Construction logistics is an essential part of lean construction for both project management and cost aspects. The quantum of money that is embodied in the transportation of materials to site could be 39 to 58% of total logistics costs and between 4 to 10% of the product selling price for many firms (Coyle, Bardi et al. 2003). However, limited attention has been paid to this issue in the New Zealand construction industry. The purpose of this paper is to contribute to the knowledge about managing transportation costs by setting a Key Performance Indicator based on the number of vehicle movements to the construction site. A case study approach was adopted with on-site observations. Observations, including vehicle movements and material delivery patterns, were performed from the start of construction until 'hand-over' to the building owner. Data analysis of vehicle movements suggested that construction transportation costs can be monitored and managed. The identified number of vehicle movements as a key performance indicator offers a significant step towards logistics performance management at the operational level in construction projects. It provides a basis for benchmarking that enables comparison, learning and improvement and thereby continuous enhancement of best practice.