KPI: Best practices for general contractors
In this paper, FMI Corporation explores what best-of-class general contractors use as key performance indicators (KPIs) for business evaluation and decision-making.
KPIs are meaningful yardsticks that contractors can use to effectively evaluate and communicate the day-to-day operations of the business, supported by the best practices of general construction. FMI has found that the best-of-class contractors have fine-tuned their organizations by aligning people, processes, and technology to produce results that are better than the industry average. Best-of-class contractors are in the top 25 percent in profitability and return on investment (ROI) relative to their peers.
This white paper is the result of a collaboration between Microsoft Business Solutions and FMI Corporation. FMI is the nation's largest provider of management consulting and investment banking to the worldwide construction industry.
Included in this document:
| • | The value of key performance indicators (KPIs) |
| • | Liquidity indicator |
| • | Schedule variance indicator |
| • | Work-in-process (WIP) reporting |
| • | Margin variance indicator |
| • | Project cash flow indicator |
| • | Unapproved change-order indicator |
| • | Committed cost indicator |
| • | Backlog indicator |
| • | Scorecard indicator |
