6. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
A KPI Masterclass provides
training on the principles of
performance measurement.
The benefits of using the UK-EU-
USA Construction Industry KPIs.
Each KPI Masterclass includes
examples of how leading
organizations have used KPIs.
10. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Identify non productive items in the use of
best practices and project management
performance.
Identify reasons for lack of productivity
(root causes).
Go to KPIs success factor and high
productivity Power Point for further
information & Benchmarking P1 Power
Point.
11. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Develop an action plan (select best
practices to reduce shortfall);
Integrate best practices into the
project delivery process;
Adopt benchmarking as part of a
continuous improvement program;
Develop a process model;
Monitor progress.
15. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
The National Research Council
(NRC) completed a planned 3-
year review and assessment
-U.S. Department of Energy
Publication of Progress in
Improving Project Management at
the Department of Energy: 2003
Assessment (NRC, 2004).
16. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
In that final assessment report,
the Committee for Oversight and
Assessment of U.S. Department
of Energy Project Management
made following suggestions:
The committee suggests 30
possible performance measures
in four sets:
22. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
From CT must be deducted:
any additional work;
Alterations;
Based on calendar days.
The following three factors are used for
calculating the KPI:
the date of start-up of the
construction phase;
23. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
the actual handing-over the
project to the client (day);
the alterations that have been
agreed with the client;
or have been caused by external
factors or by the client;
In both cases, the alterations are
expressed in calendar days.
30. BENCHMARKING-KPIsBENCHMARKING-KPIs
Actual construction time includes:
Remedy work (defects) in relation to planned
construction time;
this KPI expresses the relationship between the
actual construction time (including defects
liability period), if any;
and the expected construction time;
For this case KPI for “Actual construction time
in relation to expected construction time”, the
expected construction time includes alterations
expressed in calendar days.
31. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
The KPI is calculated as a percentage,
where 100% corresponds to the actual
construction time being identical to the
expected construction time;
If the realised construction time is longer
than expected;
Therefore, the KPI will be greater than
100%.
The KPI will be less than 100% if the work
is completed ahead of the anticipated
time.
34. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Remedial work to defects during the first
year after handing over
The KPI includes only the defects
remedied in the first year following
handing over, based on man-hour
consumption.
Some clients set the defect liability for
less time such as 6 month.
Other extra works or additional services
after the first year .
35. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
If it has been agreed that these additional
services may be carried out after handing
over they are not included in the KPI.
The man hours used to remedy defects in
connection with the one-year inspection
are included as an estimated figure.
The KPI is expressed in man hours
worked and measured against the
contract sum.
36. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Accident frequency-CDM
This is accomplished by the calculating of two
rates:
1. Incidence rate;
2. Accident frequency rate.
Incidence Rate
Give the number of accidents for 1000
employees and is used to take into account
variations in the size of the workforce:
Incidence Rate = Number of Accidents X 1000
Numbers Employed
37. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Accident frequency-CDM
The revised detailed guidance notes which
accompany CDM 2007 entitled 'managing health
and safety in construction.
Listed by the Health and Safety Commission
((the Approved Code of Practice (ACoP)) was
approved in February 2007.
CDM 2007 and ACoP came into force at the
beginning of April 2007.
42. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
The contribution ratio (basic package),
It is calculated on the basis of the
contractor’s turnover on the contract.
It corresponds to the sum of the payments
he has received from the client.
To the above figure should be added
payments such as:
extra works
additional services
45. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Exclude from above:
income from interest
income from sale of scrap materials
salary cost
small assets
other direct and indirect production costs
and overhead costs.
Some of these costs are included in the
benchmarking system’s optional
packages.
48. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
Labour productivity
Labour productivity is defined as the value
added on the project.
It is measured against the total number of
man hours worked by contractors and
subcontractors contractors.
This productivity indicator will
subsequently constitute the project’s
labour productivity.
49. BENCHMARKING-KPI’SBENCHMARKING-KPI’S
The value added on the project are
considered as:
the value added to the raw materials,
building materials and components
used from the time they are
purchased to the time they are ”sold”
in the form of the finished
construction project.
