By implementing and monitoring performance criteria, managers of companies in the construction sector can obtain relevant information regarding the performance of activities, potential sources of process error or operational areas that require optimization.
The use of performance criteria within companies in the Construction sector contributes to:
- improve decision-making by identifying operational strengths and weaknesses and making data-driven decisions to improve operational efficiency
- efficient management of resources by tracking different types of costs (with labor, with raw materials and materials, with the use of equipment) areas where resources are wasted can be identified, allowing them to be better managed to improve overall performance
- increasing customer satisfaction by evaluating the success of projects through the lens of customer satisfaction and creates the basis for improving the quality of deliverables to meet increasingly higher standards
- improving compliance by assessing the degree of compliance with legislative norms on safety, environmental protection and other specific legal regulations, allowing the identification and correction of irregularities
What performance criteria is important to monitor? Here are some examples:
- Timeliness measures the progress of the construction project against the established schedule, indicating the company's ability to meet deadlines.
- Budgeting assesses the progress of the construction project against the allocated budget, indicating the financial performance of the project.
- Labor costs aggregate the costs associated with human resources directly involved in the construction project, indicating the efficiency of the use of human resources.
- Material costs sum up the expenditure on material resources used in construction projects, indicating the efficiency of procurement.
- Equipment utilization measures the degree of utilization of machinery and equipment needed in the construction project.
- Customer satisfaction measures the ability to meet customer requirements in terms of quality and timeliness of construction project delivery.
- Project quality assesses quality through indicators such as accuracy to specifications, durability and, why not, aesthetics.
- Sustainability reflects the effectiveness of the company's efforts to manage waste, reduce energy consumption and pollutant emissions, indicating the impact of its activities on the environment.
By using key performance indicators, construction companies can gain a clearer picture of the performance and progress of their own operations, obtaining objective data to facilitate their decisions to improve the efficiency of activities and increase the quality of delivered projects.
With 30 years of experience, BITSoftware provides construction companies with a complete and integrated solution that helps them effectively manage all processes in the company: procurement, management of contracts, costs, consumption, employees, equipment and machinery, maximizing profit through - an efficient execution of each project and through the possibility of managing several projects with fewer resources, through the integration and automation of key processes.
