Construction and development have always been data-intensive; however, the quantity of data streams is multiplying. Integration implies the process of creating a whole from the sum of its parts. In construction, this spans the gamut of activities from collaborative working practices to how data from unique sources can be brought together for greater efficiency and effectiveness.

For contractors, bringing data about project plans together with cost and quantities is tricky enough, particularly in a profession subject to the unexpected in terms of weather extremes, economic shocks, and planning challenges. Helping clients to see ahead and plan their myriad “imagine a scenario in which” prospects effectively has always been important.

Thanks to BIM, integrating such information into a construction-ready model is now possible. In fact, it is often the starting plan framework. This is apparent to construction companies in the USA, including even the small and mid-sized companies in the space.

The goal of better designed, more sustainable, and lower cost “digital” buildings is praiseworthy. Yet, the expertise challenge this creates can be tough to overcome for small and medium construction companies in centers away from Silicon Valley and similar locations.

These companies are looking at working with partners to get their BIM initiatives off the ground. Of course, this is a model the software development industry has made popular. The way it works in that scenario is; the software development partner has the skills, the processes, and the ability to scale up or ramp down teams in accordance with the needs of the client.

Of course, this is also a great option for construction companies looking to leverage the power of BIM. However, before embarking on this path, it’s useful to know what could go wrong. That knowledge can help prevent your BIM initiative stalling when it encounters similar headwinds.

Here are 5 things that can go wrong while working with a BIM partner:

1.     Poor communication:

A large number of construction companies that have adopted BIM technology face a peculiar issue in creating an efficient communication channel between the various construction departments working simultaneously on the project. This becomes a key challenge with BIM-driven projects due to the transparency. There is no hiding place – no covering of late information and mistakes. Of course, this is a bigger challenge when the BIM model is coming from a partner, usually located at a remote location.

Therefore, it is necessary to provide a method of project communication that ensures a smooth flow of communication between the BIM provider and the various on-site teams. Seasoned BIM service providers are attuned to such collaborative working. They should help create an impactful communication model to support successful project outcomes needs to be implemented by the management

2.     Lack of end to end experience: 

BIM can impact various aspects of the construction project. It can deliver value in the planning, resource estimation, project management, ongoing monitoring, and, even, ongoing maintenance post-construction. That apart, the data the BIM model can help generate has tremendous value in itself. Clearly, when utilized to the fullest, BIM can help construction projects save significant amounts of time, money, and effort. But that kind of upside is possible only when the BIM partner has the end-to-end expertise to deliver across the entire project lifecycle. Without that experience, the BIM initiative could deliver sub-optimal impact, or, worse, no impact at all.

3.     Lack of experience in large projects:

Gauging the experience of your BIM partner is the most significant step while finalizing the deal. Ask yourself – Does your BIM partner have experience in complex projects? What makes the BIM partner stand apart? How many projects have they worked on? A BIM service provider with that experience will bring greater depth and breadth of expertise. A BIM partner with global experience will bring the best to the table in terms of construction practices, techniques, tools, and technology. A partner without that breadth of expertise will probably fall short when faced with the real-world challenges of construction projects.

4.     Lack of ability to scale:

Do your construction projects go through a smooth and linear growth? Probably not, right? It’s likely that the initial planning stage needs many more resources of a certain type. Once the design is done, those resources can scale back and a different set of resources need to take over. But there’s always the unexpected to plan for. Suppose your project needs a major change in the design you would need to quickly ramp up the resources for a short period of time. Working with a BIM partner can be a challenge if the partner cannot scale up or ramp back teams in sync with your needs. Projects are typically on tight deadlines, so that scaling needs to be quick and responsive. A BIM partner with the ability to scale can accelerate your project delivery and one without that ability can seriously hinder it.

5.     Lack of understanding of the American Construction Industry:

A key challenge in implementing and executing BIM with a partner is the partner’s understanding of the American Construction Industry. The BIM partner needs to stay abreast of the latest developments in construction materials & methods. The partner must have the latest updates about changing government rules & regulations on both state and central levels. A failure to bake that information into the model can have its own downside in terms of lost time.

Every construction project involves a steep investment of cash and human resources. BIM can help you deliver projects more efficiently and effectively but it’s vital to zeroing in on a BIM partner who is the right fit for your organization. Such a partner can help you make the most of the power of BIM for your construction projects.

Innovative advancements in the construction industry, such as an improvement in contractor management software, project management software, building information modeling(BIM), drones, and aerial photography, are all helping the industry to develop.

Construction companies are looking to clear the roadblocks for smoother and quicker implementation of projects. Digitization of processes to bring more efficiency at each phase of a project’s construction, including upskilling the workforce with regular training are on the agenda of forward-looking companies. By leveraging advanced software, construction-centered solutions, and analytics, technology innovations are eliminating many of the issues that have been in the construction sector for quite a long time, including difficulties in compiling and sharing project data.

There is a sense of inevitability about the arrival of disruptive thinking and a fresh approach that will change the way we train, work and eventually build, and develop in construction. The construction industry is at the start of a new period, with a growing appreciation of the latest applications and tools that could change how companies design, plan and execute projects.

This reality suggests that the construction industry must become much better at taking advantage of the tech opportunities that emerge along the way. Only then, can the industry attract a young and tech-savvy workforce. Otherwise, the construction industry risks falling behind in the race for advancement.

Many companies have started incorporating new innovative technologies. Technologies like AI, BIM, and advanced communications and collaboration solutions are seen as being able to drive a more agile and collaborative design effort and a more interactive design process where everyone involved can add their input and advance the virtual blueprint and have a critical contribution to construction’s future.

But how can small and mid-size construction companies in the USA go about embracing technology?

1.     Creating a functioning digital strategy:

Organizations can take a reasoned and strategic approach to deal with the technology by building up a picture of their current performance pattern and benchmarking themselves to recognize the most critical areas for development. The organizations can consolidate an implementation plan that focuses on achieving key milestones in specific areas within a realistic timeline to remain on track as they keep moving forward. Organizations with strong digital skills have an advantage while implementing complex solutions across their organizations. But the first steps have to be small, manageable, and carefully considered. As the digital strategy starts kicking in across various sectors, more far-reaching and complex processes can be addressed.

2. Transforming the projects:

A project is an opportunity for every organization to test and refine new digital solutions in a kind of splendid isolation. Pick a project that is reasonably self-contained and a good test case and start embracing point technology solutions within it. This is easier to roll out and easier to see results in. To monitor results, project teams can set up key performance markers and share them periodically with the leaders. This will help overcome communication gaps and generate enthusiasm. The project experience will also provide data that will prove useful to address crucial obstacles faced and help address large-scale programs efficiently.

3.     Letting data lead the way: 

A large number of the best development innovation tools incorporate data from both past and ongoing projects. Collecting, processing, and analyzing this data must become an ongoing and strategic exercise. As the practice becomes more widespread, organizations can incorporate analytics into their daily workflows by embedding insights into them.

4.     Getting the skills in place:

Talent is a key challenge for mid-sized construction companies looking to ride the technology wave. In locations away from the tech centers and startup hubs, it’s hard for such companies to find, train, and retain the people with the right technology skills. Upskilling and training for the current employees are useful but only up to a point. To kick start the technology initiatives, it’s a good idea to work with an experienced and expert technology partner.  This will give them access to not only the technical skills they need but also bring added flexibility in resource deployment as projects ramp up and scale back.

5.     Implementing safety monitoring and quality control:

Safety has always been a primary concern for construction and development companies. And this is a high-impact area to start the technology drive with to get a meaningful impact. Numerous applications facilitate the tracking and reporting of safety incidents across job sites. Some new applications assist managers in investigating remote locations by providing pictures and image tags and also enable them to update and track their punch lists in real-time. Such solutions can help improve safety on construction sites. These real-time systems, combined with new technologies like GPS and building-information modeling (BIM) and artificial intelligence with other tools, can help bring about a massive, and much-needed, change in the construction industry.

Technology is the principal driver of change and it will surely have a ground-breaking impact on how organizations work in the building industry. Innovative technology provides hundreds of tools for use across the project life cycle, ranging from design management to scheduling to safety monitoring.

The industry is ready to change. innovative advancements are already taking over the industry and changing the way we work, design, and develop. What mid-sized construction companies in the USA need is the expertise to harness the power of technology and ride the tech wave.

Building Information Modeling. (BIM) is getting rapidly established as an innovative method to design virtually and manage structures. An AGC survey revealed that nearly 1 in 3 organizations see technology as an appropriate response to address the growing labor shortage by driving up productivity and improving planning.

A growing number of construction organizations have made initial investments and are adopting the practice of including BIM in their projects. For those that came in late, Building Information Modelling or BIM is a method of working in the construction industry that helps firms plan better, execute faster, and manage resources optimally. The key benefits of BIM include:

· Faster and more effective processes
· Better design
· Better production quality
· Automated assembly

While adoption is growing, it’s, perhaps, fair to say that the rise of BIM has been slower than it should be.

Even as the crescendo builds around the benefits of BIM, it is still proving difficult for some organizations to quantify the value of the benefits it brings. Many organizations have implemented pilot projects with BIM. Quite a few have seen benefits too. But they have stopped short of rolling out the initiative across the organizations.

1. Shortage of skilled tech talent

It’s no secret that the construction industry suffers severe worker shortages. In many ways, the situation is even direr for specialized skills like technology. The number of qualified tech people is quite low to start with. To add to that, attracting these folks to the construction business is proving hard in the face of more glamorous options in the tech sector. The problem is even more severe for the small and mid-sized tech companies located in the smaller towns and locations away from the major tech hubs. What’s the scalability of an enterprise-wide BIM initiative if you don’t have the people to make it run seamlessly for a sustained duration?

This is a challenge that can be addressed by partnering with a company that has the BIM expertise and the people available to scale up a BIM initiative. But is that enough?

1. Cultural changes in the construction industry

The lack of experience of BIM within an industry as traditional as construction creates hindrances in the proper utilization of the software. This is not a comment on their inability to use the software properly. It’s more a commentary on the rigidity of current processes and ways of working. The introduction of advanced technologies and ideas in the workplace can be a daunting change. The implementation of BIM can benefit the company in the long run. However, such solutions increase demands for transparency, accountability, collaboration, and communications. In adopting these changes, employees may face problems. They may find it difficult to change their way of working. They may be apprehensive about the impact on their jobs. They may also worry about their ability to learn new solutions and be confused about how to utilize the BIM models in the context of their specific roles. Organizations and project managers need to consider the possible mitigation strategies to address these challenges before implementing BIM to overcome the hurdles. While introducing BIM to the employees, issues such as experience, culture, support, training, and education need to be clearly addressed. Therefore, companies must educate their employees and provide effective training to ensure everyone is on board.

So, apart from pulling in the BIM experts, what a construction company needs is hand-holding as the BIM adoption challenges work themselves out. The people in these companies need the ear and hand of someone who has “been there, done that” with BIM to show them the way and to drive home the positive impact BIM could deliver to their own performance. But what next?

1. Return on Investment calculations

Adopting BIM can show a positive impact at all stages of the construction lifecycle from design and construction to maintenance. However, the perception of ROI is always shifting. Some impact is quite easily provable. For instance, the savings that can accrue because of better material estimates that the BIM model provides can be enumerated quite easily when compared to previous gut-feel estimates. But organizations that are unused to the technology sometimes struggle to quantify the impact in broader terms. For instance, schedule adherence may result but how much of that is down to BIM and how much just better execution?

It’s true that many organizations that incorporated BIM in their projects reported a positive ROI. Organizations that invest more in training and in the full adoption of BIM also see a positive effect. It seems that BIM helps organizations to construct better structures and increase profitability. But how can that be measured for the CFO? An organization implementing BIM could find it difficult to define the financial models that show the impact BIM is having. Many of these assessments are driven by the experience. At such times, turning to a partner who has that experience could help drive more reasoned assessments of the ROI.

It’s in situations like this that small and mid-sized construction firms across the USA partner with Excelize. We are BIM specialists with an unbeatable mix of modeling and demonstrating expertise and knowledge of building codes and standards. Our experienced consultants have knowledge of BIM and have seen a large number of BIM-driven projects, including some of the largest and most complex projects out there. Being located in the USA helps them provide better support to organizations too as they look to kick off their own BIM initiatives. That may be the easiest way for you to get the most out of your own BIM initiative.

The role of technology is to simplify working in everyday life. And sure enough, organizations are reaping the benefits from massive digital transformation initiatives underway currently. The construction sector has also seen growing interest in the potential of new technology innovations to disrupt the sector.

The construction industry is fragmented and traditional. Construction industry investments in technology often trail what companies in other industries spend on technology.

Automation in construction technology can lead to several benefits for the construction industry. Some research suggests that as much as 49% of construction tasks could be automated. Be it worker safety or faster completion of work itself, construction technology may have a huge role to play in delivering safer and better construction environments.

Adopting construction technology is today a necessity rather than a choice for construction companies looking to stay relevant and competitive. Many companies have started to take note of the edge that can come from adopting innovative technology for construction.

Here are some ways where construction technology can be a game-changer for the industry, delivering better outcomes, and driving transformational growth:

Improving productivity with software

One area where construction companies struggle commonly is how to constantly ensure that the productivity levels keep improving. With construction technology, this can be addressed. Using mobile apps and cloud technology can foster new levels of collaboration between workers and project managers. Cloud-based software solutions and mobile apps enable on-site workers to update progress, submit time cards, expense reports, ask for information on the go, without wasting too much time in manual paperwork. Using cloud technology helps in streamlining routine work and in turn improving the overall productivity of the team.

Analytics for better decision making

With technology, the construction industry can now closely track and monitor the progress of their construction projects with all the relevant data at their disposal. Data-focused solutions not only help in capturing critical business data but also uncover the hidden patterns, which companies can leverage to predict future outcomes and take timely decisions accordingly. Predictive insights can help construction companies identify potential problem areas and be ready with the solutions, rather than act at the last hour. Connected technology like sensors can be used to track material inventory on the site for greater control and visibility and to reduce downtime by ensuring timely replenishments. Drones and high definition cameras can help to capture data on everyday progress and compare with the schedule and BIM models to track the deviations and address them in time. Analytics-based tracking helps in enhancing transparency and building more accountability into the system.

Augmenting worker safety

A very critical aspect of the construction industry is to ensure the safety of its labor workforce. This is critically important given that 1 in 5 workplace fatalities in the USA occurs on construction sites. Dealing with heavy machinery and laborious processes delivered at risk-prone locations creates a more dangerous work environment. Especially emerging tech like Virtual Reality and Augmented Reality can be implemented at construction sites that will give workers a better idea of what is involved and train them better to achieve the desired output. Safety checklist and use of wearable technology can help in mitigating the risks faced by the construction workers. For example, using sensors at certain important areas can alert workers of any threat to their safety, which helps them act in time and make the right decision on the site. Or a project manager can simply use VR tools to exchange information on on-site progress. The use of drones is also a growing trend in the construction industry to provide more comprehensive visual information about the site for better safety.

Leveraging BIM technology with other technology

Building Information Modeling or BIM is no longer new. BIM offers a collaborative platform to all the stakeholders involved in delivering a construction project. This 3D design software works as a real-time tool where all the concerned people can collaborate and communicate based on a shared model. This creates an organized effort and eliminates clashes at the design stage itself. The sheer detail of the BIM model holds forth great promise when tied into other emerging technologies. For instance, immersive VR technology along with BIM provides a great scope for real-time visual collaboration and learning. BIM can also play a powerful enabling role in offsite construction, modular construction, and 3-D printing.

Efficient project planning

BIM can also be tied synergistically to software solutions like construction ERP solutions and Project Management solutions for a continuous impact on the project. Using BIM tools, integrating AI and ML tech enables construction companies to get deep insights into the project. Companies can plan their project better – in terms of manpower, in terms of inventory, in terms of budgeting and estimation, in terms of execution and safety. Using technology to aid projects results in more sustainable construction as companies not only save precious man-hours spent in doing repetitive tasks but with better planning of resources companies can also control expenditure and eliminate safety hazards. All in all, technology makes way for an efficient and productive project plan.

Construction companies are slowly but surely understanding how technology can make a huge impact in their way of working. Many companies have already moved ahead with their technology investments and are already seeing benefits.

Technology in the construction space is advancing every day and adopting emerging tech will help companies retain their competitive edge. Whether it’s team collaboration, worker safety, sharing critical information, or tracking project progress, technology can help in all areas to deliver a transformation in the construction landscape.

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.

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.

Building Information Modeling