Wong, K. K. W.; Chan, J. H. L. and Ng, T. S. T. (2025) KPIs for engineering and construction contract of new engineering contract in Hong Kong. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 179(1), pp. 29-40. ISSN 1751-4304
Abstract
The construction industry has been fraught with adversarial working relationships between contracting parties. To encourage collaboration and build up mutual trust among stakeholders, Engineering and Construction Contract (ECC) of the New Engineering Contract (NEC) has been gaining wider adoption in Hong Kong (HK). With limited studies on key performance indicators (KPIs) for NEC ECC, this paper presents the development of KPIs for the Drainage Services Department of the HK Government specifically for NEC ECC. The KPIs and associated parameters were developed through a comprehensive literature review, interviews and questionnaire with construction industry practitioners and then validated at an NEC Working Group meeting. Interviews with 19 industry stakeholders were conducted and 38 questionnaire responses were received, representing consultants, contractors and client side. The participants have experience with both NEC and non-NEC projects, with the majority having over 10 years of experience. The set of unified KPIs for NEC ECC projects is presented in this paper. It uses a three-tier approach including five main constructs (time, cost, quality, safety and social and environmental impact), eight KPIs, and associated parameters for more in-depth performance analysis. This framework enables practitioners to objectively measure the performance of NEC ECC projects and compare performance between projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; engineering & construction contract; Hong Kong; key performance indicators; New Engineering Contract; un SDG 11: sustainable cities and communities; un SDG 9: industry, innovation and infrastructure |
| Index terms: | key performance indicator, drainage, collaboration, New Engineering Contract, performance analysis, interview, literature review, Hong Kong, construction contract, sustainable city, construction industry, contracting party, environmental impact, practitioner, questionnaire |
| Subjects: | contractual arrangements, Geography, management, industry analysis, urban design, contract type, practitioner, infrastructure and transport systems, project delivery, data collection methods, environmental impact, data analysis and analytics |
| Topics: | Organizational Design, Sustainability, Urban Studies, Engineering Principles, Procurement, Research Practice, Project Management, Geographical Context, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here