Companies in the construction industry succeed and fail by project, so it makes sense that workers’ performance is measured by project instead of annually. Performance-based project management helps ensure projects are completed on time and on budget, without sacrificing work quality.  

Construction performance-based project management helps managers identify how employees are performing on each project and stay on top of any issues that might arise on the job site or in the office.  

Why Construction Performance-Based Project Management is Important Right Now 

While it’s important to understand the productivity of each jobsite, it is also vital to identify key players in your construction business. Construction performance-based project reviews are the vehicles to help identify those workers that can step into new roles and grow with your company. 

With more construction workers retiring versus those coming into the field, performance management provides valuable information for succession planning, which will keep your labor force healthy. During your performance management process, take time to give bonuses, raises or even offer promotions to workers who have been identified as high performers. A reward system for top employees is a key component in improving your business’s overall retention rate. 


Benefits of Construction Performance-Based Project Management 

Unlike traditional or annual performance reviews, project-to-project performance management gives construction companies a real-world view of what is happening on each job site.  

It improves communication. Project managers who oversee several jobs can’t always visit each site to see what’s happening, especially if those jobs are hundreds of miles apart. They need to get information about how a project went so they can improve future projects. Construction performance-based project management provides managers with feedback from a project lead’s perspective by individual, group or both. This insight is invaluable when it comes to improving efficiency. 

It identifies Key Performance Indicators (KPIs). KPIs help measure a project’s success. KPIs can measure safety, quality of the job, labor and cash flow. Managing performance by project helps track KPIs.  

  • Safety: Project managers can learn about any accidents, lost time due to injury, safety inspections and safety training completions. 
  • Job Quality: Project-by-project review also alerts managers to any defects that slowed productivity, how long it took to redo a part of the construction, the cost and if the customer was satisfied. 
  • Labor: This type of performance management also lets managers know who showed up late to a jobsite, missed work completely or even quit. It can also showcase those who excelled at their positions. 
  • Cash Flow: Knowing how many workers were on a project and for how long, helps estimate future labor costs, giving managers the ability to better manage cash flow. 


It helps forecast delays. Tracking performance from one job to the next gives project managers a broad view of how each crew works and what it took for a project to be completed successfully. If you had to pay a large amount of overtime to get a job done on time, adding more workers or improving site supply deliveries can mitigate future delays.  

It engages your employees. Construction performance-based project management identifies your high performers via skills assessment, employee goal completion and feedback from managers, customers and peers. With this performance data, managers can officially recognize outstanding employees. Employees who receive recognition are more engaged. Many construction companies also tie earnings to project performance. It both boosts productivity and recognizes workers at the same time. Plus, it shows employees that when the company wins, employees win. 

Arcoro’s Performance Management Software gives construction companies the ability to effectively implement and manage their project-by-project performance processes. The cloud-based, mobile-friendly system allows managers to: 

  • Create and manage on-demand reviews such as project based, skills assessment, discipline action form, employee recognition form, etc. 
  • Review employee performance on a project-to-project basis. 
  • Get feedback from a project lead’s perspective by individual, group or both. 

Download this data sheet to learn more about how Arcoro’s Performance Management Software can provide the insight needed to make informed personnel decisions with robust reporting, real-time monitoring and time-saving automation. 

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