Demonstrating a linkage between construction industry maturity and performance: a case study of Guyana and New Brunswick

Abstract

The goal of this study was to demonstrate a linkage between construction industry maturity and performance us- ing a newly developed maturity model, the Construction Industry Macro Maturity Model. This was achieved by measuring the maturity and performance of two construction industries, one being a perceived mature and good performing industry, which was the New Brunswick construction industry; and the other being a perceived immature and poor performing indus- try, which was the Guyana construction industry. Using data from these two construction industries, management ma- turity along with performance of a large sample of projects were measured. The management maturity of the New Brunswick construction industry was quantified as being approximately 88%, while the maturity of the Guyana construction industry was quantified as being approximately 58%. It was found that the New Brunswick construction industry was better performing than the Guyana construction industry, with respect to the metrics: cost predictability - construction, cost pre- dictability - tender award, and cost predictability - scope change. The basis of the demonstrated linkage between con- struction industry maturity and performance is that higher maturity results in more effective and consistent implementation of the industry's regulations and management practices, which translates to a greater level of achievement of project per- formance objectives. The assessment of the management maturity of the two construction industries provided a leading indicator of performance, while the implementation of the performance metrics provided a lagging or after-the-fact indi- cator of performance. In this regard, the use of maturity modelling in conjunction with project performance metrics appears to be a suitable framework to assess the performance of a region's construction industry.