THE KEY PERFORMANCE INDICATORS OF CONSTRUCTION

Transcription

THE KEYPERFORMANCEINDICATORS OFCONSTRUCTIONSee Ahead Think Ahead Stay AheadResearch conducted in collaborationwith Dodge Data & Analytics

Introduction 7 KPIs of Construction1. Problems Discovered in Construction Documentation2. Logging RFIs & Responses3. Documenting Change Orders4. Updating the Project Schedule5. Software for Safety & Inspections6. Labor Productivity7. Quality & Close-Out Let’s Compare: KPIs Side-by-Side Conclusion

INTRODUCTIONMany companies use key performanceindicators (KPIs) to gauge and compareperformance in terms of meeting bothstrategic and operational goals. However,the construction industry as a whole lacksobjective benchmarks, or a way to measureexcellence across the industry. The aim ofthis eBook is to outline simple KPIs thatcompanies of all sizes can start capturingtoday by using technology that digitizesthis information and collects it in a centralarea. The comprehensive analysis of thisdata across the industry will help improveprocesses and lead to better performance andproject delivery.One reason for the absence of industrybenchmarks is the lack of centralizeddata necessary to establish standards.All contractors using digital technologyto manage their construction projects aregenerating data and information; however,many say they lack a single place toaggregate that information and knowledgeof how to use it in a meaningful way. Havingthe ability to analyze data, such as projectinformation around requests for information(RFIs) and change orders, not only providesuseful context, but also enables contractorsto understand patterns of issues in theirbuilding processes.Autodesk commissioned a study with DodgeData and Analytics to survey more than 200contractors and trade professionals in orderto identify and analyze current processesfor planning and executing projects. Thestudy revealed seven key process indicatorsthat companies say are especially useful tointerpret overall performance. The findingssuggest that by adopting specific processesfor project management, contractors canreduce risk, thus minimizing downstreamproblems and improving performance. Thefollowing summary of the report covers sevencategories of project activities, including:1.Problems discovered in constructiondocuments2.RFIs3. Change orders4. Schedule5. Safety/Inspections6. Labor productivity7.Quality and close-outRead the key findings and see how yourcompany measures up.AUTODESK THE KPIS OF CONSTRUCTION 3

7 KPIs ofConstruction

1 PROBLEMS DISCOVERED INCONSTRUCTION DOCUMENTS54%In this section, we look at the frequency, value, and difficulties related toerrors, omissions, and/or constructability issues discovered in the bid set ofconstruction documents in order to understand how many contractors arecapturing this information and how frequently. More importantly, we look atreporting and how this information is being compared against past similarprojects and used to conduct risk reduction activities.54% frequently* capture errorsomissions and constructabilityissues discovered during the ‘bidset’ of construction documents.NOTABLE STATS: Of those respondents who are capturing errors, omissions, andconstructability issues and comparing them to past projects, 66% are usingthe findings to mitigate risk on future ones. While it’s important to capture issues on current projects, it’s equallycritical to set up standard processes to compare them to past projects. Why aren’t companies recording this data? Just over 50% of generalcontractors (44% of trades) said the biggest obstacle to capturing thisinformation is how time-consuming or expensive it is, and about onequarter feel they don’t have an easy way to do it. However, only 14% of all respondents who are frequently capturing thisinformation on more than half of their projects reported a high/veryhigh degree of difficulty doing so. It seems that once companies get pastthose initial barriers of cost and adoption, capturing and reporting thisinformation in a succinct way becomes part of their standard operatingprocedure.47%Only 47% of respondents frequentlycompare errors, omissionsand constructability issues inconstruction documents to pastprojects.Of those capturingand comparingGC/CMSTRADES55%36%*Frequently on over 50% of their projectsAUTODESK THE KPIS OF CONSTRUCTION 5

3 2LOGGING RFIS & RESPONSESThe questionsfindings ininthisthissectionsectionaddresssoughttheto determinecollection howand documentationfrequently respondentsof changelogRFIs andorders,responsesincludingand turnaroundhow that informationtime, root causeis beingevaluation,comparedandto pastschedulesimilarprojectsimpact.and used to conduct proactive risk reduction.NOTABLE STATS: 73% of respondents are logging RFIs and responses on over half of theirprojects. Trade contractors more frequently report RFIs to senior management aspotential sources of risk, at 75%, versus 64% of general contractors. Contractors not digitally logging RFIs and responses see the value init, but they find that the obstacles, such as difficulty in adopting andcost of investing, prevent them from implementing the technology andprocesses to support these activities.A study conducted by SMACNA, Making RFIs More Effective, noted thatdesign-build projects where the general contractor closely collaborateswith engineers and architects tend to have far fewer RFIs and resultantchange orders. This is mostly seen in GMP where design intent iscommunicated, but contractors and trades have freedom to design formaximum productivity outcome.73%frequently create a log ofRFIs and responses.Only 30% are comparing RFIdata from past projects36% are TradeContractors26% are GeneralContractorsUsing historical data to identify the root cause of the RFI and measuringtime to receive a response can help contractors see where the potentialbreakdowns in communication are occurring between teams, aidingthem in implementing more efficient practices on future projects.AUTODESK THE KPIS OF CONSTRUCTION 6

3 DOCUMENTING CHANGE ORDERSThe findings in this section address the collection and documentationof change orders, including turnaround time, root cause evaluation, andschedule impact.72%72% capture the root cause of achange order.NOTABLE STATS: 64% of respondents typically collect and document change orders on over half of theirprojects, with general contractors capturing this information at a frequency 10% higher thantrades. This trend continues through other data points around capturing root cause, scheduleimpact, etc. If the general contractor has a change order log, some trades may not seethe need to keep one of their own. Analyzing data from change orders can help general contractors assess performance oftrade contractors. What was the root cause of the change order? How long did it takethem to turn it around? This information can help general contractors select the bestspecialty contractor for their project. What’s holding them back? According to feedback from the survey respondents, companiesperceive that investing in processes to better capture and document change orders is bothtoo time-consuming and too expensive. Of those who are rarely (on less than 25% of projects) collecting change order information,69% feel if they were able to do this more frequently, it would help them gain a deeperunderstanding of the issues impacting their project delivery process.47%47% capture start, finish, andturnaround times.64%64% evaluate schedule impact ofchange orders.AUTODESK THE KPIS OF CONSTRUCTION 7

LET’S COMPARE: CAPTURING ANDCOLLECTING INFORMATION1. Only 53% of respondents arecapturing errors, omissions, andconstructability issues in the bidset of construction documents.Dedicating more time andresources to this phase could helpcontractors identify potential risksand issues earlier in the process,potentially leading to a reductionin RFIs and change ordersdownstream, and less disruptionin scheduling and productivity.2. 75% of respondents are creatinga log of RFIs and responses. General Contractors are morefrequently capturing andcollecting data around RFIs,responses, and change orders vs.trades. RFIs and change orders could bemitigated if more time was spentreviewing documentation duringpreconstruction.Companies capturing and collectingcritical project information on at least50% of their projects75%53%64%3. 64% of respondents indicated that they are frequently collecting anddocumenting change orders on their projects. What’s interesting is thatlarge companies (defined as 100M) do it at a frequency 10% less thansmall companies (defined as 100M in revenue). This trend continues as we look at other change order activities such ascapturing turnaround times, root cause, and schedule impact.1 Capturing Errors and Omissions2 Capturing a Log of RFIs and Responses3 Collect and Document Change OrdersAUTODESK THE KPIS OF CONSTRUCTION 8

3 4UPDATING THE PROJECTSCHEDULEThissection looksresponsesas theyto thefrequencyof updatingThe findingsin thisatsectionaddressthe relatecollectionanddocumentationschedulesand otherrelatedturnaroundactivities andoutcomes,includingthe impactof change orders,includingtime,root causeevaluation,and ofslippages.schedule impact.NOTABLE STATS: 42% of respondents reported that they updateschedules daily or weekly. Of that percentage, 20% said that they updatethe schedule within 1-2 days of becoming awareof a situation requiring schedule modification.This number is extremely low, considering theimportance of capturing schedule changesin a timely manner, allowing for a clearerunderstanding of the status of the project—what’s completed, what remains, etc.Over half of the respondents (52%) indicate usingoverall and look ahead schedules on more than halfof their projects. These respondents more than likelybelong to companies who are adopting additionalLean practices on their construction projects.CARRYING ADDEDCOSTS FROM OVERTIME/SECOND SHIFTNEED TO EXTEND THEPROJECT END DATE66%50%66% of general contractors are carrying addedcosts from overtime/second shifts on at leastthree quarters of their projects due to scheduleslippage, with 50% of them needing to extendthe project end date.AUTODESK THE KPIS OF CONSTRUCTION 9

3 LET’S COMPARE: REVIEWING PASTPROJECT INFORMATION1. 47% of respondentsindicated they are lookingat errors discovered duringconstructability reviews on pastprojects to find patterns andtrends. If 30% of companies increasedthe frequency of reviewing pastinformation for these activities,they could perhaps mitigateissues that occur during thebuild phase, such as scheduleslippage and change orders.2. Per the report, only 30% ofrespondents are looking athistorical information, such asRFIs/response times, from pastprojects and comparing thosefindings to less than half of theircurrent ones to identify trendsand patterns.Companies capturing critical projectinformation on at least 50% of their projects.72%47%30%3. We see that a high percentage (72%) of companies review documents touncover the root cause of change orders on over half their projects. Reviewing root causes could help prevent the same errors from repeatingby enabling companies to catch them earlier in the design process.1 Capturing Errors and Omissions2 Capturing a Log of RFIs and Responses3 Collect and Document Change OrdersAUTODESK THE KPIS OF CONSTRUCTION 10

3 5SOFTWARE FOR SAFETY& INSPECTIONSThisfindingsThesection askedin thisrespondentssection addressif andthehowcollectionthey areandusingdocumentationsoftware to manageof changeorders,includingturnaroundtime, rootcause evaluation, andsafetyand/orinspectionsfortheir constructionprojects.schedule impact.NOTABLE STATS:53%19%60%53% of large generalWe see a significant drop60% of general contractorscontractors are utilizingin software use by tradeand trades feel using softwaresoftware to manage safety and/contractors (19%).to manage safety and/oror inspections on at least halfinspections duringof their projects.construction is of high value toimproving this process.AUTODESK THE KPIS OF CONSTRUCTION 11

3 6LABOR PRODUCTIVITYIn this section, respondents highlighted the top factors that they feltdecreased labor productivity. Additionally, trade contractors were askedabout their prefabrication activity.Labor Productivity When it comes to top factors decreasinglabor productivity, more trades (68%)point to poor schedule management.On the other hand, 60% of generalcontractors see problems withcoordination and communicationbetween project team members andissues with the quality of contractdocuments as the key contributors todecreased labor productivity.Better communication between allproject stakeholders and making surepeople across the organization, areconnected to the information they needcan be considered crucial componentsfor improving 38%36%41%Problems with coordination andcommunication between projectteamsProblems with the quality ofcontract documentsPoor schedule managementProblems with quality managementProblems with issue managementChange ordersAUTODESK THE KPIS OF CONSTRUCTION 12

6 LABOR PRODUCTIVITYIn this section, respondents highlighted the top factors that they feltdecreased labor productivity. Additionally, trade contractors were askedabout their prefabrication activity.Prefabrication 14% of trades report prefabricating more than 50% of their work in the shop versus in the field. Only 17% of trades evaluate and compare the percent of prefabrication on current projects to similarprevious projects. If trade contractors adopted this evaluation and comparison as a common practice,they could look at metrics to understand the cost and labor savings of prefabrication that can be sharedwith general contractors—possibly winning the trade contractor additional contracts. 70% of trades say prefabrication at least moderately improves labor productivity—something to thinkabout as BIM becomes the stan

for project management, contractors can reduce risk, thus minimizing downstream problems and improving performance. The following summary of the report covers seven categories of project activities, including: 1. Problems discovered in construction documents 2. RFIs 3. Change orders 4. Schedule 5. Safety/Inspections 6. Labor productivity 7 .