Construction project monitoring by means of RAM-based composite indicators

Abstract

This paper aims to assess the performance of a sample of completed building projects in Oregon by employing the range-adjusted measure, a slack-based data envelopment analysis (DEA) model. In the first stage of analysis, project efficiency ratings (ie composite indicators) are derived using selected single performance indicators in a no-output model; whereas in the second stage, censored Tobit regression is employed to model the efficiency ratings. The results indicate that only four out of the 50 sample projects are efficient within the DEA context. Moreover, there is not much evidence for systematic effects of project size on DEA efficiency rating.

Keywords:

• data envelopment analysis
• linear programming
• project management

Acknowledgements

The author acknowledges the valuable suggestions of two anonymous reviewers.