CONSTRUCTION PROJECT MANAGEMENT

2. PREPARATION OF LABOUR SCHEDULE
The aim of this schedule is to decide the number of skilled and unskilled labour
required for the execution of different operations on different date With the help of this
schedule required labour can be arranged well in time. is difficult and costly to arrange
skilled labour as and when required. It helps in reducing the labour cost. A labour
schedule can be prepared from construction schedule. The labour schedule can be
prepared on weekly Or monthly basis.

3. CHARACTERISTICS OF LABOURS
The important characteristics of Indian labour are:
 Indian labour is mostly illiterate and uneducated. It is found that only 20 %
of the Indian labour has got the technical knowledge.
 The economic condition of construction labour is worst in our country due
to their illiteracy, lack of bargaining power, lack of unions and the
temporary nature of their employment.
 Indian labour is the cheapest in the world. This is due to the fact that the
labourers maintain their lives with the minimum requirements.
 Though the construction labour in India is the cheapest in the world but his
output is very low due to illiteracy and improper training of work. A Korean
construction worker is able to read drawings, interpret specifications and
carryout work independently.

4.  Construction labour is hired on a temporary basis and leads a migratory
life, working on different sites.
 Due to temporary nature of their job, they remain idle till they find work
at new construction sites.
 There are large number of labourers and hence, there is perfect condition
in the labour market.
 Basic amenities like shelter, drinking water, sanitary facilities etc. are not
adequately provided to them at small construction sites.
 Construction labourers being temporary- has no organisation. Hence they
are not cared for by local political forces.
 Article 24 to the constitution lays down that no child labour below the age
of 14 years shall be employed to work in any factory or mine but still we
have a large number of child labours in our country.

5. OUTPUT OF CONSTRUCTION WORKERS
Some of the important factors which are responsible for low output
(Efficiency) of Indian labour are:
 Very low wages
 Poor working conditions
 Illiteracy
 Poverty
 Temporary employment
 Lack of safety equipments
 Lack of recreation facilities
 Lack of housing and transportation

6. The wages paid to the Indian labour are the lowest in the world. This
lowest wages can not satisfy the need of labour. The labour can not even
Purchase the primary needs of life and cannot think having Luxurious
life.
1. VERY LOW WAGES

7. 2. POOR WORKING CONDITIONS
The poor working conditions at the site like,
• Extreme heat or cold
• Heavy rain
• Working at heights
• Lack of working tools etc.
May reduce the output of the workers.

8. 3. ILLITERACY
Indian labour is mostly illiterate and uneducated. It is found that only 20 % of
the Indian labour has got the technical knowledge. They are no able to read
drawings, interpret specifications and work independently.
4. POVERTY
Indian labours are very poor. Their standard of living is the lowest among the
civilized countries.
5. TEMPORARY EMPLOYMENT
Construction labour is hired on a temporary basis and leads a migrator life,
working on different sites.
Due to temporary employment, they remain idle till they find out work at new
construction sites.

9. 6. LACK OF SAFETY EQUIPMENTS
While working under unsafe’ conditions, the labourers should have safety
equipments like safety helmets, safety shoes and gloves, safety belt etc.
7. LACK OF RECREATION FACILITIES
The labour gets tired due to working at site whole the day. Recreate
Facilities like radio, T.V., dance shows at their place of residence necessary to
refresh them.
8. LACK OF HOUSING AND TRANSPORTATION
At small construction sites, housing facility is not provided to the labour they
have to travel long distance to reach the construction site. Man labours go to
the construction site by walking and gets tired.

10. Remedial measures to Improve labour output:
 The wages to labourers should be suitably adjusted so that they can
pass a good life.
 Favourable working conditions in respect of light, ventilation,
temperature and humidity.
 Proper training for jobs to ensure accident free working.
 Supply of necessary tools, equipment and materials.
 Appreciation of good work by giving incentives.
 Provision of welfare measures in the form of housing, medical, education, transport
and recreational facilities.
 Providing safety equipments like safety shoes, helmets, safety belts to
the workers.
 The workers should be allowed to work for a particular number of
hours, and during this time also, they should be given sufficient rest
in the form of recess.

11. TYPES OF CONSTRUCTION LABOUR
The construction labour can be divided into two types :
 Casual labour
 Regular establishment labour
1. Casual labour
The labour employed casually is known as casual labour. They are employed
as and when required for the execution of the work. The payment is made for
the number of days actually worked. There is no provision of leave except
weakly holiday. This type of labour is also called daily labour.
2. Regular establishment labour
Managing and supervisory staff is included in this type of labour as they are
required more or less continuously during construction. Payment is made
monthly and are also provided leaves and other benefits. This type of labour
may be temporary or permanent. Permanent employees have greater security
of service and also entitled to more benefits than temporary employees.

12. WAGES OF WORKERS
Wages may be defined as the remuneration paid to the workers for the work
performed by them. It is a contract income fixed between the employers and
the workers. Wages may be paid in any form either in cash or substitute of it.
The wages are of two types:
I. Nominal wage
II. Real wage
1. Nominal wage
The wages paid to the workers in the form of money for the work done by
them is known as nominal wages. Any other benefit is not included in it if
provided.
1. Real wage
The wages paid in the form of luxuries and comforts which are necessary to
improve the standard of living are known as real wages, e.g. leave, medical
care, house rent allowance, bonus etc.

13. SYSTEMS OF WAGE PAYMENT
There are two systems of wage payments:
(a) Time rate system
(b) Piece rate system
A) TIME RATE SYSTEM
In this system of wage payment a suitable rate of payment is fixed per unit of
time devoted by the laborer. The unit of time can be hours, days, weeks or
month. Usually the Rate of payment for casual labour is fixed per day and for
regular employee per month. In this system the payment does not depend upon
the output of the labour.
(B) PIECE RATE SYSTEM
In this system the payment to the worker is made on the basis of his output. The
work done by each laborer is measured and payment made at the agreed rate.
The rate of each item of work is fixed on the basis of the past record of output.

14. LABOUR INCENTIVES
To increase the enthusiasm of workers for doing work and to
improve the progress of the work, some incentives are given to the
workers.
There are two types of incentives:
A. Financial incentives
B. Non-financial incentives
(a) Financial incentives
This type of incentives are given in the form of money to the workers to
fulfil their basic needs. This type of incentives are given to increase
production, presence of workers and their achievements.

15. Financial incentives are of two types:
1. DIRECT FINANCIAL INCENTIVES
 Production incentive schemes
 Attendance bonus
 Profit sharing bonus
2. INDIRECT FINANCIAL INCENTIVES
 Leave encashment
 Gratuity scheme
 Leave travel concession
 Subsidised means

16. (B) Non-financial incentives
In good managements non-financial incentives are introduced as a general
practice, which develop sense of participation among the employees. Non-
Financial incentives affects the inner feelings of the employees and produce
good results.
Non-financial incentives are a result of good management.
• Some non-financial incentives are:
 Social and sports activities
 Educational facilities
 Suggestion schemes
 Meritorious service awards
 Promotion polices
 Better working conditions
 Growth opportunities in the
organization
 Welfare skills
 Recognition
 Sound performance appraisal

17. ADVANTAGES AND DISADVANTAGES OF INCENTIVE SCHEMES
Advantages:
 Increase in production.
 Increase in the quality of work.
 Reduction in hindrances in the work.
 Employee gets an opportunity to earn more.
 Reduction in supervision time.
 Man-power planning can be used effectively.
Disadvantages :
If incentive scheme is complex it may create confusion amongst the employees.
1. Lack of consistency.
2. Mental problems may arise in the incentive scheme.
3. There may be delay in disbursement of the scheme.

18. Objectives of Incentive Schemes:
The main objectives of incentive schemes are:
1.To increase production/output of work.
2.To utilize human force properly.
3.To increase earning of the employees.
4.To improve quality of work.
5.To increase sell of the production.
6.To reduce cost of production.
7.To reduce wastage of material and inventory cost

19. LABOUR WELFARE
Labour welfare means the voluntary efforts on the part of the employer to
provide best employment conditions. Labour welfare may be anything to
improve the physical, economical, morale, mental and intellectual
development of workers.
Excellent working conditions should be provided so that the worker feels
that he is the inseparable part of the organisation. It creates good relationship
between the employers and the workers.
There are three aspects of labour welfare:
 Human - housing, provident fund, insurance, canteens, grain shops etc.
 Civic - educational facilities, training, reading room, club etc.
 Economic - high wages, bonus, medical aid, incentives etc.

20. Labour welfare facilities:
The following facilities should be provided by the employer to the workers.
Educational facilities: There should be adequate arrangement for the
education of the children of the workers.
Medical facilities: Free medicines and first aid equipment should be made
available to the workers.
Housing: The workers must be provided suitable and rent free housing.
Transportation: Transportation facilities must be provided where the Workers
have to travel for a long distance for attending his duties from their residence.
Food service : There must be canteens at the site which Provide the necessary
eatables and drinks to the workers at cheap rates.
Co-operative stores: The workers should be provided with articles of daily use
at the cheaper rates in these stores.

21. Financial aid: Interest free loans, pensions, provident funds and profit
sharing schemes should be made available.
Recreational facilities : Cinema shows and cultural activities must
Be arranged at cheaper rates. Indoor and outdoor games must be arranged.
Sanitary facilities: Sanitary facilities such as latrines and urinals must be
provided separately for males and females. There should be proper
arrangement for their cleaning.

22. TRADE UNIONS
The trade unions are voluntary organizations of workers formed with the primary
objective of protecting the interest of the labourers. These are formed for regulating
the relations between the employers and workers.
• Functions of Trade unions:
1. Establishing a bargaining platform for negotiations with employers.
2. To improve wages and working conditions of the workers.
3. To promote the welfare schemes for workers.
4. To provide legal aid in case of need.
5. To establish cordial relations between the employers and workers.
6. To struggle for increase of wages and reduction of working hours.
7. To maintain necessary funds for the relief of workers in case of accidents, strikes,
sickness or other urgent requirements.
In India for the first time a trade union was formed in a textile mill in Ahmedabad
(1918) and trade union movement was started.

23. Important trade unions of India:
1) All India Trade Union Congress (AITUC) : This union was formed in 1919 by
congress party, but at present it is under the influence of communist party of
India.
2) Indian National Trade Union Congress (INTUC) : This union was formed
under the patronage of Indian congress. In 1942 under the Quit India movement
INTUC out came from AITUC. Finally in 1947 it was set up under the patronage
of Indian congress.
3) United Trade Union Congress (UTUC) : This union was established in 1949
and linked with leftist parties.
4) Centre of Indian Trade Unions (CITU) : This union is under the influence of
CPI (M).
5) Bharatiya Mazdoor Sangh (BMS) : This was set up by Jan Sangh Party and is
functioning under the influence of this party.
6) Hind Mazdoor Sahha (HMS) : It was set up in 1948 by Praja Socialist Party
and is functioning under the influence of socialist party.

24. TRADE UNION ACT-1926
The first Trade union Act in India was passed in 1926. Further amendments were made
in 1928, 1942 and 1947.
This Act defines the law relating to trade unions in certain matters and made a provision
for the registration of trade unions in India.
Registration
A. Any seven or more members of the union can get registered the union by the
registrar on fulfilling the prescribed terms and conditions.
B. Half the members of the executives must be the employees of the industry.
Employees having their age more than 15 years can become the members of the
union.

25. Rights and Liabilities
1) The executive committee should meet at least once in six months.
2) The employers cannot interfere in the administration of the union.
3) >50 % of the members of the trade union must be the actual workers of the
concerned organization.
4) No civil suit is maintainable against the office bearers or members of The
union in any civil court for actions against legitimate activities of The union.
5) Peaceful strikes and demonstrations can be organized by the union With legal
immunity.
6) For declaring strikes, the unions should have definite rules and reasons.
7) The trade union must define its objectives and must have its name.

26. PAYMENT OF WAGES ACT-1936:
For the first time in India this act was passed in 1936: This act specifically includes
construction activities within its jurisdiction. Later this act has been amended in
1957, 1962, 1975 and 1977.
The important provisions of the act are:
1. This act is applicable to employees whose salary is less than Rs. 1000 per month.
2. As per this act, the wages are defined as the salary including Allowances, bonus,
compensation, incentive and reward etc. However wages do not include the value
of the housing accommodation, medical aid, water and electricity supply, provident
fund, travelling allowance and pension etc.
3. In case a worker is terminated the wages must be paid within 48 hours of his
termination.

27. 4) This act prescribes the maximum wage period as one month. the payment of wages should be
made by 7th of the following month by firms employing less than 1000 workers and by the
10th of the following month by firms employing more than 1000 employees.
5) No deduction, except the following are permissible from the wages of the workers i.e.
 Fines • Income tax
 Absent from duty • Recovery of advance payment
 House rent • Damage or loss of property
 Water and electricity charges • Contribution of cooperative societies
 Provident fund
6) This act provides following safeguards against deductions from the wages of the worker :
 No fine can be imposed on children below the age of 15 years.
 The amount of fine imposed on a worker due to any reason should not be more than one day
wages of the worker.
 The fine money should be deposited in the ‘fine fund’. This money should be used for the
welfare of the workers.

28. MINIMUM WAGES ACT-1948
 The minimum wages Act was passed in 1948 by the Government of India
and in 1961 by the Government of Gujarat.
 The aim of this act is social justice. This act provides for fixing minimum
wages of labourers. The minimum wage is defined as the amount of money
to be earned by a worker which is sufficient to fulfil his normal needs and
give him reasonable comforts of living in a civilized society.

29. The main provisions of this act are as follows:
 The main aim of this act is to fix the minimum wages for workers based on
time rate or piece rate.
 To fix the minimum wages, a board consisting of representatives of
government, employer and employees may be formed.
 Under this act daily working hours, holidays and overtime payments can be
fixed.
 The normal working hours per day will be as follows :
 For a adult laborer = 9 hours per day
 For a child laborer = 4 hours per day
 If any worker works on his rest day, he will be entitled for wages for that day at the
rate of over time and shall be allowed a substitute rest day with full wages.

30.  If a worker works more than 9 hours on any day, he will be paid
double the ordinary wages for the overtime period.
 The wages shall be paid in cash and the wage period will be one
month.
 No deduction, except the following are permissible from the wages of
the workers i.e.
 Fines
 Income- tax
 Absent from duty
 House rent
 Damage or loss of property
 Water and electricity charges Contribution of cooperative societies
 Provident fund
 Recovery of advance payment

31. WORKMEN S COMPENSATION ACT-1923:
Workmen’s compensation Act was passed in 1923 and in 1959 and again in
1976. The act provides the payment of compensation to the worker by the
employer when he sustains injury in the course of his employment.
Object:
The object of this act is to protect the victims of accidents and their
family from hardships arising out of and in the course of employment.

32. Scope:
This act covers all the persons employed in any capacity in a hazardous occupation
including construction work as specified in the schedule-11 of the act, and whose
wages are less than Rs. 1000 per month. This act provides for payment of
compensation in case of accident on site of work.
(a) Temporary disablement:
The disablement which reduces the earning capacity of a worker in any
employment in which he is engaged at the time of accident for a temporary
period is known as temporary disablement. The duration of 5 years is
considered as temporary disablement and compensation is paid for that period
only.
The details of amount of compensation are given in table 5.1.

33. TABLE 5.1

34. (b) Permanent total disablement:
Permanent total disablement is that in which the worker reduces the earning
capacity in every employment which he was capable of undertaking at the time
of accident.
The following injuries are specified in the act which result in total
disablement:
• Loss of both hands
• Loss of both hand and a foot
• Loss of sight of both eyes Serious facial
The compensation payable in above cases depends upon salary as shown in
table 5.1.

35. (c) Permanent partial disablement
A large number of injuries has been described in the act that reduce the
earning capacity of the worker. The percentage of loss of earning capacity has
also been laid down in the act for different types of injuries as shown in Table
5.2.

37. CONTRACT LABOUR ACT-1970
This act was enacted to regulate the employment of contract labour in
certain firms/enterprises and to provide for its abolition in certain
circumstances. There is also provision for improving the service conditions
of contract labour. This act is applicable where twenty or more than twenty
labourers are engaged on contract basis, but not applicable to casual
labour.
The important provisions of this act are:
1. Every firm or enterprise is required registered in the office of registering
officer.
2. Any contractor who executes the work through contract labour is
required to obtain a licence from the licencing officer. Taking into account
the hours of work, fixation of wages and provision of essential amenities
to the contract labour.

38. 3. Payment of wages in time properly is the responsibility of the
contractor. In case he fails to do so than the principal employer makes the
payment full or give the unpaid balance due to the contract labour. He
recovers the amount from the contractor or debit it to the contractor's
account.

39. INDUSTRIAL DISPUTES ACT-1947
The aim of this act is to make provisions for the investigation and settlement
of industrial disputes and other purposes.
A committee of workers is constituted in the firm having 1000 or more
workers consisting of representatives of employees and employers. The
representatives of workers of a registered trade union are chosen in the
prescribed manner.
 The works committee is responsible to promote measures for securing and
preserving good relations, amity and better working condition between the
workers and employers. They discuss matters of common interest to
resolve the disputes.

40.  The act also provides for arbitration of industrial disputes. The proceedings
in arbitration are made according to the arbitration Act 1940 and powers of
civil court are exercised by the Industrial Tribunal.
 There is also provision for regulation of strikes, lock outs, layoffs etc.
 The employers are barred from making changes in the service conditions
applicable to any worker without giving proper notice of changes proposed
to be made. At least a notice of 21 days is required for such notice.

41. Authorities for Adjudication of Industrial disputes :
(i) Conciliation officers
(ii) Boards of conciliation
(iii) A court of inquiry
(iv) Labour courts
(v) Industrial tribunals
(vi) National Industrial Tribunals

42. Jurisdiction of labour court :
 The legality of an order passed by an employer.
 The application and interpretation of standing orders.
 Illegality of a strike or lockout.
 Withdrawal of any privilege or concession of customary nature.
 Discharge or dismissal of workmen.
 All other matters than those described in the third schedule.