International Journal of Civil and Structural Engineering Research ISSN 2348-7607 (Online) Vol. 10, Issue 1, pp: (125-131), Month: April 2022 - September 2022, Available at: www.researchpublish.com
Relative Importance Index for the Key Performance Indicators for the construction industry in Egypt Eslam Tarek1, Ibrahim Motawa2, Islam Elmasoudi2 1 2
Basic Science Department, Faculty of Engineering, Badr University in Cairo (BUC), Cairo, Egypt Structural Engineering Department, Faculty of Engineering, Mansoura University, Mansoura, Egypt DOI: https://doi.org/10.5281/zenodo.7079244
Published Date: 14-September-2022
Abstract: The construction industry is considered one of the key economic sectors in Egypt. Since the construction industry in Egypt is very dynamic, its performance is influenced by several different factors. Therefore, it is necessary to have a standard performance benchmark and indicators to assess projects’ success. This paper aims to identify the most critical Key Performance Indicators (KPIs) and determine their Relative Importance Index (RII). The methodology to achieve this aim included a thorough literature review and a survey on projects performance among construction professionals in Egypt. The results show that the most critical KPIs are: Cost, Profitability, Time, Quality, Client satisfaction, Safety, Productivity, and Team satisfaction. These results can be used to assess projects success for the benefit of all project parties. Evaluating project performance based on a standard benchmark and indicators helps the construction industry professionals in managing, controlling, and improving projects and in anticipating future projects success. Keywords: Key Performance Indicators, Construction projects, Relative Importance Index.
I. INTRODUCTION Construction is one of the biggest industries in the world with very high level of employability and investment. However, this mega-industry has many uncertainties and risks that would affect projects’ success. In Egypt, the construction sector is a significant contributor to the Egyptian economy and is considered one of the fastest-growing sectors. In addition to this economic contribution, it also plays a vital role in employing skilled and unskilled workers in private and public organizations such as renewable energy power plants, upgrading the roads and metro infrastructure, building the new administrative capital, and north coast holiday and tourism cities. Therefore, evaluating the performance of such large-scale projects needs a standard benchmark to ensure sustainable growth of the industry. The construction sector represents almost 5% of the Egyptian Gross Domestic Product (GDP) and employs about 8% of the Egyptian working force (Ghonamy & ElMikawi, 2018). Egypt’s average GDP from construction has been calculated as 23,047.06 EGP Million from the period 2007 to 2018, and reaching the highest amount of 59,846.30 EGP Million recorded in the fourth quarter of 2018, according to statistics from the Ministry of Planning (Trading Economics, 2019). However, one of the main problems facing construction in Egypt is the lack of controlling tools to measure projects’ performance and the overall company performance (Ghonamy & El-Mikawi, 2018). Over the past years, research proved that the traditional ways to measure projects’ performance are insufficient. For example, cost and time overruns are proved not to be the only indicators that can measure project success. Therefore, a standard benchmark and indicators need to be identified to enable measuring the performance of the projects using most critcal Key Performance Indicators (KPIs).
II. BACKGROUND The UK construction industry was the pioneer in the revaluation of construction performance using KPIs. In the 1990s, the UK government commissioned two major reports: "Constructing the Team" Latham, M. (1994). and "Rethinking Construction" Egan, J (1998). Both reports led to understand the need for improvements within the industry. It led to the development of metrics and parameters by which the industry performance could be measured and improved. According to
Page | 125 Research Publish Journals