PERFORMANCE EVALUATION OF ENGINEERING, PROCUREMENT AND CONSTRUCTION PROJECTS USING PERFORMANCE PRISM

Abstract

Over the past few decades, the complex global business environment and increasing business competitiveness have highlighted the importance of performance evaluation in the construction industry which has long been criticized for its underperformance. Performance evaluation is the process of quantifying the efficiency and effectiveness of past actions, and a performance measure is a parameter used to quantify the efficiency and/or effectiveness of past actions. With the development of performance measurement in the construction industry over the past decades, the performance evaluation has extended to the organizational level and the project stakeholder level from just being concentrated on the project budget and schedule alone. Engineering, Procurement and Construction (EPC) projects are one such kind of construction projects that require careful evaluation of its performance throughout and hence this research was carried out to identify the performance indicators of EPC projects in Kerala, which were then prioritized using Analytical Hierarchy Process (AHP) for important stakeholder categories of EPC project. Out of all indicators client’s satisfaction, contractor’s and supplier’s overall performance, experience of the client and contractor, user’s satisfaction, performance of the infrastructure, value for money, project profitability and appropriateness of the project size and location were the most important ones. An EPC project in Kerala was selected to conduct its performance evaluation. The indicators in the project were ranked using RII and compared with the AHP results for different stakeholder categories. Performance Prism framework, which is a holistic framework that evaluates different stakeholder perceptions of the project was then used to determine the performance efficiency of the EPC project in Kerala. This study can act as a base for the use of the Performance Prism framework in EPC project performance evaluation.