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KPIs for M&E contractors - results for 2009June 2009

Eleven years ago Sir John Egan's report highlighted two drivers for change to enable the construction industry to improve its performance:

  • get closer to your clients to build better working relationships
  • measure performance in order to move forward

As part of the KPI Consortium in the UK, BSRIA has collected KPI feedback specific to the M&E industry for nine years, so having dealt with Egan's second driver, how have we fared on the first?

There is clear evidence of closer working relationships. In the first KPI collection 36% of clients had no previous working knowledge of the M&E contractor they were appraising on their most recently completed project: very few worked on a preferred contractor basis. Over the nine years of KPI collection this has shifted with a quite different picture in 2009. We now have a decline to 27% of clients with no prior knowledge and an increase to 40% often working with their preferred contractor.

Figure 1: Satisfaction with service by client’s experience of M&E contractor

The question to ask is "does this make a difference to the project outcome in terms of client satisfaction". The answer is, "Yes". In KPI terms, a score of 8 out of 10 denotes a good project outcome so a score of 8, 9 or 10 reflects high satisfaction. In 2009, the percentage of projects scoring 8 or more for overall satisfaction with service was 69%.

However, when this is analysed in terms of working relationships we see in Figure 1 a significant difference where clients had no prior experience (37%) compared with projects where relationships were developed where satisfaction rose to 89%. In addition, this is no anomaly for the gap in satisfaction scores between these two criteria has widened over time.

Figure 2: M&E contractor’s involvement in design versus performance Notes: 1. Percentage of M&E contractors involved in design 2. Percentage of projects scoring 8 or more for design done by M&E contractors

While nearly all headline and secondary KPIs have improved over the nine years, the greatest improvement has been seen in overall design undertaken by M&E contractors, which has increased from a very low 38% in 2001 to 64% in the latest KPI collection. However, BSRIA has identified another interesting trend - that M&E contractor's involvement in design has increased over time too (ie far less procurement on an installation only basis), as highlighted in Figure 2.

Despite all the positive feedback, there is still much to improve and the most notable areas concern the quality and timely delivery of O&M manuals and M&E contractor satisfaction with payment terms. The issue of retentions remains a major issue and is the worst of all KPIs with only 8% of M&E contractors satisfied (ie scoring 8 or more) and 23% scoring just one out of ten.

However, for the most part, the KPIs for M&E contractors have been moving in the right direction.

For more information on the 14 headline KPIs and 40 supporting KPIs and analyses contact:

Gerry Samuelsson-Brown at BSRIA