With all the different aspects of running a construction company, it can be challenging to keep track of everything and ensure everyone is on the same page.
That’s why knowing your KPIs (Key Performance Indicators) is so important.
Your KPIs are the metrics you use to track and measure the success of your construction company.
You could track many different KPIs using the latest construction management software, but not all of them will be relevant to your company or your goals.
To help you out, we’ve put together a list of 9 essential construction KPIs that every construction project manager should know.
A KPI is a performance metric used to measure a company’s or individual’s success in meeting their goals.
For instance, if you’re a construction business manager, you’d want to know how much revenue your company is generating, how many projects you’re completing on time and on budget, etc.
These would be considered KPIs for your company.
There are a few reasons why KPIs are important for businesses, but perhaps the most important reason is that they help you to identify areas where your company is excelling and areas where there is room for improvement.
KPIs can also be used to benchmark your company’s performance against other companies in your industry.
This can give you a good idea of how well your company is doing compared to your competitors and help you to make necessary changes to improve your business.
There are a few different factors that you should consider when choosing the KPIs for your construction company.
First, you need to think about what you want to measure.
Do you want to track the number of projects you’re completing? The amount of revenue you’re generating?
The number of safety incidents?
Think about what is most important to your company and what would give you the most insights into your business.
Once you know what you want to measure, you need to think about how you’re going to measure it.
Are you going to track it manually or use the software?
If you’re going to use software, what kind of software are you going to use?
There are a lot of different options out there, so you need to choose the one that’s right for your company.
Finally, you need to decide who should be responsible for tracking the KPIs.
This is an important decision because it will impact how often the KPIs are tracked and how accurate they are.
Generally, the person responsible for tracking the KPIs should be someone who is detail-oriented and who has a good understanding of the construction business.
Now that we’ve answered the question “what is KPI in business?” and discussed why KPIs are important, it’s time to look at some specific KPIs that every construction manager should track.
This is perhaps the most important KPI for any business, but it’s especially important for construction companies.
Revenue is a good indicator of how well your company is doing and can be used to track your company’s growth over time.
A good indicator that you’re on the right track is if your revenue is increasing each month.
Even if you cannot increase your revenues exponentially, a small increase each month is a good sign that your company is healthy and growing.
Another important KPI for construction companies is the number of projects completed.
This metric can be used to measure the productivity of your company and to identify areas where you need to improve.
Tip: Consider looking into your team’s level of motivation when working on this metric.
If you find that your employees are not working as hard as they could be, it might be time to consider a change in management or company culture.
Motivation is an important factor in any business, but it’s especially important in construction where workers are often putting in long hours.
Implementing key strategies to motivate construction workers can go a long way in improving this metric.
This KPI is a good indicator of how well your company is doing in terms of project management.
Your project budget is important to track and this KPI can help you identify projects that are at risk of going over budget or taking longer than expected.
If you’re having problems with managing tasks, consider cost-coding your construction projects.
This will help you to see where your money is being spent and to identify areas where you can cut costs. You’ll be able to manage your future projects more effectively and avoid running late on them.
Profit margin is a key metric for any business, but it’s especially important in construction.
Construction companies often have tight profit margins, so it’s important to track this KPI closely.
The average project profit margin can help you to identify which projects are more profitable than others.
It can also help you to negotiate better prices with clients and suppliers.
This KPI is another good indicator of your company’s project management skills. It’s important to track because it can help you to avoid going over budget on future projects.
If you find that you’re consistently going over budget, consider using a construction planning software like eSub Construction Management Software.
This software will help you to stay on top of your budget and ensure that you don’t go over budget on future projects.
The average number of days to complete a project is a good indicator of your company’s productivity.
If you find that it’s taking your employees longer to complete projects than it should, consider using a task management system in an app like MobiClocks
With a simple drag-and-drop interface, you can easily assign tasks and due dates.
This will help you to track the progress of each project and ensure that your employees are completing their tasks in a timely manner.
Construction workers are in high demand, so it’s important to keep your best employees happy.
If you want to undertake more profitable projects but feel that you’re low in human resources, it may be a good idea to increase your employee retention rate.
Tip: Consider having business development meetings to discuss how you can improve this metric. This way you can identify what strategies are and aren’t working to keep your best employees.
Construction is a dangerous industry, so it’s important to track your safety incident rate.
This KPI can help you to identify which areas of your business are most at risk and to implement strategies to reduce the number of accidents.
If you find that you have a high safety incident rate, consider hiring a safety consultant.
They will be able to assess your business and recommend changes that you can make to improve safety in the workplace.
You can also look into common safety practices in the construction industry, such as using personal protective equipment (PPE) and conducting safety training for employees.
Your customer satisfaction score is a good indicator of how well your company is doing.
It’s important to track this KPI because it can help you to identify areas where you need to improve.
If you find that your customer satisfaction score is low, consider conducting customer surveys.
This will give you some insights into why your customers are unhappy and what you can do to improve their experience.
You can also look into using a customer relationship management (CRM) system.
This software will help you to track your customer interactions and to identify areas where you need to improve.
Construction is a complex industry with many moving parts. That’s why it’s important to understand your KPIs and to track them closely.
When you track your KPIs regularly, you can reap several benefits such as:
-Improved project management
-Reduced costs
-Improved safety
– Improved customer satisfaction
So start tracking your KPIs today and see how they can benefit your projects in no time!
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