The fragmented nature of the construction industry can be alleviated by implementing the concept of
"lean construction, " particularly supply chain management. Studies on the performance of supply chains
in manufacturing industry are accessible, however, its adaptation in developing performance indicators
of supply chains in construction industry is much needed. The development of performance indicators
suitable for the construction industry is discussed in this paper. These indicators can be used as tools for
evaluating the performance of supply chains in the context of their efectiveness and efficiency during
production process towards lean condition, on Indonesian construction projects. The attempt to formulate
these indicators involved identifying the types of data commonly recorded on typical large construction
projects, based on _field surveys. The survey was supported with literature study on the indicators used in
manufacturing industry for possible adaptation. The potential application of the initial set of indicators
were then verified on several construction sites, and resulted in ten indicators recommended for
application on large construction projects. Because most large projects have implemented comprehensive
data recording system, these data should optimally be used for analyzing the production process in the
efforts to minimize wastes. It is recommended that contractors improve their data recording systems by
adding monitoring of material arrivals, formulating standard forms, and documenting customers'
complaints. This can benefit a contractor efforts in providing the value demanded by the client, but also
the satisfactory of and positive cooperation from other stakeholders in the supply chains.
