Key Performance Indicators for Construction Part 1
Data is crucial in the construction industry. Projects costing millions of dollars need quantifiable data to justify their existence in the first place. If a building is constructed and it happens to be aesthetically pleasing, that is superfluous compared to its profitability; at least in the owner’s opinion.
The construction industry has been in a rut for as long as most construction professionals can remember. The industry’s reluctance to embrace new technologies aimed at improving productivity and cutting costs has compromised its ability to grow. Furthermore, those who have adopted new technologies have failed to produce quantifiable metrics that demonstrate the efficacy of these technologies.
How can we establish consistent industry benchmarks to measure our productivity? In this two-part series, the Ft. Myers construction lawyers at Cotney Construction Law will discuss the answer to this question: key performance indicators (KPIs).
Big Data, Big Changes
Construction Dive reported that David Wilkinson, senior industry strategy manager at Autodesk, stated, “Anecdotal stories don’t drive change. This is the era of big data and big data will drive decisions and change. How will we drive performance in an industry that doesn’t really have performance metrics?”
Wilkinson’s comments ring true. The construction industry can save considerable sums of money by utilizing data to create performance indicators. Otherwise, Wilkinson believes that the construction industry will remain “average.” In order to set objective standards of what constitutes “good” and “bad” in the construction industry, contractors must focus on KPIs.
Construction Documentation Problems
Managing documents properly is vital to profitable construction projects and an effective KPI. If you aren’t cognizant of the specific details in your contract, you could find yourself locked in an unrealistic commitment with an owner that doesn’t have your best interest in mind. Our Ft. Myers construction attorneys can assist you with the contract review process. You might think that reading over a contract once is doing your due diligence, but without a lawyer who represents construction professionals to perform a comprehensive review of your contract, you could be prematurely setting yourself up for failure.
Software for Safety and Inspections
Operating at a high level is almost impossible without the help of computers and data. Construction-related software gives contractors valuable insights about the project site, workers, and equipment. This data can be utilized as a KPI to gauge the safety of project sites. Depending on the software you employ, your project’s safety manager can inspect the project site, document points of interest, advise workers, map high-risk areas, measure efficiency, and obtain important safety information on a project site.
To learn about more valuable KPIs for contractors, read part two.
If you would like to speak with a Ft. Myers construction attorney, please contact us today.
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.