Using the budget as your main key performance indicator is much like calculating a cake’s calories to evaluate its health after it’s baked. While knowing for your own benefit and maybe nutritional issues may be an exciting reality, it is a little too late to create any modifications necessary to change the result.
On the other side, if you were to evaluate and modify the ingredients during the baking process, you might be able to modify the outcomes for a more desirable result (your thing should be good desserts).
Clearly, the primary performance indicator should not be pure financials. So why are they the main focus of project scrutiny continuously? Other critical measurements need to be taken into consideration to monitor progress and productivity of buildings–the main factors that will result in successful teams.
Below, let’s talk about the significance of your company’s building KPIs and critical metrics to impact profit and productivity.
The Important KPIs for Construction Projects
Although many details of a project can be measured by your business, efficient performance analysis involves prioritizing a restricted amount of main categories of interest to track general project success and business health. These would be economic as well as non-financial issues that can be quantified.
Stronger knowledge of your projects ‘ overall quality will assist to decrease modifications and rework. Keeping a thumb on quality metrics is, therefore, a surefire way to keep up with budget and timing.
The following KPIs will assist your team to preserve a high-quality standard:
- Number of defects
- Number of defects due to workmanship
- Time to rectify defects
- Number of site inspections conducted
- The ratio of the number of inspection passed to the total number of inspection
- The total cost of rework
- Customer satisfaction
- Internal customer satisfaction
A safer location entails less danger and costs in the long run. If there are problems, they can set your project back in time as well as money. Beyond that, incidents of safety can imply greater payments for insurance.
Knowing and understanding your safety rating is therefore essential in order to reduce your expenses and keep your employees productive. Important safety KPI for building include:
- Safety/ incident rate
- Number of safety meetings/communications
- Number of accidents per supplier
Performance metrics can deliver the productivity of a project. By assessing and understanding how time and effort are being spent, teams can adjust and allocate extra resources or instruments to those fields where they are most needed to achieve project objectives.
Here below some KPIs related to construction performance:
- Waste/recycling per job
- The average revenue per hour worked
- Percentage of equipment downtime
- Percentage of labor downtime
Examples of KPIs that can be used on projects include:
- Cost Vs Budget, the budgeted cost of the job that was actually done during a particular period of time in performing a planned job.
- The number of complaints.
- The number of accidents/incidents.
- The number of defects.
- The number of variations.
KPI Report for Project Activities
Seven main process KPI indicators that companies say are particularly helpful in interpreting general performance. The studies indicate that contractors can decrease risk by implementing particular project management procedures, thereby minimizing downstream issues and enhancing efficiency.
The report’s following overview includes seven project activity categories, including:
1. Problems found in construction documents
3. Change orders
6. Labor productivity
7. Quality and close-out
Project Management & Construction KPI Sample Template XLS
Project Management KPI Excel Template XLS is the simple visual representations of business KPIs to help Project Managers or team in making a decision about the achievement of business goals and objectives. It’s the best way of communicating the information about performance indicators to its targeted audience.