Performance Report 2009 - Constructing...

UK IndustryPerformance Report

Based on the UK Construction Industry Key Performance Indicators

2009

BERR Department for BusinessEnterprise & Regulatory Reform

In Partnership with

Headline Sponsor:

The KPI Project Management Group:The data used to compile the UK Construction Industry KPIs is collected under the guidance of the KPI Project ManagementGroup chaired by the Department for Business Enterprise and Regulatory Reform. In 2009, the members of the Group were:

Industry Performance Report 2009 - ContentsEconomic KPIs - All Construction - Year on Year ComparisonsKPI summary table 02KPI group trend graph 04

Economic KPIs - All Construction - Individual KPI Trend GraphsClient Satisfaction - Product, Service & Value for Money 06

Contractor Satisfaction - Overall - Performance, Provision of Information & Payment 07

Defects - Impact at Handover, Predictability Cost -Project & Design 08

Predictability Cost - Construction, Predictability Time -Project & Design 09

Predictability Time - Construction, Construction Cost & Time 10

Profitability, Productivity - (VAPH Current Values) & (VAPH Constant 2000 Values) 11

Gross Productivity (TOPH), Return on Value Added (ROVA) & Return on Capital Employed (ROCE) 12

Safety - Industry & Safety - Contractors - All Companies 13

Respect for People KPIs - All Construction -Year on Year ComparisonsKPI summary table 14KPI group trend graph 15

Environment KPIs - All Construction -Year on Year ComparisonsKPI summary table 16KPI group trend graph 17

Economic KPIs - All Housing - Year on Year ComparisonsKPI summary table 18KPI group trend graph 19

Economic KPIs - All Non-Housing - Year on Year ComparisonsKPI summary table 20KPI group trend graph 21

Construction Consultants KPIs - Year on Year ComparisonsKPI summary table 22KPI group trend graph 23

M&E Contractors KPIs - Year on Year ComparisonsKPI summary table 24KPI group trend graph 25

Construction Products Industry KPIs -Year on Year ComparisonsKPI summary table 26KPI group trend graph 27

Constructing Excellence Demonstration Projects -Year on Year ComparisonsKPI summary table 28KPI group trend graph 29

Constructing Excellence Demonstration Projects -Comparisons with All ConstructionKPI summary table 30KPI group trend graph 31

Appendix 32How to read the data tables and graphs 33Data Sources for the UK Construction Industry KPIs 35About Constructing Excellence 37

Keith Folwell (Chairman) Department for BusinessEnterprise and Regulatory Reform

Jo ChanningOffice for National Statistics

Bob PackhamKPI Consortium

Joe MartinRoyal Institution of Chartered Surveyors

Paul BurrowsRoyal Institution of Chartered Surveyors

Martin PrintKPI Consortium

Jon de SouzaConstructing Excellence in theBuilt Environment

Sam RakusenRakusen Design FX Ltd.

Gerry Samuelsson - BrownBuilding Services Research &Information Association

David CrowhurstBuilding Research Establishment

John TebbitConstruction Products Association

Susan WhiteKPI Consortium

Andrew GibbonsMRM Solutions

© Constructing Excellence. Requests to use any part of this document shouldbe sent to Constructing Excellence:

Warwick House, 25 Buckingham Palace Road, London SW1W 0PPTel: 020 7592 1100 Fax: 020 7592 1101

In Partnership with


2009 UK Construction Industry KPIs - Industry Performance Report 01

Executive SummaryThis is the eleventh year of publication of the Construction

Industry KPIs, based on data from thousands of projects

collated from government and industry surveys. These

enable individual firms to benchmark their performance

with other firms, and they also enable us to measure

improvement across the industry through this annual

Industry Performance Report.

The report contains trend data for economic performance,

people performance and environmental performance, as

well as for housing, consultants, M&E contractors and

construction products, and Constructing Excellence

demonstration projects are also included.

Overall, the results show some of the effects to be

expected as the industry moves from a period of

sustained growth into recession. 59% of the headline KPIs

showed improvement, 13% were level, and 28% showed

a decline in performance. Overall the rate of improvement

has slowed down in recent years.

Economic indicatorsThe industry showed improvement in three quarters of the areas

measured by the headline Economic All Construction KPIs. This continues

a trend seen over the preceding eleven years. This year, seven KPIs

showed better performance, one was level, and two (cost predictability

and safety) worsened. Safety performance declined slightly but there

have been small improvements in the levels of client satisfaction, and

productivity and profitability have risen. The cost and time predictability

KPIs show that the underlying causes of variability are still entrenched in

the industry.

Environmental indicatorsThis year’s Environment KPIs reveal a mixed picture for the industry’s

performance (seven showing improvement and five worsening),

suggesting that the industry is making patchy progress in this vital area.

Client perception of how much care is being taken for the environment

during the construction phase generally moved ahead this year, and

there was a reduction in waste transported off site.

People indicatorsRespect for People KPI data has been collected and analysed for eight

years. The first four years showed steady improvement in most areas,

but the picture has been mixed since then. This year, four of the

headline KPIs showed improvement, one was static, and three

worsened.

Employee satisfaction declined again slightly this year, but employee

turnover reduced. Pay levels continued to move upwards, and there was

a slight improvement in training, although the median remains low at 1.1

days per employee per year.

HousingClient satisfaction fell this year, with client satisfaction with the product

down to 84% (86% in 2008). Client Satisfaction - service fell to 79%

(84% in 2008) and defects scores worsened to 76% (80% in 2008).

Cost predictability improved but time predictability worsened slightly, and

profitability leveled off at 8.8%. Productivity drifted down fractionally

(£50.0k value added per employee in 2009, compared with £53.3k in

2008), and the inflation adjusted figure declined slightly too (£39.8k in

2009 compared with £42.1k in 2008).

ConsultantsOverall, client satisfaction has improved since 2002, but this has levelled

off over the past three years. This year client satisfaction remained more

or less static. Training days per employee was reported at 2.0 days per

employee (last year 1.5 days per year), and there were increases in

profitability (from 13.3% to 14.8%) and productivity rose from £46,100

per employee last year to £48,700.

M&E Contractors Client satisfaction in the M&E sector levelled off this year, although the

overall trend since 2001 has been generally positive. For the fifth year in

a row, M&E Contractors' safety performance showed an improvement,

with 55% of all companies achieving zero reportable accidents (50% in

2008), and 25% of larger (60+ employees) companies achieving zero

accidents too (24% in 2008). Defects performance improved very

slightly from 68% last year to 69% this year, while cost and time

predictability remained fairly static. Median profitability declined slightly to

3.9% (down from 4.1% last year), and productivity declined from

£55.7k value-added per employee to £53.9k.

Construction ProductsData collection in 2008 was restricted to measuring customer

satisfaction.. Three out of the five KPIs showed record high levels of

performance. Customer satisfaction with product quality reached an all-

time high (82% compared with 77% last year). Delivery reliability was

also at a record level (72% compared to 62% last year). After sales

service also recorded a jump to its highest level of 72%. Value for money

ratings remained unchanged at 50%, and sales advice ratings were only

36%.

DemonstrationsProjects in our Demonstrations Programme continued to exceed the

performance of the general industry, as they have since their inception.

The industry continues to close the gap on customer satisfaction, but the

gap is much greater for productivity, safety and qualifications and skills.

Demonstration projects are more predictable, with project cost

predictability hitting 88% compared to 48% for the industry as a whole.

Project time predictability shows a similar performance gap, with

demonstration projects recording 90% against the industry's 45%.

Demonstration sites continue to be safer places to work, with a mean

accident incidence rate of 317 compared to the industry figure of 906.

2009 UK Construction Industry KPIs - Industry Performance Report02

KPI MeasurePerformance Trend

Client Satisfaction - Product % scoring 8/10 or better 72% 73% 72% 73% 78% 80% 83% 84% 82% 83% 86%

Client Satisfaction - Service % scoring 8/10 or better 58% 63% 63% 65% 71% 74% 77% 79% 75% 77% 84%

Client Satisfaction -Value for Money 1 % scoring 8/10 or better - - 67% 69% 73% 74% 79% 80% 75% 75% 82%

Contractor Satisfaction -Performance - Overall 1 % scoring 8/10 or better - - - - 64% 65% 63% 62% 62% 62% 64%

Contractor Satisfaction -Provision of Information - Overall 1 % scoring 8/10 or better - - - - 57% 59% 58% 56% 56% 56% 59%

Contractor Satisfaction -Payment - Overall 1 % scoring 8/10 or better - - - - 67% 66% 65% 65% 63% 63% 67%

Defects - Impact at Handover 1 % scoring 8/10 or better - 65% 53% 58% 68% 68% 72% 77% 73% 73% 77%

Predictability Cost - Project 1 % on cost or better - 50% 46% 48% 52% 50% 48% 45% 46% 49% 48%

Predictability Cost - Design % on cost or better 65% 64% 63% 63% 65% 62% 63% 66% 64% 65% 61%

Predictability Cost - Construction % on cost or better 37% 45% 48% 50% 52% 49% 48% 44% 49% 48% 46%

Predictability Time - Project 1 % on time or better - 28% 36% 42% 44% 44% 46% 44% 58% 45% 45%

Predictability Time - Design % on time or better 27% 37% 41% 46% 53% 55% 52% 57% 58% 58% 53%

Predictability Time - Construction % on time or better 34% 62% 59% 61% 59% 60% 62% 60% 65% 58% 59%

Construction Cost 1 % change compared with one year ago -3.0% -2.0% 3.0% 2.0% 5.0% 1.1% -0.8% -0.8% -3.8% -1.7% -4.3%

Construction Time 1 % change comparedwith one year ago - 3.0% 1.0% 4.0% 1.0% -1.7%-1.3% 0.1% -0.3% -0.5% -3.9%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009LastYear

AllYears

Economic KPIs – All Construction Year-on-Year Comparisons


1 Data not available before the first year shown.

2 The measure for this KPI was changed in 2000, 1999 data therefore not reported. In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

3 Current values are deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values .

4 This KPI is based on company annual accident incidence rate published by the Health & Safety Executive on its website at Table 1 "Injuries in GB by Industry and Severity of Injury as reported to all Enforcing Authorities".

5 Data for this KPI was not available before 2002. This KPI is based on company annual accident incidence rates collected in the BERR ContractorSurvey adjusted for under reporting.

KPI MeasureTrend

Profitability 2 Median % profit before interest & tax - 4.4% 5.1% 5.2% 5.4% 7.0% 8.1% 7.9% 8.2% 9.6% 9.9%

Productivity Median value added/(VAPH Current Values) 2 FTE employee (£000) - 27.0 28.0 28.0 31.1 32.6 34.2 38.2 42.0 45.5 46.2

Productivity Median value added/(VAPH Constant 2000 Values) 2 3 FTE employee (£000) - 27.0 26.8 26.0 27.9 28.2 27.5 29.3 31.2 32.3 33.0

Gross Productivity (TOPH) 2 Median turnover/FTE employee (£000) - 59.0 58.0 51.0 54.0 58.3 59.7 58.9 57.5 54.4 57.0

Return on Value Added (ROVA) 2 Median % PBIT/value added - 18.9% 20.2% 21.1% 16.8% 18.3% 15.8% 20.5% 21.4% 22.4% 24.1%

Return on Capital Median % PBIT/Employed (ROCE) 2 capital employed - 17.9% 24.8% 21.6% 28.9% 34.3% 41.3% 36.2% 37.6% 39.8% 47.4%

Safety - Industry 4 Accident incidence rate 1354 1271 1318 1217 1097 1172 1023 901 946 865 906

Safety - Contractors - % achieving zero All Companies 5 accident incidence rate - - - 31% 39% 42% 50% 51% 62% 60% 63%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009LastYear

AllYears

Performance


Key Performance Indicator


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(First year with data = 100)

60

80

100

120

140

160

180

200

220

ClientSatisfaction - Product

ClientSatisfaction -

Service


Value for Money 1

ContractorSatisfaction -Performance -

Overall 1

ContractorSatisfaction - Provision of Information - Overall 1

ContractorSatisfaction - Payment - Overall 1

Defects 1 PredictabilityCost -

Project 1

240

60

80

120

140

160

180

200

220

ConstructionCost

ConstructionTime 1

PredictabilityTime -

Construction

PredictabilityCost -

Construction

PredictabilityTime - Design

PredictabilityTime -Project 1

tyPredictabiliCost - Design

240

100

Economic KPIs – All Construction Year-on-Year Comparisons (contd.)


60

80

120

140

160

180

200

220

240


100

Safety -All Companies 5

Contractors -Safety -Industry 4

Return on Capital Employed (ROCE) 2

Return on Value Added (ROVA) 2

Gross Productivity (TOPH) 2

2

Productivity(VAPH Constant 2000 Values) 3

Productivity(VAPH Current

Values) 2

Profitability 2

265







Economic KPIs – All Construction Individual KPI Trends

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER

% scoring 8/10 or better

1999

72%

2000

73%

2001

72%

2002

73%

2003

78%

2004

80%

2005

83%

2006

84%

2007

82%

2009

86%

2008

83%

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%


2002

65%

2004

74%

2006

79%

2007

75%

2005

77%

2009

84%

2008

77%77%

2003

71%

2001

63%

2000

63%

1999

58%

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%20001999 2002

69%

2004

74%

2005

79%

2006

80%

2007

75%

2009

82%

2008

75%

BET

TER

Data not available before the first year shown.


2003

73%

2001

67%

The annual KPI surveys ask clients to rate how satisfied they

were with the completed facility on a scale from 1-10.

After levelling off between 2005 and 2008, there was a strong

improvement in 2009 to an all-time high of 86% of projects

scoring 8 out of 10 or better.

The annual KPI surveys ask clients to rate how satisfied they were

with the service provided by the project team on a scale from 1-10.

After levelling off between 2005 and 2008, there was a strong

improvement in 2009 to an all-time high of 84% of projects

scoring 8 out of 10 or better.

The annual KPI surveys ask clients to rate how satisfied they were

with the value for money provided on the project on a scale

from 1-10.

In 2009, performance rose to an all-time high of 82% achieving 8

out of 10 or better, reversing the downward trend of the last two

years.

Client Satisfaction - Product

Client Satisfaction - Service

Client Satisfaction - Value for Money


The annual KPI surveys ask contractors to rate how satisfied they

were with the overall performance of the client on a 1-10 scale.

In 2009, 64% of contractors awarded 8 out of 10 or better. This is

unchanged since last year and over six years.

The annual KPI surveys ask contractors to rate how satisfied they

were with the overall provision of information by the client on a

1-10 scale.

In 2009, 59% of contractors awarded 8 out of 10 or better. This is

a slight improvement since last year but almost unchanged over six

years.

The annual KPI surveys ask contractors to rate how satisfied

they were with the overall provision of payment by the client on

a 1-10 scale.

In 2009, 67% of contractors awarded 8 out of 10 or better. This

is an improvement on last year, but there has been no

improvement over seven years.

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%200120001999 2002 2003

64%

2004

65%

BET

TER



2006

62%

2005

63%

2007

62%

2009

64%

2008

62%

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%200120001999 2002 2004

59%

2005

58%

BET

TER


2006

56%

2007

56%

2009

59%

2008

56%

2003

57%


100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%200120001999 2002 2005

65%

2006

65%

2007

63%

2009

67%

2008

63%

BET

TER



2004

66%

2003

67%

Contractor Satisfaction -Performance - Overall

Contractor Satisfaction -Provision of Information - Overall

Contractor Satisfaction - Payment - Overall

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER

1999

65%

2000

64%

2001

63%

2002

63%

2003

65%

2005

63%

2007

64%

2009

61%

2008

65%

2006

66%

2004

62%

% on cost or better

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%1999

BETTER

% on cost or better

2002

48%

2005

48%

2006

45%


2007

46%

2009

48%

2008

49%

2003

52%

2004

50%

2000

50%

2001

46%

The annual KPI surveys ask for the actual out-turn cost of design

compared with the figure agreed at the start of that phase.

In 2009, 61% of projects delivered on target or better compared

with 65% in 2008. This is a significant decline in performance this

year, and an overall slight decline over eleven years.

Since 2000 the annual KPI surveys have assessed the cost

predictability of the whole project (i.e. the combined cost of

design and construction).

In 2009, 48% of projects delivered on target or better, compared

with 49% in 2008. This represents a slight decline in

performance this year and virtually unchanged performance over

nine years.

Predictability Cost - Design

Predictability Cost - Project

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%1999

BETTER


2000

65%

2001

53%

2002

58%

2003

68%

2004

68%

2007

73%

2009

77%

2008

73%


2006

77%

2005

72%The annual KPI surveys ask clients to rate the impact of defects in

the project at the point of handover, on a scale from 1-10, where

10 represents zero defects.

In 2009, 77% of projects achieved 8 out of 10 or better, an

improvement on last year, equalling the highest performance

measured over ten years.

Defects - Impact at Handover

08 2009 UK Construction Industry KPIs - Industry Performance Report


100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER

1999

37%

2000

45%

2002

50%

2004

49%

2005

48%

2006

44%

2007

49%

2008

48%

% on cost or better

2003

52%

2001

48%

2009

46%

The annual KPI surveys ask for the actual out-turn time taken for

the design phase compared with the length of time agreed at

the start of that phase.


with 58% in 2008. This represents a significant decline in

performance this year. The improvement in performance from

1999 to 2003 has now levelled off.

Since 2000 the annual KPI surveys have assessed the time

predictability of the whole project (i.e. the combined time for

design and construction).

In 2009, 45% of projects delivered on target or better, the same as

in 2008. Over ten years there has been significant improvement,

but this has levelled off over the most recent years.

The annual KPI surveys ask for the actual out-turn cost of

construction compared with the figure agreed at the start of

that phase.


with 48% in 2008. This represents a slight decline in performance

this year but virtually unchanged performance over ten years.

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER

2000

37%

2003

53%

2004

55%

2007

58%

2009

53%

2008

58%

% on time or better

1999

27%

2001

41%

2002

46%

2005

52%

2006

57%

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%1999

BETTER

2003

44%

2004

44%

2006

44%

2007

58%

2009

45%

2008

45%


% on time or better

2000

28%

2001

36%

2002

42%

2005

46%

Predictability Cost - Construction

Predictability Time - Design

Predictability Time - Project


The annual KPI surveys ask for the actual out-turn time taken for

the construction phase compared with the length of time agreed

at the start of that phase.

In 2009, 59% of projects delivered on programme or better,

compared with 58% in 2008. Over the past ten years there

has been a slight decline in performance.

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER

% on time or better

1999

34%

2001

59%

2003

59%

2000

62%

2002

61%

2004

60%

2005

62%

2007

65%

2009

59%

2008

58%

2006

60%

Predictability Time - Construction

-10%

-8%

-6%

-4%

-2%

4%

2%

0%

6%

8%

10%1999

-3.0%

2000

-2.0%

2001

3.0%

2003

5.0%

2004

1.1%

-0.8%

2005

-0.8%

2006

-3.8%

2007

-4.3%

2009

-1.7%

2008B

ETTE

R

% change compared with one year ago

2002

2.0%

BERR collates data on the total cost of construction, and is able to

normalise this by type and size of facility and region of the country.

Analysis of this data shows that construction costs in 2008 fell

in absolute terms by 4.3% compared with 2008. This is an

improvement over last year but a virtually unchanged performance

over eleven years.

Construction Cost

-10%

-8%

-6%

-4%

-2%

4%

2%

0%

6%

8%

10%

% change compared with one year ago

1999 2000

3.0%

2001

1.0%

2002

4.0%

2003

1.0%

2004

-1.7%

1.3%

2005 2006

0.1%

2007

-0.3%

2009

-3.9%

2008

-0.5%

BET

TER


BERR collates data on the duration of construction and is able to

normalise this by type and size of facility and region of the country.

Analysis of this data shows that construction times in 2009 were

3.9% better on average than in 2008. This is an improvement this

year, but virtually unchanged performance over ten years.

Construction Time


15.0%

7.5%

10.0%

12.5%

5.0%

2.5%

0.0%1999

5.1%

2001

5.2%

2002

7.0%

2004

7.9%

2006

8.2%

2007

9.9%

2009

9.6%

2008

Median % profit before interest & tax

2005

8.1%

4.4%

2000 2003

5.4% BET

TER

The measure for this KPI was changed in 2000, 1999 data therefore not reported. In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

Data on profit before interest and tax (PBIT) is obtained from firms

filing annual accounts with Companies House. A snapshot of this

data taken each January relates to financial performance reported

in the previous year.

In 2009, the median profitability before tax and interest was

9.9%, compared with 9.6% in 2008. This represents a small

improvement in performance this year and there has been a

significant improvement over ten years.

Profitability - (ROS)

31.2

27

60

50

40

30

20

10

01999

Median value added / FTE employee (£000)

2000

27.0

2004

32.6

2003

31.1

2005

34.2

2007

42.0

2009

46.2

2008

45.5

The measure for this KPI was changed in 2000, 1999 data therefore not reported. In orderregularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

BET

TER

2001

8.02

2002

28.0

2006

38.2Data on value added (gross turnover less all bought-in supplies) is

obtained from firms filing annual accounts with Companies House.

A snapshot of this data taken each January relates to financial

performance reported in the previous year.

In 2009, the median value added per employee was £46.2k

compared to £45.5k in 2008. This represents a significant

improvement in performance this year and over ten years.

Productivity - (VAPH Current Values)

60

50

40

30

20

10

01999

Median value added / FTE employee (£000)

2007

31.2

2001

26.8

2003

27.9

2004

28.2

2006

29.3

2000

27.0

Current values are deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values.

The measure for this KPI was changed in 2000, 1999 data therefore not reported.

BET

TER

In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

2005

27.5

2002

26.0

2009

33.0

2008

32.3

Data on value added (gross turnover less all bought-in supplies) is

obtained from firms filing annual accounts with Companies House.

A snapshot of this data taken each January relates to financial

performance reported in the previous year. The data for each year is

adjusted back to the 2000 values to remove the effect of inflation.

In 2009, the median value added per employee (adjusted) was

£33.0k compared to £32.3k in 2008. This represents a slight


Productivity - (VAPH Constant 2000 Values)


80

70

60

30

40

50

20

10

0

BETTER

Median turnover / FTE employee (£000)

1999 2000

59.0

2001

58.0

2002

51.0

2003

54.0

2004

58.3

2005

59.7

2006

58.9

2007

57.5 57.0

2009

54.4

2008

The measure for this KPI was changed in 2000, 1999 data therefore not reported. In order to regularise the volatile mix of financial data by company size from year

to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

Data on gross productivity (turnover per employee) is obtained

from firms filing annual accounts with Companies House. A sample

of this data taken each January relates to financial performance

reported in the previous year.

In 2009, the median gross turnover per employee was £57.0k

compared to £54.4k in 2008. This represents a slight improvement

in performance this year but virtually unchanged over ten years.

Gross Productivity (TOPH)

15%

20%

25%

30%

10%

5%

0%1999

BET

TER

BET

TER

Median % PBIT / value added


2002

21.1%

2005

15.8%

2006

20.5%

2007

21.4%

2001

20.2%

2000

18.9%

2003

16.8%

2004

18.3%

2009

24.1%

2008

22.4%Data on return on value-added is obtained from firms filing annual

accounts with Companies House. A sample of this data taken each

January relates to financial performance reported in the previous year.

In 2009, the median return on value added was 24.1% compared to

22.4% in 2008. This represents a significant improvement in

performance this year and over ten years.

Return on Value Added (ROVA)

50%

45%

40%

35%

30%

15%

20%

25%

10%

5%

0%1999

BET

TER

Median % PBIT / capital employed

2001

24.8%

2003

28.9%

2004

34.3%

2002

21.6%

2005

41.3%

2006

36.2%


2000

17.9%

2007

37.6%

20092008

39.8%

47.4%

Data on return on capital employed is obtained from firms filing

annual accounts with Companies House. A sample of this data

taken each January relates to financial performance reported in the

previous year.

In 2009, the median return on capital employed was 47.4%

compared to 39.8% in 2008. This represents a significant


Return on Capital Employed (ROCE)


The provisional HSE data for all reportable accidents in 2008/09

indicates an accident incidence rate of 906 reportable accidents

per 100,000 employed. The equivalent figure for 2007/08 was 865.

This represents a slight deterioration in performance this year, but

there has been a significant improvement over eleven years.

The annual KPI surveys ask for company annual accident

incidence rates per 100,000 employed. The data set is adjusted

for under reporting.

In 2009, 63% of companies reported a zero accident incidence

rate compared with 60% in 2008. This represents a slight

improvement in performance this year and over eight years.

1500

750

1000

1250

500

250

0

BETTER

Mean accident incidence rate

This KPI is based on company annual accident incidence rate published by the Health & Safety Executive on its website at Table 1 "Injuries in GB by Industry and Severity of Injury as reported to all Enforcing Authorities".

2000

1271

2005

1023

2006

901

1999

1354

2002

1217

2004

1172

2001

1318

2003

1097

2007

946

2009

906

2008

865

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%200120001999

BETTER

Data for this KPI was not available before 2002. This KPI is based on company annual accident incidence rates collected in the BERR Contractor Survey adjusted for under reporting.

% achieving zero accident incidence rate

2002

31%

2003

39%

2004

42%

2005

50%

2006

51%

2007

62%

2009

63%

2008

60%

Safety - Industry

Safety - Contractors - All Companies


Respect for People KPIs – All Construction Year-on-Year Comparisons

KPI Measure

Employee Satisfaction 1 % scoring 8/10 or better - 41% 41% 51% 55% 47% 46% 44%

Staff Turnover -All Companies 1 Median % staff turnover - 7.7% 7.1% 6.7% 5.9% 5.0% 6.3% 4.2%

Sickness Absence -All Companies 1 Median number of days lost - 1.8 1.7 1.5 1.4 1.7 1.7 1.7

Safety - Industry 2 Accident incidence rate 1217 1097 1172 1023 901 946 865 906

Safety - Contractors All companies 3 % achieving zero accident incidence rate 31% 39% 42% 50% 51% 62% 60% 63%

Working Hours Median usual hours worked / week 44 41 41 40 40 40 40 40

Travelling Time Median travel time to work / day (mins) 31 24 25 25 25 25 25 25

Qualifications & Skills 1 Median % of direct employees qualified to NVQ Level 2 or higher qualification - - 30% 33% 40% 33% 25% 22%

Equality & Diversity 1 % scoring 8/10 or better - 44% 46% 54% 54% 56% 56% 60%

Training 1 Median annual training days / full-time equivalent employee - 0.8 0.8 1.0 1.0 0.9 1.0 1.1

Pay Median gross weekly earnings (£) 365 414 425 441 460 481 495 512

Investors in People 4 Mean % of direct employees covered by IiP commitment and recognition 15.4% 16.7% 19.0% 14.9% 11.1% 11.1% 12.4% 17.6%

Performance TrendAll

YearsLastYear


2 Based on company annual accident incidence rate published by the Health & Safety Executive on its website at Table 1 "Injuries in GB by Industry and Severity of Injury as reported to all Enforcing Authorities".

3 Based on company annual accident incidence rates collected in the BERR Contractor Survey adjusted for under reporting (see KPI Tutorial for details).

4 Based on Investors in People UK Ltd latest industry average performance. liP UK Ltd made major revisions to the make up of the SIC Code content of their data base of Construction Organisations in 2005 & 2006.

2003 2004 2005 2006 2007 2008 20092002

80

160

170

180

190

200

140

150

130

110

120

90

70


60

80

160

170

180

190

200

140

150

130

110

120

90

70


60

EmployeeSatisfaction 1

StaffTurnover 1

Safety - Industry 2

Safety - Contractors - All Companies 3

Working Hours

TravellingTime

Qualifications& Skills 1

Equality &Diversity 1

Training 1 Pay Investors in People 4

2002 2003 2004 2005 2006 2007 2008 2009


SicknessAbsence -

All Companies 1

100

100

203



Environment KPIs – All Construction Year-on-Year Comparisons

KPI Measure

Product Performance -

Impact on the Environment % scoring 8/10 or better 28% 32% 53% 54% 51% 55% 64%

Impact on Biodiversity % scoring 8/10 or better 34% 28% 33% 36% 34% 35% 31%

Whole Life Performance % scoring 8/10 or better 29% 35% 41% 41% 39% 35% 44%

Energy Use (Designed) Median energy use kgCO2 / 100m2 gross floor area 4414 4295 4291 3729 3775 4474 4539

Energy Use (Designed) - Housing SAP Rating 1 2 3 4 Median SAP2001 rating - 90 95 97 100 100 - - -

Energy Use (Designed) - Housing SAP Rating 1 3 Median SAP2005 rating - - - - - - 82 - -

Mains Water Use (Designed) 3 Median water use m3 / 100m2 gross floor area 69.6 70.4 53.2 52.0 90.4 80.0 49.5

Area of Habitat -Created/Retained 1 % when no change or an increase in area of habitat - 84% 76% 83% 78% 80% 82%

Construction Process Performance -

Impact on the Environment % scoring 8/10 or better 51% 56% 44% 45% 44% 48% 49%

Impact on Biodiversity % scoring 8/10 or better 35% 39% 45% 48% 46% 49% 47%

Energy Use (Current Values) Median energy use kgCO2 / £100k project value 288 322 293 293 273 192 241

Energy Use (Constant 2003Values) 5 Median energy use kgCO2 / £100k project value 288 335 327 343 331 243 303

Mains Water Use (CurrentValues) Median water use m3 / £100k project value 7.5 9.7 8.2 8.9 8.2 7.1 6.3

Mains Water Use (Constant2003 Values) 5 Median water use m3 / £100k project value 7.5 10.1 9.2 10.4 9.9 9.0 7.9

Waste (Current Values) Median waste removed from site m3 / £100kproject value 43.5 47.1 41.6 37.0 39.1 36.9 36.6

Waste (Constant 2003 Values) 5 Median waste removed from site m3 / £100kproject value 43.5 48.9 46.5 43.4 47.3 46.7 46.0

Commercial Vehicle Movements (Current Values) Median movements onto site / £100k project value 44.0 34.5 29.4 30.4 29.4 26.5 28.3

Commercial Vehicle Movements (Constant 2003

Values) 5 Median movements onto site / £100k project value 44.0 35.8 32.8 35.6 35.6 33.5 35.6


2 Data not available after 2008.

3 Limited data use with caution.

4 Insufficient data to publish a result in 2008. The 2007 result used for 2008.

5 Current values are delated by the “All Construction Output Price Index” for the first years KPI to arrive at constant values.

Performance

LastYear2003 2004 2005 2006 2007 2008 2009

AllYears

Trend



2003 2004 2005 2006 2007 2008 2009


120

80

140

160

60

100

120

80

200

140

180

160

60

100


120

80

140

180

160

60

100

229

Impact on theEnvironment -

Product

Impact onBiodiversity -

Product

Whole LifePerformance -

Product

Energy Use(Designed) -

Product

Energy Use(Designed)

Housing SAP 20011 2 3 4

Energy Use(Designed)

Housing SAP 20051 3

Mains Water Use(Designed) -

Product 3

Area of HabitatCreated/Retained -

Product 1

Impact on theEnvironment -

Construction Process

Impact on Biodiversity- Construction Process

Energy Use -Construction Process -

(Current Values)

Energy Use -Construction Process -

(Constant Values) 5

Mains Water Use -Construction Process -

(Current Values)

Mains Water Use -Construction Process -

(Constant Values) 5

Waste -Construction Process -

(Current Values)

Waste -Construction Process -

(Constant Values) 5

Transport Movements -Construction Process -

(Current Values)

Transport Movements -Construction Process -

(Constant Values) 5



Economic KPIs – All HousingYear-on-Year Comparisons

1 In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

2 Current values are deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values


4 There is no sector breakdown available for this KPI. This KPI is based on company annual accident incidence rates collected in the BERR ContractorSurvey adjusted for under reporting (see KPI Tutorial for details).

KPI MeasureTrend

Client Satisfaction - Product % scoring 8/10 or better 81% 86% 87% 81% 83% 86% 84%

Client Satisfaction - Service % scoring 8/10 or better 74% 80% 80% 78% 74% 84% 79%

Defects - Impact at Handover % scoring 8/10 or better 73% 78% 78% 82% 74% 80% 76%

Predictability Cost - Project % on cost or better 49% 60% 45% 43% 48% 40% 51%

Predictability Cost - Design % on cost or better 66% 66% 67% 67% 66% 71% 65%

Predictability Cost - Construction % on cost or better 48% 56% 49% 46% 56% 44% 50%

Predictability Time - Project % on time or better 46% 49% 44% 42% 46% 43% 40%

Predictability Time - Design % on time or better 51% 55% 51% 53% 58% 56% 55%

Predictability Time - Construction % on time or better 62% 62% 56% 57% 59% 54% 48%

Construction Cost % change compared with one year ago 0.3% 2.0% 1.0% -2.1% 1.8% -0.8% -0.5%

Construction Time % change compared with one year ago -1.8% -2.3% 2.2% 0.8% 1.0% -1.3% -4.9%

Profitability 1 Median % profit beforeinterest & tax 5.5% 7.7% 8.9% 8.5% 7.1% 8.8% 8.8%

Productivity (Current Values) 1 Median value added/ FTE employee (£000) 32.0 31.9 36.6 47.8 54.0 53.3 50.0

Productivity (Constant 2003 Values) 1 2 Median value added/ FTE employee (£000) 32.0 30.7 32.8 40.8 44.6 42.1 39.8

Safety - Industry 3 Accident incidence rate 1097 1172 1023 901 946 865 906

Safety - Contractors - % achieving zero accidentAll Companies 4 incidence rate 39% 42% 50% 51% 62% 60% 63%

Last All2004 2005 2006 2007 2008 2009 Year Years2003

Performance


140

60

2003 2005 2006 2007 2008 20092004



160

180

80

120

140

60

160

180

80

120

Client Satisfaction -

Product


Service

Defects PredictabilityCost -Design

PredictabilityCost -

Construction

Safety -Industry 3

Safety - AllCompanies 4

Profitability 1 Productivity(Current Values) 1

Productivity(Constant 2003

Values) 1 2

ConstructionCost

ConstructionTime


PredictabilityTime -

Construction

PredictabilityTime -Project

PredictabilityCost -Project


100

100


Client Satisfaction - Product % scoring 8/10 or better 76% 77% 81% 85% 82% 82% 86%

Client Satisfaction - Service % scoring 8/10 or better 70% 73% 75% 79% 78% 72% 86%

Defects - Impact at Handover % scoring 8/10 or better 64% 60% 66% 74% 71% 68% 77%

Predictability Cost - Project % on cost or better 54% 50% 48% 46% 45% 51% 47%

Predictability Cost - Design % on cost or better 66% 63% 63% 68% 65% 62% 59%

Predictability Cost - Construction % on cost or better 52% 48% 47% 43% 46% 50% 44%

Predictability Time - Project % on time or better 46% 41% 46% 45% 46% 48% 47%

Predictability Time - Design % on time or better 57% 60% 54% 60% 54% 61% 50%

Predictability Time - Construction % on time or better 59% 59% 65% 62% 60% 57% 65%

Construction Cost % change compared with one year ago 3.4% 1.2% 0.4% -0.8% -2.9% 0.6% -3.2%

Construction Time % change compared with one year ago 1.5% -0.3% -0.3% 1.0% -1.3% 0.7% -3.4%

Profitability 1 Median % profit beforeinterest & tax 4.9% 6.4% 7.6% 7.5% 8.2% 9.1% 9.4%

Productivity (Current Values) 1 Median value added/ FTE employee (£000) 29.4 30.1 31.6 35.9 39.0 41.8 43.3

Productivity (Constant 2003 Values) 1 2 Median value added/ FTE employee (£000) 29.4 29.0 28.3 30.6 32.2 33.0 34.4

Safety - Industry 3 Accident incidence rate 1097 1172 1023 901 946 865 906

Safety - Contractors % achieving zero accident- All Companies 4 incidence rate 39% 42% 50% 51% 62% 60% 63%

1 In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by numberof employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

2 Current values are deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values


4 There is no sector breakdown available for this KPI. This KPI is based on company annual accident incidence rates collected in the BERR Contractor Survey adjusted for under reporting (see KPI Tutorial for details).

Economic KPIs – All Non-HousingYear-on-Year Comparisons


2003 2004 2005 2006 2007 2008 2009Last Year

AllYears

140


186


160

180

80

120

140

60

160

180

80

120


Product


Service

Defects -Impact at Handover

Safety -Industry 3

PredictabilityCost -Design

Predictability Cost -

Construction

Profitability 1 Productivity (Current Values) 1

Productivity

Values) 1 2(Constant 2003

ConstructionCost

ConstructionTime


60Predictability

Time - Construction

PredictabilityTime -Project

PredictabilityCost -Project

2003 2004 2005 2006 2007 2008 2009

Safety - Contractors -

All Companies 4


100

100

192



Construction Consultants KPIsYear-on-Year Comparisons

KPI Measure

Client Satisfaction - Overall Performance % scoring 8/10 or better 45% 42% 48% 51% 50% 52% 54% 55%

Client Satisfaction - Value for Money % scoring 8/10 or better 39% 37% 45% 41% 49% 47% 46% 46%

Client Satisfaction - Quality of service % scoring 8/10 or better 42% 43% 45% 43% 47% 49% 49% 49%

Client Satisfaction - Timely delivery % scoring 8/10 or better 41% 38% 42% 36% 38% 44% 45% 45%

Client Satisfaction - H&S awareness % scoring 8/10 or better 42% 39% 49% 45% 54% 55% 57% 58%

Training Median annual training daysper FTE employee 1.9 2.2 3.2 2.0 1.4 1.2 1.5 2.0

Profitability 1 Median % profit before interest and tax 8.0% 7.5% 8.6% 9.3% 9.6% 10.7% 13.3% 14.8%

Productivity (Current Values) 1 Median value added / UK FTE employee (£000s) 31.0 33.4 35.6 36.4 36.4 40.9 46.1 48.7

Productivity (Constant 2002 Values) 1 2 Median value added / UK FTE employee (£000s) 31.0 32.4 33.2 31.6 30.1 32.7 35.3 37.5

Trend

20032002 2004 2005 2006 2007 2008 2009LastYear

AllYears

Performance

1 In order to regularise the volatile mix of financial data by company size from year to year, in 2006 a standard method of weighting by number of employees was adopted in line with other international financial KPIs. This method was applied retrospectively to past years and, where applicable, their results were revised.

2 Current values deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values.


180

70

80

90

110

120

150

140

160

130

170

20032002 2004 2005 2006 2007 2008 2009



60

60

ClientSatisfaction

OverallPerformance

ClientSatisfactionValue forMoney

ClientSatisfactionQuality of

Service

ClientSatisfaction

TimelyDelivery

ClientSatisfaction

H&SAwareness

180

70

80

90

110

120

150

140

160

130

170

Training Productivity(Current Values) 1

Profitability 1 Productivity(Constant 2002

Values) 1 2


100

100

185


M&E Contractors KPIsYear-on-Year Comparisons

KPI Measure

Client Satisfaction - Design % scoring 8/10 or better 38% 37% 39% 51% 61% 63% 63% 60% 64%

Client Satisfaction - Installation % scoring 8/10 or better 56% 68% 65% 63% 67% 71% 74% 72% 71%

Client Satisfaction - Service % scoring 8/10 or better 56% 55% 58% 61% 69% 66% 67% 68% 69%

Client Satisfaction - Quality % scoring 8/10 or better 50% 44% 38% 44% 44% 45% 46% 48% 48%O&M Manuals

Defects % scoring 8/10 or better 63% 55% 63% 60% 66% 66% 66% 68% 69%

Predictability - Cost % on cost or better 37% 40% 41% 42% 43% 45% 47% 47% 46%

Predictability - Time % on time or better 53% 52% 49% 46% 47% 49% 53% 54% 53%

Profitability Median % profit turnover 2.2% 4.2% 3.9% 4.3% 4.3% 4.1% 3.9% 4.1% 3.9%

Productivity (Current Values) Median value added / 26.1 34.0 43.0 50.0 50.0 49.8 55.0 55.7 53.9M&E operative (£000)

Productivity (Constant 2001 Values) 2 Median value added / 26.1 32.9 40.3 45.1 42.0 39.8 42.6 41.3 40.2M&E operative (£000)

Safety - M&E Contractors - % achieving zero accident All Companies 3 incidence rate - 31% 35% 22% 32% 34% 48% 50% 55%

Safety - M&E Contractors - % achieving zero accident Companies with 60 staff or more 3 incidence rate - 7% 14% 4% 13% 16% 23% 24% 25%

2001

TrendPerformanceLastYear2002 2003 2004 2005 2006 2007 2008 2009

AllYears

2 Current values deflated by the "All Construction Output Price Index" for the first years KPI to arrive at constant values.

3 Based on company annual accident incidence rates collected in the BSRIA M&E Contractors Survey. From 2002 data has been adjusted

for under reporting, therefore, direct comparison with 2001 is not valid.

180

60

80

140

160

200

120


2001 2002 2003 2004 2005 2006 2007 2008 2009

180

60

80

140

160

200

220

240

120


40


Design

ClientSatisfaction -Installation


Service

ClientSatisfaction - Quality of

O&M Manuals

-

Defects Predictability -Cost

Predictability - Time

Profitability Productivity(Current Values)

Safety - M&E Contractors -All Companies 3


Safety -M&E Contractors -Companies with

60 or more staff 3

40

100

100

Productivity(Constant 2001

Values) 2

357343329



Construction Products Industry KPIsYear-on-Year Comparisons

KPI Measure

Customer Satisfaction

Product Quality % scoring 8/10 or better 57% 73% 80% 74% 79% 77% 82%

Delivery Reliability % scoring 8/10 or better 68% 64% 63% 65% 70% 62% 72%

Sales Advice % scoring 8/10 or better 53% 55% 63% 55% 48% 42% 36%

After Sales Service % scoring 8/10 or better 49% 52% 64% 63% 66% 66% 72%

Value for Money % scoring 8/10 or better 51% 53% 47% 54% 56% 50% 50%

Environment

Energy Use 2 3 Median energy consumed KgCO2 / 10 tonne of production output 743 1397 869 115 80 113 - - -

Water Use 2 3 Median water used m3 / 10 tonne of production output 1.90 2.00 2.09 1.13 1.55 0.83 - - -

Waste Reduction 2 3 Median tonnes of waste leaving site as a % of total production output 1.33% 2.29% 1.19% 0.72% 0.59% 0.48% - - -

Transport Movements 1 2 3 Median number movements / 10 tonneof production output - 1.20 0.79 0.59 0.59 0.50 - - -

Packaging Management 1 2 3 Median tonnes of packaging bought as a % of total production output - 1.01% 1.01% 1.01% 0.47% 0.24% - - -

People

Safety at Work 3 Mean accident incidence rate 2050 2412 1702 1416 1416 1288 - - -

Sickness Absence 3 Median number of days lost per employee 6.1 6.1 5.9 6.0 5.9 4.7 - - -

Training 3 Median annual training days / full-time equivalent employee 1.3 1.4 1.6 1.5 1.6 2.1 - - -

Qualifications 3 Median % of full-time employeesqualified To NVQ Level 2 or higher 24% 28% 28% 30% 35% 20% - - -

Equality & Diversity 1 3 % scoring 8/10 or better - - 18% 30% 39% 49% - - -

2003 2004 2005 2006 2007 2008 2009

PerformanceLastYear

AllYears


2 Sample sizes unstable. Trends not provided as they may be misleading.

3 Data for this KPI has not been updated since 2008

Trend

110

70

60

130

90

80

120

150

140

160

180

170

200

190

50

110

70

60

130

90

80

120

150

140

160

180

170

200

190

50

2002 2003 2004 2005 2006 2007 2008 2009



646 935 659 229

225 203 203 240 215 217 272421227

Environment -Waste

Reduction 2 3

Environment -Transport

Movements 1 2 3

Environment -Packaging

Management 1 2 3

People - Sickness Absence 3

People - Safety at Work 3

People -Training 3

People -Qualifications 3

People - Equality & Diversity 1 3


Customer Satisfaction - Product Quality

Customer Satisfaction - Delivery Reliability

Customer Satisfaction - After Sales Service

Customer Satisfaction - Value for Money

Environment - Energy Use 2 3

Environment - Water Use 2 3

Customer Satisfaction - Sales Advice

100

100



Constructing Excellence Demonstration ProjectsYear-on-Year Comparisons

KPI Measure

Economic KPIs:

Client Satisfaction - Product % scoring 8/10 or better 93% 84% 90% 90% 89% 86% 86% 88% 89%

Client Satisfaction - Service % scoring 8/10 or better 76% 78% 86% 94% 88% 83% 83% 90% 92%

Defects - Impact at Handover % scoring 8/10 or better 82% 86% 87% 75% 84% 78% 79% 87% 86%

Predictability Cost - Project 1 % on cost or better - - - - - 73% 92% 77% 88%

Predictability Time - Project 1 % on time or better - - - - - 79% 86% 89% 90%

Profitability 2 Median % profit before interest & tax 6.0% 5.0% 6.0% 6.5% 7.0% 10.0% 9.8% 7.1% 7.6%

Productivity (Current Values) Median value added/ FTE employed (£000) 37.0 35.0 36.0 55.0 89.7 79.0 84.3 84.5 84.0

Productivity(Constant 2000 Values) 3 Median value added/

FTE employed (£000) 37.0 33.9 33.8 49.6 75.3 63.2 65.3 62.6 62.6

Respect for People KPIs:

Safety - Overall 4 Mean accident incidence rate 569 605 428 435 458 425 410 330 317

Safety - All Projects 4 % scoring zero accident incidence rate - - - 78% 78% 76% 77% 65% 81%

Employee Satisfaction % scoring 8/10 or better - - - 89% 92% 88% 90% 90% 87%

Staff Turnover - All Projects Median % staff turnover - - - 2.0% 3.0% 4.0% 3.0% 3.0% 3.0%

Qualifications & Skills Median % of direct employees qualified to NVQ Level 2 or higher - - - 100% 93% 96% 98% 98% 98%

Environment KPIs:

Environmental Impact - Product % scoring 8/10 or better - - 62% 71% 82% 93% 88% 92% 93%

Environmental Impact -Construction Process % scoring 8/10 or better - - 76% 82% 83% 89% 88% 90% 90%

20022001 2003 2004 2005 2006 2007 2008 2009

Trend


2 Some of the CE data sets that show a 0% profit have been excluded as they are from the clients point of view and, therefore, no profit would be made.

3 Current values are deflated by the “All Construction Output Price Index” for the first years KPI to arrive at constant values.

4 CE safety data is project based while KPI safety data is company based..

PerformanceAll

YearsLastYear

120

200

180

160

220

240

260

140

80

60

40

20

0

100

20022001 2003 2004 2005 2006 2007 2008 2009




Product


Service

Defects -Impact atHandover

PredictabiliCost

Project 1

PredictabiliTime

Project 1

Profitability 2

Productivity

EnvironmentalImpact -Process 1

EnvironmentalImpact -Product 1

Safety - All Projects 4

Productivity

All Projects 1

StaffrTurnove -

Employee Satisfaction 1

Qualifications& Skills 1


Safety - Overall 4

120

180

160

140

80

60

40

20

0

100

(Current Values) (Constant 2000 Values) 3



Constructing Excellence Demonstration Projects (contd.)

Comparison with All Construction

KPI Measure

Economic KPIs:

Client Satisfaction - Product % scoring 8/10 or better 86% 89%

Client Satisfaction - Service % scoring 8/10 or better 84% 92%

Defects - Impact at Handover % scoring 8/10 or better 77% 86%

Predictability Cost - Project % on cost or better 48% 88%

Predictability Time - Project % on time or better 45% 90%

Profitability 2 Median % profit before interest & tax 9.9% 7.6%

Productivity (Current Values) Median value added / FTE employed (£000) 46.2 84.0

Productivity (Constant 2000 Values) 3 Median value added / FTE employed (£000) 33.0 62.6

Respect for People KPIs:

Safety - Overall 4 Accident incidence rate 906 317

Safety - All Projects 4 % scoring zero accident incidence rate 63% 81%

Employee Satisfaction % scoring 8/10 or better 44% 87%

Staff Turnover - All Projects Median % staff turnover 4.2% 3.0%

Qualifications & Skills Median % of direct employees qualified to NVQ Level 2 or higher 22% 98%

Environment KPIs:

Environmental Impact - Product % scoring 8/10 or better 64% 93%

Environmental Impact -Construction Process % scoring 8/10 or better 49% 90%

2 Some of the CE data sets that show a 0% profit have been excluded as they are from the clients point of view and, therefore, no profit would be made.

3 Current values are deflated by the “All Construction Output Price Index” for the first years KPI to arrive at constant values.

3 CE safety data is project based while KPI safety data is company based.

All ConstructionPerformance

2009

ConstructingExcellence

DemonstrationPerformance

2009





Product


Service

Defects - Impact atHandover

Predictability - Cost

Project 1


Project 1

Productivity(Constant 2000 Values) 3

SafetyOverall 4

Employee Satisfaction

StaffTurnover -

All Projects

Qualifications& Skills

Environmental Impact - Process

Environmental Impact - Product

150

200

250

300

50

0

100

Safety -All Projects 4

(All Construction = 100)

150

50

300

100

200

250

0Profitability 2 Productivity

(Current Values)

445


Appendix

The UK Construction Industry Key Performance

Indicators (KPIs) have been published by

Constructing Excellence every year since 1999

using data collected under the guidance of the

Department for Business Enterprise and

Regulatory Reform.

The Industry Performance Report summarises the trends in

performance of the main sets of KPIs to show to what extent

the industry is improving in key aspects of economic, social

and environment performance. This information can be used by

government departments and organisations committed to driving

industry performance forward to inform policy, and also by

individual organisations to measure their rate of performance

improvement against that of the wider industry.

Between 1999 and 2006, the Industry Performance Report was

published in hard copy as part of the UK Construction Industry

KPI Pack and UK Housing KPI Toolkit. Since 2007, publication of

the KPIs has been on the KPIzone website (www.kpizone.com).

More details of KPIzone can be found on page 37.

How to read the Data Tables and GraphsThe industry KPI performance is summarised into tables and graphs whose key features are summarised below:

KPI summary table

KPI group and industry sector

Explanatory notes

How change in the industry is measured

The year the data was reported. The datarelates to performance in the previous year.

Trend between latestyear and previous

year’s performance

Trend between latestyear and first year

data available

KPI name

Economic KPIs - All Construction -Year on Year Comparisons

2009 UK Construction Industry KPIs - Industry Progress Report 33


Client Satisfaction - Product % scoring 8/10 or better 72% 73% 72% 73% 78% 80% 83% 84% 82% 83% 86%

Client Satisfaction - Service % scoring 8/10 or better 58% 63% 63% 65% 71% 74% 77% 79% 75% 77% 84%

Client Satisfaction -Value for Money 1 % scoring 8/10 or better - - 67% 69% 73% 74% 79% 80% 75% 75% 82%

Contractor Satisfaction -Performance - Overall 1 % scoring 8/10 or better - - - - 64% 65% 63% 62% 62% 62% 64%

Contractor Satisfaction -Provision of Information - Overall 1 % scoring 8/10 or better - - - - 57% 59% 58% 56% 56% 56% 59%

Contractor Satisfaction -Payment - Overall 1 % scoring 8/10 or better - - - - 67% 66% 65% 65% 63% 63% 67%

Defects - Impact at Handover 1 % scoring 8/10 or better - 65% 53% 58% 68% 68% 72% 77% 73% 73% 77%

Predictability Cost - Project 1 % on cost or better - 50% 46% 48% 52% 50% 48% 45% 46% 49% 48%

Predictability Cost - Design % on cost or better 65% 64% 63% 63% 65% 62% 63% 66% 64% 65% 61%

Predictability Cost - Construction % on cost or better 37% 45% 48% 50% 52% 49% 48% 44% 49% 48% 46%

Predictability Time - Project 1 % on time or better - 28% 36% 42% 44% 44% 46% 44% 58% 45% 45%

Predictability Time - Design % on time or better 27% 37% 41% 46% 53% 55% 52% 57% 58% 58% 53%

Predictability Time - Construction % on time or better 34% 62% 59% 61% 59% 60% 62% 60% 65% 58% 59%

Construction Cost 1 % change compared with one year ago -3.0% -2.0% 3.0% 2.0% 5.0% 1.1% -0.8% -0.8% -3.8% -1.7% -4.3%

Construction Time 1 % change comparedwith one year ago - 3.0% 1.0% 4.0% 1.0% -1.7%-1.3% 0.1% -0.3% -0.5% -3.9%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009LastYear

AllYears






2009 UK Construction Industry KPIs - Industry Progress Report34

Subsequent year’s data shows relative performance compared to first year ofdata. For example, a result of 120 represents a 20% improvement over the

result of the first year. A result of 80 represents a 20% decline in performance

KPI group andindustry sector

KPI name

KPI performanceover each year

Brief commentary onKPI performance

KPI group trend graph

Individual KPI trend graph

KPI name

Economic KPIs - All Construction -Year on Year Comparisons

Client Satisfaction - Product

The annual KPI surveys ask clients to rate how satisfied

they were with the completed facility on a scale

from1-10.

After levelling off between 2005 and 2008, there was a

strong improvement in 2009 to an all-time high of 86%

of projects scoring 8 out of 10 or better.

100%

90%

80%

70%

60%

30%

40%

50%

20%

10%

0%

BETTER


1999

72%

2000

73%

2001

72%

2002

73%

2003

78%

2004

80%

2005

83%

2006

84%

2007

82%

2009

86%

2008

83%


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


60

80

100

120

140

160

180

200

220

ClientSatisfaction - Product


Service


Value for Money 1

ContractorSatisfaction -Performance -

Overall 1

ContractorSatisfaction - Provision of Information - Overall 1

ContractorSatisfaction - Payment - Overall 1

Defects 1 PredictabilityCost -

Project 1

240

First year result isalways indexed to 100

How to read the Data Tables and Graphs (contd.)The industry KPI performance is summarised into tables and graphs whose key features are summarised below:

Data Sources for the UK Construction Industry KPIs

M&E ContractorsKPIs

Co-ordinated by BSRIA

Annual survey of M&E clients

Annual survey of

M&E contractors

ConstructionConsultants KPIs

Co-ordinated by the

Association for Consulting

and Engineering, the Royal

Institution of British

Architects, the Royal

Institution of Chartered

Surveyors, the Chartered

Institute of Building, the

Chartered Institute of

Architectural Technologists,

and the Chartered

Institution of Building

Services Engineers.

Annual survey of clients

Annual survey of

consultancy firms

ConstructionProducts IndustryKPIs

Co-ordinated by

Construction Products

Association

Annual survey of customers

(main contractors, specialist

contractors, architects and

construction clients)

Annual survey of

construction products

manufacturers.

DemonstrationProjects

Co-ordinated by

Constructing Excellence

Data submitted by

Constructing Excellence

Demonstration Projects


2009 UK Construction Industry KPIs - Industry Progress Report36

Data Sources (contd.)

Economic KPIs

Client Satisfaction

- Product1,6

1,6

1,6

1,6

1,6

2,9

8

8

4,7

3

5

2

2

2,9

10

2

1,6

2

1,6

1,6

2

2

1,6

2

2

1,6

1,6

1,6

11

12

Client Satisfaction

- Service

Defects

2Contractor Satisfaction

Predictability - Cost


Safety

Productivity

Profitability

Construction Cost

Construction Time

Respect forPeople KPIs

Employee Satisfaction

Staff Turnover

Sickness/Absence

Safety

Working Hours

Qualifications & Skills

Equality & Diversity

Training

Pay

Investors in People

Environment KPIs

Impact on the

Environment

Energy Use (Designed)

- Product

Mains Water Use

- Construction Process

Waste

Commercial Vehicle

Movements

Impact on

Biodiversity

Area of Habitat

Created/Retained

Whole Life

Performance

Data Source(see below)

The data sources referred to in the table above are:

1. ONS Quarterly Clients’ KPI Survey

2. ONS Quarterly Contractor KPI Survey

3. ONS New Orders Survey

4. ONS Quarterly Building Price & Cost Indices

5. ONS Annual Employee Satisfaction Survey

6. BCIS Annual Clients’ KPI Survey

7. BCIS Quarterly Review of Building Prices

8. Dun and Bradstreet, Intercompany Comparisons, and Companies House supplied by pH Group Ltd

9. Health & Safety Executive

10. ONS - Labour Force Survey

11. ONS - Annual Survey ofHours and Earnings

12. Investors in People UK Ltd



Energy Use

- Construction Process

Mains Water Use

(Designed) - Product

Data Sources (contd.)

About Constructing Excellence

Constructing Excellence provides a range of services to help implement KPIs:

At Constructing Excellence we bring distinctive value to our customers’ businesses through six core activities:

Action Research and Innovation:Members shape and take part in Constructing Excellence’s researchprogramme, from major action research projects to working groups andconfidential learning clubs.

KPIs and Benchmarking:Constructing Excellence has led the way in industry performancemeasurement, with diagnostic tools central to its activities.Members receive:

• Complimentary KPIzone subscription

• Complimentary introductory Explorer InteractiveTM

business diagnostic session

• 20% discount on KPI Workshops

Guidance and Training:Constructing Excellence is able to offer members consultancy tailoredto their business requirements. This service includes free or discountedaccess to Constructing Excellence publications, and discounts onfacilitation and mentoring services and conferences.

Networks:Existing members see real benefits in these networks, meeting withother like minded individuals and companies, building relationships,sharing best practice and developing business contacts.

Demonstrations:One of the key benefits of membership is being able to demonstrateparticipation to key stakeholders such as customers, employees,suppliers and investors. Constructing Excellence provides members:

• Opportunities to showcase projects

• Opportunities to share and learn from members’ exemplars

• Invitations to speak as an acknowledged industry leader at Constructing Excellence events

Leadership and Influence:Constructing Excellence works closely with government, strategicpartners, firms and influences organisations to shape the future of thesector. Members have the chance to take an active role in influencingGovernment priorities and to have input into the formation of futurepolicy at regular forums and conferences.

HelpdeskA direct point of contact to answer initial enquiries about KPIs. Tel 020 7592 1100

KPIZone WebsiteKPIzone is an on-line management tool that provides a straightforward step-by-step process to help companies and organisationsfrom all sectors of the construction industry to choose KPIs, andbenchmark performance.

KPIzone makes benchmarking easy, helping you create your ownKPI handbook, store and retrieve data and produce and print acomprehensive report of your performance results.

For further information visit www.kpizone.com .

KPI WorkshopsAn introduction to the benefits and use of the Construction Industry KPIs. Each Workshop explores the importance of measuringperformance with the help of practical examples, a step by stepguide to their use, and case studies of organisations that havesuccessfully implemented KPIs.

WebsiteAn extensive database of best practice activities, information andresources is available on www.constructingexcellence.org.uk .

CONSTRUCTING EXCELLENCEWarwick House

25 Buckingham Palace Road

London

SW1W 0PP 020 7592 1100

email: [email protected] www.constructingexcellence.org.uk www.kpizone.com


CONSTRUCTING EXCELLENCEWarwick House25 Buckingham Palace RoadLondon SW1W 0PP

Tel: 020 7592 1100Fax: 020 7592 1101

E-mail: [email protected]: www.constructingexcellence.org.uk


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