Development of a construction performance index in the construction industry: system dynamics modelling approach

Abstract

Being on competitive edge, many companies plan to enhance their work performance in different areas. It is important to capture causal relationships among the key factors and their interactions in the dynamics environment. This study utilizes the system dynamics (SD) modelling approach to develop the dynamics model of the construction performance index (CPI) to examine and improve the performance index, and progress through to higher performance maturity levels in the long-term. The study results show that the construction companies can progress through to higher levels of performance maturity with support from management level to improve time, cost, quality, safety and health, and client satisfaction. These, in turn, lead to better financial performance of the companies. The results also reveal the importance of the internal stakeholders in achieving higher CPI and maturity levels. Teamwork and good working environment are crucial in successfully implement the performance improvement plan. It is also found that to compete in the global market, the companies should include the environmental policies in their business plans to raise their performance standards in the long-term.