Purpose – This paper aims to examine and compare a performance measurement system and performance frameworks commonly used within the construction industry. The paper explores the strengths and weaknesses of balanced scorecard (BSC) and business excellence model (BEM) to propose an integrated model for measuring strategic performance of construction organisations as a single model. The purpose is to help organisations achieve performance excellence, financial integrity and continuous improvement in business results to sustain competitive advantage.

Design/methodology/approach – This paper examines and compares performance measurement system and performance frameworks commonly used within the construction industry. The paper explores the strengths and weaknesses of BSC and BEM to propose an integrated model for measuring strategic performance of construction organisations as a single model. The purpose is to help organisations achieve performance excellence, financial integrity and continuous improvement in business results to sustain competitive advantage.

Findings – The study reveals that the most popular performance measurement framework in construction includes: BSC; Key Performance Indicators and European Foundation for Quality Management. However, literature also reveals that Malcolm Baldrige National Quality Award is being used to measure performance in the construction. The study findings indicated that BSC and BEM could be combined to provide an integrated model that will encompass every facet of construction performance measures.

Research limitations/implications – The paper integrates the BSC and BEM performance measurement models, to provide construction organisations the opportunities of benefitting from the two models as a single tool without having to use more than one model or miss out any important aspect of performance measures. The model will assist organisations perform regular health checks of all business process and at the same time help align organisational activities with strategic primacy.

Practical implications – The paper offers an integrated construction excellence model as a useful tool for measuring both financial and non-financial performance aspects of construction organisations. This will provide managers, owners and other stakeholders the chance of measuring processes and pre-eminent strategic initiatives using a single model.

Originality/value – The conceptual paper presents an integration of processes and perspectives for measuring performance as a new and useful tool in the context of the South African construction industry. The paper suggests that research efforts should be directed on how to implement the strategic performance model efficiently within a specific construction environment.