Top 10 Measurables for a Construction Company’s EOS Scorecard
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Managing a construction company comes with its unique set of challenges. From keeping projects on schedule to managing budgets and maintaining high-quality work, there’s a lot to stay on top of. As an Integrator or operations leader, you need to track the right metrics to ensure things run smoothly and your team stays aligned with company goals. The EOS© Scorecard is an excellent tool for this—especially if you focus on leading indicators that give you early insights into potential issues.
In this post, we’ll cover the top 10 leading indicators that every construction company should track on their EOS© Scorecard. These metrics not only give you a real-time snapshot of your company’s health but also help you anticipate problems before they become costly. Let’s break down the key indicators that can drive success in your construction business.
1. Number of Bids Submitted
In the construction industry, getting new projects starts with submitting bids. The number of bids your company submits each month is a critical leading indicator of future workload. More bids submitted means more chances to land contracts, keeping your project pipeline full.
Why It’s Important: If your bidding activity is low, it could signal that your business development efforts are lacking, or you’re not reaching out to enough potential clients. Tracking this metric will help you gauge whether you’re on track to meet your project acquisition goals.
How It Contributes to Success: A steady flow of submitted bids increases your chances of winning contracts, which in turn drives revenue and ensures your team has a consistent stream of work.
2. Bid-to-Win Ratio
Once you’ve submitted bids, the next key metric is your bid-to-win ratio—the percentage of bids that turn into actual contracts. This gives you insight into how competitive your proposals are and whether your pricing, scope, and presentation are resonating with clients.
Why It’s Important: A low bid-to-win ratio may indicate that your bids are off-mark—either too high in cost, unrealistic in scope, or lacking in value. Tracking this ratio helps you refine your bidding process to increase your win rate.
How It Contributes to Success: A higher bid-to-win ratio means fewer bids to secure more projects, increasing your profitability and reducing wasted resources on unsuccessful bids.
3. Project Start Timeliness
Starting projects on time is essential for maintaining client satisfaction and ensuring that the schedule stays on track. Tracking how many projects begin according to the planned start date is a strong leading indicator of operational efficiency.
Why It’s Important: Delays in project start times can have a domino effect on the overall schedule, causing missed deadlines, budget overruns, and unhappy clients. If this metric starts to slip, it’s important to figure out where bottlenecks or delays are happening.
How It Contributes to Success: On-time project starts help maintain momentum, keep clients happy, and ensure that the rest of the project schedule stays intact.
4. Labor Utilization Rate
For any construction company, your labor force is your biggest resource. The labor utilization rate tracks the percentage of available labor hours that are being used productively on active projects. It’s a powerful leading indicator of how effectively you’re deploying your team.
Why It’s Important: If labor utilization is low, it could indicate that projects are under-staffed, that your scheduling is inefficient, or that your workers are being assigned tasks outside their area of expertise. Tracking this metric helps you allocate resources more effectively.
How It Contributes to Success: High labor utilization means that your team is working efficiently, completing projects on time, and contributing to the company’s profitability.
5. Safety Incidents/Accidents
Construction is inherently risky, but tracking safety incidents or accidents is crucial for maintaining a safe work environment and protecting your team. A rise in safety incidents is a leading indicator of operational issues that could hurt your team’s performance, morale, and the company’s reputation.
Why It’s Important: An increase in safety incidents usually signals issues like insufficient training, poor site management, or lack of proper safety protocols. These incidents can result in project delays, increased insurance costs, and legal liabilities.
How It Contributes to Success: Fewer accidents mean lower risk, fewer delays, and a more efficient workforce. A safe job site also leads to higher employee morale and better retention rates.
6. Change Order Frequency
Change orders are a common part of construction, but too many can indicate poor planning, communication issues, or unrealistic project scopes. Tracking the frequency of change orders is essential for understanding how well projects are being planned and managed.
Why It’s Important: Frequent change orders usually mean that projects weren’t scoped out clearly, clients are changing their minds often, or unforeseen issues are cropping up that could have been addressed earlier. This can lead to delays, budget overruns, and reduced profitability.
How It Contributes to Success: Keeping change orders to a minimum means more predictable costs, better client relationships, and a more streamlined construction process.
7. Subcontractor Performance Metrics
Subcontractors are a major part of most construction projects, and their performance can directly impact your timeline and quality of work. Tracking subcontractor performance through key metrics like quality of work, adherence to timelines, and cost control helps you maintain project quality.
Why It’s Important: Poor subcontractor performance can result in delays, rework, or even safety hazards. Regularly assessing their performance allows you to address issues early on and ensure that your projects stay on track.
How It Contributes to Success: Ensuring that your subcontractors perform well means fewer delays, fewer mistakes, and higher-quality outcomes, all of which drive client satisfaction and project profitability.
8. Equipment Utilization Rate
Construction projects require a lot of equipment, and tracking equipment utilization helps you gauge whether your resources are being used effectively. It’s a leading indicator of whether your company has the right equipment for the job and if it’s being used efficiently.
Why It’s Important: If equipment is underutilized, you may be over-investing in resources or not planning projects effectively. Overutilized equipment, on the other hand, could be at risk of breakdowns, which could delay projects.
How It Contributes to Success: Proper equipment utilization reduces costs, avoids unnecessary purchases or rentals, and keeps projects running on schedule.
9. Cash Flow/Accounts Receivable Days
In the construction industry, cash flow is often tied to project progress and client payments. Tracking how long it takes for clients to pay invoices—i.e., the accounts receivable days—is a leading indicator of your financial health.
Why It’s Important: Slow payments can strain your cash flow, which may delay project progress or make it harder to pay subcontractors and vendors. Monitoring this metric helps you stay on top of collections and address any issues before they affect operations.
How It Contributes to Success: A healthy cash flow ensures that your company can continue operations without interruption, pay bills on time, and maintain strong relationships with vendors and subcontractors.
10. Client Satisfaction and Feedback
Client satisfaction is at the core of any successful construction company. Tracking how satisfied clients are with your work, through surveys or feedback forms, helps you understand areas for improvement before they escalate into formal complaints or lost business.
Why It’s Important: Negative client feedback is a strong indicator of areas that need improvement—whether it’s in project management, communication, or quality of work. Catching these issues early lets you make necessary adjustments and prevent client dissatisfaction from affecting future business.
How It Contributes to Success: Satisfied clients are more likely to refer you to others, continue working with you on future projects, and leave positive reviews. This can lead to more business opportunities and better long-term success.
To Sum It All Up
Tracking these 10 leading indicators on your EOS© Scorecard will give you a clear view of your construction company’s performance. By monitoring these metrics, you can anticipate issues, make adjustments early, and ensure that projects stay on time, on budget, and of the highest quality. Whether you’re handling residential, commercial, or industrial projects, these metrics will help you steer your company toward greater efficiency, profitability, and long-term growth.
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