Building project performance evaluation model

Abstract

Building project performance evaluation is a novel research interest in performance measurement (PM) and it is the process of quantifying the efficiency and effectiveness of construction activities. The traditional view of PM highly relies on financial and accounting data, which gives only the past performance. Moreover, the construction industry has been always criticized for its under performance due to its uniqueness in nature. According to past researchers, there is lack of an appropriate PM system to improve construction performance. There is therefore a necessity for multi-dimensional approach to measure the building construction project performance. Past literature reveals that both balanced scorecard (BSC) and analytic hierarchy process (AHP) tools have been used in manufacturing industry for performance evaluation. This study therefore developed a multidimensional performance measurement model for building construction project performance evaluation by integrating BSC and AHP tools. Comprehensive literature review and preliminary survey approach were used to develop a novel extended BSC model, which comprises with six perspectives namely, Client, Financial, Internal business processes, Project team, Health, safety and environmental, and Innovation, learning and growth. Extended BSC model further comprises with key building project performance indicators (KBPPIs) in each perspective. Structured questionnaire survey was then conducted to collect data and AHP tool was used to analyze and prioritize BSC perspectives and KBPPIs. Survey findings revealed that client and financial perspectives have relatively two times higher important level than other perspectives in the model while, three times important than innovation, learning and growth perspective. In conclusion, this novel multi-dimensional performance measurement model can be duly applied by construction industry practitioners to optimize building performance.