What should non-productive time for labor costs include?

Non-productive time for labor costs refers to periods when workers are on the clock but not directly contributing to the productive output of a project. This can encompass various activities that are necessary for the overall success of a job but do not directly result in the completion of physical work.

In this context, time used for planning work is classified as non-productive time because it is essential for ensuring that the project progresses smoothly and efficiently. Planning work involves organizing tasks, coordinating schedules, and determining the necessary resources, all of which lay the groundwork for productive labor. Although this time does not contribute to the physical completion of tasks, it is critical for establishing the framework within which labor can be productive.

On the other hand, time spent traveling, break periods, and time waiting for materials generally involve downtime where work is not being completed due to factors outside of planning and organization. While these factors can affect productivity, they are categorized differently in labor cost assessments compared to planning time, which is a proactive measure integral to successful project management. Therefore, including planning time as non-productive time is vital for a comprehensive understanding of labor costs in a contractor's work schedule.