Modeling labor costs using artificial intelligence tools

Purpose: Construction projects in Malaysia are often delayed and over budget due to heavy reliance on labor. Linear regression (LR) models have been used in most labor cost (LC) studies, which are less accurate than machine learning (ML) tools. Construction management applications have increasingly used ML tools in recent years and have greatly impacted forecasting. The research aims to identify the most influential LC factors using statistical approaches, collect data and forecast LC models for improved forecasts of LC. Design/methodology/approach: A thorough literature review was completed to identify LC factors. Experienced project managers were administered to rank the factors based on importance and relevance. Then, data were collected for the six highest ranked factors, and five ML models were created. Finally, five categorical indices were used to analyze and measure the effectiveness of models in determining the performance category. Findings: Worker age, construction skills, worker origin, worker training/education, type of work and worker experience were identified as the most influencing factors on LC. SVM provided the best in comparison to other models. Originality/value: The findings support data-driven regulatory and practice improvements aimed at improving labor issues in Malaysia, with the possibility for replication in other countries facing comparable problems.