2007 KPI Launch - Durham by hijuney6

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									UK Construction Industry
     KPI Launch
         2007
    Peter Cunningham

                   Director
Constructing Excellence in the Built Environment
Martin Print

KPI Consortium
                            Agenda
• UK Construction Industry Performance Report
   – Economic, Respect for People, Environment KPIs – Martin Print
   – Constructing Excellence Demonstrations – Jon de Souza, CEBE


• Coffee

• UK Construction Industry Performance Report
   – M&E Contractors, Consultants KPIs     – Gerry Samuelsson-Brown,
                                                               BSRIA
   – Construction Products Industry        – Martin Print
                      Agenda

• Launch of KPIzone – the UK Construction Industry KPIs
  on-line – Martin Print


• Questions and discussion


• Lunch and Networking
Industry data collection and analysis

            THE   KPI
            CONSORTIUM
KPIs: 1999 - 2006


                    2007?
                 KPIzone
          the UK KPIs on-line
Comprehensive database of all years’ KPIs


KPI graphs for all major industry sectors



‘My KPIs’ management tools



Over 700 analyses of Industry Performance



Tutorial and best practice information


           www.kpizone.com
Headline Sponsor
Main uses of KPIs


•   Company/project benchmarking

•   Industry trends

•   Comparison of Demonstration

    project performance
Finish on time and to budget
                                                                                   MISSION
                                                To deliver venues, facilities, infrastructure and transport on time for the
                                           London 2012 Olympic and Paralympic Games that are fit for purpose and in a way
                                            that maximises the delivery of a sustainable legacy within the available budget.



                                                                                    Value for Money
Objectives




                                                                                                Fit for Purpose

                                                                                                                            Sustainable Development

                                                                Safe &               Equalities &                                   Quality &
                               Cost           On Time                                                       Environment                                Legacy
                                                                Secure                Inclusion                                    Functionality

                                                                                       Promoting            Environmental          Functionality
                            Programme         On Time      Health & Safety                                                                             Financial
                                                                                       Equality &           Responsibility           [Games and
                               Cost        for the Games   Scope & Design                                                              legacy]      Viability & WLC
                                                                                        Diversity           [energy, waste etc.]
Critical Success Factors




                                                            Health & Safety                                     Ethical                              Ownership &
                           Sub-programme   Sub-programme                              Community                Sourcing               Design
                                                             Construction                                                                            Management
                                Cost            Time                                  Engagement              [Materials &            impact
                                                             & Operation                                      human rights]                           Structure
                                                            Health & Safety                                                                          Community
                              Project          Project                                  Inclusive                                  Construction
                                                              Behaviour                                                                              Utilisation
                               Cost             Time                                     Design                                      quality
                                                              & Culture                                                                              & Benefits

                                                                Security                Supply                                       Promoting
                              Contract        Contract
                                                            [Design, construction       Chain                                      excellence and
                               Cost            Time            & operations]          Management                                     innovation
                                                                                      Employment
                                                                                        [IR, skills, fair
                                                                                     employment, wages,
                                                                                      welfare provision]
KPIs




                                                              There will be a standard set of measures
                                    Measures will be designed for each contract based upon these and the overall Policy values.
                                For Construction Projects the UK Construction Industry KPIs will be used with detailed sub-measures
                                                                         beneath as required
            2007 UK Economic (All Construction) KPIs



• Client satisfaction:
      – Product and service
• Defects
• Predictability:
      – Cost and time
•   Profitability
•   Productivity
•   Safety
•   Construction cost
•   Construction time
 Client satisfaction – product

                        Scoring 8/10 or better

100%

90%
                                                  83%    84%    82%
                                   78%    80%
80%
       72%    73%    72%    73%
70%

60%

50%
       1999   2000   2001   2002   2003    2004   2005   2006   2007
  Client satisfaction – service

                        Scoring 8/10 or better


100%

90%

                                                 77%    79%
80%                                                            75%
                                          74%
                                   71%
70%                         65%
              63%    63%
60%
       58%

50%
       1999   2000   2001   2002   2003   2004   2005   2006   2007
  Defects

                      Scoring 8/10 or better


100%

90%

80%                                                   77%
                                               72%           73%
70%
                            68%      68%
       65%

60%
                     58%
              53%
50%
       2000   2001   2002   2003     2004      2005   2006   2007
        Summary – client satisfaction
100%
        Client satisfaction – product
90%
                                                 83% 84% 82%
80%                                78% 80%
       72% 73% 72% 73%
70%

60%                                                                   100%

50%                                                                   90%
                                                                              Defects
       1999   2000   2001   2002   2003   2004   2005   2006   2007
                                                                      80%                                              77%
                                                                                                                72%           73%
                                                                      70%                         68%    68%
                                                                             65%
100%
         Client satisfaction – service                                60%
                                                                                           58%
90%                                                                                 53%
                                                        79%           50%
80%                                              77%           75%
                                          74%                                2000   2001   2002   2003   2004   2005   2006   2007
                                   71%
70%                         65%
              63%    63%
60%
       58%

50%
       1999   2000   2001   2002   2003   2004   2005   2006   2007
         Cost predictability
80%
       Cost Predictability – design
70%    65%    64%    63%   63%
                                  65%
                                                63%
                                                       66%
                                                               64%
                                                                                           % On cost or better
                                         62%

60%

                                                                       80%
50%

                                                                       70%
                                                                             Cost Predictability – project
40%

                                                                       60%
30%
                                                                             50%                    52%    50%
      1999   2000   2001   2002   2003   2004   2005   2006    2007                          48%                  48%
                                                                       50%          46%                                  45%    46%
80%                                                                    40%
       Cost Predictability – construction
70%                                                                    30%
                                                                             2000   2001     2002   2003   2004   2005   2006   2007
60%

                    48% 50% 52% 49% 48%                         49%
50%          45%                                       44%
40%   37%

30%
      1999   2000   2001   2002   2003   2004   2005    2006    2007
          Time predictability
80%
        Time Predictability – design
70%                                                                                         % On time or better
60%                                      55%     57% 58%
                                     53%     52%
50%                           46%                                       80%
                       41%
40%            37%
                                                                        70%
                                                                              Time Predictability – project
30%
                                                                        60%
                                                                                                                                58%
       1999    2000    2001   2002   2003   2004   2005   2006   2007
                                                                        50%
                                                                                                    44%    44%    46%    44%
                                                                                             42%
 80%
                                                                        40%          36%
         Time Predictability – construction
 70%                                                             65%
               62%                     62% 60%                          30%
                       59% 61% 59% 60%                                        2000   2001    2002   2003   2004   2005   2006   2007
 60%

 50%

 40%
        34%
 30%
        1999    2000   2001   2002   2003   2004   2005   2006   2007
    Construction Cost

                       Change compared with one year ago

-6.0%
                                                                   -3.8%
-4.0%   -3.0%
                -2.0%
-2.0%                                                -0.8% -0.8%
0.0%

2.0%                                          1.1%
                                2.0%
4.0%                    3.0%
6.0%                                   5.0%
        1999    2000     2001   2002   2003   2004   2005   2006   2007
    Construction Time

                  Change compared with one year ago

-6.0%

-4.0%
                                        -1.7%
-2.0%
                                                                 -0.3%
0.0%
                                                          0.1%
2.0%           1.0%           1.0%                 1.3%
4.0%    3.0%
                      4.0%
6.0%
        2000   2001   2002    2003          2004   2005   2006   2007
                                     Year
   Profitability

               Profitability: Median profit on turnover (%)


10.0%
                                                  8.1%        7.9%   8.2%
7.5%                                     7.0%

               5.1%    5.2%     5.4%
5.0%    4.4%


2.5%


0.0%
        2000   2001    2002     2003     2004     2005        2006   2007
     Productivity

               Productivity: Median value added/employee (£000s)
50
                                                                             42.0
40
                                                                   38.2
                                              32.6       34.2
                                    31.1                                        31.2
30   27.0      28.0       28.0         27.9       28.2      27.5
                                                                      29.3
        27.0      26.8       26.0

20

10

 0
      2000      2001       2002      2003      2004       2005      2006      2007
                         Current Values     Constant (2002) Values
   Safety

         Reportable accidents per 100k employed (Industry AIR)

  1500   1354          1318
                1271
                              1217
                                             1172
                                     1097
                                                    1023
                                                                   946
  1000                                                      901




   500



     0
         1999   2000   2001   2002   2003   2004    2005   2006   2007
Better
      Safety

           % companies achieving zero AIR in year – all companies
70%                                                             62%
60%
                                          50%        51%
50%                            42%
                   39%
40%
        31%               Over £10m turnover
30%                       companies remain at
20%                               1%

10%
0%
         2002      2003        2004       2005       2006           2007
Overall performance 2007
- All Construction (economic) KPIs

             Productivity, Profitability, Time Predictability,
                           Construction Cost



      ?     Client satisfaction (product & service), Defects,
                       Safety, Construction Time



                           Cost Predictability
Housing (economic) KPIs - 2007




Available on www.KPIzone.com
                       60
                            80
                                        100
                                                   120
                                                                  140
                                                                        160
                                                                              180

Client Sat - Product


Client Sat - Service


         Defects

    Predict Cost -
      Project

    Predict Cost -
      Design

    Predict Cost -
    Construction

    Predict Time -
      Project

    Predict Time -
       Design

    Predict Time -
    Construction


 Construction Cost
                                                                                    Housing performance: 2003 - 2007




Construction Time


      Profitability

    Productivity
  (Current Values)

Productivity (Adj to
  2003 Values)
                                         2006
                                                2005
                                                         2004
                                                                2003




                                 2007
                       60
                            80
                                        100
                                                   120
                                                                  140
                                                                        160
                                                                              180

Client Sat - Product


Client Sat - Service


         Defects

    Predict Cost -
      Project

    Predict Cost -
      Design

    Predict Cost -
    Construction

    Predict Time -
      Project

    Predict Time -
       Design

    Predict Time -
    Construction


 Construction Cost
                                                                                    Housing performance: 2003 - 2007




Construction Time


      Profitability

    Productivity
  (Current Values)

Productivity (Adj to
  2003 Values)
                                         2006
                                                2005
                                                         2004
                                                                2003




                                 2007
       Housing v all industry – 2007
100%




90%




80%




70%




60%




50%

            Client Sat - Product   Client Sat - Service   Defects


         All Construction
         All Housing
      Housing v all industry – 2007
70%




60%




50%




40%




30%
       Predict Cost -   Predict Cost -   Predict Cost -   Predict Time -   Predict Time -   Predict Time -
          Project          Design        Construction        Project          Design        Construction


         All Construction
         All Housing
Housing v industry – 2007

             15%




             10%




                5%




                0%        Profitability


                     Profitability
  All Construction
  All Housing
 Housing v industry – 2007
60



50


40



30


20



10



0
           Productivity (Current Values)                  Productivity (Adj to 2003 Values)

                                           Productivity
     All Construction
     All Housing
                          Conclusions

• Client satisfaction has levelled out (expectation and
  delivery are in closer alignment)
• Projects are still unpredictable, but..
• ..time predictability has shown a welcome improvement..
• …as has Construction Time
• Supply-chain performance:
   – Productivity up
   – Profit up but levelling off
   – Safety – continuous pressure required
           Respect for People KPIs - 2007
                   KPIs for People Management issues



• Employee satisfaction
• Staff turnover
• Sickness Absence
• Working hours
• Qualifications and skills
• Equality and Diversity
• Training
• Pay
  Employee satisfaction
  Staff turnover
  Sickness Absence
160
                                     7.7% 7.1% 6.7% 5.9% 5.0%
      41%    41%   51%    55% 47%                                 1.8   1.7   1.5   1.4   1.7
140

120

100

 80

 60

 40

 20

  0
       2003 2004 2005 2006 2007      2003 2004 2005 2006 2007     2003 2004 2005 2006 2007
          % scoring 8/10 or better      Median % staff turnover        Median days lost
            Employee Satisfaction          Staff Turnover               Sickness Absence
      Working hours
      Qualifications and skills
      Equality and Diversity
140                                       30% 33% 40% 33%
        44    41 41    40   40 40                                          44% 46% 54% 54% 56%
120

100

80

60

40

20

 0
        2002 2003 2004 2005 2006 2007       2004 2005 2006 2007            2003 2004 2005 2006 2007
             Median usual hours          Median % of direct employees       % scoring 8/10 or better
               worked / week            qualified to NVQ Lev 2 or higher
               Working Hours                Qualifications & Skills           Equality & Diversity
      Training
      Pay
140
           0.8 0.8 1.0 1.0 0.9          365 414 425 441 460 481
120

100

 80

 60

 40

 20

  0
            2003 2004 2005 2006 2007     2002 2003 2004 2005 2006 2007
          Median annual training days       Median gross weekly
                per employee                    earnings (£)
                   Training                          Pay
Overall performance 2007


                  Staff Turnover, Working Hours,
                     Equality & Diversity, Pay



      ?      Employee satisfaction, Sickness Absence,
                 Training, Qualifications & Skills,
                      Environment KPIs
• Impact on the Environment – Product & Construction Process
• Impact on Biodiversity - Product & Construction Process

•   Whole Life Performance – Product
•   Energy Use (Designed) – Product
•   Mains Water Use (Designed) – Product
•   Area of Habitat Created/Retained – Product

•   Energy Use – Construction Process
•   Mains Water Use – Construction Process
•   Waste – Construction Process
•   Commercial Vehicle Movements - Construction Process

• Construction on Brownfield Sites - Product
• SAP Rating (Housing) – Product
• Considerate Constructors - Process
Performance


Indicators that have got worse
   Performance




Indicators that have stayed the same
Performance




Indicators that have improved
       Impact on the Environment
                Product                                   2007

               Scoring 8/10 or better

100%
 90%
 80%
 70%
 60%                    53%       54%    51%




                                                Better
 50%
 40%           32%
        28%
 30%
 20%
 10%
  0%
        2003   2004     2005      2006   2007
                        Year


                                                         Overall
         Impact on Biodiversity
                Product                                  2007

              Scoring 8/10 or better

100%
90%
80%
70%
60%




                                               Better
50%
40%    34%             33%       36%    34%
              28%
30%
20%
10%
 0%
       2003   2004     2005      2006   2007
                       Year


                                                        Overall
 Whole Life Performance - Product                             2007

                    Scoring 8/10 or better

100%
90%
80%
70%
60%




                                                    Better
50%                      41%       41%       39%
40%           35%
       29%
30%
20%
10%
 0%
       2003   2004       2005      2006      2007
                         Year


                                                             Overall
 Energy Use (Designed) – Product
         (kg CO2/100m2)                               2007

                     Median

5000
       4414
4500          4295   4291

4000                          3729   3775




                                            Better
3500

3000

2500

2000
       2003   2004   2005     2006   2007
                     Year


                                                     Overall
SAP Rating for Housing Developments
                                                    2007

               Median SAP Rating

 120

 110
                                   100
 100                         97
              95
       90




                                          Better
 90

 80

 70

 60
       2004   2005          2006   2007
                     Year


                                                   Overall
   Water Use (Designed) – Product
             (m3/100m2)                                2007

                      Median

100.0
                                      90.4
 90.0

 80.0
        69.6   70.4




                                             Better
 70.0

 60.0                 53.2     52.0
 50.0

 40.0

 30.0
        2003   2004   2005     2006   2007
                      Year


                                                      Overall
 Area of Habitat Created/Retained –
              Product                                           2007

       % reporting no change or an increase in area

100%
90%    84%                      83%
                  76%                     78%
80%
70%
60%




                                                      Better
50%
40%
30%
20%
10%
 0%
       2004       2005          2006      2007
                         Year


                                                               Overall
       Impact on the Environment
         Construction Process                            2007

               Scoring 8/10 or better

100%
90%
80%
70%
60%           56%
       51%
50%                    44%      45%     44%




                                               Better
40%
30%
20%
10%
 0%
       2003   2004     2005     2006    2007
                       Year


                                                        Overall
         Impact on Biodiversity
          Construction Process                           2007

              Scoring 8/10 or better

100%
90%
80%
70%
60%
                       45%       48%    46%




                                               Better
50%
              39%
40%    35%
30%
20%
10%
 0%
       2003   2004     2005      2006   2007
                       Year


                                                        Overall
Energy Use – Construction Process
         (kg CO2/£100k)                              2007

                    Median

400


350
             322




                                           Better
300   288           293      293
                                    273

250


200
      2003   2004   2005     2006   2007
                    Year


                                                    Overall
Water Use – Construction Process
           (m3/£100k)                                  2007

                      Median

20.0
18.0
16.0
14.0




                                             Better
12.0
              9.7
10.0                           8.9
                     8.2              8.2
       7.5
 8.0
 6.0
 4.0
 2.0
 0.0
       2003   2004   2005      2006   2007
                     Year


                                                      Overall
   Waste – Construction Process
            (m3/£100k)                                2007

                     Median

60.0

50.0          47.1
       43.5          41.6
                                     39.1
40.0                          37.0




                                            Better
30.0

20.0

10.0

 0.0
       2003   2004   2005     2006   2007
                     Year


                                                     Overall
       Commercial Vehicle Movements –
           Construction Process                          2007

                        Median

60.0

50.0
         44.0

40.0            34.5




                                               Better
                       29.4      30.4   29.4
30.0

20.0

10.0

 0.0
         2003   2004   2005      2006   2007
                       Year


                                                        Overall
Development on Brownfield Sites                        2007

                     % of Projects

100%
 90%
 80%                           74%    76%
                       69%
 70%   63%    65%
 60%




                                             Better
 50%
 40%
 30%
 20%
 10%
  0%
       2003   2004     2005    2006   2007



                                                      Overall
Considerate Constructor Scheme                          2007

                     % of Projects
100%
 90%
 80%
 70%
 60%




                                              Better
 50%
 40%
 30%
 20%   10%    12%      10%      11%    10%
 10%
  0%
       2003   2004     2005     2006   2007


                                                       Overall
    Performance in 2007
     Environment KPIs
          Energy Use - Construction Process
        Mains Water Use - Construction Process
               % Brownfield/Greenfield

                  SAP Rating (Housing)
       Transport Movements - Construction Process
                Considerate Constructors
?           Whole Life Performance – Product
            Energy Use (Designed) – Product
      Impact on Environment - Construction Process
             Impact on Biodiversity – Product

          Impact on the Environment – Product
         Mains Water Use (Designed) – Product
       Area of Habitat - Created/Retained – Product
              Waste - Construction Process
      Impact on Biodiversity - Construction Process
Overall Performance Since Inception
         Environment KPIs
              Impact on the Environment – Product
                Energy Use (Designed) – Product
                Whole Life Performance – Product
                 Waste - Construction Process
               Energy Use - Construction Process
          Transport Movements - Construction Process
         Impact on Biodiversity - Construction Process
                    % Brownfield/Greenfield
                     SAP Rating (Housing)


    ?          Impact on Biodiversity – Product
                  Considerate Constructors

             Mains Water Use (Designed) – Product
          Area of Habitat - Created/Retained – Product
         Impact on Environment - Construction Process
            Mains Water Use - Construction Process
           Conclusions - Concerns
• Performance has declined for 10 of the 15 indicators in
  2007, and in 4 of 15 overall since inception
• Still no better than half of those responding to the
  surveys feel that environmental and biodiversity issues
  are being dealt with effectively (product or process)
• Water use in the product was reported as significantly
  worse (but relatively small sample size)
• On the evidence of the KPI surveys, the use of the
  adoption of the Considerate Constructors schemes still
  remains stuck at around 10% of construction projects
             Conclusions - Positives
• Continue to get a good response to the surveys –
  particularly from contractors
• There have been year on year improvements in 2
  indicators (neither are ‘Headline’)
   – % Brownfield/Greenfield
   – SAP Rating (for housing)
• Overall - since data collection started - the 11 of the 15
  areas performance have improved (or at least remained
  at around the same level)
• WELL DONE for that!
• For the Future – need to do better!
Demonstration Project
     Results

         Jon de Souza
    Demonstration Programme Manager


  Constructing Excellence in the Built Environment
Demonstration Programme
  Implementing the principles of Rethinking Construction
  468 Projects since 1998
    280 general construction and infrastructure
    188 housing sector

  Value £12bn
  382 completed, 86 live and active
  Involvement of 1176 organisations UK wide
  132 case histories
  60 associated reports and publications
           What is a Demonstration?

• A project applying an element of innovation OR
  A project taking an earlier innovation and transferring it
  to a different sector, size of project, type of client etc.
• A project that adds to the industry ‘knowledge bank’
• A project willing to share learning with the industry
• A project willing to measure the appropriate industry
  headline Key Performance Indicators and share this
  data with us
• A project that meets a particular industry need
                 What is a Demonstration?




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                                                                                                   CE 2007




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                                                                                                                        Demonstration v Industry 2007




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                                                                                           297




                                       ct           du
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                                                ro
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                                                        ss
             Qualifications and Skills

Demonstration Projects have achieved almost three times
  the industry average.

Bradford Community Housing Trust
Fourth year of Decent Homes programme
Programme of training and apprenticeships
90% from BME backgrounds
14% female
All trainees achieve NVQ Level 2 with many progressing
   onto Level 3
        Environmental Impact - Process

Demonstration Projects have
achieved double the industry average.

Barts and London
99.6% of demolition waste reused or recycled
50,000 tonnes of waste diverted from landfill
250,000 bricks sent for reuse
No stoppages due to noise, dust or vibration
Innovative acoustic screen allowed piling to take place
   three metres from the children’s intensive care unit
           Why become a Demonstration?

Two main benefits identified

1) Raise the profile of your organisation
   –   PR activities
   –   Use of Demonstration Logo
   –   Case study produced at close of project
   –   Get the opportunity to showcase project at events
   –   Page on CE website

2) Participate in a learning and sharing network of
   forward-thinking organisations
      How to become a Demonstration

• Application form at CE website
   – Full version available for download
   – Online ‘taster’ for those that want to dip their toe into the water
• Applications to be sent to Jon de Souza at CE
• Applications considered by industry working groups
• Limit number of Demonstrations so competition for
  places
www.constructingexcellence.org.uk

desouzaj@constructingexcellence.org.uk
020-7592-1100
07971-239924
Coffee
Gerry Samuelsson-Brown
  Principal Research Consultant
                 M&E Contractors KPIs
• Client satisfaction:                         14 headline KPIs,
    • Overall service                        including 4 upgraded
                                                   measures
    • Design
    • Quality of installation                        … plus …
    • Quality of O&M manual                      40 other secondary
    • Defects on handover                          and additional
    • Environmental impact                           indicators!
    • Value for money
• Predictability of cost                     .
• Predictability of time
• Productivity
• Profitability
• Safety – AIR
• Respect for People – Training
• M&E satisfaction - overall payment terms
Client Satisfaction – 7 years comparison
                          Scoring 8/10 or better

       Service
                                                                                 67%

        Design
                                                                                63%

    Installation
                                                                                       74%

        O&Ms
                                                               46%

      Defects
                                                                                 66%
                   0%                 25%                      50%                    75%
                          Percentage of projects scoring 8 or more out of 10

                        2007   2006    2005    2004     2003    2002     2001
              Predictability of cost
               Percentage on target or better
100%



80%


60%
                                                       47%
                                      43%       45%
                       41%     42%
               40%
       37%
40%


20%
                                                              Better
 0%
       2001    2002    2003   2004    2005      2006   2007
                     Predictability of time
                    Percentage on target or better
100%



80%



60%
       53%    52%                                       53%
                         49%                     49%
                                 46%     47%

40%



20%

                                                               Better
 0%
       2001   2002       2003    2004    2005    2006   2007
                                Productivity
                               Median scores, £
70.0
                                      Current values
                                      Constant (2001) values
60.0
                                                                                       55.0

                                             50.0          50.0          49.8
50.0
                                                    45.1
                               43.0                               42.0                        42.6
                                      40.3                                      39.8
40.0
                   34.0 32.9

30.0
       Both 26.1


20.0


10.0
                                                                                                     Better

0.0
         2001        2002        2003          2004          2005          2006          2007
                   Profitability
                   Median scores, %
8%


7%


6%


5%
            4.2%           4.3%    4.3%
                                          4.1%
                   3.9%                          3.9%
4%


3%
     2.2%
2%


1%                                                      Better

0%
     2001   2002    2003   2004    2005   2006   2007
             Profitability by size of firm
                          Median scores, %

                                                                               5.3%

Fewer than 60 staff

                                                                     4.6%
                                            2.4%

   60 or more staff                                                                       10% of
                                                                                          SMEs
                                                          3.5%
                                                                                          made a
                      0      1        2          3           4            5           6
                                                                                          loss!

                                    Mean profitability score (%)


                            2007   2006   2005     2004    2003    2002       2001
                       Safety – AIR
              % of firms with no reportable accidents
100%



80%



60%
                                                        48%

40%             35%                          34%
       31%                         32%

                          22%
20%



 0%
       2002     2003      2004     2005     2006        2007
                                                               Better

                                    SMEs have the worst AIRs!
   Safety – AIR (firms with 60 or more staff)
              % of firms with no reportable accidents
100%



80%



60%



40%

                                                   23%
20%            14%                        16%
                                 13%
       7%
                        4%
 0%
                                                          Better
       2002    2003     2004     2005     2006     2007
       Value for money from M&E contractors
                  Scoring 8/10 or better
100%




80%

                                   65%
                    61%                    60%
60%      54%




40%




20%
                                                  Better

 0%
          2004      2005           2006    2007
              Environmental impact
                 Scoring 8/10 or better
100%




80%




60%                                       56%
                                  54%
                   50%

       41%
40%




20%

                                                 Better
 0%
       2004         2005          2006    2007
M&E Contractor satisfaction with payment terms
               Scoring 8/10 or better
 100%




 80%




 60%




 40%
                 28%
                                23%     24%
        21%
 20%

                                                 Better
  0%
        2004     2005           2006    2007
M&E Contractor satisfaction with payment terms
                           Scoring 8/10 or better

             Release retentions monies
                                                     10%
         Payment for early off site work                   13%
                          Final account                    13%
    Timeliness valuation change orders
                                                               14%
 Timeliness payment of certified monies
                                                                     19%
             Accuracy interim payments
                                                                            23%
 Overall satisfaction with payment terms                                    24%

                                       0%   5%    10%     15%     20%      25%    30%
                                            % of projects scoring 8 or more

                                              2007      2006     2005      2004
M&E Contractor “dissatisfaction” with payment terms
                             Scoring only “1”


             Release retentions monies
                                                                     24%
                          Final account
                                                         11%
         Payment for early off site work
                                                 5%
 Overall satisfaction with payment terms          5%

    Timeliness valuation change orders       4%

 Timeliness payment of certified monies
                                             3%
             Accuracy interim payments      3%

                                       0%   5%    10% 15% 20% 25% 30% 35% 40%
                                                   % of projects scoring "1"

                                                  2007   2006     2005     2004
Respect for people – Investment in training
       Median days training per member of staff
10




8




6



     4.0                                          4.0
4
                     3.0            3.0



2

                                                         Better
0
     2004           2005            2006          2007
       Procurement
Have you worked with the M&E contractor
  you are appraising before?


                               26%


 42%




                             32%


    First time worked with
    Occasionally worked with
    Often worked with / preferred contractor
        Satisfaction with service
by client’s experience of M&E contractor
                            Scoring 8/10 or better

   Often worked
  with or preferred                                        79%
     contractor

     Occasionally
                                                     68%
     worked with


 First time worked
                                      39%
         with


                      0%   20%      40%       60%       80%      100%

                            % scoring 8 or more with service
                        Conclusions
  Client satisfaction KPIs and SPIs have improved over time
  Design has shown the greatest improvement
? Predictability of cost and time – increasing but still poor
  Company measures, ie productivity and safety have improved
  Evidence of greater uptake of collaborative practices,
  resulting in best customer satisfaction scores… and yet …
  are M&E contractors getting a fair deal? …..
X Look at profits which fell this year
X Look at the scores of “1” for payment terms
 “The ball is back in the clients’ court to engage in more negotiation to
               improve payment terms and profit margins”
       A lot more than 14 headline KPIs …

For further guidance …

•   M&E Contractors’ KPI handbook
•   M&E Benchmarking club
•   M&E workshops (setting up a customer satisfaction programme
    and benchmarking)

    Contact:
    www.bsria.co.uk
    kpi@bsria.co.uk
    Gerry Samuelsson-Brown on 01344 465 576
     Construction Consultants KPIs
Project partners




    Data collected from clients and
              consultants
      Construction Consultants KPIs
•Client satisfaction:
     –Overall Performance
     –Value for Money
     –Quality of Service
     –Timely Delivery
     –Health & Safety Awareness
•Training
•Productivity
•Profitability



      Handbook available on
       www.KPIZone.com
             Client Satisfaction - overall

                       Scoring 8/10 or better
60%
                                   51%             52%
                                            50%
50%                       48%
      45%
               42%
40%


30%


20%


10%


0%
      2002      2003      2004     2005     2006   2007
      Client Satisfaction – value for money
                     Scoring 8/10 or better
60%

                                         49%
50%                                             47%
                       45%
                                41%
       39%
40%           37%

30%


20%


10%


0%
       2002   2003      2004    2005     2006   2007
      Client Satisfaction – quality of service
                     Scoring 8/10 or better
60%

                                                 49%
50%                                       47%
                        45%
       42%    43%                43%
40%


30%


20%


10%


0%
       2002   2003      2004     2005     2006   2007
      Client Satisfaction – timely delivery
                    Scoring 8/10 or better
60%


50%
                                               44%
      41%             42%
40%          38%                        38%
                               36%

30%


20%


10%


0%
      2002   2003     2004     2005     2006   2007
Client Satisfaction – health & safety awareness
                     Scoring 8/10 or better
 60%
                                         54%    55%
                       49%
 50%
                                45%
       42%
              39%
 40%


 30%


 20%


 10%


 0%
       2002   2003     2004     2005     2006   2007
                       Training
                  Median days/year
5



4

                      3.2
3

           2.2
    1.9                       2.0
2
                                     1.4
                                            1.2
1



0
    2002   2003      2004     2005   2006   2007
                      Profitability
                           Median %
15.0%


12.5%
                                             10.7%
10.0%                          9.3%   9.6%
                        8.6%
        8.0%
               7.5%
7.5%


5.0%


2.5%


0.0%
        2002   2003     2004   2005   2006   2007
                              Productivity
              Median value-added per employee (£000)
50

                                                                            40.9
40                                              36.4          36.4
                                  35.6
                  33.4 32.4              33.2                                      32.7
     31.0 31.0                                         31.6
                                                                     30.1
30


20


10


 0
       2002         2003           2004          2005           2006          2007

                 Current Values     Constant (2002) Values
        Overall performance 2007
           - Consultants KPIs


    Overall satisfaction, Service, Timely delivery,
                H&S awareness, Profit



?           Value for money, Productivity.



                      Training.
                    Conclusions
• Overall client satisfaction has improved and this is
  reflected in all areas except their perception of value
  for money.
• Continued increase in satisfaction with H&S is
  encouraging
• Training – another disappointing result.
• Financial performance is steady.
• Bear in mind that only 50% are scoring 8 out of 10 or
  better, so still a long way to go as an industry.
Martin Print


 KPI Consortium
     Construction Products Industry KPIs
Customer                 Environment:           People:
satisfaction:
   Product quality         Energy consumption     Safety at work

   Delivery quality        Water usage            Sickness Absence

   Sales advice            Waste reduction        Training
                           Transport movement     Qualifications
   After sales service
                           Packaging management   Equality & Diversity
   Value for money




       Handbook available on
    www.constructionproducts.org.uk
              Product Quality
                  Scoring 8/10 or better
100%
90%
                          80%                 79%
80%            73%                     74%
70%
60%
       57%

50%
40%
30%
20%
10%
 0%
       2003    2004       2005         2006   2007
              Delivery reliability
                      Scoring 8/10 or better
100%
90%
80%
       68%                                       70%
70%             64%           63%         65%
60%

50%
40%

30%
20%

10%
 0%
       2003     2004          2005        2006   2007
              Sales advice
                 Scoring 8/10 or better
100%
90%
80%
70%                      63%
60%    53%    55%                    55%
                                            48%
50%
40%
30%
20%
10%
 0%
       2003   2004       2005        2006   2007
              After-sales service
                   Scoring 8/10 or better
100%
90%

80%
70%                        64%         63%    66%
60%
       49%      52%
50%

40%
30%
20%

10%
 0%
       2003     2004       2005        2006   2007
              Value for money
                 Scoring 8/10 or better
100%
90%
80%
70%

60%                             54%       56%
       53%
50%
                 47%

40%
30%
20%

10%
 0%
       2004      2005           2006      2007
                  Energy used
        kgCO2 consumed / 10 tonne production output
                  1397
1000

900                           869.1

800    743.4
700

600

500
400

300
200
                                         115.2
100
                                                      79.5   Better
  0
       2003       2004        2005        2006        2007
               Waste Leaving site
         volume of waste as %age of production output

2.5%
                  2.29%

2.0%


1.5%   1.33%
                             1.19%

1.0%
                                         0.72%
                                                    0.59%
0.5%
                                                               Better
0.0%
       2003        2004       2005        2006          2007
       Accident Incidence Rate
         reportable accidents / 100,000 employed

3000


2500   2412


2000
                     1702

1500
                                    1416           1416


1000


500
                                                          Better

  0
       2004           2005           2006          2007
      Overall performance 2007
- Construction Products Industry KPIs


      Quality, Delivery, Value for money, After-
     sales, Training, Qualifications, E&D, Waste



?     Environment, Sickness absence, Safety



                   Sales Advice
                   Conclusions

• Trends show improvements are occurring
• Drivers for change – client demand, regulation, market
• KPIs are being increasingly recognised as the way to
  measure suppliers’ performance
• Increasing importance as OSM takes greater share of
  market
• Must sustain these improvements
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