Top 10 KPIs Construction and Oil & Gas Project Managers Should Track in 2025

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In 2025, as the construction and oil & gas industries face increasing pressure to deliver complex projects on time, within budget, and under stricter regulatory and ESG standards, Key Performance Indicators (KPIs) are more vital than ever. According to KPMG’s Global Construction Survey, only 25% of projects came within 10% of their original deadlines and budgets in recent years — highlighting the urgent need for better project controls and real-time visibility. By tracking the right KPIs, project managers can make proactive decisions, reduce risk, improve stakeholder trust, and drive project success.

What Are Project Management KPIs?

KPIs are quantifiable metrics that track the progress, efficiency, and success of a project. They translate complex project data into actionable insights, helping teams assess whether they're meeting strategic objectives across scope, cost, schedule, safety, and quality dimensions.

Why Use KPIs in Project Management?

In high-stakes industries like construction and oil & gas, KPIs help teams:

  • Identify early signs of delays or cost overruns
  • Optimize resource allocation and productivity
  • Improve stakeholder communication and transparency
  • Mitigate operational, financial, and reputational risk
  • Benchmark performance across projects and teams

KPMG and other industry leaders emphasize that project controls powered by KPIs are foundational for achieving capital project excellence, particularly when integrating project management with finance, procurement, and risk management systems.

How Do You Track KPIs in Project Management?

Modern project teams use integrated project management platforms or ERP systems to collect, visualize, and analyze KPIs in real-time. These systems consolidate data from scheduling tools (like Primavera P6), finance systems (like SAP or Oracle), field updates, IoT devices (for equipment and labor tracking), and safety logs. Dashboards provide project managers with an at-a-glance view of performance, allowing them to take corrective action before small issues escalate.

Below are the top 10 KPIs that should be at the heart of every project manager’s dashboard in the construction and oil & gas sectors.

1. Schedule Performance Index (SPI)

SPI measures how efficiently time is being used on a project. It is calculated by dividing the earned value (EV) by the planned value (PV). A value above 1 means the project is ahead of schedule; below 1 means it's behind. This KPI is particularly useful in large capital-intensive projects like offshore drilling or infrastructure construction, where delays can lead to significant cost escalations and reputational damage. KPMG emphasizes the growing importance of schedule predictability, noting that early identification of delays through SPI tracking helps improve overall capital project delivery.

2. Cost Performance Index (CPI)

CPI evaluates how efficiently the project budget is being utilized by comparing earned value to actual cost. A CPI of less than 1 indicates a cost overrun. In the oil & gas industry, where project costs can run into billions, and in construction, where profit margins are razor-thin, CPI helps identify inefficiencies early. It is particularly valuable during the execution phase, allowing managers to adjust procurement, resource allocation, or scope before costs spiral.

3.Change Order Rate

This KPI tracks the number and frequency of scope changes through change orders. A high change order rate may indicate poor initial planning, frequent client demands, or unforeseen site issues — all of which can disrupt timelines and budgets. In construction and EPC contracts, managing change order volume is crucial to avoid contractual disputes. KPMG notes that change management is one of the most underdeveloped areas in project governance and suggests integrating this KPI with project controls and client communication frameworks.

4. Equipment Utilization Rate

This measures how effectively project equipment (e.g., cranes, bulldozers, drilling rigs) is being used during its availability. Underutilized assets represent lost value, while overused equipment risks breakdowns. In sectors like oil & gas, where equipment costs are high and logistics complex, tracking utilization ensures better ROIand helps plan maintenance schedules effectively. IoT integration can further enhance real-time tracking of heavy machinery.

5. Labor Productivity Rate

This KPI calculates the amount of work (such as square footage built or pipeline installed) per labor hour. It’s crucial in both construction and oil & gas sectors where skilled labor is costly and often in limited supply. Monitoring productivity helps identify training needs, optimize crew deployment, and ensure deadlines are met. According to industry studies, improving labor productivity by just 10% can result in significant cost savings over the project lifecycle.

 6. Safety Incident Rate (TRIR)

The Total Recordable Incident Rate (TRIR) tracks the number of OSHA-recordable safety incidents per 200,000 hours worked. Safety is not just a regulatory requirement but a key indicator of operational maturity. In high-risk environments like oil refineries or large construction sites, TRIR is closely watched by regulators, insurers, and investors. KPMG highlights that top-performing companies prioritize safety metrics not only for compliance but as a core business performance indicator.

7. CashFlow Forecast Accuracy

This KPI measures how accurately projected cash flows align with actual flows. Poor cash flow visibility can halt procurement, delay contractor payments, and derail a project. Especially in oil & gas projects, where upfront investments are huge and revenue realization is long-term, accurate forecasting is essential for working capital management and investor confidence. Real-time integration between financial and project systems helps improve this KPI.

8. Subcontractor Performance Score

This evaluates subcontractors based on timeliness, safety compliance, quality of work, and communication. Both the construction and oil & gas industries rely heavily on subcontracted services. Poor subcontractor performance can have a domino effect, delaying dependent activities and increasing costs. Tracking performance through scorecards helps select reliable partners and reduces rework.

9. Materials Delivery Accuracy

This KPI tracks whether materials arrive as scheduled, in the correct quantity and quality. Delays or mismatches disrupt site activity and often lead to storage or reordering costs. In oil & gas, where specialized materials may need to be shipped globally, this KPI helps prevent costly downtime. Construction projects also benefit by ensuring smooth sequencing of tasks and reducing idle labor.

10. Stakeholder Satisfaction Index

This KPI is based on structured feedback from key stakeholders — clients, regulatory bodies, and internal teams — at different stages of the project. High stakeholder satisfaction correlates with project transparency, communication effectiveness, and quality delivery. KPMG emphasizes that strong stakeholder engagement is now a key determinant of project success, especially with increasing ESG, community, and environmental scrutiny. 

Conclusion

As projects grow in complexity and scrutiny, relying on spreadsheets and reactive management is no longer sustainable. These 10 KPIs give project managers the insight needed to stay ahead — improving decision-making, increasing efficiency, and aligning with strategic goals. With advancements in digital project management systems, IoT, and AI, 2025 is the year to embrace real-time, integrated KPI tracking as a foundation for project excellence.

Whether you're building a smart city or developing an oil platform, these KPIs are not just metrics — they're your early warning system, your performance dashboard, and your guide to delivering value in high-stakes environments.

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