KPIs for Construction Firms
These are the KPIs a construction firm tracks for cost control, schedule, cash and safety on each project. Overruns usually show up first in cost and schedule variance.
The KPIs to track
Cost variance
Budgeted cost of the work done minus the actual cost of the work done, showing whether a project is over or under budget.
Schedule variance
Work completed compared with work planned at a point in time, showing whether the project is ahead or behind.
Project gross margin
Project revenue minus direct project costs, divided by project revenue.
Backlog
The value of signed contracts not yet delivered, which indicates how much work is secured.
Change order value
The total value of approved changes to the original contract scope, as an amount and as a share of the original value.
Days sales outstanding is the average number of days it takes to collect payment after a sale.
Formula and SQL query on the Days Sales Outstanding (DSO) page.
Working capital is current assets minus current liabilities: the short-term resources available to run the business.
Formula and SQL query on the Working Capital page.
Total recordable incident rate
Recordable injuries and illnesses multiplied by 200,000 and divided by total hours worked, the standard safety rate used in the United States.
Where the data usually lives
Project cost-control software, the accounting system, payroll and timesheets, and a safety incident log.
Measurement mistakes to avoid
- Cost to date without percentage complete cannot show whether a project is truly over budget.
- Retention money held back by clients distorts days sales outstanding and cash.
- Unapproved change orders look like cost overruns until they are approved and billed.
Questions to ask your data
You can type these as plain questions. SchemaChat turns each one into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. Check that the result matches how your business defines each KPI.
- Which projects are over budget and by how much?
- What is our backlog by start quarter?
- How long do clients take to pay our invoices?
- What was our recordable incident rate this year?