As technology reshapes the world at breakneck speed, the construction sector finds itself at a crucial crossroads. Stuart Brown, managing director at KMS, and Andrew Knight, former global data and tech lead at RICS, discuss digitisation in construction
While often perceived as a traditional, manual industry, construction is increasingly recognising the transformative power of technology. However, true technological adoption in this sector is not just about implementing new tools in the design and planning stage or on the job site – it’s about embracing digital solutions from the very inception of a project before a bid is made to capture a repository of critical information.
This comprehensive approach, starting at the project conception is not just beneficial; it’s essential for the future of construction.
The importance of early-tech adoption
The construction industry has long been reluctant to adopt new technologies. For many smaller organisations and SMEs, the most advanced technology they employ is often an Excel spreadsheet to maintain their records. While this familiar tool has its merits, it falls short in meeting the complex demands of modern construction projects, particularly in record management in the advent of regulations like the Golden Thread of Information, where a lack of properly maintaining a clear, up-to-date record can result in expensive consequences.
Stuart Brown, managing director at construction-CRM software provider KMS explains: “Spreadsheets can get bulky and unwieldy. You can pretty much type anything into any cell, which could lead to inaccurate information on dates and numbers. This lack of structure can lead to errors, inefficiencies, and a fragmented approach to project management, potentially causing non-compliance with the Golden Thread of Information.”
The solution lies in using technology to maintain structured database systems from the earliest stages of a project to ensure:
- Accuracy: Enforcing data integrity and ensuring that the right type of information is entered in the right fields.
- Accessibility: Having records on a cloud-based system allows for easy sharing and collaboration among team members and other stakeholders.
- Auditability: Every change and update is recorded in real-time, creating a clear trail of decision-making and progress.
Implementing technology from the early stages, including bid management, tender development, risk assessment, and opportunity health assessment, construction companies can establish a solid foundation for the entire project lifecycle.
Technology in maintaining the Golden Thread of Information
In the wake of the tragic Grenfell Tower fire, the concept of the Golden Thread of Information emerged as a part of the Building Safety Act. The principle emphasises the need for a clear, accessible digital record of information about a building from its conception through to completion and beyond, ensuring information is easily accessible, reliable, up-to-date and accurate.
Using technology through process management systems like Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) helps with document management by maintaining an auditable trail of information from project conception, planning, and design to on-site construction and delivery.
Technology, like Machine Learning (ML), cloud computing, and Artificial Intelligence (AI) incorporated in the process management systems enables construction companies to have a unified data source where multiple parties and stakeholders can feed their data in real-time – enabling a clear record of all information and streamlined workflow.
Is technology alone enough?
While technology is beneficial for the industry at the early stages, it is key for professionals to understand how it can be used. Successful adoption is impossible without good-quality data. Technology, particularly AI, relies on information that is readily available. Without feeding it the necessary information, the technology may incorrectly capture incorrect results, making robust data critical to safe and successful technological implementation.
The predictive nature of technology like AI and ML offers substantial opportunities for key tasks like cost prediction, bid management, risk assessment and opportunity health assessment – however, the accuracy depends on the quality of data used to train the model.
Andrew Knight, former global data and tech lead at RICS and technology specialist in the built environment, highlights: “Technology in itself is not a silver bullet if you don’t have high-quality data. Technology like ML and AI will continue to play a predictive role in construction. The key issue is you need good data to train the machine learning systems. So whether it’s gen AI or more traditional machine learning, the crux of the issue often is having good quality data.
“Technology, particularly AI in its generative form which has captured the zeitgeist, is effectively an assistant. It does not replace the skilled people we need in the sector. It makes them more productive and leverages them in that way. The sector is constantly short of skilled personnel. AI gives the opportunity to help with that skill shortage by making the existing professionals more productive.”
Effective data management for SMEs
Construction SMEs often face challenges when it comes to technology adoption. Limited resources and tight margins can make investing in new systems seem daunting. However, the benefits of effective data management far outweigh the initial costs.
For SMEs, the key is to start small and scale up by using cloud-based solutions so they can maintain a structured database.
Stuart Brown notes the importance of structured data management: “Having something in a structured database puts that level of structure onto the information you’re capturing, along with auditing the information. Everything that has been added or edited in the database is recorded in the cloud. And if there are any future queries on any element about what happened and when, the relevant team member can go back and check seamlessly.”
Overcoming reluctance in tech adoption
Despite the clear benefits, there remains a degree of reluctance in the construction industry to fully embrace new technologies. This hesitancy stems from various factors:
- Inertia: The ‘we’ve always done it this way’ mentality can be a significant barrier to change.
- Security concerns: Worries about data privacy and security can make companies hesitant to adopt cloud-based solutions.
- Investment Costs: The initial outlay for new technologies can be daunting, especially for smaller firms.
To overcome these challenges, it’s crucial to demonstrate the tangible benefits of technology adoption. Stuart Brown notes, “Customers demand more. In the modern age, things are expected to be turned around quickly, and you need technology to do that. It’s not de-skilling the workforce; it’s democratising it. You need the skilled workforce to feed the technology with robust and accurate data to enable the technology to carry out tasks accurately.”
The future of construction technology
As we look to the future, it’s clear that technology will play an increasingly central role in the construction industry. From AI-powered predictive tools to advanced project management systems, the potential for innovation is vast.
Andrew Knight provides a balanced perspective on this future: “Construction is a highly fragmented sector; it does run on quite low margins. I think it would be naive to say that the sector has fully adopted tech. It is clearly continuing to digitise, but it does have the financial challenges of not necessarily having that much money to invest in R&D.”
Despite these challenges, the trajectory is clear. As technology becomes more accessible and its benefits more apparent, even the most traditional construction firms will need to adapt and adopt to remain competitive.
By adopting technology from the conception of a project, construction firms can establish a solid foundation for project success, maintain the crucial golden thread of information, and position themselves at the forefront of industry innovation.
For SMEs, effective data management is not just a luxury but a necessity for survival and growth in an increasingly competitive market. By leveraging technology to streamline planning processes and embracing AI as a productivity tool, construction firms can overcome traditional barriers and unlock new levels of efficiency and innovation.
Technological adoption in construction from project conception to delivery is undoubtedly necessary. As the industry continues to evolve, those who embrace digital solutions from the earliest stages of their projects will be best positioned to lead the way into a more efficient, sustainable, and innovative future for construction.
