Measuring productivity in the construction industry

The paper provides an overview of methods used to measure productivity in the construction industry. The advantages and disadvantages of average labour productivity and total factor productivity measures are discussed in detail, and the relationship between these two measures is established both theoretically and in an application at the industry level. The usefulness of any productivity measurement framework for policy-makers and industry practitioners alike depends crucially on the extent to which it enables the identification of the underlying drivers of productivity. This requirement necessitates an approach that involves formally describing the production process and explaining as much as possible of construction output in terms of the quantity and quality of inputs that are used to generate it. Whilst it is accepted that data requirements are a major constraint to such an approach, it is suggested that by establishing a robust measurement framework, data deficiencies can be defined more easily. Guidance on areas where improvements are needed is provided and it is considered that the focus of future research should be in creating new and improving existing datasets.