The term behavior and don’t accurately reflect the interests

The
construction industry is a very dynamic industry in which accommodates
different uncertainties regarding new technologies, budgets, and development
processes, in order to cope with these uncertainties, different interrelated
components that influence performance should be considered. Performance
measurement has influenced many construction companies, government sectors,
clients, and other project stakeholders.

 

Navon
(2005) stated that a control system is an important element to identify factors
affecting construction project effort. For each of the project goals, one or
more project performance indicators are needed. Performance measurement and
benchmarking is the cornerstone for challenging any industry to become world
class (Beatham et al. 2004).

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Amaratunga
(2001) stated that “you can’t manage. What you can’t measure” and Hayward
(1998) added “if you can’t measure it, how can you improve it”.

 

Project
success means di?erent to di?erent stakeholders. A project that
may seem successful to the client may be a completely unsuccessful venture for
contractors or end users

 

The
traditional approach to evaluating the performance of a project relied on three
indicators: cost, time, and quality. these financial measures of performance
have been the sole measures of company’s success. Financial measures are
useful, but they tend to measure the past. kagioglou et al. (2001) argued that
the three traditional indicators are lagging and fail to provide a balanced
view when measuring.  Neely (1999) stated
that these types of measures are criticized because they:

1.Lack
strategic focus and fail to provide data on quality, responsiveness and
flexibility.

2.Do
not encourage continuous improvement

 

It
has also been observed that exclusive reliance on these financial indicators or
measures in management systems only short term behavior and don’t accurately
reflect the interests of stakeholders; fail to provide information on what
customers really want; do not identify how competitors are performing; lack
strategic focus and fail to provide data on quality, responsiveness and
flexibility; give misleading signals for continuous improvement; and report on
outcomes but do not communicate the derivers of future performance.

 

To
sustain competitiveness and to survive in a national and international market,
construction companies should properly understand how they are currently
performing and how they need to perform in the future