Performance measurement systems (PMS) is vital for the purposed of improving the project’s performance throughout the life cycle of the project. Performance measurement refers to the indicator used to assess the performance of an organisation or a project. A proper PMS is necessary to help the organisation in measuring the performance of a project to achieve value for money (VFM). However, ineffective PMS has been identified as one of the contributing factors associated with poor project performance. Obviously, the absence of an effective PMS in construction projects acts as a trigger for not producing an optimal service quality and performance. Therefore, this paper aims to investigate the types of performance measurement systems commonly used in the Malaysian construction industry. Thus, almost all popular PMSs has been reviewed. Besides, it also attempts to investigate an effective PMS to be adopted for measuring performance in construction projects. It extends to explore the strengths and weaknesses of previous established measurement models, specific techniques and indicators for research justification. The results will be benefited to suggest an effective approach of PMS for the construction project’s implementation in accordance to the projects nature and characteristics
