Using Balanced Scorecard for Subcontractor Performance Appraisal
Using Balanced Scorecard for Subcontractor Performance Appraisal
S. Thomas NG, Hong Kong, China
Key words: Subcontractor performance, performance appraisal, balanced scorecard
SUMMARY Several influential industry reports have pointed out that a decline in construction quality and productivity could be attributed to the performance of subcontractors who are entrusted to complete the actual works, yet subcontractor performance appraisal is a much neglected subject in construction. To facilitate subcontractor registration, management and/or selection, an equitable and reliable subcontractor performance appraisal would be indispensable. Being regarded as a reliable and practical means for performance evaluation, the balanced scorecard should have a high potential for improving the quality subcontractor appraisal decisions. This paper discusses the issues in developing a balanced scorecard model for subcontractor performance appraisal. The current practice of appraising subcontractor performance begin is first outlined. It is then followed by introducing the research methodology. The structure of the balanced scorecard model for subcontractor performance appraisal is proposed. Finally, a prototype Internet-based model for appraising subcontractors based on the balanced scorecard concept is presented. The initial results indicate that it is possible to establish a balanced scorecard model to formalise the subcontractor performance appraisal decisions.
TS 3G – Management of Partnerships and Conflict S. Thomas Ng Using Balanced Scorecard for Subcontractor Performance Appraisal Strategic Integration of Surveying Services FIG Working Week 2007 Hong Kong SAR, China, 13-17 May 2007
1/9
Using Balanced Scorecard for Subcontractor Performance Appraisal
S. Thomas NG, Hong Kong, China
1. INTRODUCTION Subcontractors could contribute to as much as 90% of the total project value (Matthews et al, 1997), and the performance of subcontractors could inevitably affect
S. Thomas NG, Hong Kong, China
Key words: Subcontractor performance, performance appraisal, balanced scorecard
SUMMARY Several influential industry reports have pointed out that a decline in construction quality and productivity could be attributed to the performance of subcontractors who are entrusted to complete the actual works, yet subcontractor performance appraisal is a much neglected subject in construction. To facilitate subcontractor registration, management and/or selection, an equitable and reliable subcontractor performance appraisal would be indispensable. Being regarded as a reliable and practical means for performance evaluation, the balanced scorecard should have a high potential for improving the quality subcontractor appraisal decisions. This paper discusses the issues in developing a balanced scorecard model for subcontractor performance appraisal. The current practice of appraising subcontractor performance begin is first outlined. It is then followed by introducing the research methodology. The structure of the balanced scorecard model for subcontractor performance appraisal is proposed. Finally, a prototype Internet-based model for appraising subcontractors based on the balanced scorecard concept is presented. The initial results indicate that it is possible to establish a balanced scorecard model to formalise the subcontractor performance appraisal decisions.
TS 3G – Management of Partnerships and Conflict S. Thomas Ng Using Balanced Scorecard for Subcontractor Performance Appraisal Strategic Integration of Surveying Services FIG Working Week 2007 Hong Kong SAR, China, 13-17 May 2007
1/9
Using Balanced Scorecard for Subcontractor Performance Appraisal
S. Thomas NG, Hong Kong, China
1. INTRODUCTION Subcontractors could contribute to as much as 90% of the total project value (Matthews et al, 1997), and the performance of subcontractors could inevitably affect