The global construction industry is on the verge of a substantial digital shift but there is still a long way to go before it can claim construction is data-driven. At the moment, construction is the least digitized sector in Europe and one of the least digitized in the world. Considering that there are industries, such as hunting and agriculture, that rank higher than construction, it becomes easily clear that the issue of digital maturity in the sector is real.

The lack of trust across the supply chain in combination with the power of habit and the limited investment in R&D have resulted in construction being a digital laggard instead of a digital instead of a digital champion. That is truly disappointing, considering that the industry has many good reasons to go digital. As reported by McKinsey, an average capital project in construction is expected to experience a 20-month schedule delay and go 80% over budget.

The good news is that construction technology is gaining ground. New ambitious players are emerging on a continuous basis in an effort to address different issues that typically surface in the course of a construction project.

The way buildings are designed and operated is gradually changing. The question is about the quality and speed of this paradigm shift. Initiatives such as the BIM Level 2 mandate in the United Kingdom can be a promising example that digitalization and standardization of the building process is coming. Nevertheless, what the industry needs first is a deep cultural transformation. People on site and in the boardroom need to understand the value that digital tools can bring to construction and how their day-to-day working routine will improve.

It will be a long and sometimes resource-demanding journey. But before anything else, everyone in construction should keep in mind that the digital revolution goes through user adoption. After all, every single digital tool out there is only as good as the data submitted to it. And these valuable beats of information will come from the people who use the app on the ground.

Connecting the field to the office is the biggest bet

In most construction projects, the gap between the construction site and the office is the source of many schedule setbacks. Construction software could be a big game-changer for the industry in that area, if implemented and used properly.

Enabling field teams to submit updates from the site in real time can make a big difference on how a project progresses. First and foremost, it can eliminate confusion, as everyone will work on the same - live - version of the schedule leaving no room for misunderstandings or delays. Imagine eliminating problems such as subcontractors arriving on site and having to wait to start working on their tasks. It might sound like a minor issue but, in the long run, can cut construction time in half.

Furthermore, fewer misunderstandings equal fewer reworks. According to McKinsey, rework rates in construction are estimated from 7% to 15%, while efficiency on an average project is around 30%. These numbers highlight that construction is trapped in a value chain that doesn’t communicate in an effective and timely manner. A smarter collaboration framework could help the project team to focus on what really matters, reduce administrative work and add more precision to the decision-making process. Like that, all project agents can be sure that their schedule always reflect reality and that there will be no costly surprises as the project progresses.

The rise of the Common Data Environment

How data is collected and stored is another concern. One solution is a CDE where all project stakeholders deposit and share data with their colleagues and partners. However, the industry doesn’t seem to be ready to adopt such an open approach in data storage. Most stakeholders store their data as PDF and image files or in other searchable formats, but in each of the relevant systems and platforms. This highlights that construction still works in isolation. However, an increasing number of industry leaders are focusing their efforts on initiating a CDE or a central data warehouse.

The advent of Building Information Modeling will also play a key role in changing the way construction collects, stores and analyzes data. BIM can be a remarkable vehicle for exchanging data. It can be a universal language for every stage of a building’s life cycle and it can help in the democratization of data as well as risk mitigation and reduction of project complexity.

This is why digital adoption matters. The 3D visual representation of a model can provide valuable services to the BIM manager and the project team in general, but it is heavily relied on the people on site and the frequency of their updates. It is paramount that the field teams are equipped with simple-to-use digital solutions that will make the reporting process effortless and consistent.

Standardization as a driver of change

Unlocking digital maturity in construction isn’t simple - it’s a complex process that touches upon different areas of a project. A smarter and fact-based construction process can bring the industry one step closer to digitalization, as well.

With the help of the collected data from current and earlier projects, stakeholders in construction have the opportunity to plan ahead and set certain expectations, standards and guidelines for their future built structures.

That’s extremely powerful considering construction is a $10 trillion industry with serious productivity and budget problems. A first turn toward standardization is becoming visible as some of the biggest companies in the global market (eg. Amazon) are investing in prefabrication and modularization. So, it is no exaggeration to see standardization as a unique competitive advantage for the ambitious players of the industry.

As contractors communicate and build in a global ecosystem, it is understandable that coming up with a standardized working approach can be a decisive factor for streamlining digital maturity and user adoption surmounting any state, geographical or cultural differences that may emerge from market to market.