Construction sector performance measurement: Learning lessons and finding opportunities
BRANZ Project LR12087, The Building Research Levy 2018/2019
Charlotte Brown, Puck Algera, Richard Ball, Rod Cameron, Sophie Horsfall, Eirini Konstantinou, Kirsten MacAskill, Joanne Stevenson
Executive summary
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. The Construction Sector Accord brings this role to the fore in its vision of “A high performing construction sector for a better New Zealand. The wellbeing of New Zealanders is supported by safe and durable homes, buildings and infrastructure, built by a productive, capable, resilient, and proud sector.”
Being able to track and demonstrate progress towards that vision is vital to ongoing commitment and belief in the vision by stakeholders inside and outside of the sector. An effective performance measurement system can 1) track progress over time; 2) identify issues or challenges; 3) inform policy and decisionmaking; 4) help to set measurable targets for performance improvement; and 5) help drive behavioural change amongst sector members.
With better performance data the sector will be better prepared to manage volatility and provide a more stable working environment for organisations. Increased stability will give confidence to construction sector organisations to invest in capability development and innovation. A more financially stable construction industry will be better placed to make improvements in environmental and social outcomes.
This research was commissioned by BRANZ. It draws on international and cross-sectoral learnings to inform development of an effective construction sector performance measurement framework. In particular this research aimed 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.
Sector measurement frameworks and practices within two international construction sectors and three other industry sectors in New Zealand were reviewed for the project:
• UK construction sector
• Australian construction sector
• New Zealand transport sector
• New Zealand education sector
• New Zealand agricultural sector.
Three other specific measurement frameworks were also reviewed:
• European construction sector observatory
• SCIRT (Stronger Christchurch Infrastructure Rebuild Team) performance framework
• A New Zealand property developer.
For more information about this research and a copy of the full report see our Construction Sector Performance Management project page.