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How Do You Measure Construction KPIs? Essential Construction KPIs that Every Project Manager Should

If you use budget as your primary indicator of performance, you're assessing the outcome too late to make any changes. Instead, measure and adjust the ingredients during the baking process to alter the outcome.

Financials should not be the main indicator of performance in construction. Other critical measurements should be taken into account to get teams that wanted success.

Key Takeaways

Construction companies need to track more than financials to determine a project's success. Key performance indicators (KPIs) like safety, quality, employees, and performance give companies a better opportunity to analyze their performance and meet their short-term financial goals.

Construction KPIs: A Breakdown

CFMA describes KPIs as vital signs that show whether "your business is functioning according to plan". They are based on prioritized metrics and show the ways in which your company operates or behaves.

Check in on Your KPIs

Before you can formulate a construction quality management plan with KPIs, you must understand where your company currently stands when it comes to KPIs.

The Essential Construction KPIs Your Projects Need

Although many details may be measured, effective performance analysis requires prioritizing a limited number of key categories of concern.


A safer site incurs less risk and long-term costs. Knowing and understanding your safety rating is key to keeping your staff productive.


Tracking your employees' performance and satisfaction is crucial for a successful project, and reducing employee turnover can save teams enormously.

A Note on Predictive KPIs

CFMA suggests that KPIs should provide a glimpse into future productivity and should be used to set expectations based on actions such as pending bids, scheduling and completion of business development meetings, and active proposals.

CFMA recommends a KPI to avoid over-purchasing construction materials by comparing monthly spending with what already exists.

Construction Dive magazine discusses using KPIs predictively through an analysis of "lagging vs. leading indicators", and how quantification of KPIs helps construction companies more accurately predict costs and schedules for future projects.

Standardizing reporting and measurement

Standardizing construction measurements and processes is easier than ever these days due to digital transformation of our industry. Standardizing the construction planning software used within a company makes it possible to track KPI data, standardize the life cycle of projects, and tie incentives to adaptation and reward employee teams for top performance.

Gaining Support

Companies need to encourage all employees to understand and participate in KPI processes, and provide up-front training for influential key staff. They also need excellent software support.

Incentivizing Participation

Participation incentives in any industry should be based on mentorship. This builds confidence and self-esteem, which makes employees want to stick around.

Evaluating and Adapting

Be prepared for an ongoing team effort to improve KPIs, including digital change. This means both KPIs and new technology should be viewed from the same perspective.

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