Key performance indicators for measuring contractors' performance

Benchmarking can provide an objective analysis of how successful an organisation is performing. The key to developing effective benchmarking is to obtain measures that can provide truthful and significant measurement. This study developed a set of Key Performance Indicators (KPIs) to be used for measuring contractors' performance in the Singapore construction industry. 55 indicators were identified and their appropriateness tested through a mailed questionnaire on clients, consultants and contractors. The results show that 45 of the 55 indicators are be effectively used to measure contractors' performance. 14 of these are recommended as KPIs in the areas of cost, schedule/time, quality, waste management, customer satisfaction, profitability, productivity and safety. This study is significant because it lays down how contractors' performance is to be measured. This will allow comparisons to be made, best practices identified, and improvements made.