The complicated relationship between construction companies and technology

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.

How construction companies can prepare for the future

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

Safety Mandates Changed For Construction Sites; Can BIM Help

We all know that sites are vulnerable to fall risks, environmental hazards, and electricity mishaps among others. In fact, a survey by National Health Institutes (USA), shows that 15% of the total expenditure by companies, goes to cover the cost of construction injuries. The survey also suggests that the construction industry has almost 70% higher nonfatal injuries than any other industry. No wonder, safety assurance for workers, contractors, and other personnel, have always been critically important for Construction Companies.

But the recent pandemic has made the situation even worse. Along with the existing risks at construction sites, there’s now the fear of COVID infection. State and local governments are allowing construction companies to resume their projects. However, measures like social distancing, contact tracing, consistent risk assessments have become necessary. These add to the caution overhead. Therefore, construction companies need to be aware of the new safety mandates at construction sites.

First, let’s clarify that there have always been existing mandates for assuring safety at construction sites. Risk awareness, training for laborers and contractors, strategic communication, protective gear all fall under this umbrella. Technologies like BIM (Building Information Modelling) have been helping construction companies comply with these mandates by allowing them to plan, track and monitor, and record better. It is also true that with safer sites and better plans, companies are also able to finish projects faster.

Now, with a changed mandate at hand, it would be interesting to see how these tech solutions can continue to deliver value.

Let us take a look at these changes and understand how technology can be aligned with them.

  • Social Distancing: Social Distancing has to be the topmost on this list. One can expect basic guidelines and norms to prevent physical proximity to already be in place. However, there will be some additional factors that the safety mandate will have to include. Managing surface transmission is one such example. The workers and contractors may come into indirect contact because of surface transmission from the tools and other goods that enter the site. Visits to the worksite will also have to be reduced. Even during an unavoidable visit, everyone involved should be mindful of the necessary safety measures. Any face-to-face contact might also need to be monitored as well as timed. Moreover, the work shifts will have to be planned such that the workforce can commute in off-peak hours. Fortunately, BIM allows various construction and design activities to be carried offsite. Experts can collaborate for such planning. BIM models will also help with pre-planning for the construction. This will help optimize resource requirements and help reduce the on-site crowd to the extent possible.
  • Work Accident Risk: With changes in shifts, and additional social distancing measures, the work accident risk might increase. Therefore, it is construction and installation plans must be devised more thoughtfully. Automated safety logistic checks can be run beforehand. This will allow the companies to understand the changed on-site risks. The BIM models, powered with local and retained knowledge, can help the companies customize the construction processes as per the site limitations. Thus, even before the project is ready, the contractors and the workers would be aware of the workplace risks and be able to devise suitable safety measures. With each site having its own limitations, safety mandates can be implemented accordingly.
  • Sanitization: This is an extension of the earlier point about surface transmission. The tools and surfaces will have to be regularly sanitized to avoid any such risks. Without a management and monitoring structure in place, this can lead to omissions and increased safety risks. The changed safety mandate would require the companies to devise a cost-effective sanitization plan. Regular deep cleaning might be needed. Provisions will have to be made so that every person or potentially infected surface entering the premises is properly sanitized. The construction companies can, potentially, integrate BIM with their existing decision support systems. This will help them understand and plan material arrivals and labor safety and sanitation measures (LSS). Knowing the number of resources that would need to be deployed in advance can also help companies plan sanitization effectively.
  • Contract Tracing: Another big safety need would be to provide for contact tracing. This means, preventing transmission by tracing and assessing the areas and groups that could have been exposed to COVID. If a worker is tested positive, post joining the work, there might be other co-workers and their near ones who might be exposed to the virus. Applications are being developed to allow self-registration and better contact tracing of workers. This will help the companies to monitor their COVID-readiness. They can send suitable alerts in case of any exposure. Contact tracing protocols cannot be avoided especially at a high-risk place like a construction site. Technology can prove to be a big relief and allow construction companies to take more nuanced and targeted actions rather than close the entire site down.
  • Team Communication: Improper communication has always been a problem in a high-stress environment like construction sites. With the COVID situation, the stress has escalated manifold. Therefore, it is mandatory for employee safety that the tasks and processes are clearly communicated. Workers that might already be a little anxious about infections, sanitizations, etc., would not want to add to their cognitive load. Proper communication will help ease that burden. BIM essentially condenses much of the stress and fuss related to the job plans, before the work begins. With the help of clear models, companies can better define the upcoming tasks for all the contractors and workers. Therefore, the workplace would be a less stressful place.
  • Accident Investigation: The companies will have to be ready for any unfortunate events despite the above-discussed measures. This is an essential mandate that cannot be taken lightly. Provisions to investigate accidents and safety failures will have to be placed at all costs. BIM can help with emergency measures to deal with on-site accidents. It can also provide comprehensive and near real-time data on the site that can assist with analyzing why the accident occurred in the first place.

Projects cannot remain stalled forever. However, construction companies can’t also proceed without adequate safety measures. With newer physical and mental health concerns, the safety mandates will also be refreshed. Technology like BIM can be a powerful ally in this regard. Ultimately, safe workers would construct safer buildings.

3 Ways to Avoid Construction Delays in India

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

The Implicit Case for BIM and building resilient infrastructure in the USA

On March 31, 2021, US President Joe Biden announced his ‘once-in-a-generation investment plan to revive the nation post the pandemic and create the most resilient economy in the world. He put forward a USD 2 trillion infrastructure plan designed to create employment, upgrade the infrastructure and tackle climate change.

President Biden’s vision is to create a robust infrastructure that is safe, environment-friendly, and can withstand climate change. He has allocated more than USD 600 billion to ramp up the existing infrastructure through this plan: including railways, bridges, ports, and highways. However, repairing existing infrastructure has its own set of challenges.

Traffic interruptions during construction and repair are one of the primary challenges in road and railway projects, and the management of ground utilities like sewage lines, telephone cables, water supply, etc is complex as well. People will still be commuting by roads, rail, and airports that are undergoing renovations or upgrades. While completing the project on time is a priority, construction planners and managers have to ensure that the daily commute isn’t interrupted. If these nuances are not considered during the planning stage, clashes may arise during implementation, which culminates in rework and project delays. In addition, weak contract management and lack of coordination between project stakeholders cause further delays and losses.

Radical infrastructure transformation calls for meticulous planning, designing, and timely project completion. The buck stops at every step, therefore making the deployment of the right digital solutions quintessential. The way we see it, Building Information Modeling (BIM) should be the first step towards infrastructure upgradation in the USA.

The Swedish transport administration, Trafikverket, which manages the design, construction, and maintenance of all state-owned roads and railways offers a good case study. Since 1994, Trafikverket has been implementing BIM in rail projects; Hallandsås tunnel project being one of them. Considering the on-ground challenges like high-water pressure, excavation through hard rock, soft rock, and clay, Trafikverket implemented BIM for streamlined planning and engineering and timely project delivery of the Hallandsås tunnel project.

During the tunneling, the real-time ground conditions were fed into the 3D model that helped stakeholders assess design errors and other risks in engineering. The shared model kept all stakeholders abreast with the project progress and ensured smooth coordination. With the help of BIM, project members could identify around 200 non-constructable conflicts and 3,000 unique collisions at the design stage, which led to a saving of around 4.5 million pounds on the project. (Source: The Informed Infrastructure magazine, May 2014 issue)

The utilization of BIM models can extend way beyond design, as it stores data at every construction phase and beyond. Parameters like quantities of raw materials, cost estimation, scheduling and monitoring construction progress, resources deployed, safety and sustainability statistics, etc can be computed.

BIM models can also be used in simulation studies to gauge the impact of natural disasters on any asset. BIM makes Assets better managed after disasters. Such information arms the project team in decision-making at the early design stage, and in taking corrective action, thereby, reducing the financial burden of repairs in the future. In high flood zone areas, using model-based flood analysis and simulation, project members can gauge potential flooding damage on infrastructure and modify the designs. For example, changing the elevation on the road can mitigate risks in a flood-prone area.

So far, we have only heard stories about the far-reaching effects of the pandemic on the US economy. The President’s vision will strengthen the country’s backbone and make the aging infrastructure future-ready. We are confident that BIM can offer a competitive edge to planners, construction firms, architects, and all others who will carry the torch of the President’s vision.

BIM can certainly be the fulcrum for building a robust, resource-efficient, and sustainable infrastructure in USA!

Addressing the Productivity Challenge on India’s Construction Sites

The construction industry contributed 2.7 trillion INR to the GDP of India in 2019. The industry has been growing steadily from 2015 to 2020 and continues to be the largest employer and a key pillar of the economy. That said, there are several challenges associated with the Indian construction sector and poor labour productivity is one of those significant concerns.

Quite often, poor labour productivity is mapped with India’s construction sector but the root cause of the challenge is seldom assessed. So, why is productivity low?

Many factors contribute to limited productivity in Indian construction. The ratio of contracted labour and in-house labour is one major reason. Other factors include the shortage of skilled labour and the lack of labour welfare policies. Safe working conditions are one more area to focus on. Workplace accidents lead to approximately 48,000 deaths per year in India and 38 fatal accidents are reported per day across Indian construction sites. These numbers are alarming enough in themselves but accidents also pose a major productivity challenge due to time taken by stoppages, inspections, investigations, etc. Companies and contractors also hesitate to use the latest technologies and tools due to the costs involved, fear of inability to manage the changes, and additional requirements of training the workers.

Turning around a few strategies can drive a marked improvement in productivity on India’s construction site.

Digital tools and remote tracking

Technology can be used by construction managers and leaders to resolve productivity issues and other benefits. It is essential to continuously monitor the construction site and ongoing activities to identify gaps and fix them. Drones and body cameras are some technological innovations that can be used intelligently on Indian construction sites. These devices will enable managers to obtain real-time site information. The issues, such as the possibility of an accident, improper usage of the construction tool, lack of workers in a particular area, etc. can be spotted using technology and rectified early. Construction sites are spread across a large area and managers cannot be physically present across the site at all times. Such digital tools can simplify the task for managers and leaders. At the same time, these can resolve the existing gaps to experience better productivity.

Automated trackers and performance measurement tools can also be used to determine the safety situation of the construction tools and equipment. Smart maintenance schedules of the construction equipment can be developed and implemented based on the details captured. Improved tools and equipment will result in lesser workplace accidents and will assure improved productivity levels.

Workplace Training

Construction workflows are witnessing major changes with the launch of techniques and tools, such as Building Information Modeling, modular construction, and offsite construction. These technologies and tools can be used effectively only when construction workers and other stakeholders adapt to these tools and the new processes they bring in their wake. The impact of the changes must be explained to those impacted and they must be made to understand the benefits and the potential of such automated and computerized systems to help them improve their performance.

In the long term, effective workplace training is crucial in resolving productivity challenges on India’s construction sites. Training the people on the latest tools and techniques, new workflows, health and safety measures, and communication strategies can help cement best practices that help maintain high productivity and efficiency levels.

The motivation and productivity of the construction workers will also improve with proper knowledge and understanding of the tools, compliance requirements, safety practices, and techniques. This, again, helps drive up productivity.

Communication is the Key

It is not uncommon for construction projects in India to witness an overrun of 20-25% in terms of costs. Cost overruns are often tied to and accompanied by time slippage. Poor productivity and unexpected cost hikes have caused massive losses to the construction security in India.

Maintenance of information transparency is an effective solution to resolve such concerns. Integrated project management systems, automated control systems, and intuitive communication tools can be used for non-stop connectivity and information sharing. Remote monitoring and tracking tools, as explained earlier, can provide construction managers with updated site information. Digital communications tools can be used at construction sites to maintain connectivity and resolve worker concerns in real-time. Frequent status reporting and information sharing can result in quicker resolution of problems and improved productivity through collaborative decision-making with BIM. For example, the workers can directly contact the Chief Engineers and Architects in case of site-related concerns or poor work conditions. Platforms like BIM also ensure that all the teams work on the same information. This improves collaboration and transparent communication.

To Sum it Up

Construction sites in India are exposed to a wide range of challenges with productivity concerns on the top of the concern charts. A combination of measures and strategies can assist the improvements in productivity levels. The use of digital tools for remote tracking, monitoring, and communication can make a huge difference. Real-time information sharing will facilitate better clarity and quick resolution of the problems. The use of project management tools, automated control systems, and performance measurement applications will also help by making equipment more available and usable. Proper maintenance and workplace training will improve the health and safety conditions of the workers. Effective communication using technologies and modified strategies will assist in improving the site productivity levels. Put these together and you get an effective holistic strategy to drive up productivity in the construction sector.

5 Barriers Construction Companies Must Overcome to Benefit from Technology

The Indian real estate industry is an appealing area for international players due to many reasons. The government allows 100% FDI in areas like infrastructure, SEZs, and industrial parks. In the last 20 or so years, over $17 billion has already been invested through these routes. This being said, global companies want to adopt a more structured and data-driven approach to working.

Internationally, new technology such as BIM enhances transparency, creates agility, and fosters innovation. Without these tools in place, international companies assume there may be a lack of predictability and order. Due to this sentiment, many of these companies would appreciate technology like BIM being used to create better plans, more visibility about the progress of projects, and optimize resource procurement and use. It could be said that a new era of structure and transparency is awaited in India’s construction sector.

It’s already widely known that technology such as Building Information Modelling (BIM) is a powerful approach that offers many benefits to construction professionals. The adoption of BIM can address the needs of greater predictability, planning, and management. The BIM framework also allows for evaluation processes to occur smoothly as well and provides insights and connectivity for sites too. There is much scope for BIM in enhancing the design, construction, and facility management processes.

Despite this, the adoption of this technology in India is still low in the AEC industry. Why is this so? There are many preconceived notions and real-world realities that are causing this slow uptake.

Let’s discuss 5 such barriers being faced by mid-sized companies in implementing this technology.

Cost of Implementation

Many contractors feel that the added cost of implementing new technology will be a burden on them. This is due to the idea that the cost of acquisition, deployment and training will be high. To overcome this mindset, companies can learn how to leverage BIM technology to remove process inefficiencies, reduce costs over time, and increase profits. While the technology will demand some upfront investment, the savings that accrue will soon offset that.

It’s important to change mindsets by creating a feeling of optimism towards the long-term goal. Historically, software has been used to streamline work, manage projects, and predict potential issues way before they occur. All this helps to create a world-class construction in the least amount of time possible. Failing to adopt these technologies can make companies fall behind their competitors – which will prove disastrous in the long run.

Interoperability

Companies feel that there will be a lack in the ability for the systems to exchange and use information cohesively with the technology and systems they have at present. It’s clear that legacy processes will have to change to allow for faster operations, greater transparency, and seamless collaboration and communication. Change always brings concerns that must be allayed. It is also true that construction companies do struggle to attract and retain technology professionals in the face of competition from more glamorous sectors like IT. These issues can be tackled by partnering with specialists to create a carefully planned roll-out of the technology, clear training procedures, and expert advice on process improvements, accompanied by handholding and support.

No Change in Mindset of Stakeholders

Institutional attitudes towards adapting to new technology, especially in a traditional sector like construction, are always a barrier to development. This includes a bias against adopting new technologies due to prior negative experiences, conservatism, lack of understanding of the tool’s potential, and a lack of commitment to proper implementation training. Added to this is a reluctance for workers to “waste” their hours being trained and change their schedule leading to lower than optimal onsite adoption of BIM.

To overcome this, all stakeholders must understand how this technology offers the potential to drive improvements in their performance and the impact their teams can deliver. The best way forward is to specifically illustrate to the end-users themselves how this technology will make their workflow easier and more convenient and involve them as they see the change setting in. Clear communication is essential to answering all their doubts and proposing effective solutions to difficult areas.

Legal Procedural Challenges 

Due to a lack of knowledge, there are concerns about the possible legal consequences of using new technology. The reality is that the Indian government is very supportive of adopting BIM. In 2019, studies have shown how this technology can optimise the cost of upcoming and ongoing housing projects in the country. This technology will also help with cutting down on the time escalation of these projects. Niti Aayog was also considering using technologies in multiple government construction projects such as national highway constructions, metro, and airport projects, revamping railways, and more. Iconic projects like the Delhi Metro Rail Corporation are turning to BIM for more efficiency and impact. It’s fair to assume that the technology is here to stay.

Issues Regarding Cyber Security

As with most software, there is always the risk of cybersecurity breaches. People worry about ransomware attacks and data breaches that include project designs, bid information, employee data, materials pricing, financial records, and more. Mitigate this by creating a plan which covers the security of project management software, online collaboration tools, mobile devices, financial apps, and more. Enhanced this by educating employees about cybersecurity measures they can implement to protect data.

Also, other strategies such as running contained pilots can help drive familiarity. Introducing BIM as a subject in the university curriculum will help overcome many of these barriers. This would help influence behavior changes and create national-level guidelines. Creating an India-specific  BIM product library is also a useful solution.

Studies suggest bringing together the Government, industry experts, and academic institutions to create ways to encourage companies to implement the technology. Academics can enhance awareness among students, who will then drive usage and innovation. Industry professionals can conduct training sessions. The Government can further encourage BIM in bids and reports. These steps will maximize the impact of this technology and help streamline many processes related to construction in India.

Is Indian Construction Sector About To Enter A New Era Of Transparency, Efficiency & Organization?

When we were in school and asked to attempt a complex problem, we’d use a rough paper to work out the tougher calculations. This would help us make our mistakes early and fix them. Similarly, while constructing some of the most important sites in the world – it makes complete sense to make a rough version first to ensure the final product is devoid of problems and errors.

While this metaphor may seem simplistic, it suits the relation between construction and Building Information Modelling (BIM).

BIM is now an established technology in construction globally. It enhances how data is organized, improves operational efficiency, and generates transparency. Experts project the global BIM market to reach $15,892 million by 2027 – registering a CAGR of 15.2% from 2020 to 2027. While North America dominates this market, studies show that the Asia Pacific will exhibit the highest growth rate here, due to the booming construction industry. It stands to reason that one of the key players in this market must be India. But is India ready to adopt this technology? Let’s take a look.

Overview of Indian Construction Sector

By 2025, India will be the third-largest construction market and will contribute approximately 13% to the country’s GDP. It should hit US$1 trillion by 2030. These sunny forecasts are due to the consistent growth of the sector. In 2017, it was the most employed sector in India, as it employed around 51 million people. A key part of the sector concerns urban development projects, such as highway construction, transport, healthcare infrastructure, etc.

Along with its already immense scope, there are continuing plans to include modernizing existing infrastructure, developing smart cities, improving transportation routes, and more. Additionally, there are plans to craft an ambitious National Infrastructure Pipeline – which should prove to be a real game-changer. With so many exciting events constantly happening in this sector, it’s no surprise that even in 2020, just the real estate sector itself received foreign investments of over US$5 billion.

The Indian construction industry offers several investment opportunities for foreign companies, but the question is whether this hugely lucrative sector will retain transparency, efficiency, and organization with such entrenched practices. We know that international companies entering the Indian market desire such openness and structure. From the way things are looking, the answer is a resounding yes. This is mostly thanks to government policies and the industry itself striving to follow best practices. Let’s explore a few of the reasons that should safeguard the integrity of this sector.

Attracting direct investment from foreign investors with fewer barriers.

The government allows 100% FDI in infrastructure, SEZs, and industrial parks. Already, $17 billion has been invested through these routes over the past two decades. As the country rises out of the pandemic, this number should go up. Especially since foreign investors benefit from being able to invest in construction projects without needing approval from the government.

By injecting FDI into this sector, the government is breaking domestic monopolies, creating a competitive market, and bringing international best practices into the sector. This is beneficial in many other ways as it pushes firms to strengthen their processes and improve their offerings. Businesses become exposed to the latest international tools and technologies, as well as operational practices. Over time, these influence everyone, which results in enhanced efficiency and effectiveness of the industry as a whole.

International companies focus on adopting more structured, data-driven, and transparent ways of working.

Global projects of large-scale work with a huge amount of data and resources. It’s not enough to make decisions based solely on instinct with so many factors and people involved. This is why these companies have invested in tools and skills to streamline their processes. For instance, Building Information Modelling enables information exchange and effective project lifecycle management in real estate, construction, architecture, construction, and engineering.

Apart from the operational improvements (those are well-known), the use of BIM also brings in transparency, accuracy, and estimation quality. This is why international entities have adopted such tools to streamline and optimize collaboration and planning.

These companies are conscious of the need for agility and innovation, but value predictability and order.

The power players on the global scale place great importance on stability. They believe that predictability and order are important to drive sustainable growth. Again, it’s the technology that is enhancing systematic processes and increasing the certainty of decisions. For eg., BIM delivers more efficient estimates, transparent tracking, and ongoing visibility. This provides greater cost and resource savings, greater efficiency and shorter project lifecycles, improved communications and coordination, higher quality results, and more opportunities for leveraging modern technology like prefabrication and modular construction. Using tools like this helps companies progress at an orderly pace.

Modern construction companies appreciate building methods that leverage the power of technology like BIM. They know how this will help them make better plans, achieve greater visibility into ongoing progress, and optimize resource procurement and utilization. For any Indian entity to take advantage of the government’s truly excellent policies to attract FDI or to compete with international players, they must have these technologies in place. This will show that they’re ready to go to the international stage, armed with excellent technology that’s on par with the global players. It also sends a strong message that they’re committed to transparency and efficiency. This acts as a signal that there will be ease of communication, organization, and operations. With the advent of foreign companies entering the Indian construction sector, a new era of transparency, efficiency, and organization will inevitably begin and technology and design software will power this.

Integrated Project Management for Indias Infrastructure Projects

Recently, the Delhi Metro Rail Corporation chose the Mansycom-Nadhi-Excelize Consortium to implement a cloud-based Integrated Project Monitoring Systems (IPMS). The system should allow the seamless flow of data from various sites to central locations and ensure that future DMRC projects are completed within the stipulated time and budget. The system will be integrated with Autodesk BIM 360 design models and Oracle Primavera project schedules, so project officials can access personalized dashboards and interfaces.

The announcement followed close on the heels of a Union Budget where the Government allocated $1.5 trillion for infrastructure development.

India’s ambitions demand extensive, powerful, and intelligent infrastructure. In that light, some of the leading infrastructure projects in the country are looking beyond merely building facilities. They are looking to implement capabilities to become more efficient, transparent, and future-ready.

Although India emphasizes infrastructure development, it grapples with issues such as time delays and cost overruns. There are also other pain points such as inaccurate contract documents, getting clearances from different departments, lack of labour productivity monitoring, etc.

These issues can be resolved with Integrated Project Management Systems. With DMRC paving the way for using technology such as Building Information Management (BIM) and the Government’s push to infrastructure growth, we believe that solutions like IPMS will become more common in India.

How Can IPMS Boost India’s Infrastructure Projects?

  1. Promote transparency

Transparency is now essential in public infrastructure projects as the government (and citizens) view public investments in a new light. Considering that multiple stakeholders from various departments are involved in a project, and disparate systems are used to manage the project, there are chances of data or documents going amiss during the process. The numerous hand-offs and miscommunication between the stakeholders could lead to more ambiguity. This creates room for inefficiency, duplication, waste, and mala fide intentions.

That’s why an integrated project management system is critical. The cloud-based systems can store all kinds of data and provides access to all the relevant stakeholders. Considering that each workflow will be mapped with each task and process, there is minimal scope for missing documents or data during hand-offs. Using an integrated project management system will also ensure that every stakeholder involved in the project is aware of the common objective and visibly works towards fulfilling it.

  1. Improve scheduling

Gone are the days when infrastructure projects were expected to not meet the published schedule. Slowly (but surely) the pressure is growing on everyone involved to deliver fast and stay on track. Integrated project management allows stakeholders to set up schedules and deadlines for tasks that are interdependent.

Sometimes the scope could change during the project. In such cases, IPMS will allow the stakeholders to adjust the scheduling accordingly. Organizations can use 4D BIM planning and scheduling to visually track the project’s progress and get better control over it. The objective is to ensure that stakeholders are aware of deadlines and the progress towards them, so they adhere to them.

  1. Improve collaboration

Traditionally, teams in such large projects function in silos. This creates communication gaps and makes collaboration harder. Miscommunications cause errors, gaps, and duplication of effort. An inability to collaborate effectively creates a loss of synergies and unmet potential. These challenges can derail the project’s progress if not addressed immediately. That’s where integrated project management helps.

IPMS acts as a glue that holds the various teams together. It allows different stakeholders across the organization to focus on common goals and address the common challenges that delay the project completion. These systems are backed by features such as document management that allow stakeholders to exchange information between different teams seamlessly and securely.

  1. Reduces operational costs and increases profitability

Working in silos and the lack of communication could lead to communication gaps and unnecessary rework and delays. Rework is costly and time-consuming as it consumes 30% of the work done by organizations. Organizations can avoid such wasted operational costs by using integrated project management systems.

Considering that every stakeholder is involved in the project from the beginning, they can identify potential issues at the start of the project itself. This gives them time to eliminate last-minute rework. By reducing the instances of rework, organizations can bring the budget under control and earn profits.

  1. Reduces material and resource wastage

Every year 13 million tonnes of unused material goes to waste at construction sites. This also escalates the cost of the project and has an indirect impact on project earnings. Organizations can prevent such colossal wastage by integrating project management practices with tools such as BIM to create more comprehensive and transparent plans. This will help them control how much material is really needed at each stage of the project. Since the resource estimates can be tied more directly to the project plan, just-in-time stocking can be implemented, making cash flows more predictable and efficient.

Conclusion

The implementation of Integrated Project Management might differ for every project depending upon its scale and complexity. However, the best practices for implementing it remain almost the same. It begins with:

  • Defining the scope of the project
  • Creating a project plan to document the plans and processes associated with the project
  •  Documenting how to execute the project
  • Measuring and monitoring the performance
  • And creating a change control document in which all the change requests and project impact are recorded

Most importantly, the organization managing the project must leverage BIM to improve communication and collaboration among the different stakeholders. 4

The DMRC project looks set to become a guide for other infrastructure projects in the country by making project management more intelligent, responsive, transparent, and integrated into construction progress. Nagpur Metro project for MAHA Metro, another project that we at Excelize, are proud of having contributed to, set new benchmarks of schedule adherence and cost control by leveraging the power of BIM. Such projects show that the future of Indian public infrastructure may well be smarter and integrated!

Examining the Ongoing Digital Transformation of Middle East’s Construction Sector

The Middle East construction sector has been facing a slight slowing of momentum over the past few years. Fluctuating demand, climate change, and the fluctuations in the oil market are some of the main drivers for this ongoing transformation. And today, the pandemic has completely changed how projects are built (and delivered). Companies have had to restructure their plans to reflect the changing social and economic needs of the region. The only way construction companies can keep up with these evolving changes is through digital transformation.

The current state of affairs

The Middle East construction sector (and in fact every other sector in every other region) is under immense pressure to minimize carbon dioxide and other greenhouse gas emissions. Embracing a greener approach to building and infrastructure design, construction and delivery is compelling construction giants to build new strategies that could help in the decarbonization of projects. These strategies center on finding more efficient ways of working that minimize wasted effort and materials.

Simultaneously, projects in the Middle East market have been experiencing a slump in value due to the COVID-19 pandemic. Priorities have been constantly changing for companies and governments. The value of construction contract awards reached only about $24 billion in the first ten months of 2020, compared to over $50 billion for the full year in 2019.

Perhaps unexpectedly, the pandemic has also caused clients to seek greater social and economic value from their project investments at a time when investors and developers are postponing (or trimming) their investment plans in response to fluctuating demand. It is also visible that government bodies are seeking to control capital spending on all but the most critical infrastructure projects.

The scope for digital transformation

Despite the overwhelming impact of COVID-19, the potential for new projects in the Middle East remains constant. At the beginning of November 2020, projects worth an estimated $4.3 trillion were planned or were under construction across the MENA region. And the best way for construction companies to capitalize on these opportunities while addressing the new challenges of today is through the digital transformation of projects in the region.

Here are some technology approaches that can help them achieve just that.

Adopting advanced Building Information Modelling (BIM) models and associated processes can allow companies to more efficiently plan, design, construct, and manage their projects and infrastructure. These powerful tools, supported by competent technology partners, can help companies take a comprehensive view of all the elements of a construction project and drive higher levels of interoperability, flexibility, and customization while ensuring the best returns on investments.

Cloud-based digital twins offer several benefits to designers, contractors, suppliers, and operators. Through the intelligent digital representation of physical and functional characteristics of a facility, digital twins can help in better and richer engagement between various stakeholders in a virtual world. This makes planning and coordination more effective, reducing on-site clashes and late-stage variations that lead to delays and disputes.

As the data available for construction sites explodes, AI looks set to have a far-reaching impact. AI will help in cutting down the probability (and impact) of crucial issues while improving the safety of the workforce. AI will not only help in ensuring onsite safety it will also help in mitigating risks. Through real-time monitoring and the use of proximity alarms, AI can help alert workers when they are in danger while allowing them to practice safe social distancing techniques. When used alongside sensor technology, AI can also enable real-time monitoring of construction assets, allowing for more efficient utilization, more effective maintenance as well as better optimization of service delivery.

Given how costly mistakes can prove to be, especially when the sector is already experiencing a financial crunch, modern CAD techniques will enable designers and architects to produce models more precisely – thus avoiding costly mistakes. These techniques will allow them to carry out accurate measurements, spot design flaws, and conduct advanced analysis on designs while offering the flexibility to make changes on the fly.

Many construction companies looking to adapt and evolve their businesses as a result of the pandemic are also keen on adopting new approaches and evolving practices and processes. To make on-site inspections easier (and more efficient), the Middle East construction sector will also see a rise in the adoption of remote visual tools such as drones and laser scanning. These tools will help companies to remotely monitor the progress, quality, and security of their projects.

The road ahead

As the Middle East construction sector looks to emerge stronger from the impact of the pandemic while continuing to develop some of the best construction marvels in the world, companies must undergo digital transformation to ease cost pressures, enhance productivity (and efficiency) as well as boost profits.

Given that digital transformation can open the doors to greater control and visibility, the willingness to embrace modern digital tools to transform the delivery of complex engineering projects in the region is high. In the coming months, companies will embrace modern technology to improve the precision with which they plan their projects, efficiently deal with issues, enable richer engagement, avoid project delays (and costly mistakes), and ensure continued safety and sustainability.

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