80/20 Rule in

Construction Industry

The 80/20 rule, also known as the Pareto principle, is a concept that states that in many situations, roughly 80% of the effects come from 20% of the causes. In the construction industry, this principle can be applied in a number of ways. For example:

  • 20% of construction workers are responsible for 80% of the work on a project.
  • 80% of the construction budget is spent on materials and labor, while 20% is allocated for miscellaneous expenses and contingencies.
  • 20% of the construction schedule is dedicated to planning and design, while 80% is reserved for actual building and construction.
  • 80% of the construction delays are caused by 20% of the subcontractors on the project.
  • 20% of the construction defects are responsible for 80% of the warranty claims and repair costs.
  • 80% of the construction accidents are caused by 20% of the safety hazards on the site.
  • 20% of the construction project managers are responsible for 80% of the successful and on-time completion of projects.
  • 80% of the construction industry’s profits come from 20% of the companies in the market.

These are just a few examples of how the 80/20 rule can be applied to the construction industry. The principle can help project managers identify areas where they can focus their efforts to maximize efficiency and minimize problems.