Methodological Analysis of KPIs to Evaluate Contractor Performance of the Construction Project

Measuring construction performance is one of many important tasks in completing a construction project. For the contractor, it allows visibility of highperforming areas or low-performing areas that need to be addressed. It is essential for proper forecasting to ensure budgets are accurate and for accurate scheduling, to ensure there is adequate time and the proper number of workers to complete the project. When measured over multiple projects, it can also serve as a mechanism to evaluate contractors for future projects by assessing past performance. One such method of measuring performance is utilizing key performance indicators (KPIs) which are not only used in the construction industry but in all other areas of business. There are many KPIs that can be utilized in measuring construction performance including specific ones relating to productivity, safety, and quality. This paper introduces the method of identifying the most significant KPIs which will objectively help owners evaluate contractor performance. The study explores the many different types of KPIs that owners currently use to evaluate contractors' performance. Projects for an owner can vary in scope and complexity significantly from one to the next and can be located in many different geographical locations. All these factors change how difficult it is to construct a project effectively and affect the cost of the project in many ways. The methodology developed here in this paper identifies the normalization of the factors in order to establish a performance measurement that can allow projects to be accurately compared against one another for performance assessment. The major focus of this study is to develop a framework using key performance indicators that can be used by owners in measuring the ability and efficiency of their teams and contractors to execute projects.