Data-Driven Decisions: How Technology is Rapidly Improving Construction Efficiency
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[edit] Data-Driven Decisions: How Technology is Rapidly Improving Construction Efficiency
Construction firms are always looking for ways to boost efficiencies, whether that be in their head office or on-site. Technology brings a whole host of changes to construction firms and when implemented correctly provides huge cost savings for businesses.
[edit] Technology's Growing Role in Construction
While construction still has the reputation of being a more traditional industry, technology is slowly penetrating every corner of it. From Making Tax Digital and requiring VAT returns to be submitted by software to the COVID pandemic accelerating the requirement for reporting to be digital, technology has started boosting efficiencies.
[edit] Key Technological Advancements in Construction
Construction firms have been able to take advantage of recent advancements in construction to improve their business operations and streamline their workflows. Some of the most notable advancements have been access to analytics and digital communication tools.
Having access to real-time analytics tools that provide insight into the financial and operational health of a project means that construction managers are now able to work remotely and still have full visibility of what is going on across their projects.
Seamless Communication Tools
Tools like Microsoft Teams have allowed conversations to move from person to person to more group-based work, ensuring that teams aren’t siloed on projects. This can help to reduce the reliance on individuals and instead allow others to chip in to boost clear-cut communication.
[edit] How Technology is Reshaping the Construction Landscape
Technology, especially during the pandemic, allowed construction firms to continue effectively working as well as boosting social distancing requirements.
Pre-pandemic, construction firms were utilising data and technology to help increase their efficiencies as well as increasing transparency across their company. For large construction firms that have multiple sites and increased complexity, technology helps them to understand the performance of projects, as well as understand where their assets are.
Assets, such as plants, people, and goods, are tricky moving parts to manage without technology. Optimising the performance and management of them is another thing altogether, which is where technology comes in. With advanced technology like ERP systems, construction project managers can understand where goods are needed, and where personnel is needed based on goods and plant availability, creating more efficiencies.
Elevated Performance Capabilities
Reporting on the performance of a construction project, especially when numerous internal and external stakeholders are concerned, is no longer a simple text message. Instead, reporting on the performance of construction projects requires elevated capabilities such as cost value reconciliation, profitability as well as how any delays or goods prices have affected the overall revenue.
[edit] The Rapidly Evolving Construction Industry
As the construction industry grows and changes, there is a need to adopt new technologies. Government legislation, such as the UK government’s new Prompt Payment changes, where not only do you need to demonstrate an effective payment program, but also need to be able to show that you are paying invoices within the agreed timeframe, requires the use of technology.
Then, there’s the increased need to demonstrate better cybersecurity capabilities. In 2022 alone, approximately 39% of construction firms across the UK said they’d experienced some form of cyber-attack and around 83% of construction businesses have experienced a phishing attempt. With nearly 80% of the construction industry not prioritising cybersecurity, having the right deterrents in place or putting controls in place to protect their data, it’s an aspect of technology within construction that still needs addressing.
[edit] Technology is the Answer to Construction Needs
Across the board, from basic compliance requirements to more complex reporting and profitability, technology provides numerous ways for construction firms to improve their business and create better efficiencies.
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