The Importance of Benchmarking Contractor Performance
As a Quantity Surveyor, it is important to understand how well your contractor is performing in comparison to others in the industry. This is where benchmarking comes in. Benchmarking contractor performance can help you to identify areas where your contractor needs to improve, as well as highlighting areas where they are excelling.
It is important for a quantity surveyors to understand the level of performance a contractor is achieving for the client. Achieving this will enable the quantity surveyor to understand if the contractor is meeting, or exceeding, the required standards for the project. In some cases, the contractor may not be achieving the required level of performance, but the quantity surveyor may not be aware of this. This is where benchmarking contractor performance can be beneficial.
Why Quantity Surveyors Need to Benchmark Contractor Performance
Benchmarking contractor performance can help to identify any areas where the contractor is not meeting the required standards. This information can then be used to work with the contractor to improve their performance. In some cases, the contractor may be unaware that they are not meeting the required standards. In these cases, the benchmarking data can be used to raise awareness with the contractor and help them to improve their performance.
Benchmarking contractor performance can also help to identify any areas where the contractor is excelling. This information can be used to praise the contractor and encourage them to continue to excel in these areas. It can also be used to help other contractors to improve their performance in these areas.
Overall, benchmarking contractor performance can be a valuable tool for quantity surveyors. It can help to identify areas where the contractor needs to improve, as well as highlighting any areas where they are excelling.
The Benefits of Benchmarking Contractor Performance
There are many benefits to benchmarking contractor performance, including:
- improved accuracy of cost estimates
- reduced risk of cost overruns
- better value for money
- improved project delivery
- greater transparency and accountability
- improved communication between parties
- better relationships between parties
- more effective dispute resolution
- earlier identification of issues
- improved project management.
Furthermore holding contractor performance data can help inform further contract selection on future projects, well established and reliable data on a per contractor basis can help clients make informed decisions about contractor decisions that they know is backed by the data.
The Process of Benchmarking Contractor Performance
Benchmarking is the process of comparing the performance of one contractor against another, in order to identify areas where improvements can be made. It can be used to compare different aspects of a contractor's performance, such as their costs, quality of work, or health and safety record.
There are a number of different ways to benchmark contractor performance. One common method is to use data from previous projects to compare the performance of different contractors. This data can be sourced from a variety of different places, such as project reports, client feedback, or independent audits.
Another way to benchmark contractor performance is to carry out site visits and interviews with project managers. This can give you a more detailed insight into how a contractor operates, and how they compare to their competitors. More quantitative data can also be used such as number of variations, overall cost, bid competitiveness, for more KPI's see our article here
Once you have gathered all of your data, you need to start analysing it to see where improvements can be made. This can be a time-consuming process, but it is essential to ensure that you are getting the best value for money from your contractors. Creating benchmarking reports can be useful.
One of the easiest ways to benchmark all stakeholder performance is through Bench iT. Bench iT offers full project, rate and stakeholder benchmarking along with detailed analyses and comparison reporting tools - built specifically for the construction industry.
How to Use the Results of Benchmarking Contractor Performance
Once you have collected data regarding contractor performance using the results in a high yielding way is key to improve your project. Here are some ways you can use the results of benchmarking contractor performance:
- Use the data to improve your own performance as a quantity surveyor. Identify areas in which you can improve and work to make changes.
- Share the data with the contractor. Use it as a way to have a discussion about areas of improvement.
- Use the data to help inform your contracting decisions. When you are looking at awarding a contract, benchmarking data can help you identify the best contractor for the job.
- Compile a benchmarking report for future clients. This can be a valuable marketing tool, showing potential clients that you are invested in ensuring their project is successful.
To conclude, benchmarking contractors is valuable to a quantity surveyor because it allows for an objective evaluation of individual contractor performance. This, in turn, can help the quantity surveyor to make more informed decisions when awarding contracts. In addition, benchmarking data can also be used to help improve the overall quality of the contractor pool.