A critical review of performance measurement in construction

Purpose – The purpose of this paper is to critically review the literature of performance measurement both in general and in the construction industry in particular. By doing so, it seeks to provide valuable insights into how to construct a comprehensive performance measurement model for the construction industry. Design/methodology/approach – Based on a comprehensive literature review on performance measurement, the paper presents a critical review of the development of performance measurement, with a special focus on the construction sector. The strengths and weaknesses of most previous measurement frameworks and techniques are investigated. Performance information that each can generate is analyzed in the context of the construction industry. Findings – The research findings showed that performance measurement studies in construction can be divided into three levels: project, organizational, and stakeholder levels. In addition, the major frameworks of performance measurement in construction were found to be: European Foundation for Quality Management excellence model, balanced scorecard model, and key performance indicators model. The most frequently applied research techniques of performance measurement in construction included: gap analysis, integrated performance index, statistical methods, and data envelopment analysis method. The performance information generated from the measurement encompasses frameworks and hierarchical indicators, and functions and score. Research limitations/implications – The research focuses on the performance measurement of construction. Further research work should be conducted to cover other industries. Practical implications – The paper provides an innovative and useful approach to defining the process of performance measurement in construction, which can be of great use to both the research community and industrial practitioners. Originality/value – The paper summarizes the recent performance measurement research studies in construction, integrates the whole process of the performance measurement, and offers useful insights into future areas of research in this field.