Identifying and Measuring Engineering, Procurement, and Construction (EPC) Key Performance Indicators and Management Strategies

Abstract

Delay and cost overrun in construction projects are two widespread problems that arouse practitioners' and scholars' concern. Therefore, the objective of this study was to identify Key Performance Indicators (KPIs) in each of Engineering, Procurement and Construction (EPC) phases separately and then calculate the weight impact that is associated with each of identified KPIs. Additionally, this study aimed to find the most appropriate Best Practices (BPs) for the identified phase-based indicators. Through a review of existing literature, a survey was developed to collect data from the completed construction projects. Various statistical methods, including two sample T-test and Kruskal-Wallis test, were utilized to analyze the data. Subsequently, Epsilon-Squared effect size method was applied to prioritize the identified KPIs. Since the lack of communication and slowness in decision making were found as the primary schedule Performance Indicators, schedule performance was identified to be highly affected by managerial approaches and actions. In addition, clients play a decisive role, because owner-driven change orders were found as the most crucial cost performance indicator affecting the performance of the engineering and construction phases. The outcome of this study helps practitioners and scholars to understand the phase-based cost and schedule KPIs, and appropriate mitigating strategies to improve the construction performance in EPC phases and save time and money.

Purchasing performance of engineering procurement and construction companies using a fuzzy quality function deployment approach

“…Indeed, the economic power of B2B transactions has not been reflected in the amount of published research in marketing journals, and the relevance for practitioners of the studies issued has been questioned during the past 20 years (Johnston and Cortez, 2018). Habibi et al (2019) published a similar study that has helped practitioners and scholars to understand the phase-based cost and schedule KPIs. It also provided insights for improving the performance in engineering and construction procurement phases to save time and money.…”

An Evaluation of Project Risk Dynamics in Sino-Africa Public Infrastructure Delivery; A Causal Loop and Interpretive Structural Modelling Approach (ISM-CLD)

“…Successful implementation of public infrastructure given the Sino-African approach is measurable by the achievement of the cost, time, and quality dimensions [85]. Knowledge of the dynamics and occurrence of various risk events at different stages of project implementation equips project actors to primarily prevent or reduce the negative effect on time, cost, and quality.…”

Schedule Performance Analysis of Infrastructure Reconstruction Projects Due to Extreme Events

“…Almost all researchers believe that staying within the budget, adhering to the schedule, and achieving a quality project performance, referred to as "the iron triangle" by Atkinson [36] is necessary for the success of a construction project [37,38,39,40]. Transportation agencies are experiencing unprecedented pressure to deliver projects on time and on budget, with an adequate level of quality [41,42,43], and an obvious response to this pressure is to improve the project delivery process by adopting effective project management strategies [44,45,46,47].…”