What is a principal feature of key performance indicators (KPIs)?

Key performance indicators (KPIs) serve as critical metrics that assess various aspects of project performance, particularly focusing on the efficiency of contract execution. By establishing measurable values in areas such as quality, time, cost, and stakeholder satisfaction, KPIs provide valuable insights throughout the lifecycle of a contract, allowing stakeholders to track progress, identify areas for improvement, and make informed decisions to enhance project outcomes.

This focus on efficiency is significant because it helps organizations ensure that resources are being utilized effectively and that contract obligations are being met in a timely and cost-effective manner. KPIs also facilitate continuous monitoring and allow for adjustments to be made proactively if performance deviates from expected standards.

The other options do not accurately capture the essence of KPIs. For instance, KPIs are designed to be useful throughout the project, not only after completion, and they measure a broad range of performance indicators, beyond just cost-related metrics. Additionally, while KPIs can contribute to summarizing project progress, their primary function lies in evaluating the efficiency and effectiveness of various aspects of contract execution.