labor

requirement

for federal

office build!

construction

Bulletin No. 1331

UNITED STATES DEPARTMENT OF LABOR

Arthur J. GoldbergT Secretary

BUREAU OF LABOR STATISTICS

Ewan Clague, Commissioner

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labor

requirements

for federal

office building

construction

UNITED STATES DEPARTMENT OF LABOR

Arthur J. Goldberg,Secretary

BUREAU OF LABOR STATISTICS

Ewan Clague, Commissioner

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Preface

This study of labor requirements for the construction of Federal office

buildings is the third in a series of such studies authorized by the 86th

Congress for various types of construction that might be affected by

Government action. Previous studies were concerned with schools and highways.

Surveys currently underway cover hospitals; the civil works activities of the

Corps of Engineers, such as the construction of dams and levees and dredging

of channels; and several segments of the housing industry (private singlefamily, public, and college student). Other surveys are in the planning

stages.

The studies are being made by the Bureau of Labor Statistics, Division

of Productivity and Technological Developments, under the supervision of

James F. Walker. This report was prepared by Roland V. Murray. Herman J.

Rothberg directed the collection of statistical data and Ronald E. Kutscher

was in charge of the group determining the employment created by the use of

building materials.

The Bureau is grateful to the Public Buildings Service of the General

Services Administration for its cooperation throughout the study, and for

providing much of the basic data for the determination of direct labor

requirements. The Bureau also appreciates the cooperation of the construction

contractors who supplied the materials data on which the estimates for indirect

requirements were based.

i

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CONTENTS

Page

Introduction .......................................................... 1

Nature of survey .................................................... 1

General survey findings .............................................. 3

Building characteristics .............................................. 7

On-site man-hour requirements ........................................ 9

Labor requirements in earlier periods .............................. 9

Requirements by occupation .......................................... 11

General and special trade contractors' shares .................. . . 16

The cost of direct w a g e s .................... ........................18

Occupational shares ................................................ 20

Off-site employment .................................................. 22

Builders' off-site employment ........ ...................... 23

Employment in transportation, trade, and service .................... 24

"Last manufacturing stage" employment .............................. 24.

Employment in secondary activities .................................. 24

Supplementary employment................ 25

Construction t i m e ...................................................... 27

Occupational employment by construction periods .................... 27

Contractor employment by construction period ........................ 27

Materials used .............................................. ..... 30

Changes in materials.................................. 35

Comparisons with school and highway construction ...................... 37

Appendix A. Scope and method of s u r v e y ................................ 39

Characteristics of the universe and selection of the sample ........ 39

Man-hour estimates .............................................. . . 39

On-site man-hours .................................................. 41

Off-site man-hours .......................................... .... 41

Primary distribution industries employment .......................... 42

Primary manufacturing employment .................................... 42

Secondary employment in all industries................................ 42

Total man-hour requirements ..... .............................. 43

Tables

1. Costs and labor requirements of Federal office building construction projects, by selected characteristics, 1959 10

2. On-site man-hour requirements per $1,000 of Federal office

building construction contract, by occupation and region, 1959 . 12

3. On-site man-hour requirements per $1,000 of post office building

construction contract, by occupation and region, 1959 13

4. Apprentice man-hours as a percent of total man-hours worked on

Federal office building construction, by occupation and region,

1959 .......................................... 15

iii

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CONTENTS— Continued

Page

Tables— Continued

5. Percent of total on-site man-hour requirements for Federal office

building construction, by type of contractor and region, 1959 . 17

6. Overtime man-hours as a percent of all man-hours worked in

Federal office building construction, by tenths of total construction time and by occupation, 1959 ...................... 19

7. Average hourly earnings and distribution of on-site earnings on

Federal office building construction, by occupation and region,

1959 21

8. Percent of on-site employment for Federal office building construction in each tenth of total construction time, by

occupation, 1959 28

9. Percent of on-site employment for Federal office building construction in each tenth of total construction time, by type of

contractor, 1959 29

10. Total cost of material components for each $1,000 of Federal

building construction contract, 1959 31

Appendix Table A. Projects included in survey of labor requirements for

the construction of Federal office buildings, 1959 ..................... 40

Charts

1. Distribution of 227 man-hours for each $1,000 of Federal building

construction contract, 1959 .................................. 4

2. Where the Federal building contract construction dollar goes, 1959 6

3. On-site man-hours of construction labor for each $1,000 of Federal

building construction contract, 1959, by decile of construction

t i m e .......................................................... 26

iv

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LABOR REQUIREMENTS FOR FEDERAL OFFICE BUILDING CONSTRUCTION

Introduction

New construction is a major component of the Nation's output of goods and

services and an important source of employment. It creates jobs not only at

the site of employment but also in the many manufacturing, trade, and transportation industries which furnish materials required in the construction

process. Because of their far-reaching employment impact, construction project. s are often regarded as a means of counteracting cyclical unemployment.

To measure the labor requirements for various types of construction, the

Bureau of Labor Statistics has undertaken a series of studies. Federal office

construction was selected for early study in the series for several reasons.

Although not of major importance in the Nation's overall construction activity,

the backlog of needs for Federal office space is growing rapidly with the

increase in population and in Federal responsibilities. By 1975, the total

construction need for this type of building will approach $4 billion, and will

involve possibly several thousand projects, according to estimates made in

1959. 1/ This is in addition to the rather substantial program then underway.

This prospect, coupled with the wide geographical distribution of the needs,

and the direct Federal control over planning and funding, make Federal office

construction an important consideration in any program of public works

construction.

Nature of Survey

This report is based on a survey of 22 Federal building projects constructed under contract in various localities of the United States by the

Public Buildings Service of the General Services Administration. This construction was accomplished within the 3-year period from the fall of 1957 to

the fall of I960. Most of the construction, however, took place in 1959.

(See appendix table A for list.) The buildings were selected as being typical

of those providing office space for civilian functions of the Federal Government. Although much of the space was designed for use as post offices, the

1/ U.S. Congress, House of Representatives. Independent Offices Appropriations for I960: Hearings before the Subcommittee of the Committee on

Appropriations (86th Cong., 1st Sess., Washington, Government Printing Office,

1959), pp. 1199-1200.

1

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survey did not include any projects devoted exclusively to this use. This

latter type of building is currently constructed under the sponsorship of the

Post Office Department. 2/

The study was confined to new construction; provision of space by

extension or rehabilitation of existing structures was not included. The

survey did not cover the furnishing and equipping of the buildings, except

for those items which are permanently fixed in place so as to constitute

integral parts of the buildings, such as elevators, communications systems,

and some types of post office and laboratory equipment.

The survey was designed primarily to determine the number of man-hours

represented by a fixed dollar volume ($1,000) of Federal building contract

construction. Man-hours, as defined for the survey, include both on-site

construction employment and the off-site employment required to produce and

deliver the materials used in the construction. Data for on-site labor

include total man-hours for the supervisory, engineering, clerical, and custodial employees at the site, as well as those for the workers in each construction trade. Data for off-site labor include employment in the off-site

(e.g., office and warehousing) activities of the construction contractors; in

building materials and equipment manufacture and distribution; and finally,

employment in all the other industries which are affected directly or indirectly by the production and distribution of building materials from the raw

materials to the final manufacturing stage.

Certain types of employment, however, were not covered by the survey.

The work of preparing the plans and specifications of the projects was

excluded (although a rough supplementary estimate for these functions is provided in a later section of the report). Labor involved in producing office

furniture and equipment was not covered, although the survey did include

built-in laboratory equipment requiring substantial amounts of on-site installation labor. Also excluded was the labor time involved in installations by

public utility employees, as well as any site preparation, landscaping, or

highway work not covered by the construction contract. Finally, employment

created by the respending of the wages and profits of the workers and their

employers— the multiplier effect— was not considered within the scope of the

study.

2/ In general, the Public Buildings Service is responsible for the

construction of federally owned public buildings. Currently, most buildings

designed for exclusive use as post offices are not federally owned but are

built under the sponsorship of the Post Office Department, through its

commercial leasing program. These were not covered in this study.

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General Survey Findings

Construction of Federal office buildings in 1959 created a total of 227

man-hours of employment for each $1,000 of construction contract. Of these

man-hours, 97 were for on-site employment in the construction industry, and

130 for various off-site activities. (See chart 1.) The latter covered the

labor required to produce and deliver materials and equipment used by the

on-site workers, plus employment of the contractors in administrative, warehousing, and other off-site activities. The man-hours were allocated as

follows:

Total man-hours ......

Construction:

On-site ..............

Off-site .............

Manufacturing ..........

Transportation .........

Trade and service ......

Other industry employment

Man-hours per

$1.000 of contract

Number Percent

227 100

97 43

10 4

79 35

9 4

20 9

12 5

As pointed out in the following section, post offices %/ form a homogeneous subgroup of the general category of Federal office buildings, and

are therefore occasionally treated separately in this report. On-site

construction man-hours for post office construction were 106 per $1,000 of

construction contract, compared with 97 for all Federal office buildings

studied.

A detailed compilation of the off-site man-hours required in the construction of post offices was not made, but rough calculations indicate that

these higher on-site hours were almost balanced by lower off-site hours, so

that the total requirements were nearly identical. (The lower off-site manhours resulted from a lower materials cost per $1,000 of post office construction and the use of relatively more materials of a less highly fabricated

2/ With space for other Federal activities

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Chart !• Distribution of 227 Man-Hours for Each $1,000

Chart 1. Distribution of 227 Man-Hours for Each $1,000

of Federal Building Construction Contract, 1959

Transportation,

Trade and Services

;k

Last Manufacturing

Stage

> k

PRIMARY

MAN-HOURS

(169)

Other

Manufacturing

Transportation, All Other

Trade and Services Industries

SECONDARY

MAN-HOURS

(58)

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type.) On the average, the post offices studied cost a little under $1 million each and required somewhat less than Ig- years to build. Thus during

this period, each project provided continuous work for an average of 4-0

workers at the construction site and, in addition, a slightly greater amount

of employment in off-site activities. L j

During recent years, an average of about $75 million a year has been

spent on all types of Federal administrative buildings. This would indicate

that this construction has been the source of about 9,000 jobs annually—

A,000 at the site of construction and 5,000 off site. The needs previously

mentioned for this construction, however, suggest a potential considerably

above this level.

The survey disclosed rather wide ranges of man-hour and materials

requirements among the individual projects, reflecting differences in type,

purpose, and size of building, geographical location, and local construction

practices. There were also marked variations in such related measures as

average hourly earnings and site wages as percentages of construction cost.

On the average, however, 53 cents of the construction dollar was expended on

materials purchases, and 29 cents for wages to workers at the construction

site, whose earnings averaged $2.98 per hour (chart 2). All of these are

discussed in later sections of this report.

The study of labor requirements provided several types of information

relating to the kinds of material used, the types of employment generated,

the timing of employment, and the share of total employment used by the

various special-trades contractors. These also are discussed in later sections

of this report.

l j The annual employment estimate of construction workers is based on

50 times the 1959 average employment in contract construction work of 35.8

hours a week, as reported in the Bureau’s Earnings and Hours series. For

other types of employment, 2,000 hours were considered a year's employment.

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Chart 2. Where the Federal Building Contract

■ - ■■ ' ■ - ...

Chart 2. Where the Federal Building Contract

Construction Dollar Goes, 1959

Bricklayers

Plumbers

Electricians

Carpenters -

^ a g e s to On. S/

_y/offers: 29.Q(

Reinforcing1 

bars and joists

Metal windows a n d \

doors ------------- >

Fabricated sheet

metal products

Other metal products _

(except plumbing and heating)

Ready-mixed concrete

l other skilled trades

Semi ski I led, and unskilled

Nonmanual

All ot.her

materials

Lumber

products

Construction

equipment

usage costs

Elevators and

other fixed

bui lding equipment

Matet'o'5'

Plumbing and

heating equip*

ment

Electrical equipment, fixtures, and

wire

Other stone, clay, and

glass products

Brick, block, tile

17 Breakdown not available.

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Building Characteristics

As previously mentioned, the 22 projects surveyed were typical of construction by the Public Buildings Service to provide office and other working

space for Federal agencies. Several types of buildings were represented,

reflecting the need for construction to serve a variety of activities.

Fourteen of the projects were typical Federal buildings. Although each

provided public post office facilities, in addition they contained office

facilities for from 3 to 16 other Federal agencies. Each building contained

at least two stories, exclusive of basement, if any. Typically, the first

floor housed the post office space, with upper floors assigned to other

agencies. Facilities for U.S. courts were commonly provided on the uppermost floor of multistoried buildings. For convenience, this group of buildings

is sometimes referred to, elsewhere in this report, as post office buildings,

although this designation is not precise.

Three of the five Federal office buildings housed various local or

regional Federal activities and contained no public-use post office space.

The two other Federal office building projects were unique. One was the

complex of buildings comprising the headquarters for the Bureau of Old-Age

and Survivors Insurance in Baltimore, Md., housing the central operations of

the Old-Age, Survivors, and Disability Insurance Program, and containing what

was, at least at the time of construction, reported to be the largest electronic data-processing unit in the world. The other was the Communicable

Disease Center in Atlanta, Ga., housing administrative, laboratory, conference,

instruction, and related facilities of the U.S. Public Health Service. An

additional three projects were laboratory-office buildings providing facilities for soils research activities of the U.S. Department of Agriculture.

Total and unit costs of these elements of the sample are tabulated

below:

Number of

projects Total cost

Cost per

square foot

Total ......................... I60.AA6.085 118.80

Post office buildings ...........

Federal office buildings:

H 17,791,531 19. A7

OASI Headquarters ............. 2A,172,301 16.95

Communicable Disease Center .... 9,965,A33 25.52

Other ......................... 7,A23,263 16.56

Laboratory-office buildings ..... 3 1,093,557 18.92

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The unit costs reflect, among other factors, the characteristics of the

projects; for example, the relative simplicity of the OASI building toward

one extreme, and unique installations of the Communicable Center at the other.

Ten of the post office buildings and four of the Federal office buildings,

including the Communicable Disease Center, were built under the lease-purchase

program. j>/ This relatively short-lived program provided for the construction

of buildings to Federal specifications by private investors. The buildings

were then to be purchased by the Federal Government through periodic payments

over a specified number of years. Projects constructed under that program,

as administered, were unusual only with respect to funding, and not with

respect to construction features or practices. The other projects in the

sample were funded by the usual method of direct appropriation of Federal

moneys.

Despite the variation in size and function of the sample projects, there

was considerable uniformity in some construction features. Structural framing

was commonly of reinforced concrete, although five of the smaller buildings

had framing entirely of steel, or steel in conjunction with load-bearing

masonry. ,In each building, masonry was used extensively in the exterior walls;

these were generally of face brick, with a backing of common brick, concrete

block, or clay tile. Extensive use was made of exterior trim, however, in

the form of stone (granite, limestone, and marble), metal (aluminum and steel),

glass, tile, and enameled steel panels. In the more monumental types of

buildings, large areas, particularly at the base, were faced with stone.

Roofs were generally of poured concrete, with uniformly a built-up composition

surface. Floors were of poured concrete, without exception. Asphalt tile was

by far the most common floor covering, although other materials were used for

special purposes, such as terrazzo in public traffic areas and cork tile in

the courtrooms. Almost all permanent interior walls were plastered, but there

was extensive use of drywall construction on steel studs for movable partitioning. Ceilings were either of plaster or acoustical tile. Most buildings

had aluminum windows; a few used steel, particularly in security areas; only

one used wood sash and trim. Central air conditioning was practically universal. Elevators were provided for all buildings of more than two stories;

there were, however, no elevators in two story buildings, although shafts for

later installation were provided. Fluorescent lighting was standard.

jj/ Not to be confused with the commercial leasing program mentioned in

footnote 2.

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On-Site Man-Hour Requirements

The average number of man-hours required at the construction site was

97.1 per $1,000 of construction contract for all projects. This figure is

heavily influenced, however, by the very low requirements— 83. A man-hours

per $1,000— for the 0A3I building, a very large building of relatively simple

design, on which maximum benefits of the use of laborsaving equipment and

organization were possible. Requirements on other individual projects ranged

upward from the 0ASI figure, with 10 projects included in a range of 100-110;

the median requirement was 107.6 man-hours per $1,000 of construction contract. Requirements for the more homogeneous group of post office buildings

showed almost as great a range, but the average (weighted average) requirements of 106.5 did not differ markedly from the median requirement of 107.6

on the 1U projects.

Table 1 presents several measures related to labor requirements, by such

categories as type, size, and location of building. One relationship that

appears significant is the almost consistent decrease in man-hour requirements

with the increase in cost of project. This relationship held true for the

post office sample, as well as the overall sample. This is the factor which

influences some of the differences noted in other breakdowns. Thus, the lower

requirements for projects located in metropolitan areas reflect the fact that

these projects averaged several times as large as those in nonmetropolitan

areas. Similarly, the lower requirements for multistory projects are due to

the fact that these were invariably the larger projects. Even on a regional

basis, the regions having the larger projects tend to have lower man-hour

requirements, despite other regional influences.

Labor Requirements in Earlier Periods

It would be of considerable interest to compare labor requirements for

current Federal building construction with requirements for previous periods.

Unfortunately, only a limited amount of information is available and it cannot

readily be used for comparison with current data. The two major problems are

the change in cost (price) of construction and changes in physical

specifications.

Changes in costs of materials and of labor, and of the relative proportions of each, affect the total price of construction. Adequate price indexes

are not available for adjusting satisfactorily dollar values of building

construction costs over periods of time. However, a very rough adjustment for

price change indicates that on-site man-hours per $1,000 (in constant prices)

of Federal building construction have declined by approximately one-sixth in

the past 20 years. 6/

6/ Based on unpublished BLS data for public works projects built in the

late 1930's.

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Table 1. Costs and Labor Requirements of Federal Office Building Construction Projects, by Selected

Characteristics, 1959

Characteristics

Number

of

projects

Cost per

square

foot

Man-hours per—

Average

hourly

earnings

Percent of cost

$1,000

of

cost

1,000

square

feet

On-site

wages Materials

All projects...... .................. 22 $18.80 97.1 1.826 $2.98 29.0 53.3

Post office buildings 1/ ............ 14 19.47 106.5 2,073 2.90 30.9 50.6

Federal office buildings ............ 5 18.35 90.2 1,656 3.07 27.7 55.2

OASI Headquarters ................. 1 16.95 83.4 1,414 3.09 25.8 56.4

Communicable Disease Center ....... 1 25.52 101.0 2,578 2.93 29.6 52.8

Other (general use) ............... 3 16.56 98.0 1,623 3.20 31.4 54.6

Laboratory-office buildings ......... 3 18.92 106.2 2,009 2.46 26.1 49.6

Construction cost group

(in thousands):

All projects:

$500 and under ................. 8 18.60 115.7 2,153 2.49 28.8 49.9

§501-$1,000 ..................... 5 20.19 111.3 2,248 2.70 30.1 52.6

|l,001-$2,500 ................... 4 20.95 108.4 2,271 2.99 32.4 48.8

$2,501-$5,000 ................... 2 16.34 95.7 1,565 3.23 30.9 54.6

$5,001-$10,000 .................. 2 21.35 97.6 2,084 3.06 29.9 52.5

$10,001 and o v e r ......... ....... 1 16.95 83.4 1,414 3.09 25.8 56.4

Post office buildings l/: .........

$500 and under .................. 6 18.94 117.7 2,229 2.51 29.6 49.6

#501-$L,000 ..................... 3 20.02 111.0 2,223 2.67 29.7 53.0

$l,001-$2,500 ................... 4 20.95 108.4 2,271 2.99 32.4 48.8

$2,501-$5,000 ................... — — — — — — —

$5,001-110,000 .................. 1 17.42 93.0 1,620 3.26 30.3 52.1

$10,001 and over ................ —

— — — — — —

1 or 2 stories (above ground) ....... 12 19.18 121.9 2,338 2.57 31.3 50.9

Post office buildings 1/ .......... 8 19.20 125.0 2,401 2.56 32.0 51.0

O t h e r .......... ................... 4 19.08 110.9 2,116 2.61 29.0 50.7

3 or more stories (above ground) ••••• 10 18.74 93.0 1,742 3.07 28.6 53.6

Post office buildings 1/ .......... 6 19.58 99.3 1,944 3.07 30.5 50.5

O t h e r ..... ........................ 4 18.34 89.7 1,646 3.07 27.6 55.3

Metropolitan area ................... 8 18.44 92.3 1,702 3.10 28.6 54.0

Post office buildings 1 / ........ .. 3 18.82 100.8 1,897 3.16 31.9 50.1

Other ............................. 5 18.33 89.9 1,647 3.08 27.7 55.2

Nonmetropolitan area ................ 14 19.90 110.5 2,199 2.71 30.0 51.1

Post office buildings 1/ ........... 11 19.96 110.4 2,205 2.74 30.2 51.0

Other ............................. 3 19.41 111.0 2,154 2.51 27.9 51.7

All projects 2/:

Northeast .......................... 2 17.34 110.4 1,914 2.93 32.4 45.5

North Central ..................... 7 20.35 100.2 2,040 3.15 31.5 50.1

South .............................. 11 18.83 96.0 1,807 2.90 27.9 54.4

West .............................. 2 14.98 89.2 1,336 3.22 28.7 58.0

Post office buildings l/:

Northeast ......................... 2 17.34 110.4 1,914 2.93 32.4 45.5

North Central.......... ........... 6 20.27 100.2 2,031 3.16 31.7 50.2

S o u t h ....... ...................... 6 18.89 115.7 2,185 2.52 29.1 52.7

West ..............................

l/ With space for other Federal activities,

2/ For a list of States included in each region, see appendix A

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This decrease reflects two chief factors. One is the efficiency

resulting from increased mechanization of tools and of materials-handling

equipment. The other is the transfer of some operations from site to shop,

as in the case of concrete batching amd mixing, and some pipe and duct work.

This reduces on-site man-hours per dollar of cost, even though it may not

reduce overall hours.

It is interesting to note that the decrease over the 20 years in site

man-hours appears to be only about half as large for Federal buildings as for

schools. 7/ Although too much significance should not be attached to the

precise degree of difference, because of a lack of comparable data over the

period, it does appear that the decreases in requirements for the two types

of construction are in reasonable relation.

For some time, the rapidly expanding school population has brought great

pressures on local communities to provide additional classrooms as rapidly

and as cheaply as possible. Architects, materials suppliers, and contractors

have cooperated in providing construction using a minimum amount of hand

labor and heavy materials handling and a large amount of subassemblies and

prefabricated items. No such extreme pressures on cost and speed have been

exerted for Federal office building construction. Moreover, the kind of

construction typical of the modem school would not be considered appropriate

for Federal buildings, particularly public-use buildings, where a somewhat

monumental quality has been traditional, and where emphasis is on those

features which lend an appearance of solidity and permanence. Hence there

has been continued use in Federal buildings of large areas of exterior and

interior stone work, and interior plastered walls, as compared with the

lighter exteriors and the interior dry walls and bare masonry walls of schools.

Requirements by Occupation

The distribution of man-hour employment by broad area of skill was

identical for both the total sample and the sample of post offices only

(tables 2 and 3). About 60 percent of the total hours were worked by skilled

trades, 34 percent by semiskilled and unskilled workers, and 6 percent by

nonmanual personnel (supervisors, professional, technical and clerical

employees).

Within the skilled trades, workers in the four predominant building

crafts— carpenters, plumbers, electricians, and bricklayers— accounted for

60 percent of skilled man-hours in both samples. There was, however, a considerable variation in the proportion of hours worked by each of these crafts,

7/ Labor Requirements for School Construction. BLS Bulletin No. 1299

(1961), p. 9.

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Table 2. On-Site Man-Hour Requirements per $1,000 of Federal Office Building Construction Contract, by Occupation

and Region, 1959

United States Northeast North Central South West

Occupation Man-hours

worked Percent

Man-hours

worked Percent

fen-hours

worked

Percent Man-hours

worked

Percent Man-hours

worked

Percent

All occupations ......... 97.1 100.0 110.4 100.0 100.2 100.0 96.0 100.0 89.2 100.0

Supervisors ............. 3.6 3.7 3.7 3.3 4.5 4.5 3.1 3.3 4.9 5.5

Professional, technical,

and clerical ........... 2.2 2.3 1.6 3.8 1.4 1.3 1.7 2.3 2.4 3.4

Construction trades:

Carpenters ............ 12.2 12.6 19.7 17.8 13.9 13.9 11.3 11.8 10.3 11.6

Electricians .......... 8.8 9.1 9.7 8.8 7.5 7.5 9.3 9.7 7.6 8.5

Plumbers ............... 8.5 8.7 10.8 9.8 8.8 8.7 8.5 8.8 6.0 6.7

Bricklayers ........... 5.0 5.2 5.7 5.1 5.6 5.6 5.0 5.2 3.0 3.3

Sheet-metal workers •••• 4.9 5.0 4.5 4.1 6.1 6.1 4.3 4.4 7.0 7.9

Operating engineers .... 2.3 2.4 1.6 1.4 1.8 1.8 2.6 2.7 1.8 2.0

Reinforcing-iron workers 2.1 2.2 •4 .3 2.9 2.9 1.8 1.9 3.7 4.2

Asbestos workers ...... 2.1 2.1 1.3 1.2 2.1 2.1 2.2 2.3 1.2 1.4

Cement finishers ...... 2.0 2.1 2.3 2.0 1.8 1.8 2.0 2.1 2.6 2.9

Painters ............ .. 2.0 2.1 3.9 3.5 1.8 1.8 1.9 2.0 2.7 3.1

Plasterers ............. 2.0 2.0 3.6 3.2 2.1 2.1 1.7 1.8 3.6 4.0

Lathers............ . 1.8 1.8 3.8 3.5 2.5 2.4 1.3 1.3 2.9 3.3

Structural-iron workers. 1.2 1.2 2.2 2.0 .6 .6 1.3 1.4 .9 1.0

Ornamental-iron workers. .8 .8 1.2 1.1 1.0 1.0 .8 .8 .1 .1

Elevator mechanics .... .7 .8 .9 .8 .7 .7 .7 .7 1.3 1.5

Roofers .............. . .7 .7 .5 • 4 .6 .6 .8 .8 .3 .4

Tile setters and

terrazzo workers .... .5 .5 .4 .4 .7 .7 .4 .4 .3 .4

Glaziers ....... . .4 • 4 .9 .8 .6 .6 .3 .3 .5 .5

Soft-floor layers ..... .2 .2 .4 .4 .3 .3 .1 .1 .9 1.0

Laborers .............. 25.3 26.1 28.6 25.9 24.3 24.2 26.4 27.5 15.5 17.3

Helpers and tenders .... 6.2 6.4 2.7 2.4 7.4 7.4 6.0 6.2 7.0 7.8

Truckdrivers .......... .9 .9 • 4 .3 .5 .5 1.0 1.1 1.4 1.6

Watchmen .............. .2 .2 0 0 .2 .2 .3 .3 0 0

Other ................. • 4 .4 .1 .1 .2 .2 .5 .5 .3 .3

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Table 3. On-Site Man-Hour Requirements per $1,000 of Post Office Building 1/ Construction Contract, by Occupation

and Region, 1959

Occupation

United States Northeast North Central South

Man-hours

worked

Percent Man-hours

worked

Percent Man-hours

worked

Percent Man-hours

worked

Percent

All occupations ........................ 106.5 100.0 110.4 100.0 100.2 100.0 115.7 100.0

Supervisors ............................ 4.8 4.5 3.7 3.3 4.6 4.6 5.4 4.7

Professional, technical, and clerical ... 1.4 1.3 1.4 1.3 1.7 1.7 .9 .8

Construction trades:

Carpenters..... ............... . 15.2 14.3 19.7 17.8 13.6 13.6 16.6 14.3

Electricians ......................... 7.5 7.1 9.7 8.8 7.5 7.5 6.9 6.0

Plumbers ............................. 8.7 8.2 10.8 9.8 8.7 8.7 8.1 7.0

Bricklayers ............. ............ 6.4 6.0 5.7 5.1 5.6 5.6 7.9 6.8

Sheet-metal workers .................. 5.0 4.7 4.5 4.1 6.2 6.2 3.0 2.6

Operating engineers .................. 2.0 1.8 1.6 1.4 1.9 1.9 2.3 2.0

Reinforcing-iron workers.... ........ 2.4 2.2 .4 .3 3.0 3.0 1.9 1.6

Asbestos workers..... ....... . 2.0 1.8 1.3 1.2 2.1 2.1 1.9 1.6

Cement finishers ..................... 1.9 1.8 2.3 2.0 1.8 1.8 2.0 1.8

Painters ............................. 2.5 2.4 3.9 3.5 1.8 1.8 3.3 2.9

Plasterers ........................... 2.9 2.7 3.6 3.2 2.2 2.2 4.0 3.5

Lathers ......... .................... 2.4 2.2 3.8 3.5 2.5 2.5 1.8 1.5

Structural-iron workers .............. 1.2 1.1 2.2 2.0 .6 .6 2.0 1.7

Ornamental-iron workers .............. .7 .6 1.2 1.1 1.0 1.0 0 0

Elevator mechanics ........ . .6 .6 .9 .8 .7 .7 .3 .2

Roofers ........................ ..... .7 .6 .5 .4 .6 .6 .9 .8

Tile setters and terrazzo workers .... .6 .6 .4 .4 .7 .7 .6 .5

Glaziers .................. .......... .7 .6 .9 .8 .6 .6 .7 .6

Soft floor layers • • • .......... . .3 .3 .4 • 4 .3 .3 .2 .1

Laborers ............................. 28.4 26.7 28.6 25.9 23.8 23.7 36.1 31.2

Helpers and tenders..... ............ 7.4 7.0 2.7 2.4 7.6 7.6 8.4 7.3

Truckdrivers ........................ . .5 .5 .4 .3 .5 .5 .5 .4

Watchmen ............................. .1 .1 0 0 .2 .2 0 0

O t h e r........ ....................... .2 .2 .1 .1 .2 .2 .2 .1

1/ With space for other Federal activities. No building of this type was constructed in the West during the period of

the survey.

Note: Because of rounding, sums of individual items may not equal totals.

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as well as the others, from job to job. Thus, the percentage of total

project man-hours worked by carpenters ranged from 7 to 23, by electricians

from 2 to 12, and by plumbers from 4 to 14.

These variations probably reflect primarily the design requirements of

individual projects, and, to a lesser extent, divisions of work arising in

part from local union jurisdictions. Thus, the percentage of man-hours for

electricians was highest on the OASI building, with its exceptional electronic

data-processing facilities, and for plumbers was highest (with a minor

exception) for the CDC project with its laboratory installations.

In post office construction, special requirements are minimized. This

is reflected in the occupational distribution. Thus, for each of the

mechanical and allied trades (plumbers, electricians, sheet-metal workers,

asbestos workers, elevator mechanics), man-hour proportions are less for

post office buildings, whereas for each of the finishing trades (painters,

plasterers, lathers, tile setters and terrazzo workers, glaziers, soft floor

layers) they are greater. Further, in the post office sample, plumbers

account for relatively more hours than do electricians. This is the more

common relationship, and the reverse of that in the overall sample.

Variations from region to region in the ratios of man-hours worked by

different trades on the sample of all projects reflect chiefly the chance

distribution of the different types of buildings among the regions. The

variations for post offices only are probably more significant as far as

inherent regional factors such as climatic design requirements and work

practices are concerned. In the latter connection, a number of factors

affect the regional distribution by occupation, apart from the construction

operations required by the specifications of the buildings. The relative

strength of local unions, for example, affects the organization of work crews

and the classification of jobs. Local custom influences the opportunity of

union membership and of journeyman jobs for minority groups, and this

influence is differently felt in different crafts. 8/ Finally, the local

availability of lower paid labor may affect the extent of mechanization.

These factors particularly influence the division between skilled and

unskilled workers. Thus, for post office construction, unskilled and semiskilled workers accounted for 39 percent of total man-hours in the South

compared with 32 percent in the North Central region; the percentages for

skilled workers were 56 and 61, respectively.

8/ Employment Outlook in the Building Trades. BLS Bulletin No. 967

(1949), p. 26.

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Table 4. Apprentice Man-Hours as a Percent of Total Man-Hours Worked on

Federal Office Building Construction, by Occupation and Region, 1959

Occupation United

States

NortheastNorth

Central

South West

All workers ................... . 3.9 7.2 3.4 3.9 4.6

Construction trades only ....... 6.5 10.8 5.5 6.6 7.3

Carpenters .......... .......... 6.3 6.7 3.6 7.3 6.6

Electricians ................... 12.0 19.4 5.9 13.5 9.0

Plumbers ....................... 9.8 29.6 5.9 9.0 21.0

Bricklayers .................. 3.2 2.2 5.4 2.4 .9

Sheet-metal workers ............ 10.7 20.5 15.6 7.3 12.9

Operating engineers..... ....... 0 0 0 0 0

Reinforcing-iron workers ....... 4.0 0 4.5 4.5 0

Asbestos workers ............... 0 0 0 0 0

Cement finishers ............... 2.3 0 3.6 2.2 .5

Painters ....................... 1.2 1.2 •4 .7 7.4

Plasterers ..................... 2.4 .8 .7 3.5 1.5

Lathers ........................ 8.7 7.4 9.7 9.6 2.6

Structural-iron workers ........ .7 6.4 1.2 .1 0

Ornamental-iron workers ........ 2.5 0 1.8 3.0 0

Elevator mechanics ............. 0 0 0 0 0

Roofers ........................

Tile setters and terrazzo

4.5 0 19.0 .9 3.0

workers ...................... 4.3 0 3.5 4*4 10.8

Glaziers ................... 1.3 0 0 1.4 9.5

Soft floor l a y e r s.......... . 1 6 .0 1.4 10.6 22.1 19.0

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The persistence in all regions of a relatively large proportion of manhours representing employment of lesser skilled workers is noteworthy. About

a third of all on-site employment represented unskilled and semiskilled labor,

despite considerable mechanization in materials handling, excavating, cleaning

and similar jobs formerly performed almost exclusively by laborers. This

suggests that the nature of construction operations may limit the degree of

mechanization that can be used profitably.

Apprentices. ' Apprentices accounted for 3.9 percent of all man-hours

worked at the site of the sample projects, or 6.5 percent of skilled trade

man-hours (table 4-). These data reflect only the work of participants in

formal, registered apprenticeship programs, since only these may be classified as apprenctices on the payrolls used as the source of on-site labor

requirements information. For the three trades— asbestos workers, elevator

mechanics, operating engineers— which reported no apprentices, formal programs

either did not exist or were only just evolving. In these trades, training

is usually acquired on an informal basis by assisting a journeyman in his

work over a period of years. Workers in this status, whether called

"improvers" in the case of asbestos work, "helpers" in elevator work, or

"oilers" in equipment operation, are grouped with Helpers and tenders in other

tables of this report. High rates of apprentice employment are associated

with shortages of skilled journeymen in the craft, or with some smaller crafts

General and Special Trades Contractors1 Shares

Employees of general contractors accounted for 4.0 percent of the total

man-hours required for the construction of all the sample projects, although

for seven projects this percentage exceeded 60. (See table 5.) Variations

in the proportion of work done by general contractors reflect local construction practices, as well as special requirements of the projects. Illustrating the former, although masonry was usually subcontracted, there were

nine projects involving substantial amounts of brickwork where the bricklayers were employees of the general contractor. These tended to be the

smaller projects. The effect of special project requirements is noted in the

comparison of all projects with the post office sample only. One effect of

excluding data on the special types of projects is to reduce the proportion

of work done by special trades contractors and thus increase the general

contractor's proportion. This is due primarily to a reduction in the

Plumbing, heating, and air conditioning and Electrical categories, for which

OASI and Communicable Disease facilities had heavy requirements.

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Table 5. Percent of Total On-Site Man-Hour Requirements for Federal Office Building

Construction, by Type of Contractor and Region, 1959

Type of contractor

United

States

NortheastNorth

Central

South West

All projects

All types ............................ 100.0 100.0 100.0 100.0 100.0

General................ .............. 39.6 51.6 43.3 37.9 34.6

Special trades:

Plumbing, heating, and air conditioning 20.1 16.0 19.7 20.8 17.6

Electrical ......................... 9.8 10.0 7.7 10.5 10.1

Masonry........... •............... 7.9 0 6.7 8.9 8.2

Plastering and lathing ............ .. 4. 8 8.9 6.3 3.6 9.5

Structural and ornamental metalwork ... 3.5 3.2 2.7 3.6 5.5

Painting ........................... 2.1 3.5 1.9 2.0 3.2

Site preparation, excavation, and

foundations ...................... 2.1 .8 2.5 2.0 2.5

Elevator and other equipment

installation........... ....... . • • 1.5 1.7 1.4 1.5 2.3

Tile and terrazzo w o r k.............. 1.4 .9 1.5 1.4 .9

Roofing and sheet-metal work ........ 1.2 1.5 1.4 1.2 .6

Other.............................. 5.9 1.9 5.0 6.6 5.1

Post office buildings l/

All types ............................ 100.0 100.0 100.0 100.0 —

General ....... ..... ................ 46.1 51.6 42.9 49.2 —

Special trades:

Plumbing, heating, and air conditioning 17.0 16.0 19.5 13.8 —

Electrical ......................... 7.3 10.0 7.7 6.0 —

Masonry ............................ 7.5 0 6.9 10.5 —

Plastering and lathing .............. 7.5 8.9 6.5 8.5 —

Structural and ornamental metalwork ..• 2.0 3.2 2.8 .7 —

Painting ............................ 2.4 3.5 1.9 2.9 —

Site preparation, excavation, and

foundations...... . • • .......... .. • 2.0 .8 2.6 1.6 —

Elevator and other equipment

installation ...................... 1.1 1.7 1.4 .4 —

Tile and terrazzo work ............... 1.5 .9 1.5 1.5 —

Roofing and sheet-metal w o r k ....... 1.5 1.5 1.3 1.8 —

Other .............................. 4.1 1.9 5.0 3.3

1/ With space for other Federal activities.

Note: Because of rounding, sums of individual items may not equal 100.0

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The average number of prime and subcontractors on each sample project

was 22. This number varied considerably, however, with size of project (in

cost terms), the larger projects showing a higher degree of specialization:

Cost group

(thousands)

Average number

of contractors

All groups .....

$500 and under ..

$501 - $1,000 ...

$1,001 - $2,500 .

$2,501 - $5,000 .

$5,001 - $10,000

$10,001 and over

22

18

20

26

28

37

46

The Cost of Direct Wages

Wage payments to on-site labor represented 29 percent of the total value

of the construction contracts for all sample projects, and 31 percent for

post office buildings only (table l). These percentages reflect the combined

effect of man-hour requirements and wage rates. The effect of increased

average hourly earnings in raising the percentage is partially offset by the

tendency of higher hourly earnings to be associated with lower man-hour

requirements. Nevertheless, the range in this ratio was rather wide— from

to 39 percent.

Average hourly Number of Man-hours Percent wages

earnings projects per $1,000 of cost

All projects ....... 22 22 22

Under $2.25 .......... 3 1 / 134 1/ 26

$2.25 — $2.49 ......... 0 — —

$2.50 - $2.74 ........ 4 1/ 109 1/ 29

$2.75 - $2.99 ........ 5 1/ 107 1 / 3 1

$3.00 - $3.24 ........ 6 V 103 1/ 32

$3.25 and over ....... 4 1/ 100 1/ 34

l/ Average of individual project measures.

Overtime work (i.e., those hours paid for at premium rates) was not a

significant factor in raising the wage portion of total cost. These hours

averaged 2.1 percent of total man-hours worked on all projects and on post

office buildings only. (See table 6.) The rate of overtime work varied

widely among the various trades. Thus, cement finishers accounted for 11

percent of all overtime hours compared with only 2 percent of total man-hours

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Table 6. Overtime 1/ Man-Hours as a Percent of All Man-Hours Worked in Federal Office Building Construction, by Tenths of

Total Construction Time and by Occupation, 1959

Occupation All

periods

1st

tenth

2d

tenth

3d

tenth

4th

tenth

5th

tenth

6th

tenth

7th

tenth

8th

tenth

9th

tenth

Last

tenth

All occupations ........... 2.1 2.7 2.6 2.7 2.5 2.4 1.7 1.3 1.7 2.1 2.2

Supervisors .............. 0.4 0.2 0.3 0.1 0.1 0.1 0.1 0.3 0.8 1.3 0.3

Professional, technical,

and clerical........ . 1.9 .2 .6 1.5 2.1 2.0 1.7 2.5 3.4 2.9 2.7

Construction trades:

Carpenters ............. 1.0 1.3 1.9 1.2 .6 .9 .8 .5 .7 .8 1.7

Electricians ........... .9 .7 1.8 2.4 •4 .3 .3 .5 •9 1.6 1.7

Plumbers ............... .5 .3 .1 .1 .i (2/) .1 .4 1.2 1.8 .9

Bricklayers ............ .1 0 .4 .2 .i .1 (2/) .1 .1 .1 • 4

Sheet-metal workers .... .6 0 0 0 .2 .7 1.1 .2 .4 1.0 (2/)

Operating engineers .... 6.5 9.0 4.9 6.4 7.9 6.5 5.4 3.4 6.7 10.3 4.7

Reinforcing-iron workers. 1.5 • 4 1.5 1.9 1.6 1.7 .9 .2 0 6.1 2.7

Asbestos workers ...... . 1.1 0 0 0 0 .9 .5 .1 .5 .8 9.6

Cement finishers ....... 11.2 3.0 12.8 13.6 14.8 19.5 15.7 8.1 2.9 3.3 2.5

Painters ............. .. 1.2 1-5 0 0 5.1 0 0 .1 1.5 .8 1.9

Plasterers ............. .3 0 0 0 0 1.1 0 .1 .5 .2 0

Lathers ............. . .2 0 0 1.2 0 0 0 (2/) .6 .2 0

Structural-iron workers . 1.1 1.8 .9 2.2 .4 .5 .5 .8 2.5 3.5 3.0

Ornamental-iron workers . .1 0 0 0 0 0 .2 .1 .1 0 0

Elevator mechanics ..... 2.8 0 0 0 .7 .5 .6 1.2 1.4 9.9 2.1

Roofers ............... . 2.7 0 3.3 4.3 2.4 2.9 1.8 3.6 2.2 .7 .3

Tile setters and

terrazzo workers ..... 1.3 0 0 0 0 0 1.9 1.0 1.0 1.2 3.4

Glaziers ............... 6.7 0 0 0 0 0 5.0 8.9 6.1 6.1 8.1

Soft floor layers ...... 3.2 0 0 0 0 0 0 0 .5 4.1 4.6

Laborers ............... 3.2 2.2 3.3 3.9 3.9 4.2 3.1 2.1 2.4 2.6 2.5

Helpers and tenders .... 3.4 9.0 3.8 3.2 4.8 3.8 3.2 2.4 3.8 3.2 4.1

Truckdrivers ........... 5.2 4.8 2.9 6.7 9.8 6.9 3.0 4.1 3.8 4.7 4.8

Watchmen.............. . 3.6 .1 .4 .1 .4 2.0 2.9 .7 2.2 16.6 41.4

Other .................. 5.9 3.9 4.2 1.8 8.7 8.8 9.6 9.1 5.4 5.1 0

l/ Hours for which premium rates were paid.

2/ Less than 0.05 percent.

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worked. During the peak period of cement finishing activity, nearly onefifth of all hours worked by this craft were at overtime rates, reflecting

a basic requirement that such work must be completed while the concrete is

still at a proper degree of plasticity. On the other hand, the number of

overtime hours worked by bricklayers was almost negligible.

Occupational shares

Distribution of the on-site earnings among the various occupations is

shown in table 7. These shares reflect the volume of work by each occupation

as well as the wage rates. Thus, despite a relatively low hourly rate,

common labor accounted for a greater part of the construction dollar, over

5 cents, than any other class of worker. The three leading groups of craftsmen— carpenters, electricians, and plumbers— together received about the same

portion of the total wage bill as all other skilled trades combined. Many of

the minor trades are not always separately distinguished, particularly in

nonmetropolitan areas, where their work is performed by more widely recognized trades. For example, ceiling and floor tiles may be installed by

special tradesmen in some areas, but in others are frequently installed by

carpenters.

The division of projects between metropolitan and nonmetropolitan areas

probably influences the variations noted in average hourly earnings (tables 1

and 7) more than does any other single factor. Usually, wage rates tend to

be higher in metropolitan areas than in less densely populated areas in the

same region. This accounts for the relatively high average hourly earnings

for most crafts in the South, where the greater part of the sample was concentrated in large metropolitan areas. It also accounts for the fact that the

multistory buildings and the costlier projects are associated with higher

average hourly earnings, since these projects are usually in the larger urban

centers.

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Table 7. Average Hourly Earnings and Distribution of On-Site Earnings on Federal

Office Building Construction, by Occupation and Region 1/, 1959

United States North Central South

Occupation

Percent

of total

on-site

earnings

Average

hourly

earnings

Percent

of total

on-site

earnings

I

Average

hourly

earnings

Percent

of total

on-site

earnings

Average

hourly

earnings

All occupations ... ..... . 100.0 $2.98 100.0 $3.15 100.0 $2.90

Supervisors ............... 5.2 $4.22 6.2 $4.32 4.7 $4.13

Professional, technical,

and clerical ........... 2.0 2.67 1.3 2.54 2.2 2.69

Construction trades:

Carpenters ........... . 13.0 3.09 14.1 3.19 12.4 3.04

Electricians ........... 10.7 3.52 8.8 3.68 11.7 3.51

Plumbers ............... 10.3 3.52 9.9 3.56 10.8 3.53

Bricklayers ............ 6.7 3.82 6.8 3.81 6.8 3.81

Sheet-metal workers ..... 5.5 3.29 6.1 3.12 5.1 3.36

Operating engineers ..... 2.7 3.37 2.0 3.49 3.1 3.34

Reinforcing-iron workers . 2.6 3.47 3.3 3.53 2.3 3.46

Asbestos workers ••••••••• 2.7 3.76 2.5 3.77 2.9 3.78

Cement finishers ....... 2.4 3.52 2.0 3.52 2.6 3.51

Painters • • • • ............ 2.1 2.98 1.8 3.07 2.1 3.05

Plasterers ............. 2.4 3.50 2.5 3.81 2.0 3.30

Lathers................ 2.1 3.48 2.9 3.67 1.5 3.33

Structural-iron workers .. 1.5 3.72 .7 3.69 1.8 3.67

Ornamental-iron workers .. 1.1 3.86 1.1 3.64 1.1 4.00

Elevator mechanics ...... 1.0 3.93 .8 3.73 1.0 4.00

Roofers ....... ........ .7 2.80 .5 2.58 .8 2.83

Tile setters and terrazzo

workers......... . .6 3.48 .8 3.52 .5 3.46

Glaziers ............... •4 3.12 .7 3.41 .3 3.15

Soft floor layers ....... .3 3.17 •4 3.40 .1 3.06

Laborers ............... 17.6 2.01 18.2 2.37 17.7 1.87

Helpers and tenders ..... 5.1 2.39 6.1 2.59 4.9 2.28

Truckdrivers ........... .7 2.18 .4 2.44 .8 2.12

Watchmen .••••......... .1 1.27 .1 1.80 .1 1.12

Other .................. .5 3.44 .2 3.17 .6 3.48

1/ Insufficient data to justify presentation for the Northeast and West

Note: Because of rounding, sums of individual items may not equal 100.0

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Off-Site Employment

For each man-hour of employment performed on the construction site, an

additional 1.3 man-hours were required to produce and distribute the necessary

construction materials, supplies, and equipment used in the construction of

Federal buildings. Thus, these projects gave rise to 130 man-hours of such

employment per $1,000 of contract, compared with the 97 hours on-3ite.

Off-site employment is generated in many places, but can be classified

in the following categories;

1. Construction industry— off-site: administrative, estimating, and

warehousing functions.

2. Manufacturing activities producing fabricated and raw materials, and

equipment.

3. Transportation, warehousing, and distribution of fabricated and raw

materials and equipment.

U. All other industries which are directly or indirectly affected by the

production of fabricated and raw materials, including agriculture, forestry,

and mining.

There axe, of course, other groups affected which this study did not

attempt to cover. Some of these are mentioned on page 2 of the introductory

section. Of those omitted, the most numerically important groups directly

affected by a Federal building construction program were employees of architectural firms (p. 25), utility companies, and the Federal Government. A

large area of employment also excluded from the calculations of man-hour

effects, as mentioned earlier, is that created by the respending and investing

of wages and profits arising in various areas of economic activity within the

scope of this study.

Although the ratio of on-site to off-site employment requirements is

commonly used in analyzing employment requirements in the construction industry, another type of distinction based upon the economic relations of the

labor-generating areas is also useful. Therefore, in this study, employment

requirements have also been divided into primary and secondary man-hour needs.

As shown in the following tabulation and chart 1, primary man-hour requirements, estimated at 169, arise in activities at the site and those rigidly

related to the volume of construction activity. Included in these requirements, in addition to site employment, are off-site construction employment,

employment by manufacturing industries represented at the "last stage of

manufacturing" for materials prior to shipment to the site, as well as

employment in transportation, trade, and service organizations dealing in

materials used at the site.

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Secondary man-hour requirements have been defined as including those

associated with all other requirements indirectly related to the needs at the

site. Such employment, totaling 58 hours or 26 percent of total man-hour

requirements, spreads to all parts of the economy as the impact of primary

activity is reflected in demand for basic materials and related transportation,

trade, and service. 2/ The following tabulation shows man-hours of employment associated with $1,000 of Federal building construction:

Total Primary

activities

Secondary

activities

Total .............. 227 169 18

On-site:

Construction ....... 97 97 —

Off-site ............. 130 72 58

Construction ....... 10 10 —

Manufacturing ...... 79 45 34

Transportation ..... 9 5 4

Trade and service ... 20 12 8

Other .............. — — 12

Some industries are represented in both the primary and secondary sectors

since their products or services are used in site activity and by manufacturers producing items for site activity. For example, the sand and gravel

industry furnishes materials directly to the construction industry and also

to the ready-mixed concrete industry which in turn sells to the construction

industry.

Builders' Off-Site Employment

An exact study of contractors' off-site employment was not attempted,

since it was almost impossible to relate accurately such employment with the

projects being studied. Builders' off-site employment was not only concerned

with the project studied, but with work involving other current or future

projects as well.

2/ Secondary man-hours were estimated on the basis of a study made by

the Bureau of 194-7 interindustry relationships. See article by W. Duane Evans

and Marvin Hoffenberg, "The Interindustry Relations Study for 1947," Review

of Economics and Statistics. Cambridge, Mass., Vol. 34, May 1952, pp. 97-142.

For methods employed, see appendix A to this bulletin.

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The estimate of 10 off-site man-hours for each $1,000 of contract is

based on the difference between construction worker employment and total

employment in the contract construction industry. 10/ This estimate includes

some self-employed craftsmen who may have worked at the site.

Combining this employment with on-site employment results in an estimate

of 107 hours of employment in the construction industry for each $1,000 of

Federal building construction.

Employment in Transportation. Trade, and Service

Distribution of construction materials from the producing industries

requires employment of workers in the transportation, warehousing, and trade

industries. The estimate of 17 11/ hours of primary employment per $1,000 of

contract is based on the difference between producer's value and delivered

value of materials used at the site. This estimate covers only the distribution of materials from producers to construction site and does not include

distribution, etc. of materials among industries prior to shipment of the

completed products.

"Last Manufacturing Stage" Employment

The sector of the economy most affected by building construction, other

than the construction industry itself, is manufacturing. An estimated J+5 manhours were required for each $1,000 of total contract for production of

construction materials used in the buildings. This estimate, however,

includes only employment required in the last manufacturing process of the

materials. 12/ Employment generated by this activity is distributed in many

industries which are directly affected by activity in the construction industry. For example, it includes employment in sawmills cutting rough lumber

for forms, and establishments making millwork items from lumber, but does not

include employment in sawmills producing lumber for millwork products. The

latter is included in the estimate of secondary employment discussed below.

Employment in Secondary Activities

In addition to the A5 man-hours of primary employment required for each

$1,000 of construction contract in factories making construction materials, an

additional 3/ man-hours were required in secondary manufacturing activities.

10/ Administrative, engineering, estimating, and clerical workers

accounted for about 14- percent of total employment in the construction industry. About one-fourth of this employment was involved at the site.

11/ Not comparable with the corresponding figure of 13 previously

published for schools. The latter figure would have been 18 under an improved

method of estimation.

12/ Included in the bill of materials were the supplies and the expended

value of the equipment used by construction contractors.

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Transportation industries required U hours of employment to transport

materials to and from the industries indirectly affected.

Trade and service industries as a group required 8 hours of employment

for each $1,000 of Federal building construction to meet the needs of

secondary business activity.

Other business activities, primarily agriculture, forestry, and mining,

accounted for the remaining 12 of the 58 hours of secondary manpower

requirements.

Supplementary Employment

The figures hitherto presented relate only to employment generated by

expenditures under the construction contract. However, as previously noted,

employment is affected by other expenditures directly related to specific

construction projects. Chief among these is employment in engineering and

architectural fields for design and specification preparation and in related

activities, such as preliminary surveying and testing and inspection by the

architect or sponsor during construction.

For Federal buildings, these activities required an additional expenditure amounting to nearly $7.50 for every $100 of construction cost— $5 for

the preparation of designs and specifications, and $2.50 for other activities.

These expenditures were estimated to provide about 15 man-hours of employment

per $1,000 of construction contract, in addition to the 227 man-hours

generated by the construction cost alone.

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Chart 3. On-Site Man-Hours of Construction Labor for Each ^1,000

Chart 3. On-Site Man-Hours of Construction Labor for Each $1,000

of Federal Building Construction Contract, 1959, by( Decile of Construction Time

Man-Hours

1 2 3 4 5 6 7 8 9 10

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Construction Time

Average construction time for the projects surveyed was about a year and

a half. Construction time varied on individual projects, however, from 38

weeks on the smallest project to 135 weeks on one of the largest. This

increase in construction time with increase in project cost is further

illustrated in the following tabulation:

Cost group Average number of weeks

(thousands) required for construction

All groups ........ 72

$500 and under ...... 54

$501 - $1,000 .......

$1,001 - $2,500 ..... 90

$2,501 - $5,000 ..... 98

$5,001 - $10,000 ....

$10,001 and over .... 133

Occupational Employment by Construction Periods

In order to measure the distribution of employment, the construction

time for each project was divided into 10 equal periods, and data on the

number of man-hours worked were tabulated for each of these periods. This

permitted the combination of man-hours for projects of various sizes in order

to obtain typical employment patterns as shown in table 8 and chart 3 for all

buildings studied. These data as well as those for post offices only show

man-hour employment rising from less than 3 percent of total in the first

period to more than 14- percent in the peak sixth period, dropping gradually

in the next three periods, and dropping sharply in the last period.

The sequence of work by the structural, mechanical, and finishing trades

is apparent. Also apparent is a tendency for the work of the smaller, more

specialized crafts to be concentrated into smaller periods of time.

Contractor Employment by Construction Period

Man-hour data were also tabulated by tenths of total construction period

for each of the major types of contractor (table 9). The data thus distributed may be readily reconciled with the occupational distributions just

discussed. It is interesting to note the similarity of the distribution of

the general contractor and carpenter man-hours. In each, 63 percent of total

man-hours were applied in the first half of the construction period. Once the

forms for the concrete frames of the buildings had been substantially completed,

general contractor and carpenter man-hour employment dropped to a lower but

relatively stable level for the remainder of the period.

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Table 8. Percent of On-Site Employment for Federal Office Building Construction in Each Tenth of Total Construction Time

by Occupation, 1959

1st 2d 3d 4th 5th 6th 7th 8th 9th Last

Occupation tenth tenth tenth tenth tenth tenth tenth tenth tenth tenth

All occupations ........... . 2.7 6.4 9.7 11.8 13.0 14.4 13.3 13.8 10.5 4.3

Supervisors ................ 5.3 8.5 9.8 11.7 13.3 12.9 11.6 10.9 9.4 6.6

Professional, technical,

and clerical ............. 6.2 10.2 12.1 13.7 13.4 13.0 10.7 8.4 7.2 5.1

Construction trades:

Carpenters ............... 4.1 11.4 18.6 16.8 12.2 8.4 6.8 8.3 9.2 4.2

Electricians ............. .4 2.0 5.6 9.4 12.3 14.0 14-1 17.9 17.6 6.6

Plumbers ................. .7 3.4 7.7 11.6 15.4 16.1 13.8 14.6 11.5 5.2

Bricklayers .............. (1/) 1.2 3.2 10.9 20.9 32.9 18.3 10.2 1.8 .5

Sheet-metal workers ...... .1 1.2 2.9 8.3 15.9 17.5 19.2 17.4 12.6 4.8

Operating engineers ....... 13.4 15.0 11.1 10.4 9.8 10.8 10.2 11.1 6.8 1.4

Reinforcing-iron workers .. 5.2 17.8 22.1 22.6 17.0 8.7 4.0 1.7 .6 .2

Asbestos workers ......... 0 0 .2 4.0 13.9 19.1 18.5 23.0 14.8 6.4

Cement finishers ......... .8 3.8 8.8 15.8 16.5 13.7 11.4 14.0 11.8 3.4

Painters ................. .4 .1 .3 2.0 .9 .8 4.8 21.0 47.9 21.8

Plasterers ............. .. 0 0 0 .2 1.6 10.3 34.1 39.8 12.2 1.7

Lathers .................. 0 (1/) .5 1.8 5.3 21.6 33.1 28.0 8.9 .8

Structural-iron workers ... 2.2 5.2 14.8 15.0 18.4 17.1 14.8 7.8 3.0 1.7

Ornamental-iron workers ... .1 .2 0 3.2 7.0 27.1 21.7 22.7 14.9 3.2

Elevator mechanics ....... 0 (!/) .1 3.4 8.9 15.8 22.1 24.9 19.4 5.3

Roofers ................ . .1 1.7 9.0 11.8 13.9 22.6 27.3 11.1 1.9 .6

Tile setters and terrazzo

workers ................ 0 0 0 .2 .4 3.0 11.4 36.8 40.0 8.2

Glaziers ................. 0 0 0 0 0 10.6 19.2 24.3 38.0 7.9

Soft floor layers ........ 0 0 0 0 0 0 .4 28.3 47.4 23.8

Laborers ................. 4.1 10.0 14.4 15.2 13.3 12.4 10.3 10.1 6.7 3.5

Helpers and tenders ...... .9 2.2 2.0 6.4 13.9 21.7 19.7 19.9 10.8 2.5

Truckdrivers ............. 11.5 9.3 11.8 10.8 10.0 8.8 8.3 12.5 10.9 6.0

Watchmen....... •••••••••• 7.0 9.7 10.5 13.3 13.0 13.4 10.5 9.7 11.1 1.8

Other .................... 8.6 11.9 5.2 5.2 7.8 9.4 13.4 20.8 11.3 6.3

1/ Less than 0.05 percent

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Table 9. Percent of On-Site Employment for Federal Office Building Construction in Each Tenth of Total Construction Time

by Type of Contractor, 1959

Type of contractor 1st

tenth

2d

tenth

3d

tenth

4th

tenth

5th

tenth

6th

tenth

7th

tenth

8th

tenth

9th

tenth

Last

tenth

All types . .......................... 2.7 6 .4. 9,7 1 1 .8 13.0 14.4 13 .3 13.8 10.5 4.3

General ................ . • • ......... 4 . 3 10.9 16 .5 16.5 14 .5 12.1 8.3 7.6 6.2 3 .1

Special trades:

Plumbing, heating, and air

conditioning .................... .7 2 .7 5.5 9.4 14 .2 15.7 16.3 16.8 13.3 5.3

Electrical....... ................ .5 2.5 5.9 9.5 12 .2 14.0 14.0 17.5 17.1 6 .7

Masonry........ . • • • .............. 0 *4 1 . 1 7.4 19 .5 34.7 22.3 12.6 1.5 .5

Plastering and lathing ............ 0 (1 /) . 1 .9 3.6 17.1 34.2 36.1 6.8 1 .3

Structural and ornamental metal

w o r k ............................ 3.4 9 .6 1 6 .1 15.3 13 .5 14.5 11.8 9.1 5.5 1 .2

Painting ......................... . .1 (1 /) .3 1.9 .9 .7 4.7 21.7 48.1 2 1.4

Site preparation, excavation, and

foundations .................. . 31.6 32.4 13.1 12.0 3 .7 1.0 1.4 2.5 1.5 .8

Elevator and other equipment

installation .............. ..... 0 .5 .1 3.1 8.3 16.1 22.7 25.0 19.6 4.7

Tile and terrazzo work ............ 0 0 0 .2 .3 2.7 11.1 38.0 38.8 9.0

Roofing and sheet-metal work ...... .1 1.8 6.9 7.5 12.9 24.2 26.6 13.9 4.9 1.2

Other ............................. 1.4 3.3 7.9 13.8 n . 6 6.5 9.1 17.8 19.4 9.3

l/ Less than 0.05 percent.

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Materials Used

Costs of materials represented 53.3 percent of total construction contract value of all projects. This average is affected by the value for the

OASI building, which, at 56.4-, was among the three highest for individual

projects. (It may be recalled that wages as a percentage of cost was lower

on this than on any other project.) The average value for post offices only

was 50.6, and the median value for all projects and for post offices only was

50.1. Most projects were in a range of 5 percent from the latter figure:

Percent materials cost Number of

of total cost projects

4 1 - 4 5 .................... 4

46 - 50 .................... 7

51-55 .................... 7

56 - 60 .................... 3

6 1 - 6 5 .................... 1

The difference between the total construction contract cost and the sum

of materials and wage costs amounted to 18 percent of the cost of all projects

and of post offices only. This represented the total of those overhead costs

which cannot be attributed to specific projects (expenses of central office

and yard operation, insurance, taxes, etc.) and profit. These two components

(overhead costs and profit) could not be separated in this survey.

Table 10 presents the costs of major materials and groups of materials

used in each $1,000 of construction of post offices and of all Federal

buildings. The groups, and items within the groups, are ranked by their

relative importance. The table is perhaps more meaningful if values are

reduced to the familiar magnitudes of percentages by shifting the decimal

point one place to the left. Thus, the totals for "All products" become 53.3

percent for all buildings and 50.6 for post offices only. These totals

include depreciation charges or rental costs for construction equipment used,

and costs of the small amounts of supplies consumed. All other items in the

table represent materials or fixed equipment incorporated in the structures.

It will be noted that almost all individual materials items show greater

percentages for post offices than for all projects, while the reverse is true

for equipment items. This reflects the specialized needs of several buildings

in the non-post-office portion of the sample. For example, electrical equipment and accessory items constituted 9.7 percent of the total construction

cost of all buildings surveyed, but only 5.2 percent of the cost of the post

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Table 10. Total Cost of Material Components for Each $1,000 of Federal

Building Construction Contract, 1959

Selected products and product groups

All

buildings

Post office

buildings l/

All products ..................................... $532.50 $506.10

Metal products (except plumbing and heating) ..... 133.30 154.60

Fabricated structural metal products .......... 102.50 121.40

Reinforcing bars and joists ................. . 43.30 53.50

Fabricated sheet-metal products ...... ....... 15.10 11.80

Structural steel ............................. 13.50 17.20

Metal windows .................... ........... 11.00 13.30

Metal doors and f rames......... ....... ..... 8.80 12.60

Ornamental m e t a l........ .................... 6.80 5.60

Wire m e s h .................... .............. . 3.70 6.70

Other fabricated metal products ................ 6.90 8.30

Builders' hardware....... .................... 6.70 8.10

Other metal products ............................ 24.00 25.00

Copper products .............................. 8.90 9.60

Galvanized sheet metal ...................... . 8.10 9.40

Aluminum sheet metal ......................... 3.80 1.70

Partitions, lockers, and shelves ............. 1.80 2.50

Stone, clay, and glass products ................... 117.20 129.50

Cement, concrete, and gypsum products .......... 60.80 70.70

Ready-mixed concrete ......................... 43.00 43.30

Concrete block .................... .......... 7.60 13.00

Gypsum products ............... .............. 6.30 8.00

Cement ............................... 3.00 5.20

Structural clay products ....................... 18.50 19.60

B r i c k................. ............ ....... 12.20 13.90

Structural glazed tile ..................... . 2.70 2.30

Ceramic tile ............................. . 1.50 2.10

Other stone, clay, and glass products .......... 37.90 39.20

Fiber glass products ...................... 14.80 10.50

Marble and other cut stone ................... 9.60 12.50

Window glass .................. .............. 3.00 4.80

Asphalt tile ................................. 2.70 4.00

Sand and gravel ........... .................. 2.20 3.60

Crushed rock and other aggregate ............. 1.90 2.10

See footnote at end of table

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Table 10. Total Cost of Material Components for Each $1,000 of Federal

Building Construction Contract, 1959— Continued

Selected products and product groups All

buildings

Post office

buildings 1/

Electrical equipment, fixtures, and wire ......... $96.90 $51.70

Lighting fixtures ............................... 30.80 22.80

Conduit ........................................ 18.00 7.80

Switchboards and panelboards ................... 17.30 8.90

Wire and cable ........................... ...... 7.90 3.30

Current-carrying wiring devices ................ 4. 20 1.40

Noncurrent-carrying wiring devices (other than

conduit) ..................................... 4.00 1.60

Program systems ................................ 3.50 1.50

Intercom and fire alarm systems ................ 3.30 1.00

Transformers ................................... 2.80 3.40

Electric generating units ...................... 2.30 0

Heating, ventilating, and air-conditioning

equipment ..................................... 65.50 48.60

Air-conditioning equipment ................... . 34.70 23.30

Radiators, convectors, and boilers ............. 8.10 7.00

Temperature controls ........................... 7.90 7.90

Blowers, exhaust, and ventilating fans ......... 4.40 1.80

Oil burners and warm air furnaces .............. 3.50 2.70

Pumps ........................................... 2.50 2.00

Storage t a n k s ....... ........................... 1.80 2.10

Fixed building equipment (other than plumbing,

heating, or electrical) ...... ................ 42.50 29.30

Elevators and escalators ....................... 26.40 17.80

Laboratory equipment ........................... 7.50 0

Mailboxes ...................................... 3.60 8.90

Plumbing products ................................ 27.40 37.90

Steel and galvanized pipe ...................... 10.6 0 11.60

Plumbing fixtures .............................. 7.80 13.30

Cast-iron pipe ................................. 4.80 7.90

Valves and specialties ......................... 2.80 3.60

Construction equipment (depreciation or rental) ... 19.10 11.70

Lumber products .................................. 17.60 27.50

Millwork ....................................... 8.20 14.60

Rough and dressed lumber ....................... 6.70 10.70

See footnote at end of table

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Table 10. Total Cost of Material Components for Each $1,000 of Federal

Building Construction Contract, 1959— Continued

Selected products and product groups

All

buildings

Post office

buildings l/

Paints and other chemical compounds .............. $5.50 $5 • 70

Paints ................. ....................... 2.4.0 3.30

Petroleum products ............................... 4-. 70 7.20

Asphalt and tar pitches ....... ................ 1.30 2.00

All other groups ................................. 2.80 2.30

1/ With space for other Federal activities.

Note: Group totals include products not shown separately. Because of

rounding, sums of groups may not equal totals.

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office buildings. 13/ The former figure is another reflection of the peculiar

requirements of the OASI building, in which these electrical items made up

nearly 16 percent of total cost.

The most important broad materials category, "Metal products," accounted

for over 15 percent of the total cost of post offices. However, this by no

means represents the total contribution of the metalworking industries to

this construction, since it excludes the metal products shown separately in

the equipment categories. The items used in structural framing— "Reinforcing

bars and joists," "Structural steel," and "Wire mesh"— made up half of the

"Metal products" group for post offices, and metal doors and windows, about

one-sixth.

By far the largest single item among "Stone, clay, and glass products"

was ready-mixed concrete, which, at 4-.3 percent, accounted for more than

one-third of the value of the group. This material constituted the frames

and floors of most of the buildings. The small amounts of the raw materials

of concrete separately shown— cement, sand and gravel, and aggregate— were

used in specialized applications such as terrazzo work. Masonry units— brick,

block, and structural tile— which formed much of the exterior walls of the

buildings surveyed are all included in "Stone, clay, and glass products" and

together made up about a fourth of the group.

Electrical equipment and accessories accounted for 5.2 percent of the

total cost of the post offices, and almost half of this was for lighting

fixtures alone.

The proportion, A.9 percent, shown for the group "Heating, ventilating,

and air-conditioning equipment" should not be regarded as completely covering

materials requirements for this class of work. The extensive duct work

needed for air exchange throughout a building was included in "Fabricated

sheet-metal products" and in "Galvanized sheet-metal" under the general

"Metal products" group.

Other major materials groups were "Plumbing products," representing

3.8 percent of total post office cost; "Fixed building equipment," 2.9 percent

and "Lumber products," 2.8 percent. The current low level of utilization of

the last-named was further emphasized by the fact that most "Rough and dressed

lumber," comprising nearly 40 percent of the group's total, actually did not

represent the value of lumber incorporated in the building structure, but

instead, represented the value of lumber used up in form building.

13/ Each "percent of construction contract" represents about #750,000

of annual expenditures at the current annual rate of Federal office building

construction (e.g., #10 million of metal products is represented by the

13.3 percent).

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Changes in Materials

A comparison of post office construction costs shown in the present study

and in the previously mentioned study made about 20 years ago indicates that

the proportion all materials represent of total construction cost has changed

only moderately between the two periods, decreasing from 52 to 49 percent,

excluding equipment-use costs, which could not be segregated in the former

survey. 14/ The proportion that individual materials represent of total

materials cost, however, shows very marked changes, reflecting not only

different materials usages for similar purposes, but also changing building

standards and requirements, and differential price movements. The tabulation

on the following page presents these changes for a number of groups of materials. Data from the current survey are shown for all projects studied, as

well as for post offices only. Although little is known of the characteristics

of the projects in the older survey, it is probable that they are more nearly

comparable with the post office group of the current survey than with the

overall group.

These comparisons illustrate several basic shifts which have occurred

over the years. One of these is the appearance of new types of fixed equipment accepted as standard in modern buildings. Thus, the increase in the

heating and ventilating category reflects the air conditioning which is almost

universal in modern office buildings. This addition of new equipment has the

effect of reducing the relative importance of older materials, even though

their volume of use is still extensive. Thus, although brick was the common

exterior material in the current study, it accounted for less than 4 percent

of total material cost, as compared with more than 8 percent in the earlier

survey.

A change in construction method during the period is strikingly illustrated. Twenty years ago, concrete was commonly batched and mixed at the

construction site; the use of ready-mixed concrete was just beginning to assume

significance. Today, the procession of concrete mixer trucks during a pour

at a construction job is a common sight. This accounts for the decline in

the total for cement. sand and gravel, and crushed stone (the raw materials

of concrete) from 14 percent of total materials cost to 2 percent, and in part

for the increase in concrete products from 4 to 12 percent.

14/ See footnote 6, this bulletin. A decrease was also noted in the

percentage of total cost going to on-site labor— from 31 to 29 percent. The

residual costs, representing other expenses and profit, thus increased from

17 to 22 percent over the period. It is likely that a significant part of

this increase is due to increases in such overhead costs as those for social

security and other taxes, contributions to welfare programs and other fringe

benefits, modern recordkeeping, and charges arising from wider equipment usage.

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The rise of new types of materials, not necessarily serving entirely new

purposes, and the decline of more traditional materials are reflected in the

increases for glass and metal doors, sash, frames, and trim and the decrease

in forest products. For example, 20 years ago, fiber glass was a novel

building material; today, it is the preferred material for several acoustical

and thermal applications.

Materials group 1/

All materials ................................

Iron and steel and their products ..............

Structural and reinforcing steel .............

Plumbing supplies and fixtures ...............

Heating and ventilating equipment 2/ .........

Hardware .....................................

Metal doors, sash, frames, and trim ..........

Wire and wire works products .................

Other products of iron and steel .............

Stone, clay, and glass products ................

Cement ................... ...................

Brick, hollow tile, and other clay products ...

Sand and gravel ..............................

Marble, granite, slate, and other stone

products ....................................

Concrete products .............................

Wall plaster and wall board ............... .

Tiling, floor and wall, and terrazzo .........

Crushed stone ................................

Glass ........................................

Forest products ................................

Lumber and timber ............................

Planing mill products ........................

Electrical wiring, fixtures, and supplies ......

Roofing, roof insulation, waterproofing, and

caulking .....................................

Paints and varnishes ......... .................

Copper and sheet metal .........................

O t h e r ......................... ................

Percent of total

materials cost

Twenty Current study

years

ago

100.0

36.8

11.9

8.2

7.4

2.6

2.3

.4

4.0

33.8

8.3

8.2

4.3

4.1

3.8

1.9

1.3

1.0

.9

16.2

8.5

7.7

4.8

2.8

1.2

.8

3.6

All

projects

100.0

42.1

11.0

5.3

12.8

1.3

3.8

.7

7.2

21.9

.6

3.3

.4

1.9

10.0

1.2

.3

.4

3.5

3.5

.7

.7

18.4

.9

.7

2.7

9.8

Post

offices

100.0

48.0

14.3

7.5

9.8

1.6

5.2

1.4

8.1

25.3

1.1

3.5

.7

2.5

11.5

1.6

.5

.4

3.2

5.7

1.2 

1.1

10.5

.9

1.1

2.6

6.0

1/ Products were grouped to conform with previous study.

2/ In current study, includes air-conditioning equipment.

Note: Because of rounding, group totals may not add to 100

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Comparisons With School and Highway Construction

A comparison of requirements for the three types of construction studied

by the Bureau for this series of reports reveals that although total man-hours

per 31,000 of contract are remarkably similar, there is considerable variation

in requirements among the affected industries:

Total man-hour requirements per

$1,000 of construction contract

Buildings

Highways l/ Schools

Federal

office

buildings

All industries ......... 212 227

Construction, on-site .... 94 84 97

Off-site ................. 12£ 128 130

Construction ........... 5 10 10

Manufacturing .......... 78 79

Transportation ......... 15 8 9

Trade and service ...... 13 20 20

Mining ................. 23 (2/0 (2/)

Other .................. 9 12 12

1/ Data for highways relate to 1958; data for schools and

Federal buildings relate to 1959. If the highway data were

adjusted for increases in prices and productivity between 1958

and 1959, the total hours would probably not differ substantially

from those for schools.

2/ Included in "Other."

In analyzing this table, it should be borne in mind that because of the

basic differences in locations and construction processes, relatively more

operations are performed at the site of highway than of building construction.

For example, the bulk of the concrete used in highway work is batched and

mixed on site by the contractor's own forces; ready-mixed concrete is used

only for the smaller applications. On the other hand, as previously noted,

most concrete used in building construction is ready mixed. Moreover, the

highway contractor's forces produce and process more than half of the aggregate required in their concrete, using sources as close as possible to the

batch plants. Further, maintenance and other supporting services are necessarily performed on-site to a greater extent for highway than for building

construction. This in part accounts for the differences shown in off-site

requirements in the construction industry.

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Differences in industry impact as between highways and the buildings

segments reflect differences in the construction process. In the case of

highways, many skilled workers operate extremely expensive units of equipment

to move earth and place materials of a relatively low order of fabrication;

in building construction, most of the journeymen place by hand materials of

relatively high cost and degree of fabrication. Thus, in the preceding

tabulation, manufacturing man-hours are considerably lower for highway than

for building construction, whereas mining hours are higher, reflecting the

labor of extracting rock, sand, and gravel.

Some of these basic differences are further illustrated by the percent

distribution of construction costs:

Buildings

Highways Federal

1/ Schools office

buildings

Total ........ 100.0 100.0 100.0

Materials ...... 54.1 51.3

On-site wages .., 2 3 .9 25.7 29.0

Equipment 2/ ..., 1.4 1.9

Other 2 / ...... . 13.5 18.8 17.8

1/ Based on data from the U.S. Bureau of

Public Roads.

2/ Rental or depreciation charges.

3/ Overhead and profit.

Materials requirements for highways and buildings, although similar in

percent of total construction cost, are quite different in type. For highways,

four-fifths of the total materials value was accounted for by concrete (cement

and bituminous), structural and reinforcing steel, and equipment fuels and

lubricants. These represented a minor portion of total materials costs for

buildings.

Similarly, the share of total on-site wages received by some construction

trades differed radically on the two types of construction. Thus, on highway

construction nearly one-third of all on-site wages went to equipment operators

(excluding truckdrivers), as compared with less than one-thirtieth on building

construction. Truckdrivers received over 10 percent of all on-site wages for

highway construction, but less than 1 percent for building construction.

Unskilled workers, however, appeared to receive only a little more of the

on-site wage dollar in highway than in building construction, although the

data available do not afford a precise comparison.

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Appendix A. Scope and Method of Survey

Characteristics of the Universe and Selection of the Sample

This study is an attempt to measure labor requirements for construction

of the types of general administrative buildings needed for nonmilitary

activities of the Federal Government. With some exceptions, such buildings

are constructed under the authority of the Public Buildings Service of the

General Services Administration. The survey was based, therefore, on a

sample of office building projects completed, or substantially completed, by

PBS during fiscal I960. The sample of 22 projects (table A), representing

about half of the universe, was drawn with consideration to type of project

(whether primarily post offices, general Federal office buildings, officelaboratories, or unique projects), total construction contract cost, and

broad regional location. 15/ Sampling within the cells was not uniform,

owing to the desirability of representing some cells with only one project,

and variable weights were therefore assigned to the sample projects. Unless

otherwise specified, all data presented in this report are based on weighted

data.

It should be noted that the study is not representative of all construction under PBS, which from time to time is responsible for many types of

construction, including hospitals, colleges, and warehouses.

Man-Hour Estimates

Estimates of total man-hour requirements in this study are a combination

of data resulting from two different procedures. For the on-site activities,

which are segregated and specific, direct primary labor data were available.

For all other activities, however, such as the manufacture and transportation

of building materials, which are in their nature diffuse and nonspecific with

respect to a particular project, an estimating procedure was used. The two

methods are described below.

15/ The States included in each of the regions were as follows:

Northeast— Connecticut, Maine, Massachusetts, New Hampshire, New Jersey,

New York, Pennsylvania, Rhode Island, and Vermont; North Central— Illinois,

Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota,

Ohio, South Dakota, and Wisconsin; South— Alabama, Arkansas, Delaware, District

of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,

North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and

West Virginia; West— Arizona, California, Colorado, Idaho, Montana, Nevada,

New Mexico, Oregon, Utah, Washington, and Wyoming.

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Table A. Projects Included in Survey of Labor Requirements for the Construction of Federal Office Buildings, 1959

Type of building

Construction

contract

Floor area

(1,000

square

feet)

0n-site

man-hours

Percent of

total cost Weight

2/

Construction

cost 1/

(thousands)

per $1,000

cost

On-site

wages

Materials

Started Completed

All buildings 2/ ............. «*p60,4-4-6 3,261 97.1 29.0 53.3 41 November 1957 November I960

Headquarters, Bureau of Old-Age

and Survivors Insurance,

Baltimore, Md............... |24., 172 1,426 83.4 25.8 56.4 1 November 1957 June I960

Communicable Disease Center,

Atlanta, Ga................. 9,965 390 101.0 29.6 52.8 1 April 1958 July i960

Federal office buildings:

Albuquerque, N. Mex......... 4 ,166 280 88.1 28.2 58.9 1 March 1958 April I960

Huntington, W. Va........... 2,665 138 107.8 35.2 48.0 1 April 1958 December 1959

Mt. Hope, W. Va............. 592 30 124.2 37.1 53.9 1 June 1958 November 1959

Post office buildings: ij

Omaha, Nebr................. 7,226 415 93.0 30.3 52.1 1 April 1958 November i960

Kansas City, Kans........... 1,904 82 107.6 34.0 45.5 2 March 1958 November 1959

Burlington, Iowa ........... 1,105 48 120.7 36.8 55.6 2 March 1958 November 1959

Lafayette, La............... 1,005 50 99.2 27.8 50.1 3 October 1958 June I960

Biloxi, Miss........ ...... . 918 44 102.0 28.5 61.1 3 April 1958 November 1959

Leavenworth, Kans........... 857 36 88.5 29.7 44.5 2 March 1959 July I960

Abingdon, Va................ 532 33 150.7 31.7 48.2 3 November 1958 February 1960

Redwood Falls, Minn......... 397 17 96.2 24.3 52.0 2 June 1958 August 1959

Durham, N.H................. 371 22 113.6 36.7 42.6 1 May 1958 June 1959

McKinney, Tex............... 317 19 133.1 35.2 53.4 3 May 1958 June 1959

Marshfield, Mo. ............ 286 13 103.7 31.3 51.1 2 June 1958 July 1959

Lafayette, Term............. 266 12 107.6 28.7 45.0 3 September 1958 October 1959

Manning, S.C................ 252 16 144.0 24.1 49.7 3 June 1958 July 1959

Burlington, Vt.............. 2,357 136 109.9 31.7 45.9 1 June 1958 March I960

Laboratory office:

Morris, Minn................ 507 22 100.1 26.3 46.2 1 August 1958 November 1959

Oxford, Miss................ 471 27 108.6 22.9 53.4 2 August 1958 September 1959

Riverside, Calif............ 116 7 109.8 38.9 41.4 2 November 1958 August 1959

1/ Includes net effect of change orders; i.e., modifications of original plans or specifications subsequent to contract award.

2/ Number of projects represented by sample project.

2/ Cost and area figures unweighted; all others weighted.

ij With space for other Federal activities.

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On-Site Man-Hours

With minor exceptions, all Federal construction is subject to the

provisions of the Davis-Bacon Act, which requires that wages paid to mechanics

and laborers must be at rates not lower than those prevailing on similar construction in the locality. By administrative regulation, each contractor on

Federal construction is required to file copies of his weekly project payroll

with the Federal agency supervising the project. These payrolls are thus a

primary source of data on production man-hours worked, and wages paid, on a

project. In the current study, the payroll files for the sample projects

were made available for data transcription through the cooperation of the

PBS and its regional offices.

These payrolls were the basic source of the on-site labor data for the

study. However, certain classes of on-site labor are not required to be

reported on the weekly payrolls. These include salaried employees (e.g.,

superintendents, engineers, and clerks) and self-employed contractors.

Moreover, the processing of the payrolls for this study developed an occasional question as to completeness or meaning. This additional information

or clarification was obtained by BLS field representatives in the course of

their visits to each contractor for materials data. Where these supplementary

data were obtained in summary form only, they were converted to the detail

required on a judgment basis.

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 the sample

projects. These material listings were classified into categories consistent

with 5-digit Census of Manufactures product groups. For each of these product

groups, the average amount used per $1,000 of contract construction was determined. Once the average use was calculated, each figure was reduced by a

ratio representing the difference between valuation by the purchaser and

valuation by the producer. 16/ Since all data reported by the contractors

were in purchasers' value, the reduction to producers' value made it consistent with Census data published on these various components. These figures

on average dollar value, stated in producers' value of each construction

material per $1,000 of contract value were necessary for each of the

succeeding steps.

16/ The ratio used for this reduction was the purchaser-to-producerratio for these components in new public building construction as developed

for use in the 194-7 interindustry analysis.

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Primary Distribution Industries Employment

Man-hours in the distribution industries (trade, transportation, warehousing, freight forwarding, etc.) at primary level with respect to construction activity were estimated from the difference between producer and

purchaser value for each construction material. The differences were summed

and allotted to trade or transportation sectors by a ratio obtained from

inputs by these sectors to new construction as found in the 194-7 input-output

analysis. A second allocation was made among industries within the transportation sector (rail, truck, etc.) on the basis of 1959 value of production of

the industry. The man-hours for each distribution sector were then determined

by multiplying the value allotted to this sector by the man-hours needed to

produce #1,000 of product in the distribution sectors.

Primary Manufacturing Employment

Primary employment in manufacturing was considered to be that required

to produce items in the construction bill of materials in their final stage

of fabrication. In this stage, the man-hours resulting from public building

construction were found by multiplying the average value of each construction

component by a ratio of manufacturing man-hours to #1,000 of production. 17/

Secondary Employment in All Industries

Secondary employment is defined as the employment in all industries

involved in the production and transportation of building materials and

equipment, from basic extraction to, but not including, the final manufacturing

stage.

To calculate all of the secondary man-hours involved in each construction

product, it was necessary to determine the contribution from each of the

sectors of the economy to the construction bill of materials. To obtain these

contributions from each sector, an interindustry inverse matrix was used. The

matrix was calculated for the United States economy in 1947, by the Bureau of

Labor Statistics. 18/ Since this matrix is stated in 1947 prices, all prices

of the construction components were deflated to 1947 and then grouped into

industry classifications which were consistent with the interindustry study's

57-sector aggregation. This gave the value of construction goods stated in

1947 prices, for each interindustry sector. Each of these figures was in turn

17/ This ratio was established by using the 1959 Survey of Manufactures.

18/ For a further description, see the article by W. Duane Evans and

Marvin Hoffenberg, op. cit.

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multiplied by the corresponding coefficients of the inverse matrix. This

procedure indicated the contribution necessary from each of the sectors to

produce the specified construction item used. These products which were

stated in 194-7 prices were then inflated to 1959 prices (the year consistent

with the bill of materials).

The sector contributions to each of the separate construction items were

summed to obtain the total contributions from each sector of the economy to

the construction bill of materials. To translate dollars of product contributed by each sector into employment required by this sector, a ratio of

employment to $1,000 of production was used. These ratios were developed for

each of the 57 interindustry sectors. 19/

Total Man-Hour Requirements

From each off-site stage (primary distribution, primary manufacturing^

and secondary industry), a man-hour figure per $1,000 of Federal building

construction contract was obtained. When these were summed with direct or

on-site man-hours, the total employment effect, within the definition used by

the study, was determined. However, the procedures used in estimating employment generated by new Federal building construction did not include all such

employment. The technique used for the off-site segment covers only employment generated by direct purchases of materials and supplies and implicit in

the depreciation of construction equipment. The following areas of employment

related to the volume of construction activity were not covered: (l) Architectural, surveying, estimating, and other planning employment; (2) inspection

or supervision by the architect or the government during construction;

(3) employment generated by purchases of movable furniture and equipment;

(4) the "multiplier" effect of the respending of wages and profits; and

(5) construction and equipment of new production facilities, if needed to

supply construction materials.

19/ Both price and unit employment ratios were actually calculated on a

450-order aggregation and summed to the 57-order aggregation. The employment

figure was converted to man-hours using BLS average annual hours in each of

the separate sectors.

☆ U. S. GOVERNMENT PRINTING OFFICE : 1962 O - 648318

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