In the bustling construction sector of Indonesia, small and medium-scale contractors often find themselves navigating a maze of performance metrics, many of which are financially focused and lack a holistic approach. A recent study, led by Ima Fatima of the Construction and Infrastructure Management Research Group at the Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, aims to change that. Published in the *Jurnal Teknik Sipil* (Civil Engineering Journal), the research identifies key performance indicators (KPIs) that could revolutionize how these contractors measure their success.
The study, which surveyed 28 respondents from 20 contractor companies in Bandung City, employed a rigorous methodology to ensure consistency and relevance. Fatima and her team used comparative tests, statistical analysis, and the Relative Importance Index (RII) to rank indicators based on their perceived importance. The results are groundbreaking, identifying 20 KPIs that cover all four perspectives of the Balanced Scorecard: financial, customer, internal business process, and learning and growth.
“Our findings provide a foundation for designing a comprehensive performance measurement system tailored to small and medium-scale contractors,” Fatima explained. “This is not just about financial metrics; it’s about understanding the broader impacts of their operations on customers, processes, and growth.”
The top-ranked indicators include service quality, customer retention, project completion timeliness, and corporate image. These findings highlight the need for a more nuanced approach to performance measurement, one that goes beyond the bottom line. “By focusing on these indicators, contractors can enhance their competitiveness and sustainability in the market,” Fatima added.
The implications for the construction industry are significant. A structured performance measurement system can help contractors identify areas for improvement, streamline operations, and ultimately boost their bottom line. This is particularly relevant in the energy sector, where small and medium-scale contractors play a crucial role in infrastructure development.
As the industry continues to evolve, the need for such a system becomes even more pressing. “Future research should validate these indicators with broader samples and operationalize them into a practical measurement framework,” Fatima suggested. This could pave the way for a more competitive and resilient construction sector, better equipped to meet the demands of the energy sector and beyond.
In the words of Fatima, “This is just the beginning. The journey towards a more comprehensive performance measurement system is underway, and it promises to transform the way small and medium-scale contractors operate and succeed.” With the publication of this research in the *Jurnal Teknik Sipil*, the stage is set for a new era of performance measurement in the construction industry.