The performance of construction is often measured against whether a project is delivered on time and on budget. There are other measurable factors, such as client satisfaction and value for money, that are more difficult to quantify and this makes it hard to look for ways to improve the process for future projects. Performance measurement is a way of checking actual performance of a project against targets throughout its life, and compares it with the wider construction industry.

Performance measurement compares the client’s projects against other purchasers of construction projects and examines the project specifics, e.g. cost certainty, number of defect, accident frequency etc, against the performance of the industry as a whole. The method of measurement used is known as benchmarking, with a benchmark being defined as the best performance that has actually been achieved in practise. The benchmarking process is therefore not aspiring to a mythical ideal but towards being the best in the business.

Benchmarking is useful in focusing improvements on critical areas and produces a way of comparing the outcomes before and after intervention. There are several methods of benchmarking including one specifically for the construction industry in the form of ‘the construction industry key performance indicators (KPIs)’. The construction industry KPIs provide methods for assessing ten common areas such as defects (rated 1 to 10) and safety (rate of reportable accidents per 100,000 employees). The KPIs provide an easy to use assessment tool for any project or company and report the results in a simple chart format.

Benchmarking follows a series of steps that cycle to lead to continuous improvement. The chart below shows the steps involved;

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The cycle above can be applied to projects, businesses or individual activities and allows for a clear check on improvement. The key to successful benchmarking is to keep it simple and clearly understood, and to avoid excessive data collection. It is easy to focus on collecting as much data as possible and become fixated on measurement without realising the most important element is action. The aim of performance measurement is to improve the situation by working towards industry achievable targets.

The Construct Wales programme can provide expertise in benchmarking to enable Welsh companies to improve their performance across the range of UK recognised standards.