Download - Constructing Excellence

UK Construction Industry 

Key Performance Indicators 

Economic KPIs 

Methods of Measurement 

In Partnership with 

2006 

Based on Projects Completed in 2005

IMPORTANT NOTE: 

This document gives the methods of measurement for use 

with the 2006 UK Construction Industry Economic Key 

Performance Indicators. 

It should be used in conjunction with the 2006 UK Construction 

Industry Key Performance Indicators Handbook and Economic 

KPI Wallchart. 


Published by Constructing Excellence 

ISBN: 1-905033-17-6 

Construction Industry KPI Pack 2006/Housing KPI Toolkit 2006 

Electronic Copy 

© Crown Copyright 2006 

Published under licence from the Controller of Her Majesty's Stationery Office. 

Copyright in the typographic arrangement and design vests in the Crown. 

This document/publication is value added. If you wish to re-use, 

please apply for a Click-Use Licence for value added material at 

www.opsi.gov.uk/click-use/system/online/pLogin.asp. 

Alternatively applications can be sent to: Office of Public Sector Information, 

Information Policy Team, St Clements House, 2-16 Colegate, Norwich NR3 1BQ 

Fax: 01603 723000 e-mail: HMSOlicensing@cabinet-office.x.gsi.gov.uk 

2006 UK Economic KPIs - All Construction - Methods of Measurement

UK ECONOMIC KPIs 

METHODS OF MEASUREMENT 

Page No 

Key Performance Indicators 

4 Client Satisfaction - Product 

5 Client Satisfaction - Service 

6 Defects 

7 Predictability - Cost 

-Project 

- Design 

- Construction 

9 Predictability - Time 

-Project 

- Design 

- Construction 

11 Profitability 

12 Productivity 

13 Safety 

14 Construction Cost 

16 Construction Time 

Appendix 

19 KPI Data Collection Form 

Further Help and Information 

25 Constructing Excellence 


2 


This section contains the methods of measurement for the 

following Key Performance Indicators (KPIs). 

Client Satisfaction - Product 

Client Satisfaction - Service 

Defects 

Predictability - Cost 

Predictability -Time 

Profitability 

Productivity 

Safety 

Construction Cost 

Construction Time 

2006 UK Economic KPIs - All Construction - Methods of Measurement 3

CLIENT SATISFACTION - 

PRODUCT 

Purpose 

To determine the overall level of client satisfaction with the completed product. 

Definition 

How satisfied the client was with the finished product/facility, using a 1 to 10 scale, where: 

10 = Totally satisfied 

8 = Mostly satisfied 

5/6 = Neither satisfied nor dissatisfied 

3 = Mostly dissatisfied 

1 = Totally dissatisfied 

Method 

1 Carry out a survey on completion of the project to determine how satisfied the client was with 

the finished product/facility using the 1 to 10 scale above. 

2 The Client Satisfaction – Product performance is the client’s rating out of 10. 

3 Measure the benchmark score by plotting the performance on the Client Satisfaction – Product 

KPI graph. 

Example 

During a post-project review, the client scores satisfaction with the product at 8 out of 10. Using 

the Client Satisfaction - Product graph, the performance score of 8 equates to a benchmark score 

of 51%. 

Note 

This question may be asked as part of a more comprehensive survey or post-project review. 

4 


CLIENT SATISFACTION - 

SERVICE 

Purpose 

To determine the overall level of client satisfaction with the service of the consultants and main 

contractor during the project. 

Definition 

How satisfied the client was with the service of the consultants and main contractor, using 

a 1 to 10 scale, where: 

10 = Totally satisfied 

8 = Mostly satisfied 

5/6 = Neither satisfied nor dissatisfied 

3 = Mostly dissatisfied 

1 = Totally dissatisfied 

Method 

1 Carry out a survey on completion of the project to determine how satisfied the client was with 

the service of the consultants and main contractor using the 1 to 10 scale above. 

2 The Client Satisfaction – Service performance is the client’s rating out of 10. 

3 Measure the benchmark score by plotting the performance on the Client Satisfaction – Service 

KPI graph. 

Example 

During a post-project review, the client scores satisfaction with the service of the consultants and 

main contractor during the project at 6 out of 10. Using the Client Satisfaction - Service graph, the 

performance score of 6 equates to a benchmark score of 12%. 

Note 

This question may be asked as part of a more comprehensive survey or post-project review. 


DEFECTS 

Purpose 

To assess the impact on the client of any defects at the point of handover. 

Definition 

The condition of the product/facility with respect to defects at the time of handover, using a 1 to 10 

scale, where: 

10 = Defect-free 

8 = Some defects with no significant impact on client 

5/6 = Some defects with some impact on client 

3 = Major defects with major impact on client 

1 = Totally defective 

A defect is a fault which adversely affects the appearance or full intended function of the product. 

Point of handover is the time when ownership of the product is transferred from the main contractor 

to the commissioning client. 

Method 

1 Carry out a survey on completion of the project to determine the client’s assessment of the 

condition of the facility with respect to defects using the 1 to 10 scale above. 

2 The Defects performance is the client’s rating out of 10. 

3 Measure the benchmark score by plotting the performance on the Defects KPI graph. 

Example 

During the inspection at the point of handover, a small number of minor defects are discovered 

which can be corrected within the first month of use with minor disruption to the facility. The client 

scores the project 7 out of 10. Using the Defects graph, the performance score of 7 equates to a 

benchmark score of 23%. 

Note 

This question may be asked as part of a more comprehensive survey or post-project review 

6 


PREDICTABILITY - 

COST 

Purpose 

To measure the reliability of cost for a project. 

Definition 

There are three indicators for Predictability - Cost: project, design and construction: 

1 Project: actual cost of the combined design and construction process at Available for Use (C) 

less the anticipated cost of the combined design and construction process at Commit to 

Invest (A), expressed as a percentage of the anticipated cost of the combined design and 

construction process at Commit to Invest (A). 

2 Design: actual cost of the design process at Available for Use (C) less the anticipated cost of 

the design process at Commit to Invest (A), expressed as a percentage of the anticipated cost 

of the design process at Commit to Invest (A). 

3 Construction: actual cost of the construction process at Available for Use (C) less the 

anticipated cost of the construction process at Commit to Construct (B), expressed as a 

percentage of the anticipated cost of the construction process at Commit to Construct (B). 

Further information on Key Project Stages A, B and C is given in the Handbook in Step 2: Collect Data. 

Method 

1 Collect the following data for the project: 

• anticipated cost of the project at A 

• anticipated cost of design at A 

• anticipated cost of construction at B 

• actual cost of the project at C 

• actual cost of design at C 

• actual cost of construction at C. 

2 Calculate the Predictability – Cost performance, which is the percentage change between the 

later and earlier cost, using the appropriate formula: 

Performance (%) predictability cost: project = 

Actual project cost at C – Anticipated project cost at A 

Anticipated project cost at A 

x 100 

Performance (%) predictability cost: design = 

Actual design cost at C – Anticipated design cost at A 

Anticipated design cost at A 

x 100 

Performance (%) predictability cost: construction = 

Actual construction cost at C – Anticipated construction cost at B 

x 100 

Anticipated construction cost at B 

3 Measure the benchmark score by plotting the performance on the appropriate line of the 

Predictability - Cost KPI graph 



COST (contd.) 

Example 

Using the following data for a project: 

Estimated cost of project at A 

Final cost of project at C 

= £3,800k 

= £3,965k 

Tendered cost of design at A = £500k 

Final cost of design at C = £490k 

Tendered cost of construction at B 

Final cost of construction at C 

= £3,400k 

= £3,475k 

Indicator 1 

Predictability Cost: Project (A to C) performance = 

£3,965k – £3,800k 

£3,800k 

x 100 = +4% 

Using the Predictability - Cost (Project) graph to calculate a benchmark score, +4% equates to a 


Indicator 2 

£490k – £500k 

Predictability cost: design (A to C) performance = 

x 100 = –2% 

£500k 

Using the Predictability - Cost (Design) graph to calculate a benchmark score, -2% equates to a 


Indicator 3 

Predictability cost: construction (B to C) performance = 

£3,475k – £3,400k 

£3,400k 

x 100 = +2% 

Using the Predictability - Cost (Construction) graph to calculate a benchmark score, +2% equates to 

a benchmark score of 42%. 

Notes 

The anticipated design cost and construction cost should, where possible be the amounts of the 

respective accepted quotations/tenders, agreed target cost or agreed maximum price. 

The actual design cost and construction cost should where possible be the amounts of the 

respective final accounts. 

If these are not available the best available estimate should be used. 

Construction cost should include all work in the main contract and should only include site clearance 

and enabling work when this is included in the main contract. 

Those wishing to achieve on cost delivery as opposed to cost savings should use the above method 

but calculate the benchmark score using the Variance Cost Graph contained in the Additional 

Performance Indicators book in the KPI Pack. 

8 



TIME 

Purpose 

To measure the reliability of time for a project. 

Definition 

There are three indicators for Predictability - Time: project, design and construction: 

1 Project: actual duration of the combined design and construction process at Available for Use 

(C) less the anticipated duration of the combined design and construction process at Commit 

to Invest (A), expressed as a percentage of the anticipated duration of the combined design 

and construction process at Commit to Invest (A). 

2 Design: actual duration of the design process at Commit to Construct (B) less the anticipated 

duration of the design process at Commit to Invest (A), expressed as a percentage of the 

anticipated duration of the design process at Commit to Invest (A). 

3 Construction: actual duration of the construction process at Available for Use (C) less the 

anticipated duration of the construction process at Commit to Construct (B), expressed as a 

percentage of the anticipated duration of the construction process at Commit to Construct (B). 

Further information on Key Project Stages A, B and C is given in the Handbook in Step 2: Collect Data. 

Method 

1 Collect the following data for the project: 

• anticipated duration of the project at A 

• anticipated duration of design at A 

• anticipated duration of construction at B 

• actual duration of design at B 

• actual duration of the project at C 

• actual duration of construction at C. 

2 Calculate the Predictability – Time performance which is the percentage change between the 

anticipated and actual duration, using the appropriate formula: 

Performance (%) predictability time: project = 

Actual project time at C – Anticipated project time at A 

Anticipated project time at A 

x 100 

Performance (%) predictability time: design = 

Actual design time at B – Anticipated design time at A 

Anticipated design time at A 

x 100 

Performance (%) predictability time: construction = 

Actual construction time at C – Anticipated construction time at B 

Anticipated construction time at B 

x 100 

3 Measure the benchmark score by plotting the performance on the appropriate line of the 

Predictability - Time KPI graph 



TIME (contd.) 

Example 

Using the following data for a project: 

Estimated project time at A 

Actual project time at B 

Design contract period at A 

Actual design time at B 

Construction contract period at B 

Actual construction period at C 

= 104 weeks 

= 109 weeks 

= 60 weeks 

= 68 weeks 

= 56 weeks 

= 60 weeks 

Indicator 1 

109 weeks – 104 weeks 

Predictability time: Project (A to C) performance = 

x 100 = +5% 

104 weeks 

Using the Predictability - Time (Project) graph to calculate a benchmark score, +5% equates to a 


Indicator 2 


Predictability Time: Design (A to B) performance = 

x 100 = +13% 

60 weeks 

Using the Predictability - Time (Design) graph to calculate a benchmark score, +13% equates to a 


Indicator 3 


Predictability Time: Construction (B to C) performance = 

x 100 = +7% 

56 weeks 

Using the Predictability - Time (Construction) graph to calculate a benchmark score, +7% equates to 

a benchmark score of 31%. 

Notes 

The anticipated design time and construction time should, where possible be the amount of time 

stated in the respective accepted quotations/tenders. 

The actual design time and construction time should where possible be the amount of time elapsed 

between commence on site and completion of the project. 

If these are not available the best estimate should be used. 

Construction time should include all work in the main contract and should only include site clearance 

and enabling work when this is included in the main contract. 

Those wishing to achieve on time delivery as opposed to time savings should use the above method 

but calculate the benchmark score using the Variance Time Graph contained in the Additional 

Performance Indicators Book in the KPI Pack. 

10 


PROFITABILITY 

Purpose 

To measure the profitability of a construction company before tax and interest. 

Definition 

Company profit before tax and interest as a percentage of sales. 

Method 

1 Collect the following information for a company for a complete year: 

• value of profit before tax and interest 

• value of sales. 

2 Calculate the Profitability performance using the formula: 

Performance (%) profitability = 

Profit before tax and interest 

Value of sales 

x 100 

3 Measure the benchmark score by plotting the performance on the Profitability KPI graph. 

Example 

Using the following data for a company: 

Profit before tax and interest 

= £2.10m 

Value of sales = £30m 

Profitability performance (%) = 

£2.10m 

£30m 

x 100 = +7.0% 

Using the Profitability graph to calculate a benchmark score, +7.0% equates to a benchmark score 

of 47%. 

Note 

Organisations wishing to calculate profitability at a project rather than company level should refer to 

the method given in the Handbook under Further Help and Information. 


PRODUCTIVITY 

Purpose 

To determine the value-added per employee of a construction company. 

Definition 

Company value added per employee per year (£). 

Method 

1 Collect the following information for a company for a complete year: 

• value of sales 

• total value of sub-contracted services 

• total value of goods supplied 

• the average number of full-time equivalent employees. 

Two people each working half-time make one full-time equivalent employee. 

2 Calculate the Productivity performance using the formula: 

Performance (£) = 

Value of sales in the year - total value of sub-contracted services - total value of goods supplied 

Average number of full-time equivalent employees in the year 

3 Measure the benchmark score by plotting the performance on the Productivity KPI graph. 

Example 

Using the following data for a company: 

Value of sales in the year = £30m 

Total value of sub-contracted services = £10m 

Total value of goods supplied = £12m 

Average number of full-time equivalent employees in the year = 280 

£30m – £10m – £12m 

Productivity performance = = £28,571 

280 

Using the Productivity graph to calculate a benchmark score, £28,571 equates to a benchmark score 

of 33%. 

Note 

Organisations wishing to calculate Productivity at a project rather than company level should refer to 

the method given in the Handbook under Further Help and Information. 

12 


SAFETY 

Purpose 

To measure a company’s safety performance. 

Definition 

Reportable accidents per 100,000 employed by the company per year – the Accident Incidence 

Rate (AIR). 

Reportable accidents are defined by HSE as fatalities, major injuries, and over 3 day accidents to 

employees, self-employed and members of the public. 

Two people each working half time for the year are equivalent to one person employed. 

Method 

1 Collect the following data for the company for a complete year: 

• the number of reportable accidents. On a properly managed site, details of all accidents will 

be recorded in the accident book 

• the average number employed by the company, including self-employed 

and sub-contractors. 

2 Calculate the Safety performance using the formula: 

Performance (AIR) safety = 

Number of reportable accidents in the year 

Average number employed in the year including self-employed and sub-contractors 

x 100,000 

3 Measure the benchmark score by plotting the performance on the ‘All Companies’ or the 

‘Companies with turnover greater than £10m’ line on the Safety KPI graph as appropriate. 

Example 

A company with an annual turnover greater than £10m collects the following data on its safety 

performance: 

Number of reportable accidents in the year = 5 

Average number directly employed in the year = 72 

Average number of sub-contractors employed in the year = 558 

Safety performance (AIR) = 

5 

72 + 558 

x 100,000 = 794 

Using the ‘Companies with Turnover Greater than £10m’ line on the Safety graph to calculate 

a benchmark score, the AIR of 794 equates to a benchmark score of 61%. 

Notes 

The Health and Safety Executive estimated that only 50% of reportable accidents are actually reported. 

The Safety KPI graph has been adjusted to take account of this. 

AIR makes no allowance for variations such as part-time work or overtime. Many organisations measure 

accidents per 100,000 hours worked (the Accident Frequency Rate, or AFR), which takes into account 

variations in working hours. A method of converting AIR to AFR is given in the Handbook under Further 

Help and Information. 

Companies wishing to calculate Safety at a project rather than company level should use the formula 

given in the Handbook under Further Help and Information. 


CONSTRUCTION COST 

Purpose 

To measure the change in real cost of construction from one year to the next. 

If two identical structures were built in successive years, the Construction Cost KPI shows how much 

the construction costs have changed in the year. 

It is unusual to have two identical structures, so data from similar projects has to be normalised to 

enable comparison to be made. Normalisation is the statistical method of removing the effects of 

specification, location, function, size and inflation. 

Definition 

The normalised construction cost of a project in the current year, less the construction cost of a 

similar project one year earlier, expressed as a percentage of the construction cost of the similar 

project one year earlier. 

Method 

There are two methods of measuring Construction Cost. Method 1 is a simple ‘rule of thumb’ which 

may be used as a quick and approximate method. Method 2 is more complex, more reliable, and 

most accurately follows the method used to produce the published KPI graphs. 

Method 1 

(‘rule of 

thumb’) 

The following ‘rule of thumb’ method of measurement may be used in place of the more complex 

‘accurate method’ (Method 2). The tender price referred to below can be either for the whole facility 

or can be a unit rate (e.g. cost per m 2 of the facility). 

1 Collect the following data: 

• tender price for the current project (TP1) 

• tender price for comparison project (one year earlier) (TP2). 

2 Calculate the following for the current project: 

• the percentage adjustment for specification differences from the previous year’s 

project (Spec %) 

• the percentage adjustment for location difference from the previous year’s project (Loc %) 

• the percentage adjustment for resource cost inflation since the previous year’s project (Inf %). 

3 Calculate the Construction Cost performance using the formula: 

(((TP1 +/- Spec %) +/- Loc %) +/- Inf %) – TP2 

Performance (%) = 

TP2 

x 100 

4 Measure the benchmark score by plotting the performance on the Construction Cost KPI graph. 

Example 

(Method 1) 

Calculation of Construction Cost using data from two office building projects. 

Current project: 

Tender Price = £930/ m 2 

Specification 

Location 

Resource Cost Inflation 

= Calculated at 5% higher than comparison project 



Comparison project (constructed a year earlier): 

Tender Price = £805/ m 2 

Construction Cost performance = 

(((£930 – 5%) – 8%) – 3%) – £805 

£805 

x 100 = –2.0% 

14 


CONSTRUCTION COST (contd.) 

Example 

(Method 1) 

(contd.) 

Method 2 

(accurate) 

Using the Construction Cost graph to calculate a benchmark score, -2% equates to a benchmark 

score of 53%. 

1 Collect the following data for the both the current project and the comparison project 

(one year earlier): 

• project tender price index. This may be obtained from DTI or BCIS. 

• the location factor (if applicable) from tables published by DTI or BCIS 

• the resource cost index from tables published by DTI or BCIS 

• the size factor (where available) from tables published by DTI or BCIS 

The data needed to normalise a project is published quarterly by DTI and BCIS (see the Further 

Help and Information section of the Handbook). 

2 Calculate the capital cost index (CCI) for both projects using the formula: 

Project Capital Cost Index = 

(CCI) 

Tender Price Index 

Location Factor x Function Factor x Size Factor 

x 

100 

Resource Cost Index 

3 Calculate the Construction Cost performance using the formula: 

Performance (%) construction cost = 

Current Project CCI – Previous Project CCI 

Previous Project CCI 

x 100 

4 Measure the benchmark score by plotting the performance on the Construction Cost KPI graph. 

Example 

(Method 2) 

Calculation of a project Capital Cost Index for a £20m new build road construction project in the south 

east of England (whose calculated tender price index is 110 in the first quarter of the current year) using 

adjustment factors contained in the tables published in DTI’s Quarterly Building Price and Cost Indices: 

Tender Price Index = 110 (calculated) 

Location Factor = 1.09 (from Table 7.4) 

Function Factor = 0.99 (from Table 8.2) 

Size Factor = 0.92 (from Table 9.2) 

Resource Cost Index = 108 (from Table 12.2) 

Capital Cost Index = 

110 

1.09 x 0.99 x 0.92 

x 

100 

108 = 103 

If an equivalent calculation, carried out for a similar project in the previous year, had provided a Project 

Capital Cost Index of 105, then the Construction Cost performance (change in real cost of construction) 

between these two projects would be: 

103 – 105 

Construction Cost performance = x 100 = –1.9% 

105 

Using the Construction Cost graph to calculate a benchmark score, -1.9% equates to a benchmark 

score of 53%. 

2006 UK Economic KPIs - All Construction - Methods of Measurement 

15

CONSTRUCTION TIME 

Purpose 

To measure the change in construction time from one year to the next. 

If two identical structures were built in successive years, the Construction Time KPI shows how much 

the construction times have changed in the year. 

It is unusual to have two identical structures, so data from similar projects has to be normalised to 

enable comparison to be made. Normalisation is the statistical method of removing the effects of 

specification, location, function, size and inflation. 

Definition 

The normalised time to construct a project in the current year, less the time to construct a similar 

project one year earlier, expressed as a percentage of the time to construct a similar project one 

year earlier. 

Method 

There are two methods of measuring Construction Time. Method 1 is a simple ‘rule of thumb’ which 

may be used as a quick and approximate method. Method 2 is more complex, more reliable, and most 

accurately follows the method used to produce the published KPI graphs. 

Method 1 

(‘rule of 

thumb’) 

1 Collect the following data: 

• contract period for the current project (CP1) 

• contract period for the comparison project (one year earlier) (CP2). 

2 Calculate the following for the current project: 

• the percentage adjustment that needs to be made to time due to specification differences 

from the previous year’s project (Spec %) 

• the percentage adjustment that needs to be made to time due to the size difference from 

the previous year’s project (Size %). 

3 Calculate the Construction Time performance using the formula: 

Performance (%) = 

((CP1 +/- Spec %) +/- Size %) – CP2 

CP2 

x 100 

4 Measure the benchmark score by plotting the performance on the Construction Time KPI graph. 

Example 

(Method 1) 

Calculation of Construction Time using data from two office building projects. 

Current project: 

Contract period 

Specification 

Size 

= 67 weeks 

= Calculated at 8% higher than the comparison project 

= Calculated at 10% smaller than the comparison project 

Comparison project (constructed a year earlier): 

Contract period 

Construction Time performance = 

= 71 weeks 

((67 weeks – 8%) + 10%) – 71 weeks 

71 weeks 

x 100 = –4.5% 

Using the Construction Time graph to calculate a benchmark score, -4.5% equates to a benchmark 

score of 58%. 

16 


CONSTRUCTION TIME (contd.) 

Method 2 

(accurate) 

1 Collect the following data for the both the current project and the comparison project 

(one year earlier): 

• contract sum (CS) 

• contract period (CP) 

• the location factor (LF), if applicable, from tables published by DTI or BCIS 

• the function factor (FF), if applicable, from tables published by DTI or BCIS 

• the size factor (SF), where available, from tables published by DTI or BCIS 

• project tender price index (TPI). This may be obtained from DTI or BCIS. 

The data needed to normalise a project is published quarterly by DTI and BCIS (see the Further 

Help and Information section of the Handbook). 

2 Calculate the Construction Time Factor (CTF) for both projects using the formula: 

CTF = 

CP ÷ 

CS (£000s) 100 

( 

x 

) 

LF x FF x SF 

3 Calculate the Construction Time performance using the formula: 

TPI 

Current Project CTF – Comparison Project CTF 

Performance (%) = x 100 

Comparison Project CTF 

4 Measure the benchmark score by plotting the performance on the Construction Time KPI graph. 

Example 

(Method 2) 

Calculation of a project Construction Time Factor for a new factory project built in the first quarter of 

the current year in the south east of England using the tables published in DTI’s Quarterly Building 

Price and Cost Indices: 

Contract Period 

= 15 months 

Contract Sum 

= £5,000k 

Location Factor = 1.03 (from Table 2.4) 

Function Factor = 1.00 (from Table 3.4) 

Size Factor 

= Not applicable 

Tender Price Index = 108 (from Table 1.3) 

( ) 

5,000 100 

Construction Time Factor = 15 ÷ x = 0.00334 

1.03 x 1.00 x NA 108 

If a similar calculation, carried out for an equivalent project in the previous year, had provided a 

Construction Time Factor 0.00347, then the Construction Time performance (change in time for 

construction) between these two projects would be: 

0.00334 – 0.00347 

Construction Time performance = x 100 = –3.7% 

0.00347 

Using the Construction Time graph to calculate a benchmark score, -3.7% equates to a benchmark 

score of 44%. 


18 


ECONOMIC KPI 

DATA COLLECTION FORM (Page 1 of 5) 

Company/Project Name 

Data collected by 

Date 

KPI Data Result 

Client Satisfaction How satisfied was the client with the quality of the finished 

– Product product, using a 1-10 scale: 

Totally 

dissatisfied 

Mostly 

dissatisfied 

Neither satisfied 

nor dissatisfied 

Mostly 

satisfied 

Totally 

satisfied 

1 2 3 4 5 6 7 8 9 10 

Client Satisfaction How satisfied was the client with the service provided by the 

– Service consultants and main contractor, using a 1-10 scale: 

Totally 

dissatisfied 

Mostly 

dissatisfied 

Neither satisfied 

nor dissatisfied 

Mostly 

satisfied 

Totally 

satisfied 

1 2 3 4 5 6 7 8 9 10 

Defects 

What was the condition of the facility with respect to defects at the 

time of handover, using a 1-10 scale: 

Totally 

defective 

Major defects, 

major impact 

on Client 

Some defects, with 

some impact 

on Client 

Some defects, 

with no significant 

impact on Client 

Defect free 

1 2 3 4 5 6 7 8 9 10 

Predictability 

What was the estimated cost of design and construction at Commit to Invest 

– Cost (Project) (i.e. when the project was originally sanctioned)? 

£______________________(A) 

What was the final cost of design and construction at Available for Use? 

£______________________(C) 

Calculate 

£C________ - £A________ 

£A________ 

x 100 

+ – 

% 


ECONOMIC KPI 



Predictability What was the estimated cost of design at Commit to Invest 

– Cost (Design) (i.e. when the project was originally sanctioned)? 

£______________________(A) 

What was the final cost of design at Available for Use? 

£______________________(C) 

Calculate 

£C________ - £A________ 

£A________ 

x 100 

+ – 

% 

Predictability What was the estimated cost of construction at Commit to Construct 

– Cost (e.g. the tender sum)? 

(Construction) 

£______________________(B) 

What was the final cost of construction at Available for Use 

(e.g. the contractor’s final account)? 

£______________________(C) 

Calculate 

£C________ - £B________ 

£B________ 

x 100 

+ – 

% 

Predictability What was the estimated duration of the design and construction at 

– Time (Project) Commit to Invest (i.e. when the project was originally sanctioned)? 

Weeks_________________(A) 

What was the actual duration of the design and construction at 

Available for Use? 

Weeks_________________(C) 

Calculate 

C________ - A________ 

A________ 

x 100 

+ – 

% 

Predictability What was the estimated duration of the design phase at Commit to 

– Time (Design) Invest (i.e. when the project was originally sanctioned)? 

Weeks_________________(A) 

What was the actual duration of the design phase at Commit to 

Construct (i.e. when construction actually commenced)? 

Weeks_________________(B) 

Calculate 

B________ - A________ 

A________ 

x 100 

+ – 

% 

20 


ECONOMIC KPI 



Predictability What was the estimated duration of the construction phase at 

– Time Commit to Construct (e.g. the contract period)? 

(Construction) 

Weeks_________________(B) 

What was the actual duration of the construction period Available 

for Use? 

Weeks_________________(C) 

Calculate 

C________ - B________ 

B________ 

x 100 

+ – 

% 

Safety 

(Accident 

Incidence Rate) 

How many reportable accidents have you had in the past year 

(i.e. fatalities, major injuries, and over 3 day accidents to employees, 

your sub-contractors and members of the public)? 

Number________________(A) 

What was the average number of full-time equivalent employees you 

had in the year? (2 people each working half-time make 1 full-time 

equivalent) 

Number________________(B) 

How many sub-contractors did you employ on average during the year? 

Number________________(C) 

Calculate 

A________ 

B________ +C________ 

x 100,000 

Productivity 

What was the value of sales last year? 

£________________(A) 

What was the total value of sub-contracted services last year? 

£________________(B) 

What was the total value of goods supplied last year? 

£________________(C) 

What was the number of full-time equivalent employees last year? 

£________________(D) 

Calculate 

£A_______ -£B_______ -£C_______ 

D_______ 

£ 


ECONOMIC KPI 



Profitability 

What was the profit before interest and tax last year? 

£______________________(A) 

What was the value of sales last year? 

£______________________(B) 

Calculate: 

£A________ 

£B________ 

x 100 

+ – 

% 

Construction Cost 

The calculations for Construction Cost are complex – refer to the 

Methods of Measurement. 

Select a typical project completed a year ago. What was the 

tender price? 

£______________________(A) 

Select a similar project completed recently. What was the tender price? 

£______________________(B) 

What adjustment needs to be applied to the most recent project to 

allow for specification differences between them? 

Plus/Minus___________%(C) 

(Note: If specification this year is higher, the correction should be 

minus to bring this year in line with last year). 

What adjustment needs to be applied to allow for location 

differences between them? 

Plus/Minus___________%(D) 

(Note: If location this year is more expensive, the correction should 

be minus to bring this year in line with last year). 

What adjustment needs to be made to allow for inflation between 

them? 

Plus/Minus___________%(E) 

(Note: If inflation this year is higher, the correction should be minus 

to bring this year in line with last year). 

Calculate: (((B______ +C______) +D______) +E______) – A______ 

A______ 

x 100 

+ – 

% 

22 


ECONOMIC KPI 



Construction Time 

The calculations for Construction Time are complex – refer to the 

Methods of Measurement. 

Select a typical project completed a year ago. What was the 

contract period? 

______________________(A) 

Select a similar project completed recently. What was the contract period? 

£______________________(B) 

What adjustment needs to be applied to the most recent project to 

allow for specification differences between them? 

Plus/Minus___________%(C) 

(Note: If specification this year is higher, the correction should be 

minus to bring this year in line with last year). 

What adjustment needs to be applied to allow for location 

differences between them? 

Plus/Minus___________%(D) 

(Note: If inflation this year is higher, the correction should be minus 

to bring this year in line with last year). 

Calculate: (((B______ +/-C)______+/-D)______) – A______ 

A______ 

x 100% 

+ – 

% 

Now you have obtained your performance results, calculate your 

benchmark scores and plot a radar chart. 


24 


CONSTRUCTING EXCELLENCE 

Constructing Excellence provides a range of services to help implement KPIs: 

Helpdesk 

A direct point of contact to answer initial enquiries 

about KPIs. Tel 0845 605 55 56 

The KPI Pack 

A source of comprehensive information for 

organisations wishing to use KPIs. 

The Housing KPI Toolkit 

Vital information for using KPIs in the housing sector. 

KPIZone 

A website dedicated to KPIs. Visit www.kpizone.com 

for free information on KPIs and benchmarking clubs. 

KPIZone also has a subscription service from which you 

can download the information contained in the KPI Pack 

and Housing KPI Toolkit. 

KPI Masterclasses 

An introduction to the benefits and use of the 

Construction Industry KPIs. Each Masterclass 

explores the importance of measuring performance 

with the help of practical examples, a step by step 

guide to their use, and presentations by organisations 

that have successfully implemented KPIs. 

Website 

An extensive database of best practice activities, 

information and resources is available on 

www.constructingexcellence.org.uk . 

At Constructing Excellence we bring distinctive value to our customers’ businesses 

through six core activities: 

Innovation and Research: 

Members shape and take part in Constructing 

Excellence’s research programme, from major action 

research projects to working groups and confidential 

learning clubs. 

Measurement and Diagnostics: 

Constructing Excellence has led the way in industry 

performance measurement, with diagnostic tools 

central to its activities. Members receive: 

• Complimentary KPI pack 

• Complimentary introductory Explorer 

Interactive TM business diagnostic session 

• 20% discount on KPI Masterclasses. 

Tailored Services for Business 

Improvement: 

Constructing Excellence is able to offer members 

consultancy tailored to their business requirements. This 

service includes free or discounted access to Constructing 

Excellence publications, and discounts on facilitation and 

mentoring services and conferences. 

Business-to-Business Networks: 

Existing members see real benefits in these networks, 

meeting with other like minded individuals and 

companies, building relationships, sharing best practice 

and developing business contacts. 

Showcasing and Exemplars: 

One of the key benefits of membership is being able to 

demonstrate participation to key stakeholders such as 

customers, employees, suppliers and investors. 

Constructing Excellence provides members: 

• Opportunities to showcase projects 

• Opportunities to share and learn from 

members’ exemplars 

• Invitations to speak as an acknowledged industry 

leader at Constructing Excellence events. 

Leadership and Influence: 

Constructing Excellence works closely with government, 

strategic partners, firms and influencer organisations to 

shape the future of the sector. Members have the chance 

to take an active role in influencing Government priorities 

and to have input into the formation of future policy at 

regular forums and conferences. 


Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP 

0845 605 55 56 

(calls charged at local rate) 

email: helpdesk@constructingexcellence.org.uk 

www.constructingexcellence.org.uk 



Warwick House 

25 Buckingham Palace Road 

London 

SW1W 0PP 

Tel: 0845 605 55 56 

Fax: 020 7592 1101 

E-mail: helpdesk@constructingexcellence.org.uk 

Website: www.constructingexcellence.org.uk 


Published by Constructing Excellence 

ISBN: 1-905033-17-6 

Construction Industry KPI Pack 2006/Housing KPI Toolkit 2006 

Electronic Copy

Download - Constructing Excellence

Create successful ePaper yourself

Delete template?

Save as template?