As we discussed in the first, second, and third sections of this article, key performance indicators (KPI) can improve construction practices resulting in a more efficient and effective business. However, KPIs are often looked at in an unfavorable light. There is no denying that many companies have a love-hate relationship with this type of strategy and some even feel it’s outdated. As Ft. Myers contractor lawyers, we know that it begins with communication and showcasing the benefits of this practice. In this article, we will discuss how to implement this practice into the daily tasks of your construction site.
The Seven Best Construction Practices for KPIs
According to constructiondive.com, Dodge recently performed a study where they surveyed 200 contractors on how KPIs are helpful in analyzing their overall performance. The study showcased that seven categories within the construction process were consistently referenced. These were the seven areas in which KPIs were the most helpful:
- Construction Documents: It’s important to have all key team members on the same page when it comes to the pertinent information within construction documents. If something goes awry, leadership understands how to manage that conflict.
- Request for Information (RFI): When plans need to be altered or the risk impact needs to be closely examined, it’s critical to have the right communication between the contractor and other professionals.
- Change Orders: Implementing changes into a project transpires all the time and it’s important to have the contractor, owner, and architect all on the same page.
- Scheduling: The primary root to projects going over budget and missing deadlines is poor scheduling. KPIs can keep everyone in the know.
- Safety Protocols/Inspections: As Ft. Myers contractor attorneys, we know that a lot of safety violations transpire because of poor communication. These incidents can be mitigated through KPIs.
- Productivity: Implementing the best practices into a construction project can greatly reduce the cost. We can improve all aspects of the building process with KPIs.
- Quality/Close Out: Completing the final tasks and invoices on a project can be a full proof system when implementing the right KPIs. As the saying goes, leave no stone unturned.
KPIs can bring great value to a company; however, the process of implementing these strategies must be respected for them to be beneficial. As the construction industry continues to evolve into a more technologically enhanced era, the strategies and practices need to meet this demand. KPIs help construction professionals utilize the best strategies. If properly managed, KPIs can help create a thriving and solution-oriented workplace, improve a company’s profit margin, and result in more winning bids.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.