Theoretical formulation of a framework for measuring business performance in construction

Business performance measurement, across industries, has significantly changed over the past two decades, integrating non-financial with financial measures. Moreover, the Egan and Latham reports have advocated performance improvement in the construction industry, with performance measurement being a key element. The purpose of this paper is to theoretically formulate a framework for measuring business performance in construction. The framework builds upon the well-established principles of the Balanced Scorecard and Business Excellence models. Formulation is based on integrating the criteria / perspectives of the founding frameworks into performance factors, and integrating the underlying logic. The formulation process is evaluated by comparing the proposed framework against the Balanced Scorecard, Excellence models, Total Quality Management frameworks in literature, and to the Performance Prism. The proposed framework is further adapted for construction companies and is shown to include the Construction Best Practice Programme - Key Performance Indicators that are based on Egan's industry report.