Construction Industry Validation of Schedule Performance Measure
This research summary examined schedule performance measurement. The project built upon the theoretical foundations for a schedule performance measure (or index) developed in previous research. Specifically, its purpose was to “establish a ‘living’ schedule performance measure that will be comparable across project types and company sizes in the construction industry.”
This research was based on the Capital Asset Pricing Model, which helps investors understand whether a stock moves in the same direction as the rest of the market, and how volatile or risky it is compared to the market. The team extended this concept to construction project schedule systems (CPM networks). In practice, Schedule Beta helps describe an individual subcontractor’s deviation, risk, and/or performance as correlated to the collection of projects completed over a defined period of time.
This download contains both a PDF of the report and a PDF of the supporting presentation that the team gave to the Fall 2019 CII Board of Advisors Meeting.
Construction Industry Validation of Schedule Performance Measure
The researchers applied the Schedule Beta calculation to 52 subcontracts and were able to capture Schedule Beta scores across several ranges, which indicate certain subcontractor traits and can be used to benchmark subcontractor performance.
Schedule Beta can be used to benchmark subcontractor performance and aid in the selection of which ones to use, given the specific project parameters, goals, and needs. In practice, Schedule Beta can be implemented similar to the Experience Modification Rate (EMR) of a subcontractor, allowing performance to be measured over a period of years and used in evaluation of the subcontractor.
