Using Balanced Scorecard for Subcontractor Performance Appraisal

1493 Words Nov 20th, 2011 6 Pages
Using Balanced Scorecard for Subcontractor Performance Appraisal
S. Thomas NG, Hong Kong, China

Key words: Subcontractor performance, performance appraisal, balanced scorecard

SUMMARY 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
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The paper concludes by presenting a prototype web-based balanced scorecard-based subcontractor performance appraisal model. 2. SUBCONTRACTOR PERFORMANCE APPRAISAL PRACTICE An extensive literature review was conducted which confirms that only few subcontractor performance assessment models operate in the industry worldwide. Examples of current models include the US governmental departments located at South Carolina, the Department
TS 3G – Management of Partnerships and Conflict S. Thomas Ng Using Balanced Scorecard for Subcontractor Performance Appraisal Strategic Integration of Surveying Services FIG Working Week 2007 Hong Kong SAR, China, 13-17 May 2007 2/9

of Administration in the State of Wisconsin, Los Alamos National Laboratory, Fermi National Accelerator Laboratory, etc. Guidelines and procedures were solicited and detailed comparison on the potentials and pitfalls of each of these systems was carried out. In the UK, there is a Quality Mark initiative for builders in the domestic repair, maintenance and improvement sector. Under this scheme, consumers can identify reputable builders who have demonstrated to independent assessors that they possess the skills and competence to complete work to a high quality standard. In Singapore, the performance of subcontractor is assessed and fed back to a registration system known as the Singapore List of Trade Subcontractors Registry. This system is administered by the Singapore
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