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Productivity measures

Research Action Plan Stage 1 includes a number of projects that evaluate the best measures of productivity at a sector, company, project and task level.

Key projects

• Case Studies of Successful Projects
• Canterbury KPIs
• Construction Productivity in Canterbury
• Macro evidence base

Key findings

Collectively, these projects found that measurement of New Zealand construction sector productivity can be improved.

• Official productivity indexes of labour, capital and multi-factor productivity should be used to measure progress towards the goal of increasing productivity by 20% by 2020.
• The industry needs to focus on a number of more specific measures, including whole-of-life cost and greater use of innovation, prefabrication, standardisation, digital tools, counter-cycle orders and design-build.
• Two BRANZ surveys that measure industry performance – the new home owners' satisfaction survey and the survey of home builders on time wasted and use of performance indicators – could be repeated at two-yearly intervals.
• Performance management needs to focus on safety, quality, timeliness and cost.
• Collection and use of raw data could be improved.
• A manual for industry would help to clearly define common performance terms.
• Greater encouragement needs to be given to staff tasked with maintaining performance measures.
• There is little opportunity to compare data across the industry as it is collected in different ways. This indicates a need to develop a common set of measures.
• An organisation that is independent from construction companies needs to maintain national data on non-official measures.