How mid-size US construction companies can ride the technology wave

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 developmentThe 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.

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.

The Construction Technology Changes That $10 Billion Can Drive

The construction industry influences lives every day. The industry exemplifies the building blocks of our communities, and, from a broader perspective, is a foundation of the nation’s economy.

That said, unlike other industries, the construction industry has been sluggish to adopt new technologies and, perhaps, has never experienced a significant transformation for that reason. Consequently, productivity has stagnated over the past four decades, and in some cases, even sank. In some documented studies, it’s been reported that the productivity gains in the construction industry are only half as much as for all other sectors.

The construction industry also faces several important questions, such as climate change, sustainability, lagging productivity, and financial pressure. Inefficiencies can be identified in almost every area of the construction ecosystem, beginning from design through to implementation. These inefficiencies give rise to increased costs and environmental impacts like wastage of materials, inefficient space allocation, or increased pollution.

However, this scenario seems set to transform radically very soon. Intense changes are already occurring—although not yet on a broader scale—but in several aspects of the construction industry. It would be apt to say that the future is almost here but is not uniformly distributed. Let’s take a look at the changes that technology will bring in.

The Key is Digitization According to McKinsey, construction-technology companies have gained over $10 billion in funding. Such investments are pushing technological innovations ahead at a rapid pace. This promises to enable the industry to deliver grand projects like underwater railway tunnels, human-made islands, and other marvels. The impact is likely to be felt at the massive as well as the minute level.

An increasing number of construction projects will integrate digital sensors, mobile devices, intelligent machines, and innovative software applications—usually integrated with building information modeling (BIM) to create data-driven strategies. One fascinating instance of digital technologies facilitating the construction industry is the restoration of one of the world’s key landmarks: Notre Dame. After the disastrous fire last year, discussions concerning its renovation entered the modern age extremely fast. In 2015, an Art History professor produced a billion data points by 3D laser scanning the complete cathedral and formulating a high-resolution digital blueprint. His efforts helped in mapping the building into models with utmost precision, allowing for insightful decision-making and planning for the necessary renewal.

New tools and technologies in the digital space will help construction organizations enhance productivity, lessen project delays, and further improve buildings’ quality and enhance safety, working conditions, and environmental compatibility.

Technology Revolutionizing Construction Phases

Technology is revolutionizing three crucial life cycle phases of every construction project. All through the design and engineering stage, it’s apparent now that BIM recognizes possible design clashes and constructability problems, thus preventing costly rework. It’s also becoming increasingly obvious that BIM enhances the tendering process by making all the information increasingly transparent and accessible. An attention-grabbing instance is that of Crossrail. It is one of the most complex and most significant infrastructure projects involved in constructing a critical underground line across London. During this project, the designers and engineers utilized a centralized set of connected BIM databases to incorporate roughly 1.7 million CAD files into a single information model to allow vendors to bid and plan better.

During the construction stage, drones are likely to be utilized to survey and inspect the construction site. 3D printers will prefabricate several building components. The materials, equipment, and workers will be regularly tracked using GPS and RFID to optimize workflows, improve real-time locational awareness, and optimize inventory levels. Robots and autonomous vehicles will carry out more building work. Aerial mapping or 3D laser scanning can be effectively used to compare work in progress with a virtual model, allowing prompt corrections and minimizing unnecessary rework. During the operations stage, embedded sensors will be leveraged to inspect assets, check for deterioration, assist predictive maintenance, and continuously update central databases. Augmented Reality will further guide maintenance crews. The big data (collected from sensors, energy consumption, etc.) will be subjected to advanced analytics to optimize decision-making and boost operational efficiency.

It’s true, the adoption of these transformative construction technologies has been slow. While few construction companies have faced some struggle in adopting, the others who had employed these technologies faced a hard time to capture all the possible benefits. However, gradually, these obstacles will fall. As technology adoption grows, productivity gains will become apparent and outcomes will improve visibility.

The Way Forward for Construction Industry

Connected technologies and a rise in associated investments will help construction technology companies fine-tune their offerings, acquire more customers, demonstrate more value, and articulate their benefits better. As technology becomes more visible, it will help drive adoption in the wider construction sector. Construction companies will seek new operational efficiencies and better financial outcomes by utilizing technology in the planning, delivery, and operation of construction projects and gain substantial business value.

McKinsey says that $ 10 billion will be invested in construction technology companies. This will likely help bring about a paradigm shift in how Indian construction companies look at technology.

Is BIM Adoption Waning?

Ever since Building Information Management (BIM) concepts emerged in the 1970s, Governments and construction companies around the world started to adopt it.

What started as a technology exclusively used in large sites and developed countries got extended to developing countries too. It has now become a standard in the construction industry.

In fact, over the last few years, construction companies in India started to adopt BIM to reduce construction delays and cost overruns. Even Government bodies like the Maha-Metro Corporation decided to use BIM on the Nagpur Metro Rail project to build an integrated environment where data such as project schedule and cost is easily available for managing.

However, despite the proven benefits, not as many companies as should be are enthusiastic about adopting BIM.

Let’s try to understand the reasons behind it.

Is BIM Adoption Waning?

Although companies recognize the role of BIM, the ground reality is more complex. While we are wholehearted supporters of BIM, we recognize that to evangelize the technology we must understand the obstacles and perception gaps impeding growth. Here are some reasons why companies are being so slow in adopting BIM.

1.     Lack of enthusiasm in adoption

In a 2019 NBS survey, lack of demand was cited as one of the reasons for the slow adoption of BIM. Small companies may not consider BIM as a priority. They think there is no compulsion to use it and companies do not consider it to be significant to project completion.

Paul Morrell, the UK Government’s Chief Construction Advisor, blames it on lack of data. Here’s what he had to say.

 “It’s (BIM) sort of stalled because I think people are thinking where’s the data?”

If we want companies to prioritize BIM, we need to ensure that there is enough data to prove its benefits. But as Morrell says, unless companies use BIM, we are never going to generate the data to prove its worth. It’s a kind of catch 22 situation for the industry. The fact is, if you seek the data, you will find it!

2.     Lack of talent and training

Construction companies face a tough challenge in recruiting skilled people. The primary reason for it is the conventional image attached to the industry. Millennials prefer flexibility and choose companies that are more obviously linked to a technology future. Considering that millennials will form 75% of the industry by the next decade, there will be a mismatch between their expectations and their perception of the way the AEC industry works. Our industry is considered to be inflexible; the office spaces are also not as glamorous as the IT industries. The industry is also perceived to be male-dominated, so gender diversity is low too. Another challenge is that companies aren’t known to prioritize training.

The lack of talent, training, and contextual awareness creates a challenge for companies to adopt BIM. But even experts like McKinsey are confident that a transformation is coming and sitting this one out isn’t an option. Construction companies will have to make significant changes in how they work and in some fundamental processes. This will be essential to keep up and deliver to the expectations of digital employees and customers.

3.     Cost vs. benefits

With margins in the construction business being so tight, companies are unwilling to invest in new technology without being assured of the cost benefits of BIM. There are direct costs such as investment in hardware, software licensing, training of professionals, and maintenance involved. Even leaving aside the ability to implement the technology and leverage it properly, the big challenge is to get the construction teams to adopt the BIM output onsite. So, companies are hesitant to invest. Of course, they fail to recognize the benefits the technology offers to the company, designers and engineers, and consultants. And while on-site adoption is a real issue, it’s not an unsolvable problem as we have shown.

4.     Lack of defined scope and unrealistic expectations

Companies often do not have a defined scope for BIM implementation. They are unclear as to what objects they want to get modeled in a particular project phase? At what level should they be modeled, or what information is needed to complete a BIM use? To add to the woes, they often do not have the right partner to guide them. Some partners tend to overpromise and set unrealistic expectations, which could be hard to attain. Others tend to deliver projects and walk away without offering any help to the company to indulge their own digital ambitions. For long-term sustainability, companies must have a well-defined scope for implementing BIM and partners who align their goals with the client’s needs and expectations. Any less, and BIM ends up an experiment or a transaction restricted to one project.

Conclusion

Although we have seen some remarkable improvement in the adoption of BIM in countries like India, the full potential of this wonderful technology is still untapped. A country like India has a vast talent pool and access to BIM, which can be utilized to scale the projects and attain an attractive cost to benefit ratio. There is a fertile opportunity for the industry to utilize BIM to transform itself. This needs the willingness to change the way work is done, hire new people who understand technology and make technology a significant part of the overall strategy. It’s time to take the first step, because as Morrell said, “Once you can see the benefits of working in this way, why would you do it in any other way?”

Collaborate with Excelize

On a mission to make AECO community future-ready
and successful with technology

Get a quote