Construction sector performance measurement

Learning lessons and finding opportunities to enhance construction sector performance measurement.
New Zealand’s construction sector is a major contributor to the national economy and plays a significant role in delivering higher living standards for people living in this country. This research aims to identify ways the performance of the construction industry could be better measured to reflect the sector’s contribution to the country’s health, economic stability, security and social cohesion. It also sought to understand how a performance measurement system could be designed to help drive improvement in the sector.

The research draws on 8 case studies of international construction sectors and other industry sectors to inform the development of an effective construction sector performance measurement framework. 12 principles were identified across the case studies that are key to the development and implementation of an effective and sustainable sector performance measurement system.

Fundamentally, the principles demonstrate that it is vital there is agreement across the sector about the purpose and value of performance measurement and that sector members feel a sense of ownership of the measurement system. It is also important to facilitate and build capacity for sub-sector groups to take ownership of their own performance measurement and to design measurement systems that align to their drivers. Construction businesses need to be able to see cause and effect linkages between the data they collect, the actions they take, and the performance (profitability and long-term viability) outcomes for their business.

The key principles have contributed to the creation of a guide to sector performance measurement.

Sector performance measurement will be a long journey of creation and engagement that requires adaptation and innovation over time.

Key construction sector performance measurement principles

Construction sector performance measurement: Case studies

Each case study seeks to understand why performance is measured, how and what is measured, how the system is implemented, and how effective the system is at monitoring and driving performance improvement in the sector.

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