Project Performance Measurement and Rules of Credit

Construction project phases normally consist of Mobilization, Engineering, Procurement, Execution and Close-out. Each phase has its own level of consumption of duration, cost, and man-hours/effort.

Therefore, we need to determine a proper weighage system to apply and use during the course of the construction in order to update progress and evaluate the project performance in terms of Planned (Schedule%) vs Actual (Performance%).

There are different options to weigh the activities such as:

1-????Duration Weightage:

Timewise, an activity that takes more time may justify assigning more proportional weight to it BUT a certain long activity may not have a high consumption of cost or resources as a shorter activity counterrally has.

2-????Cost Weightage:

Resources can be loaded on the programmes along with their cost according to the payment provisions because cash flow is a key element of progress in any project/business BUT an expensive activity may not use too much resource which can reflect a sudden high amount of progress when executed while the project is not being ahead of schedule with the such relevant amount.

3-????Manhours Weightage:

Man-hours address the required effort to execute any activity, and it’s more indicative of progress BUT this neglects the other resources, and the difference between payments and progress sometimes causes confusion to the project stakeholders.

“Selecting the appropriate Performance Measurement System depends on the nature of the project and on the level of maturity of the organization/stakeholders in project management.”

Subsequently, you can develop your PMS based on one option or a mix of these options as appropriate to your project or as the case may be. For example, you can define a weightage for each phase, then breakdown it for activities based on the appropriate option for each phase.

Loading these weights and other resources to the P6 Programme can be as follows:

1- Manpower loading options (Manpower histogram/s):

- One resource and the details to be in a productivity sheet

- Crews only while total numbers are calculated outside (Not recommended)

- Man-days/hours of multiple resources as per trade (mason-carpenter …)

2- Equipment loading (Equipment histogram/s):

- The same options apply (Operators can be added to the manpower)

- The weightage can be loaded as a non-labor resource or material resource!! Material is preferred because we usually don’t produce a histogram for total units but we do so for the total number of labor and equipment.

3- Material loading (Main KPIs, normally without a curve for sum/total units because each material has its units of measurement):

- Main materials to be loaded such as concrete – steel – piping … etc.

- The weightage can be loaded as material units with rate $1. The total cane be the Contract value or $ 100/1 Million … etc.

The second stage is to update the programme, and in this stage, the rules of credit will be applied. This should be defined while submitting the baseline programme/schedule along with the narrative report under the basis of performance measurement as part of the project control plan. This should also include the forecasting approach that will be used for the remaining works/duration.

The five common rules of credit are:

1. Units Completed (For construction and delivery activities)

2. Incremental Milestone (For engineering and procurement like 0/100, 60/20/20 for submission/review/resubmission-approval … etc.)

3. Resource Expenditure (Level of effort)

4. Weighted or Equivalent Units Completed

5. Judgment (Subjective whenever required)

Finally, be practical and remember that: “Standard methods of measurement for construction vary widely depending on the nature of the work and the number of steps.”

The full presentation is available at:

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