Benchmarking Preproject Planning Effort

Abstract

Benchmarking key performance areas is key to continual improvement of processes. This paper focuses on measurement and benchmarking of the preproject-planning process for capital construction. While experienced members of the construction industry recognize that more effort put into early project planning results in a more successful project, there are few published studies that quantitatively verify this fact. This paper reviews a methodology developed to benchmark the preproject-planning phase to provide a basis for action, follow-up studies, and recalibration of measures and benchmarks. The project that was the object of this study measured the level of preproject-planning effort performed. This level was then related to the ultimate success of the project using data gathered on 62 projects and totaling more than $3.4 billion in authorized cost. Through formal preproject-planning effort, risk is reduced, cost performance can increase by as much as 20%, and schedule performance by as much as 40%.