This study introduces practical and simple ways of measuring labor productivity in a contractor’s organization at different levels of detail. Higher productivity levels allow contractors to simultaneously increase profitability, improve competitiveness and pay higher wages to workers, while completing activities sooner. Once a contractor can measure labor productivity, the effect of any factor or combination of factors can be assessed by comparing labor productivity values before and after the factor was in place. For example, the impact in productivity of a new managerial approach can be determined by measuring labor productivity before and after the new approach is implemented.