Use of KPIs to Regulate Co-operation and to Improve Intercompany Benchmarking in the Construction Industry

With the aim to investigate whether it can fairly be assumed that the prequalification and selection of co-operators via Key Performance Indicators (KPI) provide increased odds in favour of success, a study on contractors consisting of benchmark results from The Benchmark Centre for the Danish Construction Sector and financial statements has been accomplished. Through a comparative analysis based on detected correlations between economy and KPIs, it is explained how these factors are linked. The research showed that the use of KPIs has motivated companies to improve their competitive ability, thus their ability to become prequalified. It also showed that the use of KPIs (e.g. quality, timeliness, economy, customer satisfaction and accident rates) for selection and prequalification improves the probability of success in the building process as highly rated KPIs have a positive linear relationship with the company's financial stability and customer satisfaction.