Synthesising performance in the construction industry: an analysis of performance indicators to promote project improvement

Mellado, Felipe, Lou, Eric ORCID: https://orcid.org/0000-0001-7099-1426 and Correa Becerra, Christian L (2020) Synthesising performance in the construction industry: an analysis of performance indicators to promote project improvement. Engineering, Construction and Architectural Management, 27 (2). pp. 579-608. ISSN 0969-9988

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Abstract

Purpose: There is a long-standing interest in performance improvement within the construction industry. Approaches based upon cost, time and quality (often called the Iron Triangle), have been the focus of attention despite criticism of the validity of the Iron Triangle as a performance measure due to its simplistic approach. Furthermore, little emphasis has been placed on synthesising performance to understand whether this concept has evolved from the traditional view. An analysis of prominent literature was reviewed by classifying performance indicators which establish criteria for measuring performance in the construction industry. The purpose of this paper is to review the literature (1998-2018) on performance at a project level to determine a final rank of key performance indicators (KPIs) which will establish how projects are currently being measured. Design/methodology/approach: This paper uses a combined qualitative and quantitative approach - a comprehensive literature review on overall performance at a project level and the statistical Kendall’s W test to find concordance among the authors on performance in the construction industry to determine a final rank of KPIs. Findings The results demonstrate there is no congruent correlation on what performance is and the traditional iron triangle of “cost-time-quality” is still the preferred method of analysing performance, despite it being proven to be ineffective. Originality/value: Performance in the construction industry is an ambiguous concept that can be interpreted differently by the construction industry’s stakeholders. Despite this lack of concordance, a starting point on the definition of performance can be obtained from the literature. The paper presents a final rank of KPIs.