Assessing Egyptian construction projects performance using principal component analysis

Purpose: The construction sector is a major contributor to the Egyptian economy and gross domestic products, plus considered as one of its fastest-growing sectors. Various deficiencies such as low productivity, delays, cost overrun, poor quality, etc. have plagued the construction sector, leading to undesirable project performance across Egypt and several other countries. One of the best methods to measure and improve performance evaluation and consequently a step toward industry improvement is key performance indicators (KPIs). The paper aims to discuss this issue. Design/methodology/approach: A questionnaire survey was conducted to identify the importance index for 35 KPIs. The KPIs were identified and selected based on an extensive literature review and one on one interview with expert construction professionals. Moreover, exploratory factor analysis method has been used to analyze and determine the inter-relationships between the set of indicators. Findings: Seven indicators that have the highest importance indicator were selected to create project overall performance indicator assessment models to consistently measure the performance of different construction projects. Seven equations are introduced reflecting the output of the research while considering both organization size and project type. Practical implications: The proposed evaluation assessment models can be used to: evaluate the relative success of projects; indicate the areas of strengths and weaknesses in performance and establish company benchmarking. Three projects were selected to validate the performance evaluation models. Originality/value: This paper provides mathematical assessment models for evaluating overall construction project performance in Egypt, taking into consideration organization size and project type. Previously published research works on the subject matter are quite limited, and frequently deal with only one or two selected aspects.