Performance Measurement Systems in Construction

In the manufacturing and construction industries, performance measurement is used as a systematic way of judging project performance by evaluating the inputs, outputs and the final project outcomes. However, very few companies systematically measure their performance in a holistic way. Moreover, the existing systems tend to focus more on product and less on process and design. This can lead to the suboptimal quality of the performance measurement system, the misjudging of relative performance, and to complacency and the denying of appropriate rewards to the deserving. Previous studies have revealed that performance measurements can be measured in terms of financial and non-financial measures, or the combination of both. When measurements are being implemented, contractors, consultants and the management team’s performances are blamed as the major reasons for the failure of a particular project. The other project stakeholders, such as client, suppliers, trade contractors and the community at large, are neglected. This paper reviews and synthesises some models for measuring construction performance that have been developed in the United Kingdom, USA, France, India, Hong Kong, Saudi Arabia and Malaysia. Based on this review and synthesis, the paper proposes the use of an ‘amalgamatedmodel’ of measurement approach that includes financial and nonfinancial indicators across project phases as a framework for measuring construction project performance.