A kpi based performance measurement framework for Sri Lankan construction projects

Abstract

Performance issues such as schedule delays, cost overruns, reduced quality, which lead to economic losses are common in the Sri Lankan construction industry. This paper presents a performance measurement framework (PMF) for contractors in Sri Lanka. Considering the local context, Key Performance Indicator (KPI) based system was chosen. By analyzing over thirty PMFs developed in different countries and through a set of interviews, eight areas were identified to be the most critical. For these areas, a set of fifteen KPIs was developed. From the list of KPIs and areas, the most important ones were shortlisted using Analytic Hierarchy Process (AHP) method. The main contribution of the study lies in developing one of the first PMFs applicable to construction projects in Sri Lanka taking inputs from the industry using methods such as AHP. It is expected that this PMF will help improve the overall performance levels in the construction industry of Sri Lanka.