THE KEY

PERFORMANCE
INDICATORS OF
CONSTRUCTION

See Ahead Think Ahead Stay Ahead

Research conducted in collaboration

with Dodge Data & Analytics
| Introduction
| 7 KPIs of Construction
1. Problems Discovered in Construction Documentation
2. Logging RFIs & Responses
3. Documenting Change Orders
4. Updating the Project Schedule
5. Software for Safety & Inspections
6. Labor Productivity
7. Quality & Close-Out
| Let’s Compare: KPIs Side-by-Side
| Conclusion
 INTRODUCTION

Many companies use key performance Autodesk commissioned a study with Dodge
indicators (KPIs) to gauge and compare Data and Analytics to survey more than 200
performance in terms of meeting both contractors and trade professionals in order
strategic and operational goals. However, to identify and analyze current processes
the construction industry as a whole lacks for planning and executing projects. The
objective benchmarks, or a way to measure study revealed seven key process indicators
excellence across the industry. The aim of that companies say are especially useful to
this eBook is to outline simple KPIs that interpret overall performance. The findings
companies of all sizes can start capturing suggest that by adopting specific processes
today by using technology that digitizes for project management, contractors can
this information and collects it in a central reduce risk, thus minimizing downstream
area. The comprehensive analysis of this problems and improving performance. The
data across the industry will help improve following summary of the report covers seven
processes and lead to better performance and categories of project activities, including:
project delivery.
1. Problems discovered in construction
One reason for the absence of industry documents
benchmarks is the lack of centralized 2. RFIs
data necessary to establish standards.
All contractors using digital technology 3. Change orders
to manage their construction projects are
4. Schedule
generating data and information; however,
many say they lack a single place to 5. Safety/Inspections
aggregate that information and knowledge
of how to use it in a meaningful way. Having 6. Labor productivity
the ability to analyze data, such as project
7. Quality and close-out
information around requests for information
(RFIs) and change orders, not only provides
Read the key findings and see how your
useful context, but also enables contractors
company measures up.
to understand patterns of issues in their
building processes.

AUTODESK || THE KPIS OF CONSTRUCTION || 3

7 KPIs of
Construction
1| PROBLEMS DISCOVERED IN
CONSTRUCTION DOCUMENTS 54%
In this section, we look at the frequency, value, and difficulties related to
errors, omissions, and/or constructability issues discovered in the bid set of
54% frequently* capture errors
construction documents in order to understand how many contractors are omissions and constructability
capturing this information and how frequently. More importantly, we look at issues discovered during the ‘bid
reporting and how this information is being compared against past similar set’ of construction documents.

projects and used to conduct risk reduction activities.

NOTABLE STATS:
• Of those respondents who are capturing errors, omissions, and
constructability issues and comparing them to past projects, 66% are using
47%
the findings to mitigate risk on future ones.

• While it’s important to capture issues on current projects, it’s equally

Only 47% of respondents frequently
critical to set up standard processes to compare them to past projects. compare errors, omissions
and constructability issues in
• Why aren’t companies recording this data? Just over 50% of general construction documents to past
contractors (44% of trades) said the biggest obstacle to capturing this Of those capturing projects.
information is how time-consuming or expensive it is, and about one and comparing
quarter feel they don’t have an easy way to do it.
GC/CMS 55%
• However, only 14% of all respondents who are frequently capturing this
information on more than half of their projects reported a high/very
high degree of difficulty doing so. It seems that once companies get past
those initial barriers of cost and adoption, capturing and reporting this TRADES 36%

information in a succinct way becomes part of their standard operating

procedure.

*Frequently = on over 50% of their projects

AUTODESK || THE KPIS OF CONSTRUCTION || 5

 3|
2 LOGGING RFIS & RESPONSES
The questions
findings inin
this
this
section
section
address
soughtthe
to determine
collection how
and documentation
frequently respondents
of change
log RFIs and
orders,
responses
including
and turnaround
how that information
time, root cause
is being
evaluation,
comparedand
to past
schedule
similar projects
impact.and used to conduct proactive risk reduction.

NOTABLE STATS:
• 73% of respondents are logging RFIs and responses on over half of their
projects.

73%
• Trade contractors more frequently report RFIs to senior management as
potential sources of risk, at 75%, versus 64% of general contractors. frequently create a log of
RFIs and responses.
• Contractors not digitally logging RFIs and responses see the value in
it, but they find that the obstacles, such as difficulty in adopting and Only 30% are comparing RFI
cost of investing, prevent them from implementing the technology and data from past projects
processes to support these activities.

• A study conducted by SMACNA, Making RFIs More Effective, noted that

36% are Trade
design-build projects where the general contractor closely collaborates
Contractors
with engineers and architects tend to have far fewer RFIs and resultant
change orders. This is mostly seen in GMP where design intent is
26% are General
communicated, but contractors and trades have freedom to design for
Contractors
maximum productivity outcome.
• Using historical data to identify the root cause of the RFI and measuring
time to receive a response can help contractors see where the potential
breakdowns in communication are occurring between teams, aiding
them in implementing more efficient practices on future projects.

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3| DOCUMENTING CHANGE ORDERS
72%
The findings in this section address the collection and documentation
of change orders, including turnaround time, root cause evaluation, and
schedule impact.
72% capture the root cause of a
change order.

NOTABLE STATS:
• 64% of respondents typically collect and document change orders on over half of their
projects, with general contractors capturing this information at a frequency 10% higher than

47%
trades.

• This trend continues through other data points around capturing root cause, schedule
impact, etc. If the general contractor has a change order log, some trades may not see
the need to keep one of their own.

• Analyzing data from change orders can help general contractors assess performance of
trade contractors. What was the root cause of the change order? How long did it take 47% capture start, finish, and
turnaround times.
them to turn it around? This information can help general contractors select the best
specialty contractor for their project.

• What’s holding them back? According to feedback from the survey respondents, companies
perceive that investing in processes to better capture and document change orders is both
too 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 deeper
64%
understanding of the issues impacting their project delivery process.

64% evaluate schedule impact of

change orders.

AUTODESK || THE KPIS OF CONSTRUCTION || 7

 LET’S COMPARE: CAPTURING AND
COLLECTING INFORMATION
Companies capturing and collecting

1. 2.
critical project information on at least
50% of their projects

• 75% of respondents are creating

75%
• Only 53% of respondents are
capturing errors, omissions, and a log of RFIs and responses.
constructability issues in the bid
• General Contractors are more
set of construction documents.

64%
frequently capturing and
• Dedicating more time and collecting data around RFIs,

53%
resources to this phase could help responses, and change orders vs.
contractors identify potential risks trades.
and issues earlier in the process,
• RFIs and change orders could be
potentially leading to a reduction
mitigated if more time was spent
in RFIs and change orders
reviewing documentation during
downstream, and less disruption
preconstruction.
in scheduling and productivity.

3.
• 64% of respondents indicated that they are frequently collecting and
documenting change orders on their projects. What’s interesting is that
large companies (defined as <$100M) do it at a frequency 10% less than
small companies (defined as >$100M in revenue).
1 | Capturing Errors and Omissions
• This trend continues as we look at other change order activities such as 2 | Capturing a Log of RFIs and Responses
capturing turnaround times, root cause, and schedule impact.
3 | Collect and Document Change Orders

AUTODESK || THE KPIS OF CONSTRUCTION || 8

3|
4 UPDATING THE PROJECT
SCHEDULE
This section looks
The findings in thisatsection
responses as they
address the relate to the
collection frequency
and of updating
documentation
schedules and other
of change orders, relatedturnaround
including activities and outcomes,
time, including
root cause the impact
evaluation, and of
slippages.
schedule impact.

NOTABLE STATS:
• 42% of respondents reported that they update
schedules daily or weekly.
CARRYING ADDED
• Of that percentage, 20% said that they update COSTS FROM OVER-
TIME/SECOND SHIFT
66%
the schedule within 1-2 days of becoming aware
of a situation requiring schedule modification.
This number is extremely low, considering the
importance of capturing schedule changes
NEED TO EXTEND THE
in a timely manner, allowing for a clearer PROJECT END DATE 50%
understanding of the status of the project—
what’s completed, what remains, etc.

• Over half of the respondents (52%) indicate using

overall and look ahead schedules on more than half
of their projects. These respondents more than likely
belong to companies who are adopting additional
Lean practices on their construction projects.
66% of general contractors are carrying added
costs from overtime/second shifts on at least
three quarters of their projects due to schedule
slippage, with 50% of them needing to extend
the project end date.

AUTODESK || THE KPIS OF CONSTRUCTION || 9

 3|
LET’S COMPARE: REVIEWING PAST
PROJECT INFORMATION
Companies capturing critical project

1. 2.
information on at least 50% of their projects.

• 47% of respondents
indicated they are looking • Per the report, only 30% of
respondents are looking at
72%
at errors discovered during
constructability reviews on past historical information, such as
projects to find patterns and RFIs/response times, from past
trends. projects and comparing those

47%
findings to less than half of their
• If 30% of companies increased current ones to identify trends
the frequency of reviewing past

30%
and patterns.
information for these activities,
they could perhaps mitigate
issues that occur during the
build phase, such as schedule
slippage and change orders.

3.
• We see that a high percentage (72%) of companies review documents to
uncover the root cause of change orders on over half their projects.

• Reviewing root causes could help prevent the same errors from repeating
by enabling companies to catch them earlier in the design process. 1 | Capturing Errors and Omissions
2 | Capturing a Log of RFIs and Responses
3 | Collect and Document Change Orders

AUTODESK || THE KPIS OF CONSTRUCTION || 10

3|
5 SOFTWARE FOR SAFETY
& INSPECTIONS
Thisfindings
The section asked
in thisrespondents
section address
if and
thehow
collection
they areand
using
documentation
software to manage
of change
safety orders,
and/or including
inspections turnaround
for time, root
their construction cause evaluation, and
projects.
schedule impact.

NOTABLE STATS:

53% 19% 60%

53% of large general We see a significant drop 60% of general contractors

contractors are utilizing in software use by trade and trades feel using software
software to manage safety and/ contractors (19%). to manage safety and/or
or inspections on at least half inspections during
of their projects. construction is of high value to
improving this process.

AUTODESK || THE KPIS OF CONSTRUCTION || 11

3|
6 LABOR PRODUCTIVITY
In this section, respondents highlighted the top factors that they felt
decreased labor productivity. Additionally, trade contractors were asked
about their prefabrication activity.

Labor Productivity GC/CM

Trade
• When it comes to top factors decreasing
62% Problems with coordination and
labor productivity, more trades (68%) communication between project
point to poor schedule management. 56% teams

• On the other hand, 60% of general

61% Problems with the quality of
contractors see problems with contract documents
45%
coordination and communication
between project team members and
53%
issues with the quality of contract Poor schedule management
68%
documents as the key contributors to
decreased labor productivity.
41%
• Better communication between all Problems with quality management
46%
project stakeholders and making sure
people across the organization, are
39%
connected to the information they need Problems with issue management
38%
can be considered crucial components
for improving productivity.
36%
Change orders
41%

AUTODESK || THE KPIS OF CONSTRUCTION || 12

6| LABOR PRODUCTIVITY
In this section, respondents highlighted the top factors that they felt
decreased labor productivity. Additionally, trade contractors were asked
about 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 similar
previous 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 shared
with general contractors—possibly winning the trade contractor additional contracts. Trades cite that
design which does
• 70% of trades say prefabrication at least moderately improves labor productivity—something to think not lend itself to
about as BIM becomes the standard for prefab construction. prefabrication as the
top obstacle to doing
TOP OBSTACLE TO TRADES DOING MORE PREFABRICATION more of it
(For trades that believe there is some level of value to prefabrication)

GENERAL CONTRACTOR
RESISTANCE

LACK OF ADEQUATE
SHOP LABOR

LACK OF ADEQUATE
SHOP FACILITIES

OTHER

DESIGN DOES NOT LEND ITSELF

TO PREFABRICATION

AUTODESK || THE KPIS OF CONSTRUCTION || 13

 3|
7 QUALITY & CLOSE-OUT
The findings
In this in this
section, section
we look address the answers
at respondents’ collectiontoand documentation
if and how they are using
of change orders, including turnaround time, root cause evaluation, and
software to manage punchlist/close-out activities, including the frequency
schedule
and valueimpact.
of engaging in “punchlist-as-you-go” (i.e., punchlisting is happening
continually throughout the construction process as parts of the work are
completed) versus the more traditional approach of punchlisting at the end of
68%
construction. Additionally, respondents were asked about the frequency and
impact of problems getting off the job.
68% of general contractors
reported experience problems
“getting off the job” on at least
25% of their projects.

NOTABLE STATS:
• Almost 70% of general contractors use software to manage punchlist/close-out activities on at
least 25% of their projects. This is seen at a higher frequency with large general contractors, who
use it almost twice as much as small companies.

• 76% of the general contractors using software to manage quality and close-out rate its value as
high or very high and cite it as a key factor in improving the process. However, the survey found
60%
that 68% of trades are not using mobile tech on 75% of their projects.

• 44% of general contractors are also engaging in punchlist-as-you-go on at least half of their
projects. Almost 60% say it has a high
to very high negative impact on
their profitability.

AUTODESK || THE KPIS OF CONSTRUCTION || 14

 LET’S COMPARE: KPIS SIDE-BY-SIDE

WHAT IS THE DATA TELLING US? Change Orders Schedule

Capture Change Orders Update daily or weekly
• We see a trend that, in most cases, smaller companies
are capturing this data at a higher frequency than

68%

59%

58%

70%

30%

54%

46%

38%
larger ones.

• This could be that, while larger companies are often

more willing to try things on a one project/pilot basis,
smaller companies are more successful at getting
policies/practices implemented consistently over all or
most of their projects.

• This research aims to puts a spotlight on these

process-based KPIs so that more people will be aware
General Trades Large Small General Trades Large Small
of them and therefore want to try implementing them. Contractor Company Company Contractor Company Company

Respondent Demographics: Safety and Inspections Quality and Close Out

Using software to manage safety/ Using software to manage
209 Total Respondents inspections during construction punchlist/close-out

19%
53%

20%

56%

58%

16%

23%

55%
GENERAL CONTRACTOR OR
CONSTRUCTION MANAGER 55%
SPECIALTY/TRADE
CONTRACTOR 44%
LARGE COMPANY
(TRADE/GC/CM) 46%
SMALL COMPANY
(TRADE/GC/CM) 54%
General Trades Large Small General Trades Large Small
Contractor Company Company Contractor Company Company

AUTODESK || THE KPIS OF CONSTRUCTION || 15

CONCLUSION
As an industry, where do we go from here? The As the saying goes, what gets measured gets
data from the study tells us that adoption of best managed. Over the past five years, the abundance of
practices around these seven key activities is technology tools available to contractors has helped
still relatively low, hovering just above 50% for them capture and track critical data and information
those companies applying them to over half of on construction projects.
their projects. However, the data also shows that
companies reporting frequent use of these practices Taking that next step—gathering the pertinent data,
assign a high value to them, confirming that they are analyzing it, and using it in a meaningful way—
seeing improvements in project performance through will help you to improve projects and the overall
their implementation. The information in this study operational performance of your company. By
provides, at the very least, a general understanding understanding key trends, issues, and other barriers
of industry benchmarks that can be reviewed. You that erode your project margin, you’ll be able to set
can use the metrics found in the report to look at goals around improving those specific processes.
your company’s existing operations, identify areas While it’s important to use KPIs to see how you
for improvement, and begin setting standards for stack up against the competition, it’s critical to first
establishing best practices in your company. set benchmarks within your own organization. This
will not only help maximize company profits, but
While measuring metrics such as safety, profit, and also contribute toward your goal of creating a safe
client satisfaction are vital, they only tell half the environment for your workforce while continuing to
story and will not necessarily help you improve deliver high-quality projects to your clients.
outcomes on future projects. Looking for correlations
between activities, such as RFIs and change orders
or RFIs and schedule, will help you gain a better
understanding of what’s causing issues on projects.
If you’re digitally capturing this information with
technology, the insights are there, you just have to
dig them out and look for patterns that will help you
identify areas of improvement.

AUTODESK || THE KPIS OF CONSTRUCTION || 16

SOURCES
Farook Hamzeh, Glenn Ballard & Iris D. Tommelein (2012)
Rethinking Lookahead Planning to Optimize Construction
Workflow. Lean Construction Journal 2012 pp 15-34
www.leanconstructionjournal.org

See Ahead Think Ahead Stay Ahead

Research conducted in collaboration with
Dodge Data & Analytics THE SEVEN
KPIs FOR
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