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Alsulamy, S, Wamuziri, S Taylor, M (2012) Evaluation of key metrics for measurement of project performance. In: Smith, S.D (Ed.), Proceedings 28th Annual ARCOM Conference, 3-5 September 2012, Edinburgh, UK. Association of Researchers in Construction Management, 1101–10.

  • Type: Conference Proceedings
  • Keywords: performance measures; performance metrics; performance measurement systems; construction projects; project performance
  • ISBN/ISSN: 978-0-9552390-6-9
  • URL: http://www.arcom.ac.uk/-docs/proceedings/ar2012-1101-1110_Alsulamy_Wamuziri_Taylor.pdf
  • Abstract:
    In the construction industry particularly in developing countries, minimal attention has been given to the application of Performance Measurement Systems [PMS], despite being one of the most important factors for assessment of project success. Consequently, there appears to be always a gap between actual results obtained in relation to delivery of major projects and stakeholder expectations. The application of performance measurement systems in the construction sector has tended to rely on three basic criteria: time, cost and quality, which can be applied to determine the extent of project success. At organizational level, performance measurement systems are largely based on financial measures which are almost always lagging indicators. In response to the Egan Report, the UK construction industry developed specific Key Performance Indicators (KPIs) which include construction cost and time, cost predictability and time predictability, defects, client product and service satisfaction, safety, profitability and productivity. The primary aim of this paper is to evaluate the main project and organizational performance metrics including financial and non-financial measures that have been developed in recent years. Lagging indicators focus on past data and offer little or no opportunity for process improvement. Previous research indicates that credible performance metrics should consider all construction project stages alongside stakeholder needs and expectations. In this work, the fundamental requirements for suitable performance metrics are identified. Finally, it is concluded that the shortcomings of current performance measures utilized by the construction industry can be considered as marketing tools as opposed to tools for process improvement.