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12 Best KPIs to Track for Capital Projects
The essential KPIs for measuring capital project performance. Track budget variance, schedule adherence, and ROI to improve project outcomes across your portfolio.
January 2026
Key Performance Indicators (KPIs) transform capital project management from reactive firefighting to proactive control. The right metrics surface problems early, enable meaningful comparisons across projects, and build organizational learning over time. Here are the 12 KPIs that matter most for capital project success.
Without metrics, project performance is subjective. "The project went well" means different things to different stakeholders. KPIs provide:
The key is tracking metrics that drive action, not just data for reports.
What it measures: The difference between budgeted and actual costs, expressed as a percentage.
Formula: ((Actual Cost - Budgeted Cost) / Budgeted Cost) × 100
Why it matters: Budget variance is the fundamental measure of cost control. Tracking it at project level reveals which projects are problematic. Tracking it at portfolio level reveals systemic estimation issues.
Target: Within ±5% for well-managed projects. Consistent positive variance (over budget) indicates estimation problems. Consistent negative variance (under budget) may indicate over-budgeting or scope cuts.
What it measures: The efficiency of budget utilization relative to work completed.
Formula: Earned Value / Actual Cost
Why it matters: Unlike simple budget variance, CPI accounts for project progress. A project 50% complete that's spent 60% of budget has a CPI of 0.83—indicating it's trending over budget even if hasn't exceeded the budget yet.
Target: CPI of 1.0 or higher indicates on-budget performance. Below 0.9 signals significant cost issues requiring intervention.
What it measures: The value of change orders as a percentage of original contract value.
Formula: (Total Change Order Value / Original Contract Value) × 100
Why it matters: High change order rates indicate poor initial scope definition or unexpected conditions. Tracking by project type and contractor identifies patterns requiring process improvement.
Target: Below 10% for well-scoped projects. Above 15% suggests systemic scope or estimation issues.
What it measures: Normalized project cost enabling comparison across different-sized projects.
Formula: Total Project Cost / Units (or Square Feet)
Why it matters: Absolute costs don't enable comparison. Cost per unit allows you to benchmark a 10-unit renovation against a 50-unit renovation, or compare costs across properties and time periods.
Target: Varies by project type and market. Build internal benchmarks from completed projects.
What it measures: The difference between planned and actual completion dates.
Formula: Actual Completion Date - Planned Completion Date
Why it matters: Schedule delays have real costs—vacancy loss, resident disruption, compounding delays on dependent projects. Tracking schedule variance identifies chronic delay patterns.
Target: Zero or negative (early completion). Consistent delays indicate planning or execution problems.
What it measures: The efficiency of schedule utilization relative to work completed.
Formula: Earned Value / Planned Value
Why it matters: Like CPI for budget, SPI reveals schedule problems before the deadline arrives. A project that should be 50% complete but is only 40% done has an SPI of 0.8—indicating it's behind schedule even with time remaining.
Target: SPI of 1.0 or higher. Below 0.9 requires schedule recovery planning.
What it measures: The percentage of project milestones completed on or before the planned date.
Formula: (Milestones Completed On Time / Total Milestones) × 100
Why it matters: Overall completion dates can mask schedule problems. A project might finish on time while missing multiple interim milestones. Milestone tracking surfaces issues earlier.
Target: Above 80% indicates reliable scheduling. Below 70% suggests planning or execution problems.
What it measures: The volume of deficiencies identified at project completion relative to project scope.
Formula: Punch List Items / Total Scope Items (or Contract Value / $10,000)
Why it matters: High punch list counts indicate quality problems during execution. Tracking by contractor identifies vendors requiring closer oversight or removal from approved lists.
Target: Establish baselines by project type. Flag projects exceeding baseline by 50%+ for root cause analysis.
What it measures: The frequency of warranty claims or callbacks after project completion.
Formula: Warranty Claims / Completed Projects (over a period)
Why it matters: Callbacks indicate quality failures that passed initial inspection. High callback rates by contractor or project type reveal systemic quality issues.
Target: Below 10% of projects requiring warranty work in the first year.
What it measures: The percentage of inspections (internal or jurisdictional) passed on the first attempt.
Formula: (Inspections Passed First Time / Total Inspections) × 100
Why it matters: Failed inspections cause delays and rework costs. Low pass rates indicate quality control problems during execution.
Target: Above 85% for most project types. Below 75% requires process improvement.
What it measures: The financial return generated by capital investment relative to cost.
Formula: (Net Benefit - Project Cost) / Project Cost × 100
Why it matters: Not all capital projects have direct ROI (some are required maintenance), but those with revenue impact should be measured. ROI validates investment decisions and informs future prioritization.
Target: Varies by project type. Revenue-generating projects should exceed cost of capital. Compare actual ROI to projected ROI from approval stage.
What it measures: The time required for project benefits to recover the investment cost.
Formula: Project Cost / Annual Net Benefit
Why it matters: Payback period indicates investment risk. Shorter payback means faster recovery and lower risk of changed conditions affecting returns.
Target: Typically under 3-5 years for discretionary improvements. Essential replacements may not have measurable payback.
Don't track 12 KPIs from day one. Start with:
Add metrics as your process matures and data becomes reliable.
KPIs are only as good as underlying data. Ensure:
KPIs sitting in reports don't drive improvement. Build review cadences:
The point of KPIs is action. When metrics indicate problems:
How many KPIs should we track?
Start with 3-5 core KPIs and add more as your process matures. Tracking too many metrics dilutes focus and overwhelms teams. Better to track a few metrics well than many metrics poorly.
What's the best way to visualize capital project KPIs?
Dashboards showing current status and trends work best. Traffic light indicators (red/yellow/green) highlight projects needing attention. Trend charts reveal patterns that point-in-time snapshots miss.
Should KPIs be tied to contractor performance?
Yes. Tracking KPIs by contractor enables objective vendor evaluation. Share metrics with contractors to drive improvement and use them in vendor qualification decisions.
How do we benchmark our KPIs?
Start with internal benchmarking—comparing projects against each other and tracking improvement over time. Industry benchmarks exist but vary significantly by market, project type, and methodology.
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