Model for Performance Management in Construction Project

Abstract

The concept of managing the performance has been started since the beginning of the nineteenth century by mainly measuring the performance either by using account standards and /or return on investment calculations (ROI). Gradually the non-financial measures have directly effect on the cost had been adopted and used as quantity of non-conformity and ratio of defects. By the late of 1970s, the concept of managing the performance was developed and the focus had been shifted to manage what was measured as a result of slow economic growth and high competition between the companies. This was considered as an approach and introduction for a new different management technique as (Total Quality Management, ISO "quality management system" standard, Malcolm Baldrige model….etc.). In the manufacturing industry and during the last 50 years, these models have played a great role in enhancing business and operation goals. The percentage of waste / loss was improved and became 12% or less. The historical successes of applying different quality performance management models in manufacturing industry have encouraged construction companies to apply such models in managing projects' performance to control and improve four main areas, namely revenue improvement, cost reduction, process cycle-time improvement and increased customer satisfaction.

Problem statement However, after more than three decades, the role of quality performance management is still limited; and low significant enhancement in the construction projects' performance compared to manufacturing industry. The waste in the construction industry was reached up to 40% average. This problem urged a lot of researchers to conduct plenty of significant studies to identify the causes for this limited role of quality performance management systems in construction industry. The difference in properties between manufacturing and construction industries is considered one of the main causes for such limitation. This resulted in identifying barriers such as, using more paperwork, increased project cost, the need for training, delayed work progress, difficulty of measuring, less flexibility in operation, etc. Therefore, all construction companies aiming at implementing quality management models/systems should extend their effort firstly to develop an adapted performance management model, consider the difference between the properties in both the manufacturing and construction fields and mitigate the effect of the barriers to apply quality performance management in construction projects.