Performance Measurement in Construction

Performance measurement has been subject to a considerable amount of research and attention over the past 15 years. The inadequacy of traditional financially based performance measurement systems and the introduction of nonfinancial measures have been the triggers for much of this research. The purpose of this paper is to review the main performance measurement frameworks and their application by U.K. construction firms and to identify gaps in knowledge and practice that suggest future research. The contemporary performance measurement frameworks are reviewed, including the Balanced Scorecard and the European Foundation for Quality Management Excellence Model. The status of performance in the U.K. construction industry is discussed, in addition to project/operational-level performance measurement and the linkage between performance measurement and strategic management. Gaps in knowledge and practice are overviewed both in general and for the construction industry in specific, thus suggesting future research.

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