UK Industry

Performance Report
Based on the UK Construction Industry
Key Performance Indicators

2014
Contents
UK Industry Performance Report 2014

Foreword ................................................................................. 03 Productivity - (VAPE Current Values) ............................... 18

Introduction ........................................................................... 04 Productivity - (VAPE Constant 2011 Values) ................. 18
Executive Summary ............................................................. 05 Defects - Impact at Handover ........................................... 19

Key Performance Indicators 2014
Economic Indicators ............................................................ 06
Client Satisfaction ................................................................ 06
Contractor Satisfaction ....................................................... 07
Predictability .......................................................................... 07
Profitability ............................................................................. 07
Respect for People ............................................................... 08
Environmental Indicators .................................................. 09
Housing ................................................................................... 10
Non-Housing ......................................................................... 10
Consultants ............................................................................ 11
Economic KPIs - All Construction
Year-on-Year Comparisons
KPI Summary Table .............................................................. 12
KPI Group Trend Graph ....................................................... 12
Economic KPIs - All Construction
Individual KPI Trend Graphs
Client Satisfaction - Product,
Service & Value For Money ................................................ 14
Contractor Satisfaction - Overall - Performance,
Provision of Information & Payment ............................... 15
Respect for People KPIs - All Construction
Year-on-Year Comparisons
KPI Summary Table .............................................................. 20
KPI Group Trend Graph ....................................................... 21
Environment KPIs - All Construction
Year-on-Year Comparisons
KPI Summary Table .............................................................. 22
KPI Group Trend Graph ....................................................... 23
Economic KPIs - All Housing
Year-on-Year Comparisons
KPI Summary Table .............................................................. 24
KPI Group Trend Graph ....................................................... 25
Economic KPIs - All Non-Housing
Year-on-Year Comparisons
KPI Summary Table .............................................................. 26
KPI Group Trend Graph ....................................................... 27
Construction Consultants KPIs
Year-on-Year Comparisons
KPI Summary Table .............................................................. 28
KPI Group Trend Graph ....................................................... 28

Predictability Cost - Project,

Design & Construction ........................................................ 16
Predictability Time - Project,
Design & Construction ........................................................ 17
Profitability ............................................................................. 18
About
Glenigan .................................................................................. 29
CITB ........................................................................................... 30
Constructing Excellence .................................................... 31

The KPI Team

Glenigan - Robert Davis, Allan Wilén, Tom Crane
CITB - Lee Bryer
Constructing Excellence - Don Ward
Department for Business, Innovation and Skills - Frances Pottier, Liam Cavin

UK Industry Performance Report 2014 2

Foreword
Nick Boles (BIS)

Since their introduction, Construction Key Performance Indicators (KPIs) have enabled companies to
assess their performance against industry benchmarks. They enable companies across the industry to
target areas for improvement, increase performance, win work and raise their profitability. Thus, I am
delighted to see Glenigan, in partnership with CITB, continuing their commitment to the construction
industry by publishing the Construction KPIs, following a short hiatus.

In partnership with industry, this government has developed ‘Construction 2025’: a joint strategy which
aims to transform the construction industry. Central to the ambitious vision of the strategy are drives to
reduce costs by 33%, reduce project time by 50% from inception to completion and reduce greenhouse
gas emissions in the built environment by 50%. The actions required to meet these ambitions are rightly
owned by industry, and will be delivered through industry bodies. Construction KPIs enable us to
measure progress by charting improvements against these ambitions in the industry as a whole. This is
a most welcome contribution to the drive for positive change in the construction industry.

The construction industry has faced considerable challenges over recent years. The most recent
Construction KPIs arm us with valuable information on how the industry has responded to these
challenges. Notably, client satisfaction has remained high despite the pressures of the past few years.
The predictability of the cost of projects has improved markedly compared to before the recession.
Delivery of projects on time has also improved. However, the majority of projects continue to fail to be
completed on time: clearly there remains much scope for improvement. Ambitious firms should be
using the new Construction KPIs to assess and improve upon their timeliness.

The outlook for the construction sector has been improving over the last year, with firms upbeat about
prospects for the year ahead. However, the damage caused by the recent recession will take time to
repair. Those contractors, sub-contractors and consultants who assess and improve their performance
against industry KPIs will be those who are best able to raise their game and grow over the coming years.

Nick Boles
Minister of State, Department for Business, Innovation and Skills

UK Industry Performance Report 2014 3

Introduction
CITB

The drivers of construction change include economic conditions, environmental legislation, regulation, and new and emerging
technologies. These have a significant bearing on the shape of the industry, its workforce and skills.

The impact of these drivers on the industry, and the needs of construction employers in the face of the challenges they pose, are not only
key inputs into CITB’s strategy, but also highlight why the Key Performance Indicators (KPIs) are so important.

The construction sector was hard hit by the economic downturn, but has subsequently played a key role in recovery, and remains a key
component of the UK economy in terms of its economic contribution and employment, accounting for 8% of UK GDP and 9% of the UK
workforce. Its recent growth has played a significant role in delivering government policy on housing and infrastructure, leading to job
creation and apprenticeships. However, the sector suffers from skills deficiencies and low levels of productivity growth, which is why
understanding the performance of the sector is so important. It is for this reason that the KPIs were developed and why they remain as
relevant today, as the industry works towards the delivery of ‘Construction 2025’, as they did when first launched as part of the Rethinking
Construction agenda, and why CITB has supported their renewed production.

At the end of 2012, the year in which the Construction KPIs were last published, it seemed that the road to sustained recovery was a long
way off. However, since the second quarter of 2013, construction output has accelerated and growth has returned. Labour levels have
begun to stabilise as a result of increased workloads, although reduced cashflow, rising costs, and skills shortages are increasingly
becoming issues for the industry, as reflected in the current KPIs.

The current KPIs show that challenging trading conditions remain. Median profitability among contractors has fallen to 2.1% and
contractor satisfaction with their client’s performance has also weakened in respect to the provision of information and payments. Equally,
despite improved predictability of project delivery, both to cost and budget, client satisfaction levels have decreased.

While these are disappointing findings given that client satisfaction levels had, for the most part, weathered the worst of the recession,
there are credible signs of improvement across the KPIs suggesting a cautiously optimistic sense that the construction sector has passed
through the worst of its economic crisis and that the recovery is on a firmer footing. However, skills and material supply challenges remain
and may be exacerbated by the current trajectory of growth.

The improved predictability of project delivery points to a much more positive situation with regards to the pipeline of work, although
decreasing predictability of cost measures, particularly at the construction stage, suggests that there are issues with regards to the supply
of skills and materials.

With these gathering signs of economic recovery, the sector needs to maintain its commitment to investing in skills. After enduring the
recession, the industry cannot be in a position where it is unable to capitalise on recovery because of a skills gap.

Growth in construction is key to the economy and can only be achieved if all the necessary skills are available to deliver it. In this sense,
the current results should not only be seen as providing construction clients, contractors and consultants with a rigorous benchmark, but
also presenting targets for continuous improvement for industry as a whole. Nowhere is this more evident than in the Respect for People
measures, which emphasise the uneven performance in recruiting, retaining and developing people.

In this area in particular, it is encouraging that the proportion of direct employees qualified to NVQ Level 2 or higher has increased along
with the proportion of employees holding the Construction Skills Certification Card (CSCS) and the proportion of women employed.
However, it is disappointing that both training levels and the proportion of people employed aged under 24 have fallen. With an aging
workforce the industry needs to attract new recruits and position itself as an attractive ‘career for all’, but particularly amongst young
people and non-traditional entrants. Investing in recruitment and training, particularly apprenticeships, are fundamental, but greater
certainty of workloads and the improved economic performance of firms is critical to providing the conditions for investment.

Looking ahead, the forecast is for continued improvements into 2015, which it is hoped will confirm the industry’s sustained recovery.
However, competition remains tough and the nature of the construction industry - its size, mobility and fragmentation, along with its
highly regulated and complex operating environment - means that many employers need assistance to benchmark their own performance
and help identify where they can secure future improvements. It is in this context that the KPIs really come into their own.

Lee Bryer
Research & Development Operations Manager, CITB

UK Industry Performance Report 2014 4

Executive Summary
Glenigan

As the construction industry looks forward to brightening market prospects over the next few years, the
latest set of KPIs provide a valuable assessment of how the protracted downturn in industry workload
has impacted upon the industry and its performance. They also highlight the challenges that the
industry now faces if it is to seize emerging opportunities.
The KPIs in this report are based upon projects completed during 2012 and 2013, a period of faltering construction output
volumes and a shrinking development pipeline. The resultant retrenchment by the industry is evident in the KPI data. Median
profitability has slipped further to 2.1% down from 2.7% in the previous survey and in marked contrast to the 9.9% recorded
in 2009.

Labour has been shed over the last five years as companies have had to adjust to the deterioration in market conditions. The
KPIs found that, on average, 7.7% of firms’ direct employees had left the business during the year surveyed, but fewer than
half of those departing had been replaced with the retained workforce being more intensively deployed.

The latest indicators suggest that the challenging economic environment is undermining the industry’s efforts to deliver an
improved product and service to clients. The 2012 Key Performance Indicators had recorded retrenchment in a number of
important areas; ending a progressive improvement in client satisfaction seen in earlier surveys and a sign that the protracted
squeeze upon construction workload, employment and margins had adversely impacted upon the industry’s performance.
In the latest survey, client satisfaction with service and the finished project was unchanged on the 2012 KPIs, while clients’
perception of value for money slipped to in the lowest level since 2008. This decline points to rising client expectations and
is despite the pressure on industry margins and more projects being delivered to time and to budget.

In contrast, contractors’ overall satisfaction with clients and the consultancy team has matched the all-time high reached
in 2012. The economic recession may be a contributory factor, with repeat clients accounting for a greater proportion of
projects completed during the year.

However, there was a dip in satisfaction regarding client information provision. For the first time the survey asked whether
BIM was used on the project and found it is being implemented on a small but rapidly growing proportion of projects; 4%
of projects completed in 2012 and 9% in 2013. This rapid growth in BIM usage has the potential to lift this KPI in future
surveys, as well a host of other measures including those covering client satisfaction, project predictability and
environmental performance.

The construction industry is looking to a progressive growth in workload over the next few years. However the
anticipated recovery presents fresh challenges. Delivering improved productivity and containing costs will be a priority,
with the ‘Construction 2025’ Strategy looking to cut costs by a third and halve the delivery time for a typical project by
2025. As the industry responds to these challenges, the Construction Industry Key Performance Indicators provide firms
with the benchmark against which they can appraise their own performance and identify where they can secure future
improvements that will help safeguard their competitive position and win work.

‘
Allan Wilen
Economics Director, Glenigan

UK Industry Performance Report 2014 5

Key Performance Indicators
2014

Economic Indicators
Client satisfaction has largely been maintained from
2012. The 2012 survey showed clients ratings begin
to slide, arresting a trend of continued improvement
that had been sustained through the early years of
recession. Contractor satisfaction with their clients
and consultancy team was also stagnant or slightly
diminished in 2013/14, ending a trend of
improvement that had accelerated in the 2012
research. On a more positive note, the time and cost
predictability of construction projects have both
improved since the 2012 survey.
or better, compared to 77% and 78% for the smallest
and largest projects respectively. Similarly, projects of
this size scored 70% for value for money, compared to
78% for both other value bands. The impact on overall
satisfaction with the finished product was less marked,
with mid-range projects scoring slightly less than
smaller and larger schemes.
Client Satisfaction by Project
Size, 2013/14

Client Satisfaction
Clients rated their ‘satisfaction with the finished
product’ as eight out of ten or higher on 82% of
surveyed projects. This is on a par with the 2012 survey
but a slight decline on the record 87% achieved during
2010 and 2011.

Client satisfaction with the service received from

contractors also held level with the last survey at 75%,
arresting a steady decline in performance since 2009
when 84% gave a rating of eight out of ten or higher.

On 75% of projects, clients scored ‘value for money’
as eight out of ten or higher. This is down three
percentage points from 2012, and the worst
performance since 2008.
Previous surveys found that clients with large projects
(those valued at £5 million or more) tend to be less
satisfied than those with small projects of less than £1
million, however this gap has closed in the 2013/14
KPIs; 83% of such clients gave a rating of eight or
higher - up from 79% in 2012.
The KPI for the clients’ rating of the ‘condition of the
facility in respect to defects’ fell for the third time in
the last four years. 71% of clients rated the impact of
defects as eight out of ten or better, a decline of three
percentage points from the 2012 result. Mirroring the
other client ratings, projects worth between £1 million
and £5 million dragged down the average - just 66%
of these scored an eight or higher. By contrast, the
performance of larger projects is much improved; 73%
of schemes over £5 million secured a rating of eight or
more - up from 62% in 2012.

This year’s results show a different pattern, with

medium sized projects producing the lowest
ratings: 72% of clients on projects valued between £1
million and £5 million rated service received as an eight

UK Industry Performance Report 2014 6

Key Performance Indicators
2014 (cont.)

Contractor Satisfaction Profitability

The Construction KPIs charted a consistent Industry profitability has fallen to just 2.1%,
improvement in contractor satisfaction between 2008 continuing the trend of decline that took hold during
and 2012, culminating in all three KPIs hitting record the depression. This is the lowest level since the survey
highs last time around. This year’s survey has seen began and is in sharp contrast to the peak of 9.9%
performance sustained or slightly diminished, but in recorded in the 2009 survey. The progressive decline
each case remains better than any year prior to 2011. in profit margins charted by the last four surveys
reflects the squeeze on contractors’ margins from
Overall contractor satisfaction with the performance falling tending prices.
of the client and consultancy team rose to a new high
during 2012, with three quarters of contractors rating The initial sharp jump in productivity seen in the 2011
the client’s performance as 8 out of 10 or better. This survey results was due to contractors making more
performance has been sustained during 2013/14, with efficient use of a slimmed down workforce. The latest
74% rating performance as eight out of ten or better. research, covering projects that completed in 2012
Satisfaction was especially high on projects valued and 2013, saw productivity rise by 2.3%.
under £1 million, with 79% of such projects achieving
a rating of at least eight compared to 70% of larger
projects. Profitability & Productivity
Contractor satisfaction with the client’s provision of
information fell back during 2013/14 from a survey
high recorded last time. 69% gave a rating of eight out
of ten or higher, down from 73% in 2012. Nonetheless
this is the second best score for this KPI and continues
a long-run trend of improvement. 63% of contractors
on projects with a construction value of £5 million or
more gave such a rating. This again is a deterioration
compared to 70% in 2012, but remains well up on
55% in the 2011 survey. On schemes valued up to £1
million, 75% of contractors rated the provision of
information by the client as eight out of ten or better,
down slightly from 77% in 2012. Predictability
The latest results show an overall improvement in
Contractor satisfaction with payment held up at the predictability of construction projects. Cost
just under the record set in 2012, with 79% of predictability measures were either improved or
contractors giving a rating of eight or above. As with maintained from 2012, while time predictability
the other measures, contractors became less satisfied increased across all three measures.
as schemes became larger; 82% of those on sub-£1
million rated eight out of ten or better, compared to Project costs were on budget or better for 69% of
78% of those in the £1 million to £5 million and projects; this is up from 61% recorded in 2012 and is a
bracket and 73% of those on the largest projects. new survey high.

UK Industry Performance Report 2014 7

Key Performance Indicators
2014 (cont.)

Design costs came in on or under budget 79% of the

Cost Predictability time. This maintained the result seen in each of the
two previous surveys, which is also a survey high.

Predictability in the cost of construction was broadly

unchanged on 2012, with 57% coming in on budget
or better compared to 58% in 2012 and 59% in 2011.

The 2012 survey recorded poor performance on time

predictability KPIs, all three of which dropped to
survey lows. These falls have been reversed in the
latest results, with similar rates of performance to
those found in 2011.

Projects as a whole were completed to, or ahead,

of schedule 45% of the time. This is in line with the
survey average since 2003. The 2012 survey found
smaller projects were more likely to come in on time
than their larger counterparts, and this trend has
continued. 52% of projects under £1 million came in
on time or better, compared to 38% of projects with a
value greater than £1 million. Performance improved
since the last survey for projects of all sizes.
Time Predictability
The difference in overall predictability appears to be
a result of the design phase. The design was delivered
on time or better for 52% of all projects, but smaller
projects outperformed larger ones.

The construction phase was on time or better for 67%

of projects. This is above the previous survey high, of
65% in 2007, and has rebounded from a survey low of
42% in 2012. Time predictability of the construction
phase was consistent across small and large schemes.

Respect for People

The official Health and Safety Executive (HSE) statistics
have recorded a sustained improvement in the
industry’s Accident Incident Rate over the last decade.
The rate fell to 420 reportable accidents per 100,000
employees in 2012/13. This was a dramatic 21%
reduction over the two years since the last KPI survey.

UK Industry Performance Report 2014 8

Key Performance Indicators
2014 (cont.)
Staff turnover has risen; the median turnover of 3.3%
was up from 2.1% in 2012. The figure is lower than for
any year prior to 2010, and appears to reflect in part
that departing employees continue to go unreplaced.
On average 7.7% of firm’s direct employees had left
the business during the year surveyed, although this
was down from 9.1% in 2012.
A median of 1.4 days were lost per employee per year
to sickness absence; an improvement from 1.7 days
on average in 2012 but above the record low of just
one day lost per year in 2011. This compares well to
the 4.4 days per worker the UK lost to sickness absence
in 2013.1
The median number of training days provided per
employee fell to 1.2 in 2013/14, down from a survey
high of 1.5 in 2012. However the 2012 result may have
been boosted by training deferred from 2011, which
saw an all-time low of just 0.6 days per employee.
Barring 2011, the long run trend of improvement has
been sustained during the recession; this year’s result
is on a par with 2010 as the second best recorded by
the survey. While positive, this lags behind the mean
6.7 days of training UK employees received in 2013.2
On average 18% of employees were covered by
Investors in People commitment and recognition, an
improvement from 14% in 2012 but on a par with
the proportions found from 2009 to 2011. In fact, the
proportion is largely unchanged from the initial
survey result in 2003 (17%).
The median number of employees qualified to NVQ
Level 2 or higher rose to 71%, sustaining the sharp
rise seen between 2011 (31%) and 2012 (66%). 61% of
direct employees held a Construction Skills
Certification Card (CSCS).
The average proportion of women in the workforce
has increased from 15% in 2012 to 19% in the latest
survey. However little change was recorded in the
UK Industry Performance Report 2014 9
age breakdown of the workforce. 7% of the median
company’s workforce was aged under 24, while on
average 10% of employees were aged over 55.
Sickness Absence in the Labour Market, February 2014.
1
Office for National Statistics Release.
2
UK Commission’s Employer Skills Survey 2013: UK results.
Environmental indicators
Looking at product performance, the designed
median energy use rose to 2,254 kg CO2 per 100m2
of gross floor area. While an increase from the previous
survey, this follows a 41% decline in 2012 and remains
a significant improvement compared to any year prior
to 2012.
Less encouragingly, designed average water usage
increased 17% on the previous year. After four years of
modest improvement, this was the worst performance
since 2008.
The only measure on which the environmental
performance of the product improved was retention
of habitat. The proportion of respondents reporting
no change or an increase in created or retained habitat
on a scheme rose to 82%. Over the long-run there has
been no discernible improvement or deterioration in
the industry’s performance on this measure.
The environmental performance of the construction
process was more positive. Two KPIs reached new
survey records. The other two fell back compared to
the 2012 survey, but remain significant improvements
on the findings in 2010 and 2011.
On-site energy usage saw a rise in 2013/14.
Median energy use, at 222 kg CO2 per £100k of project
value (2011 prices), is 13% higher than found in 2012.
However usage remains down from 263 kg CO2 per
£100k in 2011 and is one of the best results recorded
over the last eleven KPIs.
Key Performance Indicators
2014 (cont.)
A similar trend was observed in the KPI for median
waste removed from sites. This rose from a record
low in 2012, but is the second lowest reading in the
survey history and maintains a long-run trend of
improvement. On average 22.6 m3 of waste was
removed from site per 100k project value.
Median commercial vehicle movements fell to a new
low of 11.2 per £100,000 of project value from 19.7 in
2011, a 28% decline in constant price terms. Vehicle
movements remain highest on sub-£1 million projects
at 15 per £100,000, though this figure has fallen
dramatically from 34.2 per £100,000 in 2012.
Mains water use also fell to a record low recorded in
2013/14 to 4.0 m3 / £100k project value.
Housing
KPIs for client satisfaction with housing projects
showed a marked deterioration in 2013/14. The
proportion of clients rating satisfaction with the
overall product as eight out of ten or higher fell to
74% from 82% in 2012. The housing KPIs tend to
reflect trends and performance within the social
housing sector, where the client/contractor dynamic
is more prevalent than the developer/builder model
that accounts for a larger proportion of private
housing schemes. The deterioration in performance
may well reflect the impact of reduced government
funding for new social housing, causing strain as
clients try to maintain their provision with fewer
resources.
Just 62% of clients on housing rated the service
received as eight out of ten or higher. The proportion
of clients rating the impact of defects at handover at
eight out of ten also fell back, to 66%, erasing a strong
improvement found by the 2012 research.
The overall cost predictability of housing projects fell
sharply, with less than half (46%) of clients reporting
UK Industry Performance Report 2014 10
that their scheme had been completed on or below
budget, compared to 62% in 2011.
However performance on the other two measures
was mixed. On 71% of projects design costs came
in to budget or better; down from a survey high of
81% in 2012 but maintaining the long- run upward
trend. More encouragingly, the proportion of clients
reporting that construction costs were on budget or
better rose from 55% to 58%. This is just below the
survey record found in 2011 (59%).
All measures of time predictability improved in
2013/14. The proportion of projects completed on
time or better rose to 41%; the highest proportion
since 2008 and up from just a quarter of those
that completed in 2012. The time predictability of
construction actually hit a survey high, with the
construction phase coming in on time or better on
65% of projects. The time predictability of the design
phase also improved to 52%, but this remains one of
the weaker results found by the KPI survey.
Non-Housing
The non-residential sectors saw greater improvement
than housing projects in the latest survey. Of the nine
KPIs, six were improved, two maintained and just one
registered a decline.
The KPI for client satisfaction of non-housing projects
remained strong, with 83% giving the finished product
a rating of at least eight out of ten. Satisfaction with
respect to defects was also unchanged, with 72%
of clients rating their impact as eight out of ten or
better. Satisfaction with service rose to 77%, a mild
improvement on 74% in 2012.
Key Performance Indicators
2014 (cont.)
Non-Housing: Client Satisfaction
The long-run improvement in cost predictability
has been sustained, resulting in a new survey record
for overall predictability of the project cost. 75%
of projects were delivered on cost or better. The
predictability of design costs also reached a new
high, being on time or better in 81% of cases. By
contrast there was a decline in the predictability of
construction costs, to 57% from 60% seen in both
2011 and 2012. Despite this modest fall performance
remained better than any year prior to 2011.
Small schemes of less than £1 million were more
likely to come in to cost or better (82%) than
larger projects. These smaller schemes had higher
predictability of design costs, whereas construction
cost predictability was consistent across project sizes.
Time predictability figures all rebounded in 2013/14,
following falls in 2012. 46% of clients reported that
the project had been completed within the planned
timeframe. Excluding 2012, when the KPI dropped
to just 37%, performance on this measure has been
stable over the last decade around an average of 46%.
UK Industry Performance Report 2014 11
The predictability of the design phase also rose
slightly from 2012, to 52%. Performance on this
measure dropped from 61% in 2010 to 52% in
2011 and has remained relatively low compared
to previous years. This is the only non-housing
KPI that has seen performance decline from 2003.
More positively, on 67% of projects the construction
phase was completed on time or better, a new record
for the series. Performance on this measure had
previously peaked at 65% in 2009, before sliding to
46% by 2012 as market conditions delayed project
starts.
Consultants
Client satisfaction with consultants has decreased
slightly since the last survey. Overall client satisfaction
was rated an eight of out of ten or better by 72% of
respondents, down from 75% in 2012. Similar falls
were seen in clients’ ratings of value for money and
timely delivery, whereas satisfaction with the quality
of service rose marginally from 73% to 74%.
Across all four indicators, clients were least
satisfied with consultants working on projects worth
between £1 million and £5 million. Just 68% of clients
on these projects rated their consultancy team overall
as eight out of ten or higher, significantly lower than
for projects worth under £1 million (77%) and over £5
million (75%). This matches the trend seen in client
satisfaction with service and value for money received
on the overall project.
Economic KPIs - All Construction
Year-on-Year Comparisons

KPI Measure Performance Trend

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Client Satisfaction - Product % scoring 8/10 or better 72% 73% 72% 73% 78% 80% 83% 84% 82% 83% 86% 87% 87% 83% 82%

Client Satisfaction - Service % scoring 8/10 or better 58% 63% 63% 65% 71% 74% 77% 79% 75% 77% 84% 82% 80% 75% 75%

Client Satisfaction - Value for Money % scoring 8/10 or better - - 67% 69% 73% 74% 79% 80% 75% 75% 82% 77% 81% 78% 75%

Contractor Satisfaction - % scoring 8/10 or better - - - - 64% 65% 63% 62% 62% 62% 64% 69% 69% 75% 74%
Performance - Overall

Contractor Satisfaction - % scoring 8/10 or better - - - - 57% 59% 58% 56% 56% 56% 59% 63% 64% 73% 69%
Provision of Information - Overall

Contractor Satisfaction - % scoring 8/10 or better - - - - 67% 66% 65% 65% 63% 63% 67% 71% 77% 80% 79%
Payment - Overall

Defects - Impact at Handover % scoring 8/10 or better - 65% 53% 58% 68% 68% 72% 77% 73% 73% 77% 75% 68% 74% 71%

Predictability Cost - Project % on cost or better - 50% 46% 48% 52% 50% 48% 45% 46% 49% 48% 52% 63% 61% 69%

Predictability Cost - Design % on cost or better 65% 64% 63% 63% 65% 62% 63% 66% 64% 65% 61% 67% 79% 79% 79%

Predictability Cost - Construction % on cost or better 37% 45% 48% 50% 52% 49% 48% 44% 49% 48% 46% 47% 59% 58% 57%

Predictability Time - Project % on time or better - 28% 36% 42% 44% 44% 46% 44% 58% 45% 45% 43% 45% 34% 45%

Predictability Time - Design % on time or better 27% 37% 41% 46% 53% 55% 52% 57% 58% 58% 53% 69% 51% 48% 52%

Predictability Time - Construction % on time or better 34% 62% 59% 61% 59% 60% 62% 60% 65% 58% 59% 57% 60% 42% 67%

Profitability Median % profit before interest & tax - 4.4% 5.1% 5.2% 5.4% 7.0% 8.1% 7.9% 8.2% 9.6% 9.9% 7.7% 5.0% 2.7% 2.1%

Productivity Median value added/ - 27 28 28 31.1 32.6 34.2 38.2 42 45.5 46.2 49.5 58.5 60 63.8
(VAPE Current Values) FTE employee (£000)

Productivity Median value added/ - 42.5 41.9 39.8 41.8 41.2 41.5 43.2 45.1 46.5 45.4 48.9 59.3 60.0 61.4
(VAPE Constant 2011 Values) FTE employee (£000)

- Data not available before first year shown

1 VAPE- Value Added Per Employee
2 Current values are deflated by the “Implied output price deflator” to arrive at constant values

UK Industry Performance Report 2014 12

 Economic KPIs - All Construction
Year-on-Year Comparisons (cont.)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

160
160 (First year with data = 100)
140 (First year with data = 100)
140
120
120
100
100
80

B E T T E R
80

B E T T E R
60
60
40
40
20
20
0
0
Client Satisfaction Client Satisfaction Client Satisfaction Contractor Satisfaction Contractor Satisfaction, Contractor Satisfaction, Defects
Client
ProductSatisfaction Client Satisfaction
Service Client
Value Satisfaction
for Money -Contractor
PerformanceSatisfaction Contractor
Provision Satisfaction,
of Contractor
PaymentSatisfaction, Defects
Product Service Value for Money --Overall
Performance Provision of
Information Payment
- Overall Information

300
300
(First year with data = 100)
(First year with data = 100)
250
250

200
200

B E T T E R
150

B E T T E R
150

100
100

50
50

0
0
Predictability Cost, Predictability Cost, Predictability Cost, Predictability Time, Predictability Time, Predictability Time,
Predictability
Project Cost, Predictability
Design Cost, Predictability Cost,
Construction Predictability
Project Time, Predictability
Design Time, Predictability Time,
Construction
Project Design Construction Project Design Construction

UK Industry Performance Report 2014 13

Economic KPIs - All Construction
Individual KPI Trends

Client Satisfaction - Product

100% 83% 84% 83% 86% 87% 87%
78% 80% 82% 83% 82%
80% 72% 73% 72% 73%

B E T T E R
60%
40%
100%
20% 83% 84% 83% 86% 87% 87%
78% 80% 82% 83% 82%
80% 72% 73% 72% 73%
0%

B E T T E R
60% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
40%
100%
The annual KPI surveys ask clients to rate how satisfied they were with
83% 84%the completed83% 86%
facility 87% from
on a scale 87%
1 to 10.83%
The KPI82%
is the
20% 78% 80% 82%
80% 72%
percentage 73%that72%
of clients awarded 73%a score of 8 out of 10 or higher.
0%

B E T T E RB E T T E R
60% 1999 2000 unchanged
2001 2002 2003
The KPI was essentially at 82%, having2004
slipped2005
back in2006 2007
the 2012 survey2008
from an2009
all-time2010
high of2011
87%. 2012 2013/14
100% 84%
40% 79% 82% 80%
74% 77% 75% 77% 75% 75%
80% 71%
20% 63% 63% 65%
58%
Client Satisfaction - Service
60%
0%
40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
100%
20% 84%
77% 79% 77% 82% 80%
71% 74% 75% 75% 75%
80%
0% 63% 63% 65%
58%

B E T T E R
60% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
40%
100% 84%
20% 77% 79% 77% 82% 80%
71% 74% 75% 75% 75%
80% 63% 63% 65%
0% 58%

B E T TBE ER T T E R
60% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
100%
40% 74% 79% 80% 75% 75% 82% 77% 81% 78% 75%
67% 69% 73%
20%
The annual KPI surveys ask clients to rate how satisfied they were with the service provided by the project team on a scale from 1 to 10. The
50%
KPI0%the percentage of clients that awarded a score of 8 out of 10 or higher.
is
0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
Client satisfaction held steady after three consecutive declines. Three-quarters of projects secured of 8 out of 10 or higher.
100% 2001 2002 2003 2004
74% 79%
2005 80%
2006 2007
75% 2008
75% 82%
2009 77%
2010 81%
2011 78% 2013/14
2012 75%
67% 69% 73%
B E T T E R

Client
50% Satisfaction - Value for Money
0%
100% 74% 79% 80% 75% 75% 82% 77% 81% 78% 75%
2001
67% 2002
69% 73%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
B E TB TE ET RT E R

69% 69% 75% 74%

50%
80% 64% 65% 63% 62% 62% 62% 64%
60%
0%
40%
20% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
0%
69% 69% 75% 74%
80% 64%
2003 65%
2004 63%
2005 62%
2006 62%
2007 62%
2008 64%
2009 2010 2011 2012 2013/14
The annual KPI surveys ask clients to rate how satisfied they were with the value for money provided on the project on a scale from 1 to 10.
B E T T E R

60%
The KPI is the percentage of clients that awarded a score of 8 out of 10 or higher.
40%
20%
In 2013, 75% of projects scored 8 out of 10 or better, a second consecutive decline.
0% 75% 74%
80% 64% 65% 63% 64% 69% 69%
2003 2004 2005 62%
2006 62%
2007 62%
2008 2009 2010 2011 2012 2013/14
B E TB TE ET RT E R

60%
73% 69%
80%
40% 59% 59% 63% 64%
57% 58% 56% 56% 56%
60%
20%
40%
0%
20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
0%
73% 69%
80% 2003 2004
59% 2005 2006 2007 2008 2009
59% 63%
2010 64%
2011 2012 2013/14
57% 58%
B E T T E R

56% 56% 56%

60%
40%
UK
20%
Industry Performance Report 2014 14
0%
 60% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

B E T T E
40%
20%
100% 84%
0% 77% 79% 77% 82% 80%
74% 75% 75% 75%

Economic KPIs - All Construction

80% 71%
1999 63%
2000 63%
2001 65%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
58%

B E TB TE ET RT E R
60%
100% 82% 81%
73% 74% 79% 80% 75% 75% 77% 78% 75%
67% 69%
40%
Individual KPI Trends (cont.)
50%
20%
0%
0%
100% 1999 2000 2001 2002 2003 79%
2004 80%
2005 2006
75% 2007
75% 2008
82% 2009
77%20102011
2011 78%
81% 2012 2013/14
2001
67% 2002
69% 73%
2003 74%
2004 2005 2006 2007 2008 2009 2010 75%
2012 2013/14

B E T T E R
50%

Contractor
0% Satisfaction - Performance - Overall
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
100% 74% 79% 80% 75% 75% 82% 77% 81% 78% 75%
67% 69% 73% 75% 74%
80% 64% 65% 63% 64% 69% 69%

B EB TE T ET RE R
62% 62% 62%
50%
60%
40%
0%
20%
0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 75% 2012 2013/14
74%
80% 64% 65% 63% 64% 69% 69%
2003 2004 2005 62%
2006 62%
2007 62%
2008 2009 2010 2011 2012 2013/14

B E T T E R
60%
40%
The
20%annual KPI surveys ask contractors to rate how satisfied they were with the overall performance of the client on a 1 to 10 scale. The KPI is
the
0%percentage of contractors that awarded a score of 8 out of 10 or higher.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
75% 2013/14
74%
80%last year
The 64%has seen65%
contractors’ rating of clients 69%
64% after a 69%
63% 62% overall
62% performance
62% maintained survey high in 2012.
73% 69%

B BE ET TT TE ER R
60%
80%
57% 59% 58% 59% 63% 64%
56% 56% 56%
40%
60%
Contractor Satisfaction - Provision of Information - Overall
20%
40%
0%
20%
0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
73% 69%
80% 59% 59% 63% 64%
2003
57% 2004 58%
2005 2006 2007 2008 2009 2010 2011 2012 2013/14

B E T T E R
56% 56% 56%
60%
40%
20%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
73% 2013/14
80% 64% 69%
59% 58% 59% 63%
100% 57% 80%

B E BT ET TE TR E R
56% 56% 56%
71% 77% 79%
60% 67% 66% 65% 65% 63% 63% 67%
The
40%annual KPI surveys ask contractors to rate how satisfied they were with the overall provision of information by the client on a 1 to 10
50%
scale.
20% The KPI is the percentage of contractors that awarded a score of 8 out of 10 or higher.
0%
0%last year has seen contractors’ perception of the information provided by clients deteriorate. Nonetheless, the score of 69% in 2013/14 is
The
100% 2003 2004 2005 2006 2007 2008 2009 2010 2011
77% 80%
2012 2013/14
79%
2003
67%
the second 2004
highest ever
66% 2005
recorded 2006
by the survey.
65% 65% 2007 2008 2009
67% 2010
71% 2011 2012 2013/14
63% 63%

B E T T E R
50%
Contractor
0%
Satisfaction - Payment - Overall
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
100% 77% 80% 79%
67% 66% 65% 65% 63% 63% 67% 71%
B E T T E R

50%

0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

The annual KPI surveys ask contractors to rate how satisfied they were with the overall provision of payment by the client on a 1 to 10 scale.
The KPI is the percentage of contractors that awarded a score of 8 out of 10 or higher.

The last year has seen contractors’ rating of clients overall performance maintained after a survey high in 2012.

UK Industry Performance Report 2014 15

100%

Economic KPIs - All Construction 72% 77% 73% 73% 77% 75% 74%
80% 68% 68% 68% 71%
65%
53% 58%
60%

B E T T E R
Individual KPI Trends (cont.)
40%
20%
100%
0% 77% 77%
72% 73% 73% 75% 74% 71%
80% 65%
2000 2001 2002 68%
2003 68%
2004 2005 2006 2007 2008 2009 2010 68%
2011 2012 2013/14
53% 58%
60%

B E T T E R
40%
Predictability
20% Cost - Project
0%
100%
80% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 69%
72% 77% 73% 73% 77% 75% 63% 74% 2013/14
61% 71%
80% 65% 68% 68% 68%
60% 50% 53% 58%
48%
52% 50% 48% 49% 48%
52%
60% 46% 45% 46%

BB EE TT TT EE RR
40%
40%
20%
20%

0%
80% 69%
0% 63% 61%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
60% 2000
50% 2001 2002 52%
2003 2004
50% 2005 2006 2007 2008
49% 2009 52%
2010 2011 2012 2013/14
46% 48% 48% 45% 46% 48%

B E T T E R
40%
Since 2000 the annual KPI surveys have assessed the cost predictability of the whole project (i.e. the combined cost of design and
20%
construction). The KPI is the proportion of projects that were on cost or better.
100%
0% 79% 79% 79%
The KPI reached an all-time high in 2013/14, with 69% of projects coming in on cost or better.
80% 69%
80% 65%
2000 2001 2002 2003 65%
2004 62% 2005 63% 2006 66%2007 64% 200865% 2009 67% 63%
64% 63% 63% 61% 2010 2011 2012
61% 2013/14
60% 50% 52% 50% 52%

B EB TE T ET RE R
60% 46% 48% 48% 46% 49% 48%
45%
Predictability Cost - Design
40%
40%
20%
20%
100%
0% 79% 79% 79%
0%
80% 65%
1999 2000 2001 2002 65%
2003 2004 2005 66%
2006 2007 65%
2008 2009 67%
2010 2011 2012 2013/14
64% 63% 63% 62% 63% 64% 61%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

B E T T E R
60%

40%

20%
70% 59% 58% 57%
60% 50% 52% 49% 49%
0% 48% 48% 48% 46% 47%
100% 45% 44%
50%
37%
1999 2000 2001 2002 2003 2004 2005 2006
2007 2008 2009 2010 79%
2011 79% 2013/14
2012 79%

B E T T E R B E TB TE ET RT E R
40%
80% 67%
65% 64% 63% 63% 65% 62% 63% 66%
64% 65%
30%
61%
60%
20%
The annual KPI surveys ask for the actual out-turn cost of design compared with the figure agreed at the start of that phase. The KPI is the
40%
10%
proportion of projects that were on cost or better.
70% 59%
0% 58% 57%
20%
60% 52%
48% 50% 49% 48% 49% 48% 47%
The KPI 1999 2000
45% at2001
has remained 2002
an all-time high2003 2004 the
of 79% during 2005 2006
last three 2007
44%surveys. 2008 46%
2009 2010 2011 2012 2013/14
50%
0% 37%
40%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
30%
Predictability Cost - Construction
20%
70%
10% 58%
60%
0% 46% 45% 45% 45% 45%
70%
50% 42% 44% 44% 44% 43% 59% 58% 57%
1999 36%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
B E T T E R B E T BT EE TR T E R

60%
40% 50% 52% 34%
28% 48% 49% 48% 49% 48% 46% 47%
45% 44%
50%
30%
37%
40%
20%
30%
10%
70%
20%
0% 58%
60%
10% 46% 45%
2000 2001 2002
42% 2003
44% 2004
44% 2005 2006
44% 2007 2008
45% 2009
45% 2010
43% 2011
45% 2012 2013/14
50%
0% 36%
40% 34%
28%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
30%
20%
10%
The annual KPI surveys ask for the actual out-turn cost of construction compared with the figure agreed at the start of that phase. The KPI is
80% 69%
0%proportion of projects that were on cost or better.
the
70% 55% 57% 58% 58%
53% 58% 53% 52%
60%
60% 2000 2001 2002 46% 2003 2004 2005 52%2006 2007 2008 2009 2010 51%
2011 2012
48% 2013/14
B E BT ET TE TR E R

41% 44% 44% 46% 44% 45% 45% 45% 45%

50% 37% have42%
The last three surveys shown consistently higher performance than at any point prior to 2011,
43% although a slight downward trend is
40% 27% 59%36%
evident from
40% in 2011, to 57% this time around. 34%
28%
30%
20%
20%
80% 69%
0%
10%
55% 57% 58% 58%
0%
60% 1999 2000 2001 2002 53%
2003 2004 52%
2005 2006 2007 2008 53%
2009 2010 2011
51% 52%
2012 2013/14
46% 48%
B E T T E R

2000 2001 41%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
37%
40% 27%

UK Industry Performance Report 2014

20% 16
0%
 20%

B
100%
0%
79% 79% 79%
80% 1999
65% 2000
64% 2001 2002 2003
65% 2004 2005 2006
66% 2007
64% 2008
65% 2009 2010
67% 2011 2012 2013/14
63% 63% 62% 63% 61%

B E T T E R
60%

Economic KPIs - All Construction

40%

70%
20%
60% 50% 52%
59% 58% 57%
49% 49%
Individual KPI Trends (cont.)
0%
50%
37%
45%
48% 48%
44%
48% 46% 47%

B E T T E R
40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
30%
20%
10%
70%
0% 59% 58% 57%
60% 50% 52% 49% 49%
1999 2000 48%
2001 2002 2003 2004 48%
2005 2006 2007 48%
2008 2009
46% 2010
47% 2011 2012 2013/14
45% 44%
50%
Predictability Time - Project
37%

B E T T E R
40%
30%
20%
70%
10% 58%
60%
0% 44% 44% 46% 44% 45% 45% 43% 45% 45%
50% 42%
36%

B E T T E R
40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 34%
2012 2013/14
28%
30%
20%
10%
70%
0% 58%
60%
2000 2001 2002 2003 2004 2005
46% 2006 2007 2008
45% 2009
45% 2010 2011
45% 2012 2013/14
45%
50% 42% 44% 44% 44% 43%
36%

B E T T E R
40% 34%
28%
30% 2000 the annual KPI surveys have assessed the time predictability of the whole project (i.e. the combined time for design and
Since
20%
construction). The KPI is the proportion of projects that were on time or better.
10%
80% 69%
0%
Having deteriorated in 2012, performance53%
on this55%
measure52% 57%
has returned to58%
45%, on58%
a par with
53%
the four surveys prior to 2012.52%
60% 51% 48% 2013/14
2000 2001 2002 2003
46% 2004 2005 2006 2007 2008 2009 2010 2011 2012

B E T T E R
41%
37%
40%
Predictability Time - Design
27%

20%

80%
0% 69%
55% 57% 58% 58%
1999 2000 2001 2002 2003
53% 2004 2005
52% 2006 2007 2008 2009
53% 2010 2011
51% 2012 2013/14
52%
60% 48%
46%

B E T T E R
41%
37%
40% 27%

20%

0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

The annual KPI surveys ask for the actual out-turn time taken for the design phase compared with the length of time agreed at the
start of that phase. The KPI is the proportion of projects that were on time or better.

After the peak of 69% of projects delivered on target or better in 2010, the KPI dropped sharply to 51% the following year. Industry
performance has yet to recover from this level; however the latest results did see some improvement on this measure after two
consecutive declines.

Predictability Time - Construction

80% 67%
62% 61% 62% 65%
59% 59% 60% 60% 58% 59% 57% 60%
60%
42%
B E T T E R

40% 34%

20%

0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

The annual KPI surveys ask for the actual out-turn time taken for the construction phase compared with the length of time agreed
at the start of that phase. The KPI is the proportion of projects that were on time or better.

The KPI dropped sharply in 2012, with only 42% of projects delivered on programme or better, compared with 60% in 2011. 2013/14
has seen this ground regained, with the construction phase coming in on time on 67% of projects. This performance is just above the
previous survey high of 65% in 2007.
12%
9.6% 9.9%
10%
8.1% 7.9% 8.2%
7.7%
8% 7.0%
UK Industry Performance Report
R S E

6% 5.1% 5.2% 2014

5.4% 5.0% 17
4.4%
 80% 67%
62% 61% 62% 65%
59% 59% 60% 60% 58% 59% 57% 60%
60%
80%
65% 42% 67%

B E T T E R B E T BT EE TR T E R
62% 59% 61% 59% 60% 62% 60% 59% 60%

Economic KPIs - All Construction

40% 34% 58% 57%
60%
42%
20% 34%
40%

Individual KPI Trends (cont.)

80%
0%
20%
60%
62% 59% 61% 59% 60% 62% 60%
65%
1999 2000 2001 2002 2003 2004 2005 2006 2007
58%
2008
59%
2009
57%
2010
60%
2011
67%
2012 2013/14
0% 42%
34%
40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

20%

0%
Profitability - Return on Sales (ROS)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

12%
9.6% 9.9%
10%
8.1% 7.9% 8.2%
12% 7.7%
8% 7.0% 9.9%
9.6%

E R S E
10% 5.1% 5.2% 5.4% 5.0%
6% 4.4% 8.1% 7.9% 8.2%
7.7%
8% 7.0%
4% 2.7%

W O R S E W O RWS O
5.1% 5.2% 5.4% 5.0% 2.1%
6%
2% 4.4%
12%
9.6% 9.9%
4%
10%
0% 2.7%
8.1% 8.2% 2.1%
7.9% 7.7%
2%
8% 2000 2001 2002 2003 7.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
0% 5.1% 5.2% 5.4% 5.0%
6% 4.4%
In 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Companies
2013/14
4%previous years data on profit before interest and tax (PBIT) has been obtained from firms filing annual accounts with
2.7%
2.1%
House. A snapshot of this data taken each January related to financial performance reported in the previous year. From 2012 the
2%
data has been collected directly from surveyed companies.
0%
2000the median
In 2013/14, 2001 profitability
2002 2003 2004
before tax 2005 was
and interest 2006 2007
2.1%.This 2008 consecutive
is the fourth 2009 2010
decline 2011 2012
and reflects 2013/14
the tough
market and wider economic conditions.

Productivity
80 - Value Added Per Employee (VAPE) Current Values 58.5 60 63.8
49.5

B E T T E R B E T TB EE RT T E R
60 42 45.5 46.2
32.6 34.2 38.2
40 27 28 28 31.1
80 58.5 60 63.8
20 46.2 49.5
60 42 45.5
0 32.6 34.2 38.2
40 27 28 28 31.1
20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
0
80 60 63.8
58.5
60 2000 2001 2002 2003 2004 2005 2006 2007 45.5
2008 46.2
2009 49.5
2010 2011 2012 2013/14
38.2 42
28 28 31.1 32.6 34.2
40 27
20
In previous years data on value added (gross turnover less all bought-in supplies) has been obtained from firms filing annual accounts with
0
Companies House. A snapshot of this data taken each January related to financial performance reported in the previous year. From 2012
the KPI2000
has been2001 2002
calculated 2003
from data 2004
collected 2005
directly from2006
surveyed2007 2008
companies. 2009 2010 2011 2012 2013/14

80.0 59.3 60.0 61.4

Productivity rose sharply in 2011, suggesting businesses were making more efficient use of slimmed down workforces. This improvement
B E T T E R B E T T BE ER T T E R

60.0 42.5 43.2 45.1 46.5 45.4 48.9

has been sustained 41.9
with modest 41.8 in 41.2
39.8 increases the 201241.5
and 2013/14 surveys. In 2013/14 the median value added per employee was £63.8k.
40.0
80.0 59.3 60.0 61.4
20.0 48.9
60.0 42.5 41.9 41.8 41.2 41.5 43.2 45.1 46.5 45.4
Productivity - Value Added Per Employee (VAPE) Constant 2011 Values
0.0
40.0
39.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
20.0
0.0
80.0 59.3 60.0 61.4
60.0 2000
42.5 2001 2002 2003 2004 2005 43.2
2006 45.1
2007 46.5
2008 45.4
2009 48.9
2010 2011 2012 2013/14
41.9 39.8 41.8 41.2 41.5
40.0
20.0
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

The data for each year is adjusted to 2011 values to remove the effect of inflation, using the ‘implied output price deflator’. This is
published by the Office for National Statistics (ONS) in Output in the Construction Industry monthly releases.

In 2013/14, the median value added per employee (adjusted) was £61.4k, a 2.3% increase compared to 2012.

UK Industry Performance Report 2014 18

Economic KPIs - All Construction
Individual KPI Trends (cont.)

Defects - Impact at Handover

100%
72% 77% 73% 73% 77% 75% 74%
80% 68% 68% 68% 71%
65%
53% 58%
60%

B E T T E R
40%
20%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

The annual KPI surveys ask clients to rate the impact of defects in the project at the point of handover, on a scale from 1 to 10, where 10
represent zero defects. The KPI is the percentage of clients that awarded a score of 8 out of 10 or higher.

The KPI dipped from 74% in 2012 to 71% in 2013/14. Performance on this KPI has fluctuated during the last three surveys at levels below
80% 69%
those seen in 2009 and 2010. 63% 61%
60% 50% 52% 50% 49% 52%
46% 48% 48% 45% 46% 48%

B E T T E R
40%

20%

0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

100%
79% 79% 79%
80% 65% 64% 65% 66% 64% 65% 67%
63% 63% 62% 63% 61%

B E T T E R
60%

40%

20%

0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

70% 59% 58% 57%

60% 50% 52% 49% 49%
48% 48% 48% 46% 47%
45% 44%
50%
37%
B E T T E R

40%
30%
20%
10%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

70%
58%
60%
44% 44% 46% 44% 45% 45% 43% 45% 45%
50% 42%
36%
B E T T E R

40% 34%
28%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

UK Industry Performance Report 2014 19

Respect for People KPIs - All Construction
Year-on-Year Comparisons

KPI Measure Performance Trend

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Staff Turnover - All Companies Median % staff turnover 7.7% 7.1% 6.7% 5.9% 5.0% 6.3% 4.2% 2.5% 3.3% 2.1% 3.3%

Sickness Absence - All Companies Median number of days lost 1.8 1.7 1.5 1.4 1.7 1.7 1.7 1.7 1.0 1.7 1.4

Safety – Industry Mean accident incidence rate 1143 1162 1080 760 742 682 702 615 579 536 420

Working Hours Median usual hours worked per week 41 41 40 40 40 40 40 40 40 40 40

Qualifications & Skills Median % of direct employees - 30% 33% 40% 33% 25% 22% 21% 31% 66% 71%
qualified to NVQ Level 2 or higher

Training Median annual training days per 0.8 0.8 1.0 1.0 0.9 1.0 1.1 1.2 0.6 1.5 1.2
full-time equivalent employee

Investors in People Mean % of direct employees covered by 17% 19% 15% 11% 11% 12% 18% 17% 18% 14% 18%
IiP commitment & recognition

Staff Loss Median % direct employees who left - - - - - - - - - 9.1% 7.7% -

employment

Construction Skills Certification Card Median % direct employees that hold - - - - - - - - - 56% 61% -
a CSCS

Make-up of Staff - Women Median % women employed - - - - - - - - - 15% 19% -

Make-up of Staff - People from BME Median % people from black or - - - - - - - - - 0% 0% -

minority ethnic backgrounds

Make-up of Staff - Aged under 24 Median % people employed - - - - - - - - - 8% 7% -

aged under 24

Make-up of Staff - Aged over 55 Median % people employed - - - - - - - - - 11% 10% -

aged over 55

Make-up of Staff - Disabled People Median % people employed - - - - - - - - - 0% 0% -

who are disabled

- Data not available before first year shown

1 Based on “Rates of reported injury in Great Britain by main industrial classification” statistics published by the Health and Safety Executive

UK Industry Performance Report 2014 20

 Respect for People KPIs - All Construction
Year-on-Year Comparisons (cont.)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
400 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
400
(First year with data = 100)
400 (First year with data = 100)
350
350 (First year with data = 100)
350
300
300
300
250
250
250
200
200
200
150
150
150
100
100
100
50
50
50
0
0 Staff Turnover Sickness Absence Safety – Industry
0 Staff Turnover Sickness Absence Safety – Industry
Staff Turnover Sickness Absence Safety – Industry

250
250
250 (First year with data = 100)
(First year with data = 100)
200 (First year with data = 100)
200
200

150
150
150

100
100
100

50
50
50

0 Working Hours Qualifications & Skills Training Investors in People

0
Working Hours Qualifications & Skills Training Investors in People
Working Hours Qualifications & Skills Training Investors in People

UK Industry Performance Report 2014 21

Environment KPIs - All Construction
Year-on-Year Comparisons

KPI Measure Performance Trend

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Product Performance

Energy use (Designed) Median energy use kg CO2 / 100m2 4,414 4,295 4,291 3,729 3,775 4,474 4,539 4,053 3,422 2,000 2,254
gross floor area

Energy use (Designed) Median SAP2001 rating - 90 95 97 100 100 - - - - -

- Housing SAP Rating

Energy use (Designed) Median SAP2005 rating - - - - - - 82.0 78.5 82.8 86.5 84.8
- Housing SAP Rating

Mains water use Median water use m3 / 100m2 69.6 70.4 53.2 52 90.4 80 49.5 47.2 46.8 46.8 54.8
(Designed) gross floor area

Area of habitat % reporting no change or an - 84% 76% 83% 78% 80% 82% 81% 85% 77% 82%
- created/retained - product increase in area of habitat

Construction Process
Performance

Energy Use Median energy use kg CO2 288 322 293 293 273 192 241 249 267 196 214
(Current Values) / £100k project value

Energy Use 214 255 242 259 254 188 245 252 263 196 222
(Constant 2011 Values)

Mains Water Use Median water use m3 / £100k 7.5 9.7 8.2 8.9 8.2 7.1 6.3 6.3 4.9 6.9 4.0
(Current Values) project value

Mains Water Use 5.6 7.7 6.8 7.9 7.6 7.0 6.4 6.4 4.8 6.9 4.2
(Constant 2011 Values)

Waste Median waste removed from site 43.5 47.1 41.6 37.0 39.1 36.9 36.6 35.1 26.7 19.4 22.6
(Current Values) m3 / £100k project value

Waste 32.4 37.3 34.3 32.7 36.4 36.1 37.3 35.5 26.3 19.4 23.5
(Constant 2011 Values)

Commercial vehicle movements Median movements onto site 44.0 34.5 29.4 30.4 29.4 26.5 28.3 23.1 19.7 16.1 11.2
(Current Values) / £100k project value

Commercial vehicle movements 32.7 27.3 24.3 26.9 27.4 25.9 28.8 23.4 19.4 16.1 11.6
(Constant 2011 Values)

- Data not available before first year shown

1 Data not available after 2008.
2 Limited data use with caution.
3 Insufficient data to publish a result in 2008. The 2007 result used for 2008.
4 Current values are deflated by the “Implied output price deflator” to arrive at constant values .

UK Industry Performance Report 2014 22

Environment KPIs - All Construction
Year-on-Year Comparisons (cont.)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
2003 2003
200420042005
2005 2006
2006 2007
2007 2008
2008 2009 2010
2009 201020112011
2012 2012
2013/142013/14
250

250 (First year with data = 100)

250
250 200 (First year with data = 100)
(First year with data = 100)
200 (First year with data = 100)
200
150
200
150
150
100
150
100
100
50

100 50
50
0

0 Energy use (Designed) Energy use (Designed), Energy use (Designed), Mains water use (designed) Area of habitat -
50 Housing SAP Rating Housing SAP Rating product created/retained - product
0 Energy use (Designed) Energy use (Designed), Energy use (Designed), Mains water use (designed) Area of habitat -
Energy use (Designed) Housing
Energy useSAP Rating
(Designed), Housing
Energy useSAP Rating
(Designed), product
Mains water use (designed) created/retained - product
Area of habitat -
Housing SAP Rating Housing SAP Rating product created/retained - product
0
200
Energy use (Designed) Energy use (Designed), Energy use (Designed), Mains water use (designed) Area of habitat -
(First year with data = 100)
200
180 Housing SAP Rating Housing SAP Rating product created/retained - product
(First year with data = 100)
200
180
160 (First year with data = 100)
180
160
140
160
140
120
200
140 (First year with data = 100)
120
100
180 120
100
80
160 100
80
60
80
140 60
40
60
120 40
20
40
20
0
100
20 Energy Use Energy Use Mains Water Use
0
80 (Current Values) (Constant Values) (Current Values)
0 Energy Use Energy Use Mains Water Use
60 (Current
EnergyValues)
Use (Constant
Energy Values)
Use (Current
Mains Values)
Water Use
(Current Values) (Constant Values) (Current Values)
40
450
20 (First year with data = 100)
450
400
450 (First year with data = 100)
0 400
350 (First year with data = 100)
400 Energy Use Energy Use Mains Water Use
350
300
350 (Current Values) (Constant Values) (Current Values)
300
250
300
250
200
250
200
150
450 200
150
100
150 (First year with data = 100)
400 100
50
100
350 50
0
50 Mains Water Use Waste Waste Commercial vehicle Commercial vehicle
0
300 (Constant 2011 Values) (Current Values) (Constant Values) movements movements
0 Mains Water Use Waste Waste Commercial vehicle Commercial vehicle
(Current Values) (Constant Values)
250 (Constant
Mains 2011
WaterValues)
Use (Current Values)
Waste (Constant
WasteValues) movements
Commercial vehicle movements
Commercial vehicle
(Constant 2011 Values) (Current Values) (Constant Values) (Current Values)
movements (Constant Values)
movements
200 (Current Values) (Constant Values)

150
UK Industry Performance Report 2014 23
100
Economic KPIs - All Housing
Year-on-Year Comparisons

KPI Measure Performance Trend

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Client Satisfaction - Product % scoring 8/10 or better 81% 86% 87% 81% 83% 86% 84% 82% 88% 82% 74%

Client Satisfaction - Service % scoring 8/10 or better 74% 80% 80% 78% 74% 84% 79% 73% 84% 76% 62%

Defects - Impact at Handover % scoring 8/10 or better 73% 78% 78% 82% 74% 80% 76% 65% 70% 79% 66%

Predictability Cost - Project % on cost or better 49% 60% 45% 43% 48% 40% 51% 56% 59% 62% 46%

Predictability Cost - Design % on cost or better 66% 66% 67% 67% 66% 71% 65% 66% 77% 81% 71%

Predictability Cost - Construction % on cost or better 48% 56% 49% 46% 56% 44% 50% 53% 59% 55% 58%

Predictability Time - Project % on time or better 46% 49% 44% 42% 46% 43% 40% 36% 37% 25% 41%

Predictability Time - Design % on time or better 51% 55% 51% 53% 58% 56% 55% 69% 55% 44% 52%

Predictability Time - Construction % on time or better 62% 62% 56% 57% 59% 54% 48% 54% 60% 30% 65%

UK Industry Performance Report 2014 24

Economic KPIs - All Housing
Year-on-Year Comparisons (cont.)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

140

(First year with data = 100)

120

100

80

60

40
Client Satisfaction, Product Client Satisfaction, Service Defects - Impact at Handover

140

(First year with data = 100)

120

100

80

60

40
Predictability Cost, Project Predictability Cost, Design Predictability Cost, Construction

140

(First year with data = 100)

120

100

80

60

40
Predictability Time, Project Predictability Time, Design Predictability Time, Construction

UK Industry Performance Report 2014 25

Economic KPIs - All Non-Housing
Year-on-Year Comparisons

KPI Measure Performance Trend

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Client Satisfaction - Product % scoring 8/10 or better 76% 77% 81% 85% 82% 82% 86% 88% 87% 83% 83%

Client Satisfaction - Service % scoring 8/10 or better 70% 73% 75% 79% 78% 72% 86% 85% 78% 74% 77%

Defects - Impact at Handover % scoring 8/10 or better 64% 60% 66% 74% 71% 68% 77% 76% 67% 72% 72%

Predictability Cost - Project % on cost or better 54% 50% 48% 46% 45% 51% 47% 63% 66% 61% 75%

Predictability Cost - Design % on cost or better 66% 63% 63% 68% 65% 62% 59% 73% 80% 79% 81%

Predictability Cost - Construction % on cost or better 52% 48% 47% 43% 46% 50% 44% 56% 60% 60% 57%

Predictability Time - Project % on time or better 46% 41% 46% 45% 46% 48% 47% 47% 47% 37% 46%

Predictability Time - Design % on time or better 57% 60% 54% 60% 54% 61% 50% 61% 52% 49% 52%

Predictability Time - Construction % on time or better 59% 59% 65% 62% 60% 57% 65% 61% 60% 46% 67%

UK Industry Performance Report 2014 26

Economic KPIs - All Non-Housing
Year-on-Year Comparisons (cont.)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

140
(First year with data = 100)
130

120

110

100

90

80

70

60
Client Satisfaction, Product Client Satisfaction, Service Defects - Impact at Handover

140
(First year with data = 100)
130

120

110

100

90

80

70

60

Predictability Cost, Project Predictability Cost, Design Predictability Cost, Construction

140
(First year with data = 100)
130

120

110

100

90

80

70

60
Predictability Time, Project Predictability Time, Design Predictability Time, Construction

UK Industry Performance Report 2014 27

Construction Consultant KPIs
Year-on-Year Comparisons

KPI Measure Performance Trend

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14 Last Year All Years
Client Satisfaction-Overall % scoring 8/10 or better 45% 42% 48% 51% 50% 52% 54% 55% 76% 74% 75% 72%

Client Satisfaction-Value for Money % scoring 8/10 or better 39% 37% 45% 41% 49% 47% 46% 46% 74% 74% 73% 70%

Client Satisfaction-Quality of Service % scoring 8/10 or better 42% 43% 45% 43% 47% 49% 49% 49% 79% 76% 73% 74%

Client Satisfaction-Timely Delivery % scoring 8/10 or better 41% 38% 42% 36% 38% 44% 45% 45% 72% 72% 75% 72%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14

200
(First year with data = 100)
180

160

140

120

100

80

60

40

20

0
Client Satisfaction - Overall Client Satisfaction - Value for Money Client Satisfaction - Quality of Service Client Satisfaction - Timely Delivery

UK Industry Performance Report 2014 28

 About
Glenigan

Established in 1973, Glenigan currently invests £3.1million and makes over a million research telephone calls per
year to provide details on every construction project in the UK. This enables us to provide the most up-to-date and
comprehensive construction sales leads and analysis, to help companies win new business.

We also have exclusive partnerships with key industry associations such as the Builders’ Conference and the
Building Research Establishment (BRE), enabling us to offer project data that’s not available elsewhere in the market.

Glenigan’s detailed insight is used across all levels of our customers’ businesses. Different departments have much
to gain from using our industry knowledge and product features to deliver results for their specific job role.

PIPE COM
ION LIN G PE
AT EM M
AR KIN TIT
ER TR AC O
AN
EN

R
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AG

AN
TS

ND
DG

TA
LIS

ALY
EM

TRE
LEA

NA
ENT

TARGET

SIS
LYSIS

sales Marketing MANAGEMENT

E
R EL

IN G
E NC

BES

ST
ATI

IG

PO

CA
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LL

KE
NS

RE
TE

IP EP
IN O NT FO
H

BU M OR
ILD TR
Y MU
NIC E ME TIN T RY
S
IN G IN D U ATION M A NAG G IN DUS

For further information, visit glenigan.com or contact us on the details below.

Switchboard Address
Phone +44 (0)1202 786700 5th Floor,
Fax +44 (0)1202 316680 80 Holdenhurst Road
info@glenigan.com Bournemouth, BH8 8AQ

Subscription Sales Account Management

Phone 0800 373 771 Phone 0870 443 5373
info@glenigan.com accountmanagement@glenigan.com

UK Industry Performance Report 2014 29

About
CITB

CITB is the Industry Training Board for the construction industry

and a partner in Construction Skills, the Sector Skills Council

Its role is to work with employers to encourage training, which helps to build a safe, professional and
fully qualified workforce.

The support and funding CITB provides helps companies to improve skills, increase their
competitiveness, and respond to challenges such as the low carbon agenda, reducing costs on site and
recruiting the best talent for the sector.

CITB works with the industry and its clients to ensure the construction sector has the right skills,
in the right place, at the right time.

Research
CITB provides research and labour market intelligence that benefits the UK construction industry.
Combining analysis of industry change, primary research and forecasting capabilities, it has established
a strong evidencebase that addresses the needs of a wide range of key industry stakeholders and
ensures that skills planning and training decisions can be made with the most up-to-date insight.

For further information on CITB’s research, visit www.citb.co.uk/research

Bespoke Research Services

CITB’s bespoke research services can help those responsible for construction and infrastructure
programmes, related training and assessing economic benefits. 

Referring to the right research helps to improve the quality of construction projects, saves time and
money, and addresses the issues that make the difference between success and failure.

CITB has a range of unique tools, data, research and forecasting techniques that provide targeted
research solutions that relate to skills and employment needs. 

As the Sector Skills Council for construction, CITB can provide:

• Expertise in all areas of the industry

• Unrivalled knowledge and a network of experts
• Access to unique data 

To find out more about how CITB’s bespoke research services can support your business,
visit www.citb.co.uk/research/consultancy/bespoke-research-services

UK Industry Performance Report 2014 30

About Constructing
Constructing Excellence
Excellence
Constructing Excellence
 What is Constructing Excellence?
 What is Constructing Excellence?
 Why join?
 Why join?
 Vision.
 Vision. What is Constructing Excellence?
 What do I get? What is Constructing Excellence?
 What do I get?
Constructing Excellence (CE) is an independent membership organisation com-
Constructing Excellence (CE) is an independent membership organisation com-
mitted to improving the business performance of our members by focusing on
mitted to improving the business performance of our members by focusing on
innovation and best practice in collaborative working and supply chain integra-
innovation and best practice in collaborative working and supply chain integra-
tion.
tion.
Why join?
Why join?
 Build common ground across the construction industry and housing sec-
 Build common ground across the construction industry and housing sec-
tors.
tors.
 Attend high quality events which attract an audience of senior people.
 Attend high quality events which attract an audience of senior people.
 Expand your personal networking and visibility in the sectors.
 Expand your personal networking and visibility in the sectors.
 Learn about collaborative working, innovation and best practice
 Learn about collaborative working, innovation and best practice
 Get the answers from workshops, clubs, benchmarking or one-to-one ad-
 Get the answers from workshops, clubs, benchmarking or one-to-one ad-
vice form experts.
vice form experts.
 Access practical, documented evidence and information that everyone can
 Access practical, documented evidence and information that everyone can
use.
use.
 Talk to government and influence policy decision.
 Talk to government and influence policy decision.
 Exploit our unique bridge between industry, clients, government and the
 Exploit our unique bridge between industry, clients, government and the
research community
research community

What do I get?
What do I get?
 Engage in any of over 20 member task groups set up by members as
 Engage in any of over 20 member task groups set up by members as
‘communities of interest’.
‘communities of interest’.
 Member-only forums, events and workshops focused on identified mem-
 Member-only forums, events and workshops focused on identified mem-
bers’ needs.
bers’ needs.
 Member-only website containing hundreds of downloadable documents,
 Member-only website containing hundreds of downloadable documents,
guidance, case studies and tools to improve members’ business.
guidance, case studies and tools to improve members’ business.
 Participation in action research projects.
 Participation in action research projects.
 Regular member-only newsletters.
 Regular member-only newsletters.
 Full access to KPIzone for benchmarking and KPIs support.
 Full access to KPIzone for benchmarking and KPIs support.
 Participation in 1-5 (depending on membership level) of our 44 Con-
 Participation in 1-5 (depending on membership level) of our 44 Con-
structing Excellence best practice clubs located throughout the UK.
structing Excellence best practice clubs located throughout the UK.
Vision
Vision
For the industry and its clients consistently to achieve excellence through
For the industry and its clients consistently to achieve excellence through
collaborative working
collaborative working

Constructing Excellence Ltd, Second Floor, 33 Queen Street, London, EC4R 1AP
Constructing Excellence Ltd, Second Floor, 33 Queen Street, London, EC4R 1AP
T: 0845 605 5556 E: helpdesk@constructingexcellence.org.uk W: www.constructingexcellence.org.uk
T: 0845 605 5556 E: helpdesk@constructingexcellence.org.uk W: www.constructingexcellence.org.uk
 UK Industry
Performance Report
Based on the UK Construction Industry
Key Performance Indicators

2014