The quest for construction excellence has moved up a gear with the first set of m&e contracting key performance indicators. Will they help you drive up quality?
So you think you're good enough, do you? Better than the other shower tendering for the job? You think you've got the best team, the tightest cost control and an impeccable record of finishing on time? Go on then, prove it.

Difficult, isn't it? But BSRIA's key performance indicators (kpi) for the m&e contracting industry might make competitive selection rather less of a lottery. These kpis are the product of the Construction Best Practice Program-me, for which the BSRIA is responsible for the building services element.

The m&e contracting kpis follow in the same format as the headline construction industry kpis launched in 1999. The graphs are very similar, and the criteria – cost, quality and time predictability – are largely the same (figure 1). It is the underlying data though, that make these kpis very particular to m&e contracting.

So what have we got? First there's an office wallchart showing the 10 benchmark kpis – client satisfaction with installation, design, service, and o&m manuals, defects to building services, predictability of cost and time, profitability, productivity and safety. An accompanying handbook provides the background to the benchmark data, and guidance on how to solicit client views on your performance in order to generate kpi scores.

For committed kpi addicts, there is a benchmarking software tool – Contrack. This enables individual firms to analyse their project or corporate performance against 25 'headline' kpis to produce a bewildering array of industry comparisons.

Last but not least, BSRIA is creating a kpi benchmarking club. For a princely £1400, you get the Contrack benchmarking software tool (worth £900 alone), newsletters, workshops and access to a comparative database of performance measurements to help you implement change.

Measuring performance
All the kpi graphs follow the same format: a client-solicited performance rating on the x-axis, and a cumulative industry benchmark on the y-axis.

In the example figure 1, a client has given a score of 5 for overall satisfaction for the m&e contractor's performance. Reading down to the horizontal axis reveals how the contractor performed against the industry benchmark. Here, the score reveals that 13% of m&e contractors in the benchmark dataset performed worse on client satisfaction, while 87% performed either the same or better.

Notable by their absence are kpi graphs for construction time and construction cost. This, said BSRIA's Gerry Samuelsson-Brown, was due to the lack of good price and cost indices. Instead, BSRIA has provided two other performance indicators specific to m&e contracting: client satisfaction with design, and client satisfaction with operating and maintenance manuals. (Note that these are not applicable to consultants – the Association of Consulting Engineers is producing those in collaboration with the Construction Industry Council).

Signalling excellence
The whole point of these kpis is both to find out how clients are rating your performance against industry norms, and to highlight areas for improvement. The best way of showing this is by plotting the results on a radar diagram. Scores nearest the centre show room for improvement, while high satisfaction scores are those nearest the perimeter (see left).

The kpis can be used both to track performance during a specific project, showing up areas where the m&e contractor needs to spend more attention, and also to track company performance from project to project.

This is where the Contrack software will come in handy. Contrack is a performance measurement program produced for BSRIA by Building Software. This program can hold the full array of kpi data to enable the user the graph the results in a variety of ways, from simple tables to kpi radar plots (figure 3). Contrack also contains model forms for carrying out client appraisals, supplier pre-qualification and quality audits.

Twenty five kpis are embedded in the software, including the ten written specifically for m&e contractors. The program also enables performance data to be exchanged within an industry benchmark club, specifically that being set up by BSRIA, via a club website.

The KPI survey: what clients said

BSRIA gathered the benchmark data by polling clients with a four-page questionnaire. Researchers mailed out 7000 questionnaires and got back 274. Out of those, 212 samples were used to develop the benchmarks. This broke down as 70% end user, 24% main contractor, and 6% consultants and architects. The client base (generally of small to medium-sized enterprises) represented a wide spread of projects, with 22% working in the office sector, 20% in education, 13% in housing and 8% in health. The remainder covers other sectors like retail and factories. BSRIA asked the clients how satisfied they were with m&e contractors on 10 aspects of service. The detail of the responses was very revealing. First the good news. Clients reportedly rate m&e contractors better for design service than consultants, although consultants were rated higher than contractors on larger sized projects (figure 2). M&E contractors were also considered to possess a very flexible attitude and were non-confrontational. The bad news is that lowest price tendering and exclusion from partnering agreements still seems to dog the industry. The quality of operating and maintenance manuals is also poor. The method of procurement emerged as the key to getting a good result. Management contracting gave poorer scores. The projects where m&e contractors were selected on a price-only basis showed the lowest satisfaction scores with service. BSRIA asked clients to define the significance of variations to overall project cost control. The survey revealed the capital cost impact of variations depended on whether the variations were major or minor. Where there are minor variations to the contract, the ability of the m&e contractor to stay on-cost is much greater than when there were major changes. “It is therefore extremely important when benchmarking to plot the degree of variations during the project” said BSRIA’s Gerry Samuelsson-Brown. On time predictability, 48% of projects came in on time. Where there were variations, clients reported that only 7% of projects came in on time, and 45% took longer. Surprisingly, the defects kpi – a measure of the condition of the building services at handover – gave the best results.

KPI workshops

BSRIA has organised a series of nationwide workshops for those wanting to learn about the m&e contracting key performance indicators. The all-day workshops will be held in Nottingham (6 February), London (13 February), Glasgow (20 February), Bristol (27 February), Birmingham (13 March) and Manchester (20 March). The prices are £175 for the first delegate, and £125 for the second delegate. This includes the kpi workshop, workshop pack and lunch. For more information on the kpi workshops contact Tina Bull at BSRIA on 01344 426511.