The Influence of Key Performance Indicators on Relationship and Performance of Joint Venture Construction Projects In The UK

Joint ventures (JVs) are increasingly common within construction as companies seek to pool resources and expertise to broaden opportunities and mutually benefit from the arrangement, particularly for large-scale projects (LSPs). Whilst there are many benefits to joint ventures they are not without issue and in many cases result in dispute, often over the performance measurements used within the projects. A successful joint venture is one where parties share and understand the vision of the project. However, Key Performance Indicators (KPIs) are seldom discussed or completed collaboratively in joint ventures and may result in representing one-sided requirements. In theory, the evolving relationship between joint venture partners should lead to a refinement of KPIs along the project. However, the establishment of clear KPIs from the outset has the potential to reduce the number of disputes and provide the basis for a successful partnership. The aim of this paper is to critically evaluate the usage and influence of KPIs on joint venture projects within the United Kingdom (UK) and seek to determine factors that contribute to successful relationships. Data were collected by conducting in-depth, semi-structured interviews with purposefully selected members who had an average experience of over six years participating in joint venture projects within the UK. Findings show that KPIs are used mainly to reflect on individual businesses’ performance rather than to appraise joint ventures. While there are limitations to KPIs this research also indicates that KPIs are used inappropriately at times leading to the misconceptions as to their use and may possibly cause tension between joint venture partners.