13. 9 13. 5 13. 2 1 2 .4 9. 1 4 .6

N orth C e n t r a l ........................... 3. 6 8. 2 12.4 13. 5 13. 8 16. 7 14. 3 10. 3 5 .4 1 .8

S o u t h ................................................. 3 . 5 9 .7 13.4 14. 2 13. 5 13. 1 10. 7 9. 1 7. 3 5 .4

W e s t ................................................. 2. 7 8. 7 11.5 13. 5 15.5 1 4 .9 13. 7 11. 1 5 .9 2 .4

T ype of str u c tu r e :2

R ein fo rc e d c o n c r e t e .............. 3. 6 7. 1 10.4 12. 0 13. 7 1 4 .6 13. 6 12. 3 8 .5 4. 1

L o a d - b e a r i n g m a s o n r y . . . 3. 3 8 .4 11.5 14.0 14. 3 14.0 12.5 9 .8 7 .4 4 .8

W o o d ................................................. 4 .9 12. 5 16. 7 1 4 .4 12.0 1 0.6 8 .5 8. 7 6. 2 5 .4

A lth o u g h co n stru ctio n on som e p ro je c ts extended into 1961, m o st co n stru ction w as p e rfo rm e d in 1959-60. 

2D o e s n o t in c lu d e tw o p r o j e c t s h a v in g a m i x t u r e o f d i f f e r e n t t y p e s o f s t r u c t u r e s .

Note: B e c a u se of rounding, su m s of individual ite m s m ay not equal 1 0 0 .0 .

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Chart 3. Percent of On-Site Man-Hours Worked in Each Decile of

Construction Time, 1959-60

UNITED STATES DEPARTMENT OF LABOR

BUREAU OF LABOR STATISTICS

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Table 12. C ost of M aterials per $ 1,000 of P ublic Housing C onstruction C ontract,

by Type of M aterial and R egion, 1959-601

Selected products and product groups United 

State s

Northeast

North

Central South West

Total cost, all p r o d u c t s ................................... $475.00 $445.70 $460. 00 $506.70 $513. 30

Stone, clay, and glass p ro d u cts ....................... $1 32 .50 $ 118.80 $116.60 $155. 10 $ 138.60

Cement, con crete, and gypsum products . . 84. 90 74. 20 69. 70 98.50 110.50

R ea d y -m ix c o n c r e t e .......................................... 47. 50 47.00 47. 20 43. 60 64. 30

Gypsum products ............................................... 14. 90 12.50 10. 80 17. 60 23. 30

Concrete block and b r i c k .............................. 11.40 7. 20 3. 70 21.60 7. 10

C e m e n t .................................................................... 5. 10 4.00 5.00 5.60 8.40

C oncrete pipe ...................................................... 2.40 1.30 (2/) 4. 90 1.90

Precast concrete p rodu cts ............................ 1.90 . 60 . 80 3.00 5. 00

L i m e ......................................................................... 1.70 1.50 1.90 2. 20 (2/)

Structural clay products ................................... 28. 30 28. 70 31.50 31.50 8. 50

Brick and structural clay tile ..................... 22. 70 25.40 26.00 23. 60 1.00

Clay sew er pipe ................................................. 2. 20 .90 5. 10 1.90 2. 80

Ceramic tile ........................................................ 1.70 1.00 (2/) 3. 20 1.00

Other stone, clay, and glass products . . . . 19. 30 16. 00 15. 50 25.00 19. 60

Asphalt tile ........................................................... 5. 20 6.00 4. 50 5. 20 4. 00

Sand and g ra v el...................................................

Fiber glass insulation (including

3. 70 1.40 3. 20 6. 30 4. 80

acoustical t i l e ) ................................................. 3. 10 4. 20 2. 70 2. 90 . 50

Window glass ........................................................

Crushed rock, slag, and miscellaneous

2. 80 2.50 2.40 3.40 3. 20

a g g r e g a te ............................................................. 2. 60 1.20 1.90 4. 20 4. 00

See footnotes at end of table.

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T able 12. Cost of M aterials per $ 1, 000 of P ublic Housing C onstruction Contract

by Type of M aterial and R egion, 1959-601--C on tin u ed

Selected products and product groups United

States

Northeast

North

Central South West

Metal products (except plumbing 

and h e a t in g )............................................................. $ 108.40 $ 119.20 $ 114.70 $97. 60 $90. 80

Fabricated structural metal products ......... 80. 20 95.80 84. 80 66. 20 57.40

Reinforcing bars, rods, and jo is t s . ......... 28. 70 42. 70 31. 30 13. 70 23. 10

Metal windows, fram es, and 

accessories ..................................................... 15. 10 14.40 14. 60 17. 90 8. 80

Ornamental m e t a l ............................................ 8. 60 12.40 5. 20 7. 90 2.50

Metal d oors, fra m es, and a c ce s s o rie s . . 7. 90 8.50 6. 60 8. 10 7. 80

Fabricated sheet metal, formed metal 

roof, and floor decks and metal form s . 7. 20 5.90 6. 50 8. 10 10. 30

M etal l a t h ............................................................. 5. 80 9. 20 4. 00 4. 10 1. 30

Structural steel ................................................. 2. 70 1.80 1.90 4. 50 1.40

W ire m e s h ............................................................. 2. 10 .90 4. 20 2. 30 2. 30

Other metal produ cts .......................................... 17. 50 13. 20 23. 30 19. 80 15. 30

Copper (sheet metal and pipe)..................... 10. 50 10. 20 10. 10 11.20 10.40

N a i l s ......................................................................... 2.40 1.70 1.70 3.50 2. 80

Galvanized sheet m eta l................................... 1.90 .90 2. 70 2. 70 1.70

Metal case w o r k ................................................. 1.60 (2/) 7. 60 . 50 (2/)

Other fabricated metal p rod u cts ................... 10. 70 10. 10 6. 60 11.60 18. 10

B u ild er's h a r d w a r e .......................................... 10. 60 10. 10 6. 60 11.40 18. 10

Lumber and lumber products ............................ 67. 20 50.70 5 3. 20 85. 60 96.40

Rough and dressed lum ber .............................. 26. 60 19. 60 14. 30 35. 10 49.40

M ill w o r k ................................................................. 26. 10 24.90 16. 50 28. 80 40. 80

Fabricated structural lam inates ................... 8. 60 1.20 18. 20 13. 20 3. 50

P l y w o o d .................................................................... 5. 00 3.40 3. 90 8. 30 2. 20

See footnotes at end of table.

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Table 12. C ost of M aterials per $ 1,000 of P ublic Housing C onstruction Contract,

by Type of M aterial and R egion, 1959-601--C on tin u ed

S elected produ cts and product groups United

States

N ortheastNorth

C entral South W est

Plum bing p r o d u c t s ...................................................... $47. 70 $ 4 4 .5 0 $48. 20 $ 5 1 .3 0 $46. 70

F ix t u r e s ...................................................... .................. 17.40 15. 30 13. 90 22.00 15. 30

Steel and galvanized p i p e ..................................... 11.70 10.50 13. 60 11.60 12. 90

C a st-iro n pipe. .......................................... ............... 9.90 11.30 7. 70 8.90 12. 60

V alves and sp ecia lties .......................................... 8.00 6. 60 12. 70 8. 10 4. 50

F ixed house e q u ip m e n t............................................ 28. 80 36.40 32. 70 19.90 22. 70

R e fr ig e r a t o r s ............................................................. 10. 20 8.70 10.40 12.00 9. 80

E lev ators and m oving s t a i r s .............................. 9.90 19.40 11. 10 (2 /) 4. 10

R a n g e s ........................................................................... 5. 80 4 .5 0 7. 10 6". 40 6. 20

Venetian blinds . . . . . . . 0 ....................... .. ............ 1.50 1. 10 2.40 1.50 1. 80

E le ctrica l equipm ent, fixtu res, and w ire . . . . 22. 80 23.00 25.40 19.00 30. 90

C on d u it........................................ . . . .......................... 5.90 5.90 7.00 4 .5 0 8. 60

Lighting fixtu res ..................... . . . . . . . . . . . . . . 4 .0 0 3.50 5. 30 3. 30 6. 20

Sw itchboards and p a n e ls ....................................... 3. 60 3.90 4 .4 0 2. 20 5.40

W ire and c a b l e .......................................................... 3.40 3. 10 3. 10 3. 80 3. 30

Other n on cu rren t-ca rry in g w ire devices . . . 2. 10 1.80 1. 30 2. 60 2. 60

C u rren t-ca rry in g w irin g d e v ic e s ..................... 1. 60 1.50 1. 30 1.30 3.50

E le ctricity generating u n its ................................. 1. 30 2.60 1.40 (2 /) (2 /)

Heating, ventilating, and air-con ditioning

e q u ip m e n t....................................................................

R ad iators, co n v e cto rs, b o ile rs, and

17. 30 18.50 28. 80 11.90 9.40

hot w ater tanks........................................................ 7. 60 11.00 11.50 2.90 2. 50

Unit heaters and v en tila tors................................. 2. 90 (2 /) . 80 7.90 . 60

Storage tanks.......................... .................................... 1. 80 2. 90 2. 70 . 60 (2 /)

W arm air fu rn a ce s ................................................... 1. 70 .60 5.40 (2 /) 4 .9 0

Pum ps ...........................................................................

See footnotes at end of table.

1. 10 1.20 3.00 (2 /) (2 /)

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T able 12. Cost of M aterials per $ 1, 000 of P ublic Housing C onstruction Contract,

by Type of M aterial and R egion, 1959-60l - -Continued

S elected produ cts and product groups United 

State s

N ortheast

North

Central South W est

Paints and other ch em ical co m p o u n d s .............. $8. 60 $ 6 . 10 $ 9 . 20 $11. 10 $9. 50 P a in t......................................................................... 6.00 4. 30 7.0 0 7.00 7. 20

Putty, caulking, and glazing p ro d u cts ............ .90 .70 1. 20 1. 10 . 60

P etroleu m p r o d u c t s .................................................T 5.40 3.50 2. 80 8. 90 5.40 A sphalt p a v in g .......................................................... 2.40 1. 10 . 80 4. 70 2.40 A sphalt and tar p itc h e s .............................. T . t . , 1. 20 1.30 . 60 1.50 . 90 A sphalt felts ....................................................7 t t t f 1. 10 .90 . 30 1.80 1.00

A ll o t h e r ........................................................................... 11. 10 6.90 6. 80 18.80 9. 70 N u rsery products . ........................................T T r t 5. 10 5.00 2. 60 6. 60 4. 90 Asphalt s h in g le s ...............................................T f t 2. 60 (2 /) . 80 7. 20 (2 /)

C onstruction equipm ent rental value or

d epreciation c h a r g e ................................................. 25. 20 18. 20 21.60 27.50 53. 10

1 Although construction on som e p rojects extended into 1961, m ost construction was 

p erform ed in 1959-60.

2L e ss than $ 0 .5 0 .

Note: G roup totals include value of products not shown separately. Values w ere 

rounded to the n earest tenth of one d ollar.

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Table 13. C ost of M aterials per $ 1, 000 of P ublic Housing C onstruction C ontract,

by M a jor M aterials Group and Type of Structure, 1959-601

M a teria ls group R ein forced

con crete

L oa d -b ea rin g

m ason ry

W ood

T otal cost, all p r o d u c ts .............................................. $442. 10 $501. 30 $504. 90

Stone, clay, and glass p r o d u c ts .................................. $ 123.50 $ 151.80 $ 127.50

Cjement, con crete, and gypsum p ro d u cts ................ 76.60 98.40 77.00

Structural cla y p ro d u cts ................................................... 33. 50 27. 30 28. 70

Other stone, cla y, and glass p r o d u c t s ....................... 13.40 26. 10 21.80

M etal produ cts (excep t plum bing and heating) 0 « . . . 124. 60 96. 70 83.00

F a b rica ted m etal produ cts ............................................ 100.20 65. 70 47. 30

Other m etal p r o d u c t s ........................................................ 15.00 19. 30 21.00

Other fa b rica ted m etal products ................................. 9.40 11.70 14. 70

L um ber and lum ber p r o d u c t s ........................................ 32. 30 90. 30 117.40

Plum bing p rodu cts ............................................................. 47. 70 46. 00 51.20

F ixed house eq u ip m en t..................................................... 39.40 19. 30 21.10

E le ctrica l equipm ent, fixtures and w ire ................

Heating, ventilating, and air-con dition in g

24. 90 20. 90 18.80

eq u ip m en t............................................................................. 19.40 14. 10 15. 20

Paints and other ch em ica l com pounds....................... 5. 90 10. 20 10.50

P etroleu m produ cts ............................................................. 3.00 8. 60 7.50

A ll o t h e r .................................................................................. 4 .5 0 13. 90 26.40

C onstruction e q u ip m e n t................................................... 18. 50 24. 20 32.80

1Although con stru ction on som e p rojects extended into 1961, m ost construction was 

p erform ed in 1959-60.

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37

C osts appear higher in the North Central and W estern region s. A 

p ossib le reason fo r this is greater distance from m a jor sou rces of supply 

for som e m a teria ls, with consequent higher transportation co sts. H ow ever, 

there m ay be other reason s, such as arch itectu ral design variations, which 

cannot be identified from the data at hand.

Although there is little d ifferen ce in total m aterials requirem en ts, 

variations in the amount spent on subgroups and individual products are 

quite pronounced for the different structural types. The four m ost im p o rtant product groups are stone, clay, and glass produ cts; m etal products; 

lum ber and lum ber produ cts; and plumbing produ cts. On the average, these 

four groups account fo r 75 percent of total m aterials costs.

Stone, clay, and glass products accounted fo r about 28 percent of 

m aterials cost. L oad-bearin g m asonry structures had higher costs for 

these produ cts, because of greater expenditures for con crete block and 

b rick . Expenditures for this product group w ere higher in the South 

because of the preponderance of load-bearin g m asonry structures located 

there. The West had higher costs in this category, p articu la rly for cem ent.

The m etal products group, next la rg est, com p rised 23 percent of 

total m aterials cost. R ein forced con crete structures had the greatest 

expenditures for m etal produ cts. This was due to high expenditures for 

fabricated m etal produ cts, p articu larly the rein forcin g rod s, b a rs, and 

joists which this type of structure req u ires. This m aterials grouping does 

not represent the total contribution of m etalw orking industries, since 

m etal products shown separately in equipment ca tegories are not included 

h ere.

Lum ber and lum ber produ cts, the third largest category, amounted 

to 14 percent of total m aterials cost. Not su rprisin gly, w ood structures 

had the highest expenditures for lum ber produ cts. R ein forced con crete 

structures had low expenditures in this category, less than one-third as 

m uch as w ood. R egional variations are also interesting. High expenditures 

for lum ber in the W est w ere probably encouraged by nearness of lum ber 

m ills and other supply sou rces. Low expenditures in the N ortheast and 

North Central regions are influenced both by greater distance from supply 

so u rce s, and by the fact that the dominate structural types built, rein forced 

con crete and load-bearin g m asonry, do not require as m uch lum ber.

Plum bing products accounted for 10 percent of total m aterial 

expenditures. There was v ery little variation by region or structural type. 

Apparently expenditures fo r plumbing products are m ore or less a fixed 

factor in public housing construction.

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Rem aining product ca teg ories w ill not be d iscu ssed in detail, but 

som e of the m ore interesting relationships can be noted. Expenditures for 

heating and ventilating p rodu cts, for exam ple, are higher in the Northeast 

and North Central regions because of m ore severe clim a tic conditions than 

in the South. Some of the expenditures fo r heating equipm ent, such as ducts, 

are also included under fabricated sh eet-m etal produ cts, or under galvanized sheet-m etal produ cts. Expenditures fo r fixed house equipm ent are 

higher fo r rein forced con crete buildings because these buildings have 

eleva tors or esca la tors and the other types do not.

In sum m ary, each structural type has a p articu lar Mm ix M of product 

expenditures a ssocia ted with it. In som e product ca teg ories, such as 

plum bing p rodu cts, there is no great d ifferen ce between different structural 

types; in other ca teg ories, such as lum ber and lum ber produ cts, the variation 

is con sid era b le. R ein forced con crete structures have high requirem ents for 

m etal products and fixed house equipm ent. L oad-bearin g m ason ry structures 

have high requirem ents for stone, clay, and glass p rodu cts; wood structures 

have high requirem ents fo r lum ber and lum ber produ cts.

M aterials requirem ents vary from region to region because of 

d ifferen ces in the kind of structural types being built, the cost and a vaila ­

b ility of m a teria ls, and other fa ctors such as clim ate.

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Appendix. Scope and Method of Survey

This study, designed to develop estimates of man-hour requirements associated with construction of public housing projects, utilized data

obtained from or related to activity at the construction sites as well as

secondary sources such as the Census of Manufactures. Public housing

projects which were not federally aided were not included in this study.

Characteristics of the Universe and Selection of the Sample

A complete listing of all public housing projects administered by the

Public Housing Administration, as of June 30, I960, was secured. This

publication, titled Consolidated Development Directory (Report S-11A),

indicates location, number of dwelling units, construction starting dates,

and other pertinent data for all projects as of that date. The universe for

sampling purposes consisted of all projects (approximately 130 containing

about 14, 000 dwelling units) on which construction was indicated as having

been started during 1959. These projects were stratified by four broad

geographical regions described previously under Nature of the Survey and

by number of dwelling units in each project.

A sample of 31 projects, approximately 1 in 4 of the universe, was

selected. As sampling within cells was not uniform owing to the number of

projects within some cells, variable weights were assigned to projects.

Unless otherwise noted, all information presented in this report is based

on weighted data. Although construction on some projects extended into

1961, most construction on projects studied took place during 1959 and I960.

Man-Hour Estimates

Customary presentation of employment data for construction projects

includes estimates for on-site and off-site employment. Such a presentation is followed in this study. In addition, however, there is an economic

distinction which can be made in analyzing man-hour requirements for construction. Basic grouping in this instance would be primary and secondary

labor effects of construction expenditures, with the primary sector including

on-site employment plus the off-site employment directly related to activity

at the job sites.

Primary man-hour requirements, for purposes of this report,

include, in addition to all on-site labor, construction contractors1 office

employment, labor required in those manufacturing industries which fabricate construction materials used on the site--that is, the last stage of manufacturing companies, plus all trade, distribution, and services involved in

placing construction materials at the site. Secondary employment includes

all other labor requirements necessary to produce and transport raw materials and semifinished products to factories which finally produce items

used at construction sites.

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Data for on-site man-hour requirements were generally collected

from payroll records. All other labor requirements discussed below,

whether considered primary or secondary, were established by use of

secondary data.

Collection of On-Site Man-Hour Data

Under the U. S. Housing Act of 1937, as amended, the Public

Housing Administration is responsible for administering the low-rent public

housing program. The act provides for a program of locally owned and

operated low-rent public housing under which local governments, pursuant

to State enabling legislation, establish independent legal entities (local

housing authorities) to develop, own, and operate the housing projects.

PHA provided financial and technical assistance through 1962 to about 1,370

local housing authorities for development of housing projects. It reviews

administration of projects after construction is completed to determine that

they are operated and maintained in a manner to promote serviceability,

efficiency, economy, and stability and that the low-rent character of the

projects is maintained.

When a public housing project is constructed with Federal assistance,

each prime contractor and subcontractor engaged on the project is required

by legislation to submit to local housing authorities a copy of each weekly

payroll showing (with other information) daily and weekly hours worked, the

gross weekly earnings, and the occupation of each of his employees working

on the particular project. Through the cooperation of the Federal Housing

Administration and local housing authorities of the several States, copies of

payrolls for projects included in the sample, along with lists of contractors

working on the projects, were made available to the Bureau. These payrolls

provided data for estimating on-site man-hour requirements, as well as data

on wages for all hourly rated workers on the projects. Data for on-site

salaried employees, not accounted for on payrolls submitted, were obtained

from contractors by field representatives of the Bureau. In a few cases,

payroll records requested were not available or were inadequate as data

sources. For these situations, alternate projects were substituted.

Off-Site Man-Hours

From contractors and subcontractors cooperating in the study, a

price list was obtained of the value of each type of material used in construction of sample projects. These material listings were classified into categories consistent with 4-digit Census of Manufactures product groups. For

each of these product groups, average amounts required per $ 1,000 of

contract construction were determined. Once average requirements were

calculated, each figure was reduced by a ratio representing the difference

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between valuation by the purchaser and valuation by the producer,10 Since

all data reported by contractors were in purchasers1 value, reduction to

producers1 value resulted in figures consistent with Census data published

on these various components.1

Secondary Employment in All Industries

Secondary employment is defined as the employment in all industries

involved in production and transportation of building materials and equipment,

from basic extraction to, but not including, the final manufacturing stage.

To calculate all secondary man-hours involved in each construction

material and equipment, a newly prepared 200-interindustry system of classification was used which incorporated a 200-order interindustry system of

classification, replacing the previous 57-order interindustry analysis. The

200-order interindustry analysis, while principally based on the 1947 interindustry analysis, is now adjusted to I960 prices and productivity levels.

The newly prepared 200-interindustry system is also constructed on a sixsector determination of associated employment needed to produce a given

bill of goods. Each of the six sectors--agriculture, mining, manufacturing,

transportation, trade, and all other--has an individual employment factor

for each product group. By multiplying the value of each component by the

six individual employment factors, it was possible to determine amount of

employment required in the six sectors to produce each given material. Price

adjustments and productivity adjustments were made to arrive at data for the

year consistent with the bill of materials.

Total Man-Hour Requirements

From each off-site stage (primary distribution, primary manufacturing, and secondary industry), a man-hour figure per $1,000 of public housing

construction was obtained. When these were combined with direct or on-site

man-hours, the total employment effect, within the definition used by the study,

was determined. However, procedures used in estimating employment generated by public housing construction did not include all such employment.

Techniques used for the off-site segment cover only employment generated by

direct purchases of materials and supplies and implicit in depreciation of construction equipment. The following areas of employment related to volume of

construction activity were not covered: (1) architectural, surveying, estimating, and other planning employment; (2) inspection or supervision by the architect or the government during construction; (3) the labor time involved in

10The ratio used for this reduction was the purchaser-to-producer ratio

for these components in new construction as developed for use in the 1947 study

of the industrial interrelationships of the American economy.

uThis ratio was established by using the 1959 Survey of Manufactures.

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installations by public utility employees, as well as any site preparation not

covered by the construction contract; (4) employment generated by purchases

of moveable furniture and equipment; (5) the "multiplier11 effect of respending

of wages and profits; and (6) construction and equipment of production facilities ,

if needed to supply construction materials.

☆ U . S. G O V E R N M E N T P R IN T IN G O F F IC E : 1964 O - 731-473

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