The Construction Industry KPIs:
the UK experience
Peter Cunningham
Director – Constructing Excellence
Copenhagen
21st April 2008
Agenda
• Background to the UK Construction Industry KPIs
• The UK Industry KPIs and how they are used
• KPIzone - the UK Construction Industry KPIs on-line
• Case study: Benchmarking in public sector frameworks
• KPI Services from Constructing Excellence
Background to the UK KPIs
Promoting industry change in the UK
1994 1998 2002 2006
Product
development
Production of
components
Project
implementation
Partnering
the
supply chain
Committed leadership
Focus on the customer
Product Team Integration
Quality driven agenda
Commitment to people
5 - Key Drivers for
Change
4 - Key Project
Processes
7 - Targets for
Improvement
Capital cost
Construction time
Predictability
Defects
Accidents
Productivity
Turnover & profits
-10%
-10%
+20%
-20%
-20%
+10%
+10%
The ‘Egan’ vision for change
Our purpose is to
Improve industry performance
The outcome will be
A demonstrably better built
environment
270 member organisationsClients, contractors, consultants and suppliers
KPIs: 1999 - 2006
2007
KPIzonethe UK KPIs on-line
Comprehensive database of all years‟ KPIs
KPI graphs for all major industry sectors
„My KPIs‟ management tools
Over 700 analyses of Industry Performance
Tutorial and best practice information
www.kpizone.com
The UK Industry KPIs
& how they are used
The KPI ‘Hierarchy’…
All
Construction
Specialist
Sector
+ +
++
+ +
+ +
Main uses of KPIs
• Company/project benchmarking
• Monitoring frameworks
• Meeting audit and QA requirements
• Monitoring Industry trends
• Comparison of Demonstration project performance
2007 UK Economic (All Construction) KPIs
• Client satisfaction:
– Product and service
• Defects
• Predictability:
– Cost and time
• Profitability
• Productivity
• Safety
• Construction cost
• Construction time
Client satisfaction – product
Scoring 8/10 or better
72% 73% 72% 73%78% 80%
83% 84% 82%
50%
60%
70%
80%
90%
100%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Client satisfaction – service
Scoring 8/10 or better
58%63% 63%
65%
71%74%
77%79%
75%
50%
60%
70%
80%
90%
100%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Defects
Scoring 8/10 or better
65%
53%58%
68% 68%72%
77%73%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007
Cost predictability
65% 64% 63% 63%65%
62% 63%
66%64%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Cost Predictability – design
37%
45%48%
50% 52%49% 48%
44%49%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Cost Predictability – construction
50%46%
48%52% 50%
48%45% 46%
30%
40%
50%
60%
70%
80%
2000 2001 2002 2003 2004 2005 2006 2007
Cost Predictability – project
% On cost or better
Time predictability
37%41%
46%
53%55%
52%57% 58%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Time Predictability – design
36%
42%44% 44% 46% 44%
58%
30%
40%
50%
60%
70%
80%
2000 2001 2002 2003 2004 2005 2006 2007
Time Predictability – project
% On time or better
34%
62%59%
61%59% 60%
62%60%
65%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Time Predictability – construction
Profitability: Median profit on turnover (%)
Profitability
4.4%5.1% 5.2% 5.4%
7.0%
8.1% 7.9% 8.2%
0.0%
2.5%
5.0%
7.5%
10.0%
2000 2001 2002 2003 2004 2005 2006 2007
Reportable accidents per 100k employed (Industry AIR)
Safety
Better
13541271
1318
1217
10971172
1023
901946
0
500
1000
1500
1999 2000 2001 2002 2003 2004 2005 2006 2007
Main uses of KPIs
• Company/project benchmarking
• Monitoring frameworks
• Meeting audit and QA requirements
• Monitoring Industry trends
• Comparison of Demonstration project performance
Showcasing innovation & best practice
• 612 Projects since 1998
- 386 Buildings & Estates and Infrastructure
- 226 Housing sector
• Value £12bn (12.5% of total industry value in 2007)
• 455 completed, 157 live and active
• Involvement of over 1400 organisations UK wide
• 132 case studies
• 60 associated reports and publications
Main demonstration themes 2008
• Fair payments
• Cross-authority co-operation
• Integrated teams
• CSR
• Logistics and supply development
• Integrated supply chains (to 3rd or 4th tier)
• Adding Value (focusing on buildings in operation)
• Sustainable training for sustainable communities
• Increasing innovation in the supply of new homes
• Design and customer satisfaction
• Improving existing stock
• The business case for health and safety
• Sustainability
Demonstration v Industry 2007CE 2007 Industry 2007 = 100
0
50
100
150
200
250 297
Demonstration v Industry 2007CE 2007 Industry 2007 = 100
0
50
100
150
200
250 297
Companies
House
Const
Products Assoc
Heath & Safety
Executive
Building Cost
Info Service
KPIOffice for
National StatsBSRIA
Dept for
Business RR
Investors
In People
KPI supply chain
KPI
graphsRelated
information
KPIzone.com
KPI
Database
All
Years
Se arch
M&E
Contractor
Data
collection
forms
KPI
Graphs
KPI
Calculator
Report
Results
KPI
Manual
UK Construction Industry KPIs - KPIzone
Select KPIs
Use KPIs
Menu of main
KPI groups
KPIs for your
role
Free search
for any KPIs
KPIzone features
Benchmark graphs for all major industry sectors:
– Economic
– Respect for People
– Environment
– Housing
– Non-housing
– Infrastructure
– M&E Contractors
– Construction Consultants
– Construction Products Industry
Free to
view area
KPIzone – the UK Construction Industry
KPIs on-line at www.kpizone.com
KPI
BuilderPay area
KPIzone – the UK Construction Industry
KPIs on-line at www.kpizone.com
“I‟m a
contractor”
Selecting relevant KPIs
Quality, cost, time…
“I must
benchmark my
waste”
All related
information
in 1 place
KPI
calculator
25
64%
2007
industry
KPI graph
KPIzone supplies all relevant information
25
64%
25m3/£100k
64%
36% are
better
than me
64% are
worse than
me
Simple benchmarking against any KPI
What about cost
predictability – excluding
the effect of client
changes?
Quality, cost, time, etc
Predictability costPredictability cost
(construction) –
excluding client
changes
-1%
78%
Predictability cost
Performance =
1% less than anticipated
78%
22%
better
than me
78% are
worse than
me
All related
information
in 1 place
KPI
calculator
Your
personal
set of KPIs
25
64%
Your
performance
record
Choice of
presentation
method
Choice of presentation method
Choice of presentation method
Choice of presentation method
My KPIs Handbook
Calculate KPIs
My KPIs Handbook
My KPIs Handbook
My KPIs Handbook
www.kpizone.com
Main uses of KPIs
• Company/project benchmarking
• Monitoring frameworks
• Meeting audit and Quality Assurance requirements
• Monitoring Industry trends
• Comparing Demonstration project performance
KPI Case Study: Benchmarking in
frameworks
• Local Government client; 4 year framework measuring:
– Client satisfaction – Product
– Client satisfaction – Service
– Defects
– Employee retention (equates to the national Staff Turnover KPI)
– Safety
Client Satisfaction Traffic Light analysis
Analysis by KPI
Analysis by Project
Analysis by subcontractor
Analysis of subcontractors by KPI
Analysis by Contractor
Overall Benchmark Score
User recognition
International links
• Helpdesk
• Executive briefing
• KPI Business Solutions
- consultancy service
• KPIZone website:
- Free area
- Subscription service
www.kpizone.com
Structured support from CE…
• Masterclasses
• In-house workshops
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