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MCAA Management Methods Manual - WebLEM

B u l l e t i n Copyright, Mechanical Contractors Association of America, Inc., Revised 2011. 1 Bulletin No. OT1 Revised (Replaces 2005 version) File: Overtime How to Estimate the Impacts of Overtime on Labor Productivity Introduction The cost impact of unplanned extended overtime work1 may exceed the increased costs of the premium pay associated with an overtime work schedule. This impact comes in the form of reduced worker productivity as compared with the productivity of work performed on a straight-time basis. A mechanical contractor confronting significant periods of unplanned extended overtime work must consider the reduced productivity associated with working an overtime schedule.

Unplanned extended overtime is a condition wherein the entire project, or a significant portion of the project (e.g., all mechanical crews), work an overtime

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