Establishing A Performance Efficiency Index for Construction Projects in Kenya

Abstract

World over, the construction industry continues to receive unparalleled criticism due to deplorable performance with many projects failing to meet clients’ expectations. The inefficiency in the projects during execution is a bane, a challenge that is more severe and chronic in developing countries. In Kenya, the problem is congruent and continues to negatively impact on development plans. Additionally, no singular construct exists to objectively measure the various facets constituting the performance of a project. This study, aimed at establishing a Project Performance Efficiency Index (PPEI) that can be used to measure performance efficiency in projects and plan improvement measures. This survey was carried out and data collected from 360 projects in the construction industry of Kenya. Factor Analysis (FA) and Structural Equation Modeling (SEM) were applied on the data to develop the Index, the second order model for the index yielded χ2 statistics = 234.737, Degrees of freedom = 117, χ2/degrees of freedom = 2.006, RMSEA Value = 0.079, GFI Value = 0.780, NFI Value = 0.804, IFI Value = 0.949, CFI Value = 0.946, PNFI Value = 0.764 and PCFI = 0.798. The index was validated with typical construction projects and received 94% approval ratings from practitioners via Delphi technique. The study findings contribute to theory and practice. The Efficiency Enablers established add to the existing Built Environment Body of Knowledge in the area of construction project management and forms a basis for future research. In practice, the PPEI developed, enables practitioners to measure and improve performance during execution. The findings point towards the need to rethink Technical Efficiency in projects as well as implementing the PPEI framework as a baseline tool to management of projects in Kenya.