Key Performance Indicators for Construction Part 2
In part one of this two-part series, the Ft. Myers contractor lawyers at Cotney Construction Law discussed the importance of key performance indicators (KPIs) in the construction industry. We also highlighted two important KPIs: construction documentation problems and software for safety inspections. Now, we will discuss five more important KPIs.
Logging Requests for Information (RFIs)
RFIs are common in the construction industry. Whenever you deal with a supplier, you submit an RFI to ascertain a better understanding of the supplier’s capabilities, pricing, and so on. Generally, this information will be delivered in a readable format that allows you to compare RFIs sourced from different companies. If you fail to do this, you could end up spending excessive funds on materials that can be acquired from a competing supplier for much cheaper.
Documenting Change Orders
Contractors need to keep detailed documentation of all change orders implemented to alter the scope of work for a project. You deserve compensation for any additional services you provide outside of the original contract, but without proper documentation that outlines the work provided and the cost, you may forget to bill for these additional expenditures. Alternatively, you could forget to implement the requested changes at all, thereby breaching your agreement.
Updating Project Schedules
Projects rarely follow a linear schedule. There will be times when your team is ahead of schedule, and others when they fall behind. Updating your project schedule ensures that you can make the proper adjustments to complete your project within the allotted time frame. As a KPI, updating the project schedule reminds us that some of the most vital construction-related tasks take place in the office, not the project site.
Measuring Labor Productivity
If you don’t measure labor productivity, you can’t manage a project site. Without these insights, it’s difficult to truly know if your team is being productive. Labor productivity can be measured as a workforce or by individual performances. Wearable devices allow contractors to monitor the amount of work being completed by workers which can then be used to create benchmarks. When your team’s productivity drops, you risk losing profits on your project and missing your deadline.
Quality and Close-Out
The purpose of these KPIs is to help you determine whether or not your team is performing satisfactorily. A successful project requires close observation and effective management from beginning to end; that includes performing quality control and close-out. You should never celebrate a completed project before close-out. Unexpected last-second events can derail an almost completed project. Have you ever seen a seemingly completed shopping plaza lay dormant for years? You must always see a project through to the end.
If you would like to speak with a Ft. Myers contractor 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.