IDENTIFYING FACTORS AFFECTING CONSTRUCTION PRODUCTIVITY AND PERFORMANCE BENCHMARKING AT THE PROJECT LEVEL

Abstract

Low construction productivity has been a cause for concern for Singapore’s construction industry. However, the factors that affect construction productivity in Singapore remain unclear. Furthermore, a lack of a suitable benchmarking metrics for construction productivity at the project level has prevented firms from understanding their performance in relation to their competitors. Based on the research problem, the research had three objectives: (i) to identify probable factors for the low construction productivity, (ii) to ascertain the usefulness of the identified variables for construction firms in Singapore and (iii) to suggest an appropriate benchmarking metrics for construction productivity at the project level. A literature review was done to ascertain the possible factors that affect construction productivity. After which, data from 37 recently completed public sector projects were analysed with the SPSS software. A Pearson’s correlation test found that buildability, constructability and factors relating to economies of scale were significantly related to construction productivity scores. Moreover, through an ANOVA test, smaller projects by contract value and floor area as well as projects by smaller firms was found to have significantly lower productivity scores compared to larger projects and projects undertaken by larger firms respectively. However, no significant difference in productivity scores was identified between medium and large projects. The results indicate that economies of scale positively impact construction productivity but the impact tapers off once the project reaches a certain size. Based on the findings, a 2 by 2 matrix was developed, identifying buildability and constructability as both variable and controllable by firms. This may be used by firms to identify the factors that are most useful to them in improving construction productivity. Furthermore, performance benchmarking metrics were developed for construction productivity scores, segregating projects by contract value, floor area and firm grade. It may be used by firms to better understand their performance in construction productivity with respect to their competitors within the same category.