Key Performance Indicators

Getting started on measuring and benchmarking has never been easier:

  • key performance indicators
  • benchmarking
  • resources to get started and make it work.

Key Performance Indicators (KPI)

KPIs measure the factors that are critical for success.

Remember in the ALLOCATING PROJECTS stage, you identified the project success factors? The challenge now is to find a way to measure each one.

KPIs are often shown graphically on a radar chart (see Appendix 7).


Benchmarking is a continuous process of comparing your performance against others, then using lessons from the best to make targeted improvements.

Assuming you have agreements with more than one contractor under you framework, you can use benchmarking to compare their performance, provide a means for them to learn from each other and then work towards increasingly challenging targets.


If you are new to KPIs or not sure how to get the most benefit for the minimum investment, read KPIs and benchmarking – best practice guide. This study of nine companies, which have successfully used KPIs in construction, recommends:

  • Believe in measurement.
  • Start simple.
  • Measure what’s important.
  • Communicate effectively – let the data speak.
  • Have clear responsibility, not bureaucracy.
  • Use appropriate technology.
  • Became a data-based decision maker.
  • Action, not data, drives improvement.
  • KPIs and partnering go together.

Many of the success factors can be measured using KPIs that have already been developed and tested. These are backed by data collected annually from many companies and are therefore ideal for benchmarking against the whole industry. You can get these from Constructing Excellence, via the KPIZone.

You will probably also need a few KPIs that are specific to your framework or project.

You are unlikely to have a balanced set of measures if you just measure the contractor’s performance. Consider also how to measure the success of the whole project team.
Above all, keep it simple with a manageable number of KPIs.

Case Studies

Here is a selection from the many case studies on KPIs produced by Constructing Excellence:

Continuous improvement – how to keep the momentum going
Derg team analysed – attitude and behaviour measurements, an early warning system
Measured partnering – the only way to know whether you are succeeding
Measurement tools for team, client and sponsor – Mace in partnership with Hertfordshire County Council
Using KPIs to manage multi-party agreements.

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