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An Empirical Study on Performance Measurement Factors for Construction Organizations

  • Construction Management
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Abstract

Like any other organization, it has become essential for the organizations in the construction industry to measure their performance effectively for long-term survival in today’s competitive business environment. Therefore, it is imperative for a construction organization to know about various performance measurement factors to evaluate its performance. However, most of the previous studies have focused on identification of factors for measuring performance at the level of projects only. Moreover, the majority of these studies have been undertaken in context to the developed construction markets. The present study addresses these gaps in the literature by identifying critical factors for examining the performance of construction firms at the organizational level. A total of 20 organizational performance attributes were identified and analyzed using a questionnaire survey conducted on 106 respondents among 90 different organizations operating in the National Capital Region (NCR) of India. It was found that attributes such as timely completion, relationship with the client, and satisfaction (in terms of both product and services) carry more weight than the cost performance of a construction organization. In addition to this, factor analysis conducted on the performance attributes of high importance has resulted in six performance factors: (1) profitability and asset management, (2) satisfaction of key stakeholders, (3) predictability of time and cost, (4) environment, health, and safety (EHS), (5) quality consciousness, and (6) low staff turnover. The performance factors obtained from the study may provide useful guidelines to the construction organizations enabling them to examine and improve their performance.

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Tripathi, K.K., Jha, K.N. An Empirical Study on Performance Measurement Factors for Construction Organizations. KSCE J Civ Eng 22, 1052–1066 (2018). https://doi.org/10.1007/s12205-017-1892-z

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