A framework for measuring construction project performance: Overcoming key challenges of performance measurement

Performance in the construction project context, and the need for its measurement are examined in this review of literature. It is shown that despite the inherent benefits of performance measurement in helping identify unnecessary causes of waste so that remedial actions can be taken, performance measurement is not extensively implemented because of the inadequacy of measures, complexity of measurement, time consuming and costly nature of performance measurement, and project-oriented nature of the industry. Where performance measurement is implemented, various frameworks are available, some targeting project performance whilst others focus on overall business performance. The criteria for these various frameworks are contrasted and assessed in terms of their suitability for on-going research into the impact of organisational culture on construction project performance. Following this assessment, the key requirements of suitable performance measures and measurement frameworks are identified as including, having a few but relevant measures, being linked with critical project objectives, providing accurate information, and comprising financial and non-financial measures. It is argued that a 'one-fits-all' approach in performance measurement is non-existent, and that measures chosen must align with the purpose of the measurement - in this case, the need to investigate the impact of organisational culture. On the basis of these arguments, an approach for identifying performance measures in this research is proposed.