This document discusses key performance indicators (KPIs) for benchmarking construction productivity. It describes several KPIs such as actual construction time vs expected time, remedial work for defects, accident frequency rates, contribution ratio, and labor productivity. Formulas and factors for calculating each KPI are provided. The KPIs are intended to measure productivity, identify reasons for inefficiencies, and help develop plans to improve construction project management and delivery.

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Identify non productive
items in the use of best
practices and project
management performance.
Identify reasons for lack of
productivity (root causes).

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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.

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Program- and department-level
input/process measures.
Assess the total resources provided
for all projects within a programme or
department.
Assess the degree to which
programme- and department-wide
goals for projects and their
management are met.

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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;

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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.

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If the work takes longer
than anticipated;
the KPI will be greater than
100%;
KPI will be less than 100%
if the work is completed
faster than anticipated.

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the KPI:

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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.

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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.

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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 .

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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.

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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

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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.

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Contribution ratio
Benchmarking System comprises
selected types of costs incurred by a
contracting company.
Earnings- KPIs are calculated on the
basis of a proportion of the total costs
incurred by a contracting company on
a contract.

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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

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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.

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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.

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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.

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The presentation of the
productivity indicators is carried
out at different levels such as:
sector
company
project and contract level.