TBILISI, Georgia — In a significant move to modernize cost assessment practices within the construction sector, Policy and Management Consulting Group (PMCG) introduced a newly refined methodology for labor cost research on May 8. The unveiling took place during a collaborative session hosted by the Infrastructure Construction Companies Association (ICCA), supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and other partners.

The upgraded methodology is part of a broader initiative aimed at establishing reliable statistical systems for labor cost analysis, ensuring more accurate project budgeting and improved transparency across the industry. The approach is being developed under the project titled “Georgia’s Growth Sectors – Empowering the Construction Sector with Reliable Statistical Data on Labor Costs,” which has been implemented by PMCG since January 2025.

“This refined approach is designed to increase the accuracy and reliability of labor cost assessments, supporting more informed decision-making by industry stakeholders and policymakers,” PMCG stated during the presentation.

Commissioned by ICCA and funded by GIZ in cooperation with Sequa, the project seeks to address long-standing challenges in estimating labor-related expenses in a sector that plays a vital role in Georgia’s economic development.

As part of the methodology development, PMCG is undertaking several core activities:

• Evaluating current practices for estimating labor costs across construction trades
• Designing a pilot methodology tailored to key occupational categories
• Creating practical tools and guidelines to support systematic data collection and standardization

To validate the methodology, the first pilot survey will be conducted across a selection of construction occupations. This hands-on application will help identify strengths and challenges in real-world settings. Following evaluation, PMCG plans to expand the survey’s scope to include a broader range of roles and service types within the sector.

PMCG’s role goes beyond data design—it will also oversee data processing, analysis, and reporting, and conduct training sessions for ICCA staff to ensure the methodology can be sustainably applied even after the project concludes.

“The methodology will continue to be piloted and improved in close collaboration with sector actors to ensure its practical application and long-term impact,” project leaders emphasized.

The initiative will wrap up with a comprehensive documentation package, along with strategic recommendations for national-level adoption. These deliverables aim to provide government bodies, private contractors, and international partners with a consistent foundation for labor cost evaluation.

Ultimately, PMCG’s efforts are contributing to the broader vision of building a more competitive, transparent, and efficient construction sector in Georgia—one that can better respond to the country’s growing infrastructure needs while attracting sustainable investment.

Originally reported by GeorgiaToday.