Do you have the right technology to ensure your construction project stays within budget and on time?
There’s a reason 90% of 10 large-scale construction projects fall over budget. As per McKinsey & Company, major infrastructure projects such as bridges or tunnels could exceed up to 35 percent of budgeted costs.
It doesn’t get better than that in commercial construction. A survey by the world-renowned company of research IDC discovered that 75% of construction projects are completed ahead of budget, and 77% are delayed by about 70 days on average.
Also, it’s not only you. Construction projects, large and small, can be challenging to manage.
In the age of digital advancement, cutting-edge technologies streamline construction and offer an alternative to construction projects that were previously that were destined to fail in terms of cost and time.
Continue reading to find out…
- Research on the proven benefits of integrating workflows into construction
- A guide to calculating the ROI of construction technology
- KPIs to gauge the progress made against
- A trio of examples of workflow integration working
- A tool that can measure your tech integration progress when compared with other peers
The benefits of technology in construction
Technology-enabled workflows are a concept that has been introduced previously. Over the last several decades, digital transformation has transformed sectors like agriculture and manufacturing. In the past, construction has been slow, but this is shifting.
In the construction sector, we are moving towards technological innovation, just like how technology has revolutionized the construction process in commercial aircraft or shipbuilding manufacturing.
The complete impact of this revolution will take decades to come down the path, but it is now the right time to invest in innovative technologies that can help ensure future growth. According to research conducted by McKinsey & Company, the effects of globalization, industrialization, and digitalization have brought $11 trillion worth of value and $1.5 trillion in actual earnings to the construction field.
The positive side is that you’re already employing a variety of apps and tools for your job to help streamline the construction process. McKinsey states that attitudes in this industry have been changing toward technology compared to five years ago.
The conversation is beginning to change from ‘why it is important to utilize technology to how we can use it to simplify construction and improve communication speed, accuracy, and speed.
It’s about connecting all these apps and tools to share and store information in one central area ( Common Data Environment). We’re talking about utilizing technologies to build an integrated construction environment.
It’s already taking place…
Integrated workflows can increase efficiency, aid in making better decisions, and improve productivity at every project phase. The net benefits of these advantages can translate to a better understanding of your schedules and budgets.
Did you know that over half (65 percent) of contractors, owners, and designers 1 achieved efficiency gains through the use of digital workflows?
A lot of construction companies who make use of technology also claim the benefits of technology, such as:
- Better decision making
- Collaboration improved in multi-company processes
- Fewer changes to orders
- Greater cost predictability
- More productive labor
There are many benefits to having a digital workflow integrated for construction companies.
Here’s what you are looking for – what’s the possible ROI (ROI) of implementing new technology? Will it make a real impact?
The ROI calculation for construction workflows is the most crucial measure of success.
All these bells and whistles, aside from us, we understand it. It would help if you had more than a ‘feels-like’ evaluation to accept the notion of making a significant technological investment.
The conversation shifts to the measurement of ROI (ROI).
Key decision-makers at the bottom need to know how these benefits are measured in dollars and days. Here’s a brief overview of how the advantages of connected technology translate into quantitative measures.
Although it’s not advisable to quantify every aspect, you can establish an objective and select several KPIs that match this goal. You can then provide the information you require to calculate the ROI on investment in the latest technologies.
One example: technology allows seamless communication between offices and field
What causes construction projects to run over budget and miss deadlines? There’s more than just physical distance between what occurs on the construction site and the decisions taken at the office.
One survey that included more than 500 general contractors within the commercial construction sector found that inefficiencies due to inadequate communication, including conflicts and rework, consume the equivalent of 14 hours of labor per week per worker.
A $16 billion Site C Clean Energy Project to construct a dam and hydroelectricity-generating station over five years illustrates the need for better communication for big-scale construction activities. The seamless communication that runs from the construction location to the office, all the way to the external stakeholders, ensures that everyone is kept informed with real-time information about what’s happening.
At the project’s beginning, the team relied on thumb drives to deliver updates to the office. Communication was mainly conducted via the popular mobile app WhatsApp. This method was always slightly out of sync, and so as the project evolved and roles changed, they adopted a connected technology method that allowed two-way communications in real time.
Through the integration of technology, they could upload designs of excavations with aesthetic modifications so that site workers could make the necessary modifications with less effort.
Progress reports on compaction progress are created within WorksOS to be approved before moving into the following section.
A technology-based approach that is integrated aids in:
- Make it easy to transition seamlessly between shifts.
- Ensure that workplaces are safe by allowing contractors to adapt to the circumstances.
- It will enable continuous monitoring of the daily progress on job sites.
- Create 3D models for a visual representation of the process.
- Keep the job site’s activities organized and efficient.
- Gain visibility from start to the point.
- Organize multi-trade work sequences.
Example 2: Efficient digital-first design & collaboration
Imagine for a moment the process of design that goes into building some of the most magnificent structures: dams, bridges, complex tunnel systems, and intercity transportation systems. Each one of these projects is intricately complicated.
Take away the paper and pen to propel the process to the digital realm. Does it look like the original? Does it look superior? This is the question that a Pan-European Bridge project was willing to pose when they looked into connected construction with the digital-first design method.
The Randsleva bridge, completed in 2021, near Norway’s capital Oslo. It is a fantastic illustration that shows how construction-connected techniques can help solve collaborative and design issues with 3D modeling instead of drawings traditionally drawn.