Performance indicators in the construction industry: a study with Portuguese companies

A Barros,S Sousa,E Nunes

doi:10.1088/1757-899x/800/1/012008

A Barros, S Sousa + Show 1 more

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https://doi.org/10.1088/1757-899x/800/1/012008

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Abstract

This paper aims to study the use of performance indicators (PIs) by business managers in the civil construction sector in a region that encompasses eight districts located in the north of Portugal. Through the literature review, it was possible to gather a list of twenty potential PIs used in this sector. Subsequently, a questionnaire was applied to a sample of construction companies from this region. A statistical analysis of the data collected allowed to identify the twelve most used and most important PIs for the companies surveyed. The results indicate that the companies involved in this study mainly use the traditional financial measures, however, recognize that non-financial measures, namely the customer satisfaction index, employee satisfaction, internal customer satisfaction index, and the training of employees, are increasingly important for the success of companies. The study also analysis the criteria to select PIs, its main benefits, and difficulties faced by companies on their usage.

Highlights

The growth of business competitiveness in the construction industry (CI) sector has led companies to seek performance improvements to become more competitive and to meet their stakeholders’ needs [1]
This paper aims to study the use of performance indicators (PIs) by business managers in the civil construction sector in a region that encompasses eight districts located in the north of Portugal
The results indicate that the companies involved in this study mainly use the traditional financial measures, recognize that non-financial measures, namely the customer satisfaction index, employee satisfaction, internal customer satisfaction index, and the training of employees, are increasingly important for the success of companies

Summary

Introduction

The growth of business competitiveness in the construction industry (CI) sector has led companies to seek performance improvements to become more competitive and to meet their stakeholders’ needs [1]. For many companies, defining and using the most relevant performance indicators (PIs), which can support improvement initiatives, can still be a challenge [2]. [3] emphasizes that companies have difficulties in determining what to measure and how to measure. Tripathi and Jha [4] add that these difficulties are aggravated when it comes to construction companies, depending on the particularities and complexity of the sector. The main objective of this work is to identify gaps and improvement opportunities for the management processes of CI companies. The work will focus on the sub-sector of residential construction, in a region that encompasses eight districts located in the north of Portugal

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