Critical Success Factors of Contractor's Performance Appraisal System in Malaysian Construction Industry

Performance appraisal system is applied in many organisationsto appraise performance of employee. In construction industry, performance appraisal system is applied to appraise contractor’s performance with the works done and basically, their performance is appraised based on quality, time and cost performance. In Malaysian construction industry, Construction Industry Development Board (CIDB) has established Contractor’s Capability and Capacity (SCORE), Quality Assessment System in Construction (QLASSIC) and Safety and Health Assessment System in Construction (SHASSIC) in 2012. Unfortunately, incompliance in construction projectsstill presents. This paper is therefore undertaken with the aim to propose critical success factors(CSFs) towards the efficiency of these performance appraisal systems via literature review, questionnaire survey and expert focus group. A set of questionnaires is designed, undergone the pilot study on 15 respondents for reliability purpose and eventually distributed to 157 contractors from G1 to G7 class upon the confirmation of the questionnaire reliability status. Seven main criteria are found: quality performance; time performance; cost performance; environmental performance; health and safety performance; productivity performance; and human resources performance.Although contractor’s performance appraisal system is applied in Malaysian construction industry and benefiting construction players,yet it should be improved. The efficiency of contractor’s performance appraisal will be fulfilled byconsidering these seven CSFs into the current contractor’s performance appraisal system in Malaysia.