The Essential KPIs for Refurbishment & Installation Teams

Introduction - KPIs for Refurbishment & Installation Teams

The refurbishment and installations department is often the most complex area of a construction or engineering business. It handles modernisations, full installations, technical surveying, RAMS programmes, project management, procurement, WIP forecasting, and final commissioning. It also carries the highest revenue, longest timelines, and biggest commercial risk.

And yet, most SMEs track performance poorly. Directors often receive partial data, delayed updates, optimistic forecasting, or surface-level progress reports. This leads to margin erosion, delayed invoicing, scope creep, overrun costs and strained cash flow.

This blog gives you a CFO-level framework to measure quantifiable KPIs, qualitative behaviours, and the financial signals that reveal whether your installations/refurbs department is performing at a high level.

Let’s break down the measurements that truly matter in refurbs and installs.

1. Quantifiable KPIs — The Commercial Engine of Installations

Quantifiable KPIs tell you whether the department is delivering on time, on budget, and at the margins promised. These KPIs should be reviewed weekly and at every monthly leadership meeting.

1. Project Timeline Performance (Planned vs Actual)

Why It Matters

Installations have fixed contractual expectations. Delays cause:

• Penalties

• Extensions of prelims

• Booked labour overruns

• Customer dissatisfaction

  
  

Impact on the Business

If a project slips by even 10%, the true cost rise can be 15–20%.

What to Review

• % of projects on-schedule

• Weeks ahead/behind plan

• Delay causes (materials, access, staffing)

  
  

Strategy

1. Use a standardised Gantt chart weekly

2. Review delay causes, not just delay dates

3. Introduce “early warning notices” internally

   
   

2. Gross Margin Delivery (Forecast vs Actual)

Why It Matters

A profitable project on paper can become unprofitable mid-way due to variations, labour creep, or delayed access.

Impact

Strong margin monitoring improves pricing, forecasting, and WIP accuracy.

What to Review

• Gross margin at tender stage

• Revised margin post-survey

• Mid-project forecast margin

• Final margin

  
  

Strategy

1. Margin review every two weeks

2. Highlight projects deviating >5%

3. Track overruns by cause (labour, materials, prelims)

   
   

See our free Margin Tracker Template on the resources page: https://www.jonesfa.co.uk/resources.

3. WIP (Work in Progress) Accuracy

Why It Matters

WIP is the most misunderstood financial area in construction SMEs. Incorrect WIP leads to:

• Overstated profits

• Undervalued cash exposure

• Unreliable board reporting

• Incorrect decision-making

  
  

Impact

Accurate WIP gives you real truth, not optimistic estimates.

What to Review

• % completed vs % invoiced

• Uncertified revenue

• Cost-to-complete accuracy

• Retention values

  
  

Strategy

1. Tie WIP review to monthly accounts

2. Require PM sign-off for % completion

3. Compare PM forecasts with actual labour booked

   
   

4. Procurement Performance

Why It Matters

Procurement is often the silent margin killer.

Impact

• Early ordering reduces programme delays

• Late ordering increases prelims

• Poor supplier management causes cost creep

  
  

What to Review

• Materials ordered on time?

• Variations due to late ordering

• Supplier delivery performance

  
  

Strategy

1. Use a procurement tracker

2. Hold suppliers to delivery SLAs

3. Review procurement plan at kick-off

   
   

5. Variation Management

Why It Matters

Variations are often the missing revenue. Most SMEs underclaim because documentation is weak.

Impact

Better variation control = stronger profit and cash flow.

What to Review

• Variations raised vs approved

• Average approval time

• Value lost through unclaimed work

  
  

Strategy

1. “No variation, no work” rule

2. Daily site reports must highlight scope changes

3. Issue variation quotes within 48 hours

   
   

2. Qualitative KPIs — The Behaviours That Predict Project Success

Qualitative indicators explain why the numbers look the way they do. In refurbs & installs, the behaviours of surveyors, PMs, site supervisors and coordinators are hugely influential.

1. Survey Quality

Why It Matters

Bad surveys = bad pricing = bad margins.

What to Review

• Accuracy of measurements

• Clear scope notes

• Risks identified early

  
  

Strategy

1. Create a survey checklist

2. Review the first 5 surveys from every surveyor

   
   

2. RAMS (Risk Assessments & Method Statements) Quality

Why It Matters

Poor RAMS cause access delays, audits, and safety incidents.

Impact

Delays = cost overruns.

What to Review

• Completeness

• Site-specific detail

• Timeliness

  
  

Strategy

Weekly RAMS audit by H&S lead.

3. Project Management Communication

Why It Matters

Communication is the difference between predictable success and chaotic overruns.

What to Review

• Frequency of updates

• Clarity of progress reporting

• Early identification of risk

• Customer-facing professionalism

  
  

Strategy

1. Weekly PM updates

2. Traffic light system (green/amber/red)

3. Escalation process for issues >48 hours stalled

   
   

4. Site Professionalism & Standards

Why It Matters

Site behaviour reflects brand quality and reduces customer disputes.

What to Review

• Cleanliness

• Compliance

• Respect of site rules

  
  

Strategy

Monthly site audits + photographic evidence logs.

3. Additional Areas Directors Should Track

1. Prelims Control

Overruns in prelims (site setup, supervision, welfare, permits) destroy margins.

2. Labour Productivity

Compare planned hours vs actual booked hours per phase.

3. Commissioning Success Rate

High fail rate = poor planning and rework.

4. Handover Quality

A clean, well-documented handover improves customer satisfaction and future sales.

4. Building a Complete Reporting System for Refurbs & Installs

Your reporting should include:

Weekly

• Project progress (traffic lights)

• Programme slippage

• Labour usage

• Procurement delays

  
  

Monthly

• WIP report

• Margin review

• Retentions log

• Variation register

  
  

Quarterly

• Pricing review

• Lessons-learned review

• Supplier performance analysis

  
  

JFA builds tailored installations dashboards for SMEs using the JFA Growth Finance Framework, which you can read about here:The JFA Growth Finance Framework

And download PM tools here:https://www.jonesfa.co.uk/resources

Key Takeaways

• Track both quantifiable KPIs (margin, WIP, delays, procurement) and qualitative KPIs (survey quality, RAMS, PM communication).

• Refurbs and installs fail financially long before anyone sees it, WIP and margin reviews expose early risks.

• Strong PM behaviours and accurate surveying are just as important as good engineering.

• Build a weekly and monthly reporting cycle to keep installations profitable and predictable.

  
  

If you want JFA to build your installations/refurbs dashboard or cost-to-complete forecasting model, visit www.jonesfa.co.uk or access our free tools online.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.