Using balanced scorecard for subcontractor performance appraisal

Abstract

Several influential industry reports have pointed out that a decline in construction quality and productivity could be attributed to the performance of subcontractors who are entrusted to complete the actual works, yet subcontractor performance appraisal is a much neglected subject in construction. To facilitate subcontractor registration, management and/or selection, an equitable and reliable subcontractor performance appraisal would be indispensable. Being regarded as a reliable and practical means for performance evaluation, the balanced scorecard should have a high potential for improving the quality subcontractor appraisal decisions. This paper discusses the issues in developing a balanced scorecard model for subcontractor performance appraisal. The current practice of appraising subcontractor performance begin is first outlined. It is then followed by introducing the research methodology. The structure of the balanced scorecard model for subcontractor performance appraisal is proposed. Finally, a prototype Internet-based model for appraising subcontractors based on the balanced scorecard concept is presented. The initial results indicate that it is possible to establish a balanced scorecard model to formalise the subcontractor performance appraisal decisions.