Construction KPIs, also known as construction key performance indicators, track the performance of the overall project. KPIs in a construction project assist in improving quality and decreasing unnecessary expenses.
KPIs also help in identifying the strengths and weaknesses in construction processes. In construction, using KPIs is an excellent way to measure success. Supervising a construction project, irrespective of its size involves various factors.
Tracking all these factors manually is not always feasible. Instead, project managers rely on construction KPIs to assess whether a project has been successful. While many project managers focus on tangible indicators like finances, there are other essential metrics to measure.
KPIs in construction also assist managers in complying with the stipulated budget. Here are the top construction KPIs for measuring success in building projects.
What are the Key Performance Indicators in Construction?
Key performance indicators in construction imply how well a project performs compared to its goals. Each construction manager may choose to track different KPIs. However, the most common KPIs in construction are as follows:
- Performance of the team
- Metrics related to the safety of the workers
- Employee satisfaction
- Quality of work
- Bid and take-off performance
- Working Capital
The construction industry is increasingly adopting construction management software to track these essential KPIs.
Working capital measures your construction company’s ability to pay short-term financial obligations. If your company has negative working capital, it means that they don’t have enough money to pay current bills. A construction business with negative working capital needs cash to operate efficiently.
Working in the construction industry involves significant physical risks and liabilities. Measuring the safety of a construction site is imperative to reduce occupational hazards. Any time an accident happens, it can cost a significant amount of time and money.
Moreover, your team will have to regain the momentum it once had. Safety issues can result in higher insurance premiums for your firm. Construction software, integrated with Building Information Modelling (BIM), can optimise safety on the site. Construction software also allows one to plan and visualise site logistics ahead of time.
Performance of the Entire Construction Team
The best way to optimise the performance of your team is to track complex data. One must understand how their team members contribute to the success of the project. Analysing your team’s performance will help you to comply with the set requirements and standards. The performance-specific KPIs for construction are:
- The total amount of waste generated on the construction site
- Total percentage of employee downtime
- Equipment downtime
- Average project revenue
Construction agencies exist to make a profit that they can reinvest. Therefore, net and gross profit margins are essential KPIs for every construction company. By tracking profit, you’ll be able to implement crucial decisions to optimise the project lifecycle.
Quality of Work
The overall quality of work is always a high priority for construction managers. Nowadays, no one wants to rework and waste their time in the construction industry. Quality of work is an essential KPI that you should always measure to optimise the overall project. Some other KPIs related to work quality are as follows:
- Total number of defects in the projects completed
- Number of defects associated with workmanship
- Customer satisfaction reports and ratings
- Overall time invested in reversing these defects
It is necessary to maintain a list of satisfied clients. But at the same time, you should prioritise employee satisfaction. By maintaining employee satisfaction levels, you can boost the morale of your staff members.
Employees who feel supported can adapt to challenging situations easily. In the construction industry, it is vital to maintain a list of motivated and satisfied employees. You can adhere to the timeline with highly motivated and skilled employees.
Bid and Take-Off Performance
A large part of your project’s success relies on generating precise and competitive bids. Implementing suitable adjustments will affect your bottom line positively. You should assess the performance of your purchasing and estimating teams to make your company successful.
Implementing better-informed business decisions with the help of construction KPIs will optimise your building projects. If you want to fine-tune project management in construction, opt for Signax. Solutions offered by Signax are BIM-integrated to offer you greater visibility.