Ah, the construction industry – where progress moves at a glacial pace and new technologies are about as welcome as a busted water pipe on a Monday morning. But hold on to your hard hats, my friends, because the winds of change are blowing through this stubbornly traditional field. And as a general contractor, you’ve got a front-row seat to the construction tech revolution.
The Need for Disruption
Let’s be real – the construction industry has been stuck in the past for far too long. According to a report by McKinsey & Company, large construction projects typically take 20% longer to finish than scheduled and can end up 80% over budget. Productivity has actually declined in some markets since the 1990s, and financial returns for contractors are often volatile and relatively low.
Why, you ask? Well, it seems the industry has been painfully slow to adopt new technologies and innovative processes. Project planning is often uncoordinated, with the office and field working from different versions of reality. Contracts lack incentives for risk-sharing and innovation, and performance management is, let’s just say, less than optimal.
The construction world has also been hesitant to embrace the digital revolution, with R&D spending languishing at less than 1% of revenues – a far cry from the 35-45% you’d see in the auto and aerospace sectors. Even IT spending accounts for less than 1% of revenues, despite the proliferation of new construction-focused software solutions.
Overcoming the Challenges
Now, I know what you’re thinking – “But the construction industry is different! We’ve got technical challenges that just can’t be solved with some fancy new tech!” And you’re not wrong. Coordinating solutions across geographically dispersed construction sites for multiple sectors is no easy feat. And getting smaller subcontractors to adopt new capabilities at scale? That’s a whole other can of worms.
But here’s the thing – those challenges aren’t going to magically disappear. In fact, they’re only going to get worse. Projects are becoming increasingly complex and larger in scale, with a growing demand for environmentally-friendly construction practices. And let’s not forget the looming shortage of skilled labor and supervisory staff.
The time has come for the construction industry to embrace a new way of thinking and working. And that’s where technology comes in. As the McKinsey Global Institute estimates, the world will need to spend a whopping $57 trillion on infrastructure by 2030 to keep up with global GDP growth. That’s a massive incentive for players in the construction industry to identify solutions that can transform productivity and project delivery through new technologies and improved practices.
Leveraging Technology to Transform the Industry
So, what are some of the practical and relevant technologies that can help general contractors like you embrace the future? Let’s dive in.
Advanced Surveying Techniques
Gone are the days of relying on outdated ground surveys and guesswork. New techniques that integrate high-definition photography, 3D laser scanning, and geographic information systems enabled by drones and unmanned aerial vehicles (UAVs) can dramatically improve accuracy and speed. Photogrammetry, for example, provides high-quality, high-definition images of survey areas, while lidar technology offers fast, high-quality 3D images that can be integrated with project-planning tools like building information modeling (BIM).
These advanced survey techniques, when used in conjunction with ground-penetrating radar, magnetometers, and other equipment, can generate detailed above-ground and underground 3D images of project sites. This is especially crucial for dense, environmentally sensitive, or historical sites where minimizing disturbance is a top priority.
And the best part? The costs of these cutting-edge survey tools have come down substantially, making them accessible to contractors of all sizes. Lidar and real-time kinematic GPS, for instance, can now be had for around $10,000. High-resolution drone-mounted cameras are also smaller and lighter, making aerial surveys faster and more affordable than their helicopter-mounted counterparts.
Building Information Modeling (BIM)
The construction industry has long been playing catch-up when it comes to integrated digital platforms, relying instead on a hodgepodge of bespoke software tools. But the rise of next-generation 5D BIM is about to change that game.
5D BIM is a five-dimensional representation of a project’s physical and functional characteristics, incorporating not just the standard 3D spatial design parameters but also cost and schedule. This allows owners and contractors to identify, analyze, and record the impact of changes on project costs and timelines. The visual and intuitive nature of 5D BIM gives contractors a better chance to spot risks early and make more informed decisions.
In fact, one study found that 75% of BIM adopters reported a positive return on their investment, with shorter project life cycles and savings on paperwork and material costs. No wonder governments in countries like Britain, Finland, and Singapore have mandated the use of BIM for public infrastructure projects.
But the true potential of 5D BIM will be unlocked when combined with augmented reality (AR) technology. Imagine being able to pin holograms to physical objects and interact with data using gestures, gaze, and voice commands – it’s a game-changer for construction, maintenance, and operations.
Process Digitization
Let’s be honest – the construction industry is still stuck in the stone age when it comes to managing its processes and deliverables. From blueprints and design drawings to procurement orders and progress reports, the reliance on paper is staggering. And this lack of digitization is a major contributor to the industry’s poor productivity record.
Information sharing is delayed, with owners and contractors often working from different versions of reality. Paper trails also make it difficult to capture and analyze data that could lead to better outcomes and risk management. And let’s not forget the time-consuming nature of managing all that paperwork.
But the tide is turning, with owners and contractors starting to deploy digital-collaboration and field-mobility solutions. A large global construction firm, for example, recently announced a joint development agreement to create a cloud-based, mobile-enabled field-supervision platform that integrates project planning, engineering, budgeting, and document management.
The benefits of digitizing workflows are substantial. An American tunnel project involving almost 600 vendors saw its team save more than 20 hours of staff time per week, cut the time to generate reports by 75%, and speed up document transmittals by 90%. And a $5 billion rail project managed to save over $110 million and boost productivity by using automated workflows for reviews and approvals.
Crew Mobility and the Internet of Things
For far too long, it’s been a challenge for central planning teams and on-site construction crews to connect and share information in real-time. Compatibility issues, lack of reliable broadband connectivity, and, let’s face it, some not-so-user-friendly designs have all contributed to the slow adoption of these tools.
But the availability of low-cost mobile connectivity, including tablets and handheld devices, has ushered in a new generation of “mobile-first” cloud-based crew-mobility apps that can be deployed even on remote construction sites. These solutions allow changes in construction plans to be relayed in real-time to on-site crews, with site photos hyperlinked to the digital blueprints. And they even provide features like mobile timekeeping, real-time cost coding, geolocation of workers, and issue logging and tracking.
But the construction technology revolution doesn’t stop there. The Internet of Things is making its way onto the jobsite, with sensors and wireless technologies enabling equipment, materials, and even structures to “talk” to a central data platform. Radio-frequency identification (RFID) technology, for instance, is being used to track materials and equipment, as well as develop automated timesheets.
Advanced analytics are also making their mark, helping project teams detect anomalies and identify potential risks. One major London infrastructure project, for example, used a web-based adaptive-instrumentation-and-monitoring system to absorb field sensor data, construction progress data, and workforce and vehicle movements, leading to significant time and cost savings.
Embracing the Future: A Call to Action
It’s clear that the construction industry is long overdue for a technological revolution. But making the leap from traditional to cutting-edge isn’t always easy. As a general contractor, you’ve got a critical role to play in shaping the future of this industry.
First and foremost, it’s time to ditch the adversarial mindset when it comes to contracts. Contracts need to be seen as tools that allow for fair risk-sharing and equitable distribution of the benefits that arise from technological and process innovations. Just look at the example of Heathrow Airport’s Terminal 5 project, where all stakeholders were treated like team members, working together to find the best solutions.
As a contractor, you’ll also need to reimagine and rewire your organization. That means developing a digital roadmap, appointing a chief technology officer or innovation officer, and ensuring your project teams have the resources and authority to pilot new technologies. And don’t forget to build the digital capabilities of your project managers – they’re the ones who will be leading the charge in the field.
But it’s not just up to you and your fellow contractors. Project owners and developers need to step up and mandate the adoption of digital technologies, perhaps even capitalizing the cost of digitization and technology when setting project budgets. Industry bodies and regulators also have an important role to play, from defining new standards for emerging technologies to creating incentives and pilot programs.
The construction industry has been stuck in the past for far too long. But the time has come to embrace the future. As a general contractor, you’re in a unique position to lead the charge and reap the benefits of a more productive, innovative, and profitable construction landscape.
So, what are you waiting for? It’s time to don your digital hard hat and get to work. The future of construction is here, and it’s waiting for you to seize it.
