Dynamics of workforce skill evolution in construction projects¹This paper is one of a selection of papers in this Special Issue on Construction Engineering and Management.

Construction projects are usually labour intensive, and human resource (HR) issues contribute significantly to a project’s final costs. From this perspective, a tool that can help construction managers reduce their HR costs can potentially generate improvement in the project cost. In this paper we propose a simulation-based approach that sheds light on the dynamics of workforce skill evolution as the project progresses, thereby assisting construction managers in adjusting their HR policies. The proposed approach uses a system dynamics (SD) simulation model that dynamically tracks the effects of alternative HR policies. After the development and validation of the SD model, the SD model is extended to capture operational details and their interaction with workforce skill evolution, adopting a hybrid SD and discrete event simulation (DES). The hybrid model has been applied to an experimental case of structural steel fabrication projects, in which we demonstrate that there is a considerable room for cost-saving in HR. The hybrid modeling approach introduced in this paper can be employed by construction managers for possible improvements in HR management, as well as researchers for an in-depth understanding of the dynamics in workforce skill evolution.