Running a construction business without KPIs is like building a house without a blueprint—risky, expensive, and inefficient. Key Performance Indicators (KPIs) provide measurable insights into how your company is performing across operations, finance, and project execution. When set and tracked properly, KPIs become one of the most powerful tools for growth, accountability, and forecasting.

Here’s how to effectively set and track KPIs in your construction business:

Step 1: Identify Your Business Goals

Before you can define useful KPIs, you need to clarify your goals. Are you aiming for higher profit margins, more efficient job sites, or improved client satisfaction? Align your KPIs with your strategic priorities. Examples include:

• Increasing project completion rate on time and on budget

• Reducing rework and safety incidents

• Improving cash flow and net profit

Step 2: Choose KPIs That Matter

Pick a handful of KPIs for each department—operations, finance, HR, sales, and project management. Some essential KPIs for construction companies include:

• Gross Profit Margin: Measures profitability on each job.

• Job Cost Variance: Tracks the difference between estimated and actual job costs.

• Safety Incident Rate: Indicates workplace safety and compliance.

• Change Order Frequency: Reflects planning and communication effectiveness.

• Cash Flow Forecast Accuracy: Ensures you can pay bills and fund growth.

• Employee Turnover Rate: Reveals team satisfaction and stability.

• Avoid vanity metrics. Focus on KPIs that actually drive decisions.

Step 3: Use Tools to Track and Report

Manually tracking KPIs in spreadsheets gets messy fast. Use construction-specific software like Procore, Buildertrend, or QuickBooks with dashboard integrations. These tools help:

• Track KPIs in real-time

• Automate data collection

• Create visual reports and trends

• Keep teams accountable with clear performance insights

• Review KPIs weekly or monthly during team meetings to stay on track.

Step 4: Analyze and Adjust

Data alone isn’t enough—you must act on it. Look for trends, red flags, and opportunities. For instance, if job cost variance is consistently negative, dig into whether estimates are off or jobsite costs are too high.

Encourage a culture of accountability where teams understand how their roles impact KPIs and company goals.

KPIs aren’t just numbers—they’re the pulse of your business. By setting meaningful indicators and tracking them consistently, you gain clarity, boost performance, and build a stronger, more profitable construction company.

Need help selecting and setting up the right KPIs for your construction business? At Oasis Consulting Group, we specialize in helping contractors create data-driven strategies that lead to real growth. Book a free strategy call today and build a blueprint for success.

Food for Thought

Would you board a flight if the pilot didn’t have any instruments? That’s exactly what running a business without KPIs looks like.

About Elizabeth-Jamey Rand

Meet Elizabeth-Jamey Rand, the driving force behind Oasis Consulting Group, your trusted partner in navigating the digital landscape and propelling your small business to new heights. As the President/CEO of our Miami Beach-based agency, Elizabeth-Jamey leads a dedicated team specializing in a spectrum of services, including Business Development, Social Media, Event Planning, Virtual Assistance, Advertising, Real Estate Agent Support, Start-ups, Marketing, and Copywriting.

At Oasis Consulting Group, we bring a fresh and innovative approach to working with our clients. Our commitment goes beyond conventional strategies; we thrive on out-of-the-box thinking to provide you with a comprehensive suite of solutions. Whether you’re seeking to enhance your online presence, plan a memorable event, or develop a strategic marketing campaign, we’ve got you covered.

To discover how Oasis Consulting Group can tailor its expertise to meet your unique business needs, connect with Elizabeth-Jamey today. Call (786) 562-7601 or drop an email at oasisconsulting3@gmail.com. Elevate your business with a partner dedicated to your success.