Capital project owners need to have an objective approach to monitoring, evaluating, and reporting their projects’ portfolio performance. Those project owners want to monitor, evaluate and report each project’s performance trend as well as benchmark their projects’ performance with acceptable achievement metrics. Those project owners want this performance information to be available for them anytime, anywhere.

Similar to any other type of business, an organization needs to identify the key performance indicators (KPI) to measure if their project’s performance is acceptable or not. For capital projects, several common key performance indicators are related to project cost, schedule, quality, safety, and risk. For each of those indicators, the organization needs to determine the thresholds for acceptable and non-acceptable performance.

Using a Project Management Information System (PMIS) like PMWeb, the organization ensures that the data needed to calculate those key performance indicators are robust, reliable, relevant, auditable, appropriate, attributable, traceable, transparent, and trustworthy. This is made possible by automating the needed project management processes to ensure that the right data is captured by the right team member, in the right format, and in the right sequence.

Deciding on the KPIs to Monitor and Evaluate and Their Importance

Assuming that the full score for a successful project’s performance is 100%, the organization needs to decide what the share of each project’s success measures out of this 100%. For example, finishing a project on time could weigh 30%, whereas the lost time injury frequency could have only a 10% weight. Sometimes, there could be a need for more than one key performance indicator to assess the performance of one of the project’s different objectives. For example, for assessing the project’s cost performance, there could be a need for two key performance indicators. The first monitors and evaluates the project’s budget performance, while the second monitors and evaluates the project’s at-completion cost predictability.

PMWeb 7 Project Score

Lost Time Injury Frequency Rates (LTIFR)

LTIFR is a proxy measurement for safety performance. A lost-time injury is something that results in a fatality, permanent disability, or time lost from work. It could be as little as one day or a few hours. LTIFR refers to the number of lost-time injuries within each month, relative to the total number of hours worked in that period.

LTIFR calculations measure the number of lost-time injuries per million hours worked during a month. The number of lost-time injuries per hour worked is always very small. To make it easy to interpret, a multiplier of one million is used and LTIFR is reported as the number of lost-time injuries per million hours worked.

To convert the LTFIR into a measure of 100%, the LTFIR calculated value needs to be divided by the building construction industry rate for the country where the project is being executed. For example, the Australian and New Zealand Standard Industrial Classification (ANZSIC) set the LTFIR for building construction at 5.6. The organization can then set the favorable performance for LTFIR when it is less than 5.6 and the unfavorable performance it is more than 5.6.

PMWeb 7 Lost Time Injury Frequency Rates (LTIFR)

The PMWeb safety incident module helps capture details of all project accidents including the number of lost time injuries in a specific month. The total hours worked in a month will be either captured from PMWeb daily report module or provided by the organization’s attendance system.

Budget Performance Index (BPI)

The budget performance index is the ratio of the full year’s actual cost incurred through contracts’ progress and other miscellaneous invoices against the total allocated project budget for the same fiscal year. For lump-sum contracts and from a project owner perspective, those two values are the two earned value management measures of Earned Value (EV) and Planned Value (PV). Accordingly, the budget performance index will be identical to the schedule performance index (SPI).

This key performance indicator measures the project management team’s ability to meet the forecasted expenditures for the fiscal year. For most organizations, failing to spend the approved budget for the fiscal year means that other organizations’ projects were deprived of using those funds which were blocked for the other project.

PMWeb 7Budget Performance Index (BPI)

The PMWeb budget module captures the allocated budget for the fiscal year, while the PMWeb commitments progress invoices and miscellaneous invoices modules capture the actual cost for the same fiscal year. PMWeb also allows capturing actual costs from the timesheet module in case those expenses are needed to be part of the KPI.

Cost Predictability Index

The cost predictability is the ratio of the estimated project’s forecast at completion versus the approved original budget at completion. The estimated project’s forecast at completion includes the actual cost to date plus all approved and pending change orders (EAC). For lump-sum contracts and from a project owner perspective, the approved original budget already includes the awarded contracts value plus usually a 10% provision for contingency and scope creep (BAC).

This key performance indicator measures the project management team’s ability to maintain the estimated project cost at completion to what was originally approved and budgeted for. If a project’s actual cost exceeds the approved budget, this is an indication that the project has not achieved the target benefit or value for which this project was originally selected. For private project owners, this means a project with a lower internal rate of return (IRR) than what was originally planned.

PMWeb 7 Cost Predictability Index BAC/EA

The PMWeb commitment module captures the balance cost for each awarded contract. In addition, the PMWeb change order module captures the cost of approved change orders, while the PMWeb potential change order module captures the cost of pending change orders. The organization might also consider including the cost of disputed change orders which are also captured by the PMWeb potential change order module.

Project Completion Date

Project completion date KPI is the ratio of the current project delay duration (measured from total float) to the elapsed project’s duration. Usually, project owners allow a 10% schedule buffer on their contractual project’s completion date. In other words, for a project that has a planned duration of 730 days, the project owner usually allows 73 days buffer to the actual need date. Of course, this could vary from one organization to another and even from one project to another.

PMWeb 7 Project Completion Date TF

This KPI will be calculated using the PMWeb scheduling module which can be either used to create the project’s baseline schedule and follow on updates or import this schedule data from Oracle Primavera P6 or MS Project.

Pending NCRs

The total number of pending non-compliance reports KPI indicates how successful the project team is in having all reported non-compliances resolved by the contractor or other project stakeholders. PMWeb custom form builder allows the creation of an NCR template to capture the details and status of all issued NCRs. Non-compliance reports are usually related to quality, but they can also include safety NCRs.

PMWeb 7 Pending NCRs

Pending Issues

The KPI for the total number of high-priority issues that are pending resolution indicates how successful the project team is in resolving all issues that could have a significant impact on the project’s completion date. PMWeb custom form builder allows the creation of the issue template to capture the details and status of all escalated issues.

PMWeb 7 Pending Issues

Project Performance Index (PPI)

As detailed earlier, each key performance indicator (KPI) has a weight for which the sum of all KPIs’ weight will be 100%. This helps in calculating the weighted Project Performance Index (PPI) for each project at the end of each period in an objective format. It should be noted that for some projects, the weight distribution for the six key performance indicators could vary depending on the importance of those projects’ objectives to each project.

Pmweb 7 Project Performance Index (PPI)

Reporting Projects Performance

Those KPIs provide the organization with a real-time single version of the truth monitoring, evaluation, and reporting for each project performance status across the organization’s projects portfolio. Using a PMIS like PMWeb, the report viewer could drill down to the data source that was used to calculate each KPI. For example, the user can drill down to the issues register to get the needed details on the reported pending issues. The same approach is available for all other KPIs.

PMWeb 7 Project Key Performance Indicators (KPIs)

The key performance indicator values for each project can be consolidated in a single dashboard to provide the organization’s executives with an overall status of their project portfolio performance. Graphical charts can be added to benchmark the performance of projects to each other.

PMWeb 7 Projects Portfolio Dashboard

In addition, the report viewer can monitor, evaluate and visualize the past period’s performance trend for each KPI. This trend report is best viewed by the project, although it is possible to compare the performance trend of a specific project with other projects. The trend report provides the report viewer with the ability to forecast the expected performance trend for the remaining periods.

PMWeb 7 Projects Key Performance Indicators Trend Dashboard


The world’s top organizations are selecting PMWeb because of its comprehensive features, functionality, and ease of use. Since 2007, PMWeb has been used by tens of thousands of users to manage their Plan | Build | Operate lifecycles.