The upsurge of technological adoption in the construction industry has been rapid. The construction sector has become less shy of adopting mobility as well as modern tech such as ERP and BIM to improve processes, streamline projects, and make building construction sustainable. These modern tools are bringing together stakeholders belonging to the Architecture, Engineering, and Construction (AEC) sub-fields and improving planning, estimation, collaboration, and tracking/monitoring. The construction industry is evolving without a doubt. But the rise of technology has a hidden entry barrier. When it comes to the ability of construction companies to attract and hire technology talent, the construction industry pales in comparison to the Silicon Valley giants or tech startups along the east and the west coasts.

Hiring tech talent has always been a rocky road for construction companies but it’s high time the old-world perception of the construction industry changes. In this article, let’s have a look at what makes hiring tech talent harder for construction companies and what exactly they can do about it.

Why is it harder for construction companies to hire tech talent:

   Competition with other tech players

When we talk about tech talent, either fresh out of college or seasoned and experienced, the first image that strikes our mind is a millennial working in a modern, glamorous office space, enjoying work flexibility in terms of hours and physical presence. When a construction company sets out to hire tech talent, they are basically competing with a sea of startups and companies from established tech centers. Beating these well-branded companies that have heavily urbanized tech centers and culture for innovation, to find and retain the best tech that would be interested in working for construction tech is not a cakewalk for sure. To add to the challenge, as the pandemic has driven more and more tech companies open themselves up to location-independent remote talent, even the people from the smaller towns who used to look for jobs in construction have become hard to hire.

   Lack of flexibility

Millennials are the largest segment of the workforce in the USA and in the next decade, the millennials will form around 75% of the global workforce. For them, it is necessary to have a culture that accommodates flexibility- be it with flexible working hours, telecommuting, or fully-remote working. The construction companies do not fit in the traditional image of being ‘flexible’, something which is gradually becoming non-negotiable for the modern employees.

Lack of gender diversity

The construction sector overall is known for its rugged image that is perceived to be male-dominated if not entirely male-only. The civil/construction engineering branches have more male students than females and the trend seeps across even when it comes to hiring IT talent. This simply slashes the number of potential candidates available for hire. For millennials and Gen Z, workplace diversity is critical, in fact, around 83% said it is something they look out for when choosing their employer. Moreover, having a diverse tech team that employs women along with a background in tech can usher in the much-needed innovation in the construction industry.

   Lack of innovation

Although now actively using modern tech, the construction sector has been pretty old-fashioned when it comes to fostering innovation. In fact, many of the elemental innovations or ideas that can redefine the impact of construction come from people with a non-construction background. For example, Elon Musk was the first one to propose the construction of underground roadways and the development of a heavy-duty, highly sophisticated tunnel-boring machine to combat LA traffic, an idea that was barely considered by the construction companies across the countries, Innovation and development programs to drive career growth are key factors that determine the employee experience, especially for a modern workforce. The reluctance of construction companies to innovate, embrace modern tech, and reform its organizational culture overall is one of the major reasons why tech talent shies away from joining a construction company.

What the construction companies can do about it:

   For attracting the talent

To begin with, “glamourizing” the construction sector and changing the prevailing ‘dusty’ image of the construction companies is essential in attracting tech talent. This includes infrastructural as well as cultural changes- more modern office spaces, visible technology adoption, workplace diversity, and flexibility are all important. With COVID-19 creating the need for remote working, construction companies are also opening up to the concept of the same, and hence hiring no longer needs to be geo-specific. Construction companies can now affirm that employees can be equally productive when ‘working from home’ provided they are provided with the right tech to connect and collaborate remotely. Embracing automation, reducing the dependency on manual work, and using modern productivity and collaboration tools to streamline remote working can further help in attracting tech talent. Incentivizing performance, offering learning opportunities, and creating lucrative performance-based pay packages at par with non-construction companies can be monumental in attracting tech talent.

   Retaining the talent

Talent retention is as important as talent acquisition, especially for construction companies where tech talent is hard to find. Modern employees today want to associate with organizations that foster employee development through innovative programs, opportunities for upskilling, and learning. Construction companies need to bring in a cultural change to retain employees- through mentorship programs, team activities and acknowledging workplace diversity- for women as well as underrepresented communities. Purpose has never been more important -to the growth of the company as well as to the employees.  Emphasizing tech-driven initiatives will of course be critical.

Looking in the pool of talented individuals, companies have to fight hard to land the best of the lot. Construction companies in particular need to stay ahead of the game when hiring tech talent and these pointers could help them get the people who could help them become more effective and impactful.

COVID-19 has resulted in a complete rehaul of day-to-day lives, impacting several activities that cannot be accomplished with the ‘remote working model. The industries that heavily depended on the frontline workforce to operate were stalled. As the curve seems to flatten, these operations are slowly reopening across the United States and are a beacon of hope to drive normalcy, employment, and economic progress.

COVID-19 and the construction industry

The construction industry is a major economic driver, employing over 11 million people in the US. The construction industry is trying to breathe life into projects that were abandoned sometime around February 2020. While the regular projects were paused, the pandemic also brought in new opportunities for the rapid construction of testing facilities, quarantining centers, and locations for medical screening.

Construction companies who were assigned a mammoth of a task to finish these projects in a very short span, of course, turned to modern tech such as BIM- Building Information Modeling. Construction companies that were earlier hesitant to embrace BIM were exposed to its benefits that can help in recovering from COVID-19’s impact on the construction business.

Several modifications to the traditional mode of operation of the construction activity are expected and it will be challenging for construction companies across the United States to bounce back.

Let’s have a look at the 5 changes coming up as construction activity picks up.

1.     Managing the cash crunch

As per a survey by PwC, 71% of participants belonging to the engineering and construction sector expressed financial concern as the biggest impact of COVID-19. Needless to say, cash flow will be one of the major constraints for construction companies. As per a report by the World Economic Forum, the construction sector in the USA hasn’t still leveraged technology to its fullest. To manage constrained finances now is the time to make use of the power of technologies like BIM. BIM can help in accurately estimating material demands to ensure you don’t lock unnecessary funds in wasted materials. Further, BIM can help you in planning your labor resources and optimize costs.

2.     Addressing the construction material shortage

While we are discussing the issue of raw materials, we have to account for the possible shortage of the same. The USA imports around 30% of its total raw material required for construction from China, with some companies fetching around 80% of their requirement from those shores. Following the shutdown of Chinese manufacturing units, there has been a shortage of material. The current complicated trade scenario isn’t likely to allow an easing up of those supply chains soon.With BIM, companies can estimate their raw material requirement better, make judicious usage, and plan ahead for orders and be ready whenever the supply chains open up as usual.

3.     Providing a safe working environment and revision of labor contracts

Workplace operations have drastically changed. There are new rules for managing employees to ensure social distancing. Emergency protocols were already in place a few weeks before the outbreak but post the re-opening, there will be severe implications. Without the complete opening of public transports, lifting of travel bans, and opening up of schools and other child-care facilities, workers might not be able to return to work immediately in full force. And even if they do, they have to be rostered in shifts which means that resource planning will become critical. Companies have to focus on accomplishing the same (or better) results with fewer employees in the near future.

This calls for a revision in labor plans as well as enhanced resource optimization using Building Information Modeling for timely project completion. Using BIM’s fundamental benefit of clash detection, companies can ensure improved work efficiency with minimum rework, better staff utilization, and lowered costs. Off-site experts and remote working partners can be of great help.

4.     Data-driven decision making for prioritizing projects

Construction companies have to balance between completing the pending projects while controlling their cash outflow. Construction projects require strict adherence to schedules for completion often incurring financial penalties for delays. BIM can be valuable in planning and scheduling workflows to optimize delivery times while making the use of available resources to their full potential. The use of Building Information Modeling can aid in overall project delivery planning with efficient communication, collaboration, and constant monitoring of the project’s progress. This could be a crucial help in making up for a lost time.

But it is important to note that adopting any tech, especially on a large scale is challenging. This calls for expertise and may require changes to established processes and workflows. Seeking the help of a trusted domain expert who can partner in the adoption is hence recommended for getting the required ROI.

5.     Preference for green buildings and construction

The construction sector is infamous for contributing to the global climate crisis, being responsible for around 40% of the total CO2 emissions. The post-pandemic world will be more conscious about the choices it makes- be it for food, fashion, or energy consumption. The construction industry has already been seeing a rising demand for driving more energy-efficient projects, creating less waste, and opting for green or eco-friendly construction materials. Using BIM, construction companies can take important steps in implementing the same phase-wise, with optimum resource planning. By participating in the Green construction movement and creating zero-emission buildings, the construction sector can gain financial green stimulus packages helping in economic recovery while giving back to the environment.

To summarize…

The world post-COVID-19 will not be the same. To sail through difficult times, riding the wave of technology may be the key. And with the right BIM partner, construction companies can define their way into a stable future.

Denmark, Finland, Dubai, Singapore, Russia, and Norway have made Building Information Modeling (BIM) mandatory for public construction projects. That has enabled them to ramp up their construction, use resources intelligently, and ensure safety and sustainability. The benefits of BIM adoption are well-known. Even across the USA, companies have made projects more cost-effective, timely, and sustainable by adopting BIM. Construction companies and contractors have found that using BIM has also helped them prepare better project bids that help them win more orders.

However, many companies are facing a tough time implementing BIM because they lack access to the people with the right knowledge of implementing BIM strategy. This is risky considering that BIM adoption can cost the construction company time and money.

So, what can companies do to make BIM adoption easy?

The first step would be to create a BIM adoption roadmap to guide companies in their implementation process.

How To Create A BIM Adoption Roadmap?

Understandthe value of BIM

Investing in BIM is expensive, considering that companies need to invest in software, technology infrastructure, and people with specialized skills. Hence, it is prudent to understand its significance first. One way to determine its value is to develop a pilot use case. For example, use it to optimize the design for a smaller, contained project and see how it delivers values. This will enable the companies to determine how they can optimize the usage of BIM on a wider scale.

Digitize processes

To ensure full value from the BIM adoption, companies must digitize a range of their processes. BIM can help drive agile decision-making. It can help teams collaborate better and communicate more meaningfully. It can promote transparency in reporting. All this needs a change of organizational processes to deliver maximum impact. Digitizing processes will help the construction company create the enabling infrastructure to make the most of BIM’s considerable power.

Establish data-sharing standards

BIM can be adopted only when data on design, costs, and schedules exists. However, inconsistent data sets can pose a challenge in generating insights and in the seamless adoption of BIM. Hence, companies must establish data-sharing standards and agree upon uniform conventions, especially if the construction is happening in different areas. This will reduce confusion and miscommunication between various stakeholders and improve efficiency.

Promote collaboration between different stakeholders

Construction activity is largely fragmented. Most teams are concerned with their scope of work, ignoring the larger impact that could have on other teams. To ensure the seamless implementation of BIM, all stakeholders must identify ways to collaborate continuously. BIM offers the opportunity to create a single-source-of-truth that can become the common ground to ensure that all the respective stakeholders are working in collaboration. Set a formal mechanism to improve collaboration. Take the UK Government’s Construction Industry Council (CIC) BIM Protocol, for example. It is a standardized supplementary legal agreement for common construction contracts. The protocol demands that all the stakeholder’s obligations and limitations are clearly mentioned and shows the point of contact for managing all the data that BIM incorporates at each stage of the project.

Keep the communication ongoing

Communication is crucial for successful BIM adoption. Reviveprocesses to drive ongoing communication between all the stakeholders. Leverage connected technologies to provide anytime, anywhere access to information for all the stakeholders, so they can communicate in real-time and accelerate the speed of BIM adoption.

Ensure every stakeholder understands BIM

Understanding the scope of BIM is vital for its successful adoption. Lack of BIM skills can slow down the process. Ensure that all stakeholders understand BIM and its implications well as it is the core of the digitized construction future. Upskilling the existing stakeholders through hands-on training is one way to make sure that everyone possesses the necessary skills.  Of course, this is easier said than done. You could engage an experienced BIM consultant organization to make this process happen smoothly. Such a partner would drive the initial projects on the power of their own experience. As that happens, you get the opportunity to learn from them. If the partner has a local presence, they can help you refine your own processes and handhold you as you feel your way into the transformed BIM landscape. This could carry on for as long as is necessary for you to get your own BIM act in order.

Be prepared for change

BIM adoption goes beyond adopting the technology. It necessitates change management at an organizational level. The management will have to create a culture where employees understand the value of BIM and are willing to learn new skills to accelerate the process of implementation. Share information about how BIM will help them do their jobs better on an ongoing basis, so they are aware of its importance and more open to its adoption.

BIM holds a lot of promise. But the solution is investment-intensive needing time, money, and effort to get right. It’s not always possible for small and mid-sized American construction companies, especially those in the smaller centers, to hire technology resources to guide them. But BIM adoption requires guidance from real experts. Without that, a company risks running an expensive experiment. That’s where an experienced BIM consultant can help. A BIM consultant understands the needs of the construction company and advises on the ideal roadmap to follow. That could make a crucial difference to your BIM strategy.

The importance of Building Information Modeling or BIM can no longer be overlooked due to the benefits that it brings to the table. In the USA in particular, it has been implemented in various key construction projects with Wisconsin being the first state to mandate the use of BIM on public projects. This was back in 2009 and within 10 years, many more firms are using the technology to achieve exceptional breakthroughs in the architecture, construction, and engineering niche.

That being said, there’s a talent challenge for the small and mid-sized construction companies. It’s hard for them to hire, retain, and motive BIM resources. This is a strange situation for them. They know that their projects will do better with BIM. But they can’t leverage that power because they don’t have the inhouse skills.

Partners are an option. But truth be told. It’s an uphill task to find and engage a potential BIM partner, who can do a great job irrespective of the scope of the project. To make that choice easier, here are some questions such firms can ask their prospective BIM partner:

Do you have a presence in the USA?

While different countries have implemented BIM, the way how it works from region to region can vary to a great extent. One of the core obstacles in executing BIM in the USA-based projects with a partner is the latter’s know-how of the construction practices in the country. For instance, they should know about the latest trends and developments in terms of materials, design methods, rules, and regulations, etc.

Likewise, it is also important that the BIM partner is located in the same country as this helps co-ordinate better for certain projects. There needs to be effective communication between all the stakeholders be it the clients, the in-house departments, and anyone who is directly or indirectly involved in the projects. This allows more room for transparency and instant responses. And when you along with the BIM partner work in the same time zone, there will be no room for agile decision-making. With a remotely located partner, the communication may not be as smooth. Therefore, hiring a BIM partner with a responsible presence close by will save you a lot of stress down the line.

Do you have end-to-end experience?

More often than not, it is important to find out whether the potential BIM partner has relevant experience in the specific areas that you require help in. BIM can play a role in the design, construction monitoring, renovation and refurbishment, and ongoing facilities management. And how BIM plays a role in each area could be different in subtle as well as profound ways. To get a better perspective, you can ask your prospective BIM partner for their detailed portfolio and understand the core areas in which they have hands-on experience. This will help you assess their skills such as – are they only restricted in carrying out the planning phase best or can also take up the maintenance, design, and post-construction challenges? These questions are essential as a BIM partner with end-to-end experience will help get results across the entire project lifecycle.

What makes you stand apart?

No one wants to work with run-of-the-mill or superficial BIM partners, who will have nothing much to bring to the table. One of the ways to assess this is to check the firm’s relevant experience and skills in the niche, find out about all the projects they have handled so far, take into consideration the complexity of the projects and the standard practices they follow. Partners with experience of large projects will bring a level of expertise and experience that will help you grow your own skills as well. If this is in-sync with your requirements, go ahead with them.

Can you scale up/down?

Rarely do construction projects have a smooth growth phase. They may need scaling up or down from construction phase to the construction phase and on a case-to-case basis too. For example, some projects require a more elaborate initial planning stage while others need more collaboration efforts. Either way, your firm may need more resources or expertise for a while and then may have to scale back. This is where you need a BIM partner who can take care of the scaling and handle any change in the initial plan in an agile fashion. It should be possible for them to ramp up and scale back without compromising on the quality of the resources. With this capability, they will be able to deliver the results within the stipulated timeframes responsively.

Do you implement strict quality control measures?

No one can neglect the quality aspect of the construction and development projects. Issues left unattended today can have massive implications later. And the plans and models that are made with BIM can have an impact on this area too. Some BIM service providers without the richness of experience don’t necessarily implement the required quality control in their projects. Scratch below the surface to understand their quality focus. Ask them for details of their reviews, approvals, and rework processes. Talk to some of their senior folks to understand their viewpoints.

Off to work

These are some of the essential questions that will pave the way to helping you select the best BIM partner. Since it is an important decision that will affect your future projects, make sure that you do your research even before proceeding to contact them. The key is to select a partner who can embrace the ever-changing industry with a futuristic mindset. The aim is to implement tomorrow’s technology today and to keep moving forward!

With the world becoming progressively more digitalized, it is now critically important that construction and AEC companies join that race too. The construction sector must recognize and understand the significance of implementing versatile construction technologies for business impact.

The construction industry is evolving every year, which implies that companies need innovative technology-based solutions that will assist them in adapting to the continually changing needs of their customers and to face up to the challenges of the new age. The business is competitive, economic conditions are inconsistent, cash flow is always tight, and profitability is constrained.

But even as the construction industry is considering embracing technology it is not exempt from the difficulties of adopting these new advanced digital technologies. To choose and adopt an advanced technology suitable for such traditional organizations is usually a long and rocky road. There’s a tricky balance to be maintained here. This post is about that balance.

As the complexity of construction projects increases, companies that are enhancing and incorporating these new technological advancements and digital tools into their organizations are setting themselves up for success in the future. Those that refuse to innovate and adapt and continue to work the same way; they are likely to struggle to keep pace.

Building Information Modelling and project management software, and the growing capabilities of mobile devices can help construction companies with scheduling, planning, and estimation. The coming together of these solutions can enhance communication and collaboration between teams. This can help construction companies deliver better quality projects, in a shorter time, and with optimized effort outlays. Better estimation can help reduce waste. Better communication and collaboration can reduce clashes and rework. All of this can lead to better effectiveness, greater efficiency, and higher profitability.

Drones and wearable can be used to monitor workers and ongoing work and keep people safe on construction sites. VR can be used to train workers in safe conditions. Robots and other equipment will allow workers to be more productive by easing some of the strenuous tasks. These technologies can help construction become safer, improve compliance with rules and regulations, and also be more green and sustainable.

The advantages of implementing innovative construction technology include:

· Avoid costly errors
· Increase in revenue
· Improve customer satisfaction
· Decrease liability issues
· Increase safety & security
· Stay up-to-date
· Flexible documentation
· Increase worker accountability
· Better communication

Clearly, companies that are embracing new tech stand to gain significant advantages.

Regardless of all the clichés about the reality of change, the truth is that it can be hard for people to acknowledge impactful alterations to the way they do things. This is especially true in the association we have with technology-based products because the change can be very fundamental. The result is that construction businesses continue to under-invest in innovations, even though there are significant benefits the technology can provide to their construction projects. The challenges are many.

1. The ability to diminish old or redundant frameworks and focus on high-value systems that will guarantee productivity and reduce cost is essential in the construction industry. But making this switch from legacy systems is hard and disruptive.
2. As more innovations penetrate the enterprise, organizations must have adequate IT specialists on their teams and access to a large digitally savvy workforce. The existing staff may need to gain an in-depth understanding of the technology. But is it easy for these companies to train their existing people? And is it even feasible for them to hire technology resources, engage, motivate, challenge, and retain them in the face of competition from technology-specific companies from centers like Silicon Valley? In fact, access to tech-savvy resources may be the single biggest barrier to the adoption of technology for small and mid-sized construction companies.
3. These companies need to invest time and resources, executive support, offer robust training, and create autonomy and adaptability to track and measure key metrics. Many of these areas call for a cultural change, revamped organizational workflows, and changes to the operational and performance metrics the organization has become used to. Such changes are excruciatingly hard to implement.

Despite the challenges, we are rapidly reaching the point where tech-driven innovation will become a critical component of all construction projects. At that point, the organizations that are early adopters and are implementing the changes into their workflows will have a noticeable advantage over those that don’t.

Picking, validating, and adopting technology is all about planning and executing correctly. The solution may be to start with planning and then move to implement innovative technology in stages. Defining priorities, achieving small wins, and driving incremental change that everyone can see, sense, and be a part of could help the new ways take root. Talent constraints can be addressed by finding a technology partner with the available bandwidth to help you kick off your own technology initiative. This kind of partnership will help your organization get started with the benefit of hand-holding from an expert who would have “been there, done that.”

The construction industry is on the cusp of a digital transformation that could lead to the downfall of companies that refuse to adapt to the advancements. Technology from drones to robots to Building Information Modelling (BIM) and big data is rapidly changing how the construction and development industry will design and build structures. It’s up to these companies to sort out their complicated relationship with technology to live long and prosper.

It is almost a year since the pandemic emerged and so much has changed. From the way of living to the method of working – everything has moved to the so-called “new normal”.

In this hard time, the construction industry has emerged with strategic intent and resilience but with a raft of new challenges to face. It is also true that the construction industry is facing a volatile time. Home construction is up but commercial construction and infrastructure investments are lower. Construction sites have shut down or are working with reduced staff. Supply chains have been disrupted. And various operational restrictions have been imposed. All this has dramatically pushed the construction industry towards embracing change. The future has never been as close as it seems today!

Getting future-ready

According to the McKinsey Global Institute report, economic activities will only return to 2019 levels by 2023 at the earliest.

Construction companies are being forced to rethink business from the standpoint of being able to leverage technology to improve efficiency and effectiveness. They need to anticipate the changes and make the necessary upgrades. Here are a few ways companies can get future-ready in the new normal.

1. Powerful Technology

Technology is one of the primary components of change in nearly every industry, but the construction industry has been guilty of avoiding technical advancements for a long. However, of late the future of construction technology seems to be brighter than it has been for a while.

In the quest for safety, the construction industry is encouraging its employees to work remotely where possible. For example, engineers and designers are turning to digital tools like building information modeling (BIM), construction planning solutions, project management software, construction ERPs, etc. These solutions are allowing them to support on-site efforts and improve results.

Contractors and engineers are using 4D or 5D simulations to reoptimize schedules and construction plans. Additionally, contractors are seeking customized tools to monitor their employees’ health, managing scarce resources, and reducing on-site work. Today, numerous future construction technology-based solutions are being developed to improve the efficiency of the industry.

Construction companies are looking to build comprehensive technology adoption strategies that address several functional areas in an integrated and comprehensive manner for sustained impact.

2. Investment in Prefabrication and Modular Projects

The concept of prefabrication and modular construction has been popular for a few years now. These concepts deliver speed of delivery, energy efficiency, and cost-effectiveness. In a future that is likely to be resource as well as time-constrained, these are great benefits to aim for.

Of course, the effective implementation of prefabrication and modular construction places greater demands on the planning, documentation, and data accuracy practices of construction companies. It becomes mandatory to set in place technology-based systems that provide accurate, current, and comprehensive data about the construction sites.

3. Sustainable Construction

The construction industry is inevitably moving towards more sustainable construction as a moral imperative. Given the enormous impact of construction on the environment, it’s critical to course correct now. That apart, sustainable construction practices are also sound financially because they help reduce waste, attract new customers, and improve resource utilization.

Sustainable construction is a very broad topic, and various layers are interlinked in it. There are the design and construction of green buildings in which products that have ecological benefits are used to construct a building. There is also the opportunity to leverage technology to plan construction activities better so the process of construction can also be more resource-efficient. Using advanced technologies like data analytics can also play a role here by helping construction companies derive insights from the data at their disposal to become more conscious.

4. Shift in Jobs

The nature of jobs could change due to the increased adoption of technology. With more technology integration, intelligent systems, and smart automation coming into the picture, job roles will morph. Construction companies will require people who can understand technology and deliver outcomes with new-age digital tools. They will have to change business and work processes and hiring practices to incorporate the impact of this technology revolution.

5. Enhanced Safety Concerns

Construction isn’t the safest job in the world. The sector has an outsized share in workplace accidents and fatalities. This is not acceptable. In the future construction technology stack, technology to make sites safer will be prominent. Construction companies will have to adopt a strategic focus on worker safety. Process and practices will have to change. Technology can help here too as numerous apps, wearable devices, and other approaches come together to make a safe construction site for workers.

6. Dynamic Project Management

As construction becomes more complex, project management has to become more comprehensive and agile. Future projects will be delivered by multi-layered teams of specialists that interface with each other at specific points. Companies need to bake in various approaches based on which will benefit their projects before planning the strategy. Construction companies will need to invest in monitoring and tracking tools so that they can manage their project better. Platforms like BIM will become crucial as they provide a single pane of glass to enable a common understanding of the current stage and future scope of each project at all times.

The construction industry has been evolving for some time now, but with the pandemic, the pace of change has intensified. In the future, new technologies, job trends, managerial strategies, and construction methods look set to keep evolving. Construction companies will need to invest in technology to stay relevant in the new normal. Creating a technology strategy and a roadmap could well be the crucial next step construction companies will have to take to ensure the future is secure.

The construction industry is a volatile arena with several external and internal factors impacting the project lifecycle. Delay or deviation from the set construction time and budget only add to the project risks. In fact, delay is one of the most recurring problems in the construction industry across the world and India is no exception. These delays have a domino effect on the project completion time, cost, and quality.

Construction delays are a liability to all stakeholders involved and lead to clashes and sometimes abandonment of the project. Time overruns, especially in infrastructure projects not only increase the completion time of ongoing projects but also hamper the commencement of new projects. These delayed projects consume more economic resources, reduce infrastructure accessibility to the citizens, and slow down national development. All these aspects have a crumbling effect on the economy.

There are two main types of delays that affect the construction industry: excusable delays and non-excusable delays. Excusable delays are unexpected and often beyond the contractor’s control such as access to the site restricted, labour protests, or unexpected weather conditions. Non-excusable delays are delays due to project aspects that can be controlled and avoided by the contractors such as performance, inadequate project planning, quality issues, or delayed procurement.

While excusable delays like weather conditions are beyond control, the Indian construction industry can work on reducing non-excusable delays.

Here are three ways that could help stakeholders mitigate non-excusable delays:

 1. Adopting the right technology

As mentioned earlier, construction projects are influenced by internal and external factors. There are multiple stakeholders involved in each construction phase. Delays are often caused due to misaligned project teams, lack of standardized systems and processes, and inefficient communication between stakeholders. This is why digitization is the need of the hour in the construction industry. Adopting digital technology tools enable real-time information accessibility, helps foresee and avoid potential risks and delays and streamline communication among the stakeholders. Similarly, using construction equipment that is aided by technology tools helps faster and accurate construction, better productivity and enhanced project planning and reduction in material wastages.

Delhi Mumbai Expressway project is an example of how digital technology aids better productivity. Using Digital Controlled Machine Graders (DCM) up to 300-350 cum per day of soil was moved and graded as against 100-120 cum per day without DCM, which is an increase in productivity by around 200%. The 24×7 operation further increased the production per day by 50% and at the same time, the contractor could reduce the actual team size required at the site.

2. Implementing bonuses and penalties

Another way to avoid construction delays is by applying bonuses and penalties on construction projects. Early completion should be incentivized with bonuses whereas project extension and late completion should be levied penalties. There are a few examples of India adopting early completion incentivization. In 2017, the Indian government had considered offering a 10% bonus of total project cost for early completion of highway projects through the National Highway Authority of India (NHAI) and the National Highways Industrial Development Corporation (NHIDCL). In 2019, Railway Minister Piyush Goyal announced that railways will be offering incentives to contractors for the early completion of construction projects.

These preset conditions of bonuses and/or penalties can bring in greater discipline for timely project completion.

3. Review the bidding pattern

For public procurements, the Indian government employs one of the three bid evaluation criteria:

·        Quality cum Cost-Based Selection (QCBS) – There’s equal weightage on the technical qualifications of the bidder and the cost committed by the bidder.

·        Quality-Based Selection (QBS)– Here the evaluation is based on the technical qualification of the bidder.

·        Least Cost Method (LCM) – Here the evaluation is based on the cost committed by the bidder.

Currently, LCM or the L1 is the most commonly used method for bidder selection.

The NITI Aayog paper has reported that the current L1 method leads to non-performance, suboptimal delivery, increased cost and delays throughout the lifecycle of public construction projects. In this view, the paper has mentioned ways to rethink the bid evaluation process to ensure high-standard quality and performance for critical infrastructure projects. One way could be by increasing the adoption of the QCBS method for state-of-the-art projects where quality is uncompromisable. The paper also suggested implementing a performance rating system for contractors to ensure quality control. An effective bid evaluation will help achieve the best infrastructure and also boost Indian construction firms to raise their standards for global competition.

To conclude, contractors can do their best to avoid non-excusable delays by adopting digital technologies for effective procurement, planning, and project delivery. On the other hand, the clients and government authorities can use bonuses and penalties as tools to achieve the estimated completion time. Lastly, a revaluation of the current bidding system for public procurement can raise the bar of quality and performance, reduce delays and achieve timely construction of state-of-the-art assets.

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