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AN OVERVIEW OF CONSTRUCTION PERFORMANCE MEASUREMENT TOWARD PRODUCTIVITY IMPROVEMENT

The awareness of construction performance measurement which involves setting new operating targets and standards has been raised among majority of construction organizations. This is so because of the ever-increasing requirements and expectations of the clients which necessitated continuous improvement in the cost, timing and quality of construction output. Productivity as an important issue in any industry can only be improved when the effect of changes applied on method, effort and system that can be measured. This paper reviewed internal performance measurement which makes a construction organization focuses on identifying improvement areas within its structure through comparing its business operations with others who do it better, through setting new targets to meet. The paper identified key performance indicators of internal performance measurement which include; time, cost, quality, client satisfaction, effective communication, safety and health and risk management. Lastly, the paper reviewed external performance measurement which makes the construction industry as a whole attempt to improve its productivity through designing tools and techniques applicable to construction. The paper concluded that, in order to improve construction performance, it is essential to have accurate measurements reflecting current trends and practice toward effective productivity. The construction industries should effectively take up internal performance measurements and be more open to external performance measurements that have been successful in other industries and assess if adaptable to construction projects.