2 year forecast year on year industry performance tracking
Glenigan conducts the surveys to deliver the Construction Key Performance Indicators (KPIs), in partnership with:
Download the 2012 UK Construction Industry KPI Report
Download the KPI presentation given by Allan Wilén
Download Case Studies in Performance Measurement by Mike Dickinson
Download An Overview of Measurement and Benchmarking by Roy Stewart
Download the Performance Measurement on the London Construction Programme by David Mulford
About the KPIs
The KPIs are used as a benchmark to improve client satisfaction and by government to measure the effectiveness of contractors. The collection and publication of the KPIs grew out of Sir John Egan's 1998 report 'Rethinking Construction'. The report was published in response to the sad state of the UK construction industry where projects were consistently over-budget, late, and short of client expectations. While initially focusing on cost and on-time performance, the KPIs have been expanded to include benchmarks for environmental performance, employee satisfaction, and project safety, to name just a few. Based on thousands of surveys of Contractors, Subcontractors, Consultants and their clients, these KPIs have been the definitive benchmarks of the UK construction industry since 2000. The complete suite of KPIs is available to subscribers at kpizone.com.
If you’ve been involved in a UK construction project in 2012 and would like to take part in a brief survey, please click one of the following links. If you are a Subcontractor please click here, for Consultants here and for Contractors here. The individual responses to these surveys will be treated in the strictest confidence and the aggregated responses will be used to produce Key Performance Indicators (KPIs) for the construction industry. These KPIs enable individual firms to benchmark their performance against that of other firms, and they also enable us to measure improvement across the industry through an annual Industry Performance Report.
The latest KPI report to be published can be found here.
2012 KPI Findings
The latest Construction Key Performance Indicators (KPIs), published at kpizone.com, cast a spotlight on how the industry has coped with challenging factors caused by the current recession.
Since their introduction 14 years ago, the Key Performance Indicators have charted a sustained improvement in the industry’s productivity, social responsibility and economic performance.
The Construction KPIs provide the benchmarks against which contractors demonstrate their track record to clients and win work. Strikingly, half of firms surveyed reported that over 79% of their turnover was attributable to repeat clients. KPIs are a valuable tool that can help firms across the industry to strengthen their ties with existing clients and secure profitable business. On average, client satisfaction is markedly higher on projects where KPIs have been deployed to monitor performance.
See examples below of what you will find in the FULL REPORT.
Exerts from the different sectors of the UK Construction Industry Key Performance Indicators 2012:
Clients ‘satisfaction with the finished product’ scored an 8 out of 10 or higher on 83% of surveyed projects, this is the slight decline on the record 87% achieved in 2010 and 2011. Clients with large products (those valued £5million or more) were less satisfied (79% scored eight out of ten or better) than those on small projects of less than £1million (84%).
Project Costs were on budget or better for 61% of projects; this is slightly down on the record 63% recorded in 2011, but substantially above the level achieved in any previous year. Design Costs came in on or under budget 79% of the time.
Industry profitability has continued to tumble, falling from 5% in the 2011 survey to 2.7% this year. This is the lowest level since the survey began and is in sharp contrast to the peak of 9.9% recorded in the 2009 survey. The progressive decline in profit margins charted by the last here surveys reflects the squeeze on contractors’ margins from falling tending prices.
in the latest survey with 63% of main contractors reporting a zero accident rate (the rate rises to 80% for contractors and sub-contractors). The official HSE statistics have also recorded a sustained improvement in the industry Accident Rate, which fell to 536 per 100,000 employees in 2010/11, a 7% reduction to the preceding year.
The number of employees qualified to NVQ level 2 or higher rose sharply to 66% almost twice the level seen in 2011.
Following a review we have now adopted a more quantities suite of environmental indicators KPIs. This year’s Environmental KPIs reveal strong improvement, especially in the areas of energy usage and waste reduction. Looking at product performance, the designed median use fell to 2000 kg CO2 per 100m2 of gross floor area. This is a 41% decline on 2011.
In 2012 overall client satisfaction was rated at 8 out of 10 or better by 75% of respondants. Clients rated consultants highest on small projects with a value under £1 million. Overal clients rated their satisfaction as 8 out of ten or more on 76% of small projects compared to 72% of larger projects of £5 million or more.
KPIs for client satisfaction of non-housing projects slipped back, but remained strong at 83%. Satisfaction with service, on the other hand, dropped to its lowest level since 2004. However the defects KPI improved, with 72% of clients rating the impact of defects at handover as 8 out of 10 or better.
Download the 2011 UK Construction Industry KPI Report
Download the KPI presentation given by Allan Wilén
Download the environmental KPI comments by Willmott Dixon
Download the KPI comments from Constructing Excellence