Management's perception of key performance indicators for construction

Cox, R F; Issa, R R A and Ahrens, D (2003) Management's perception of key performance indicators for construction. Journal of Construction Engineering and Management, 129(2), pp. 142-151. ISSN 0733-9364

Abstract

There is a great need in the construction industry for identifying a set of common indicators to be used by construction executive and project managers in measuring construction performance at the project level. The focus of this research was to collect management perceptions of the key performance indicators currently utilized in the construction industry. Both quantitative performance indicators and qualitative performance indicators are represented. A literature search was used to generate the initial set of perceived key performance indicators, which were administered to the construction industry via a survey. A statistical analysis of the collected survey responses provided information for the identification of a common set of perceived Key Performance Indicators (KPIs) by construction sector, management level, and experience level. Correlations were performed for both the quantitative and qualitative indicators to determine which type of indicator is used most extensively. Basic statistical analyses and frequency distributions provided evidence in support of some of the hypotheses of the research. The results of the survey data analysis support the hypothesis that KPIs vary according to management's perspective. Further analysis displayed a substantial difference between construction executive and project management's perceptions. However, six indicators were reported as being most useful by every segment of the construction industry involved in this study. The correlation between quantitative indicators and qualitative indicators proved to be inconclusive.

Item Type: Article
Uncontrolled Keywords: performance evaluation; productivity; project management
Index terms: data analysis, performance indicator, survey, evidence, performance evaluation, construction sector, key performance indicator, project manager, frequency distribution, statistical analysis, construction performance, productivity, executive, project management, construction industry
Subjects: practitioner, profession, evaluation and assessment methods, data collection methods, project delivery, data analysis and analytics, data science, performance assessment, project management theory and practice, performance management, performance measurement, management, statistical analysis, industry analysis
Topics: Site Management, Quality Management, Roles and Professions, Business Strategy, Project Management, Research Practice
Descriptive scope: 5 PCTEA

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