2018 Executive Insights: Construction Technology

by | Aug 31, 2018

Industry experts share their thoughts on key construction technology trends and best practices.

What key components should a company should look for when shopping for construction ERP software?

Jeff Weiss
Chief Revenue Officer
CMiC
Construction has a productivity problem, and multiple studies confirm that companies are doing little to help themselves.

One study, “Factors That Affect the Productivity of Construction Projects in Small and Medium Companies,” cites ineffective resource management as the most significant factor affecting construction productivity. Firms are not properly managing their resources because many of them are still using spreadsheets or paper methods to allocate, track and manage resources across multiple projects.

Thankfully, advances in ERP and project management solutions are helping schedulers and project managers find more reliable methods of resource management. One advance is the introduction of visual resource planning tools that leverage a common platform containing all employee, project, utilization and opportunity data, which enables the proactive allocation of all resources, including manpower.

This strategic approach helps firms manage the challenges of seasonality, over/underutilization and conflicting demands.

How can technology help protect contractors against claims for project delays?

Brock Philp
CEO
Newforma, Inc.
Invest in project information management software. PIM is leading the industry in helping to reduce risk, deliver projects on time and remove the administrative hassles associated with project workload.

PIM software can ease collaboration and simplify the organization, distribution and access of critical project information while maintaining a full audit trail. The software can integrate information from design, construction and owners’ teams and provides markup and review tools, which help save time while mitigating risk.

Some products also differentiate themselves from other solutions by indexing data where it resides and managing email; this mitigates risk, promotes best practices, maximizes profitability and enhances customer reputation.

There is an incredible amount of data available today to digest, and it is coming at an incredibly fast pace. It is a challenge to sort through that information to determine what is relevant to the business. PIM software simply assists with the organization of all that project data.

Seth Dawson
President, CEO
Paperless Environments
By storing business-critical documents in a central enterprise content management system, you are ensuring swift and available access for everyone on your team—both in the office and out in the field.

ECM systems are designed not only to safeguard your documents, but also to serve them out to employees, subcontractors and clients wherever they may need them via local client, web portal, tablet or smartphone.

These services are essential to the long-term health of any construction company. They reduce the extra time that is often spent locating or procuring hard copies and scans. ECM systems also eliminate the one-dimensional storage and limited life cycle management associated with traditional electronic file storage.

By providing structured paperless management and secure storage, this technology reduces the risk of claims against a company by complying with regulations and keeping current projects on track and free of delays.

What are the most important considerations when trying to match potential technology solutions with current processes?

Fred Ode
CEO/Chairman
Foundation Software
There’s no perfect person out there who complements exactly who you are today. The right person will require you to change and grow.

In business, there’s no such thing as plug-and-play technology—and that’s a good thing for companies. Every implementation, from augmented reality to a new phone system, should require leaders to assess the people and processes they have in place to find an appropriate fit and to make sure they’re set up to make the most of the change.

Finding the right technology is a conversation between what you need it to accomplish and what it requires from you in order to be used effectively.

In a lot of cases, contractors need to adapt and improve their processes; they also need to put the right people in place to champion the implementation and fill key roles to take change forward.

There’s nothing magical about technology. It won’t fix inefficiencies or communication problems on its own any more than a pencil will write field logs for you.

The best way to match technology is to match your processes to the right solution.

John Daley
Chief Technology Officer
Sensera Systems
Most companies have plenty of processes—either fully documented or de facto “tribal knowledge”—for doing what they need to do. No one disputes the value of processes that lead to increased consistency and repeatability, making all facets of a business more efficient. The downside of well-established processes is that they cause a certain inertia in the business—a resistance to beneficial change.

With so much new and powerful technology becoming available to today’s jobsite, contractors have an unprecedented potential for massive gains in efficiency. However, this dramatic upside is only available to contractors willing to adapt their current processes, often substantially, to accommodate the new possibilities opened up by the advent of previously nonexistent technology solutions.

My advice to contractors evaluating new technology solutions is not to hold current processes sacred. Rather, prepare to make significant process adjustments when necessary to fully realize the benefits of revolutionary technology. Changing “the way we’ve always done it” is uncomfortable for just about everyone, but those who do so today will emerge as leaders on the jobsite tomorrow.

Jon Elliott
Chief Executive Officer
Bluebeam, Inc.
Bluebeam as a company—as well as the AEC industry as a whole—is driven to look beyond today to the possibility of what could be. But that vision of the future can only inspire real, innovative change if it is first built on a solid understanding of evolving processes and workflows.

In a large and complex industry, change is incremental. After spending 15 years on jobsites around the world, we at Bluebeam deeply understand that.

And yet, new technologies and solutions can support and accelerate the industry’s evolution.

That’s why we are seeing technology solutions that address digitalization, collaboration and visualization making the biggest impacts. Flexible digital solutions that are both powerful and simple to use empower individuals to be more successful in their day-to-day work.

And when individuals are empowered and connected, entire projects and organizations benefit. When entire projects and organizations benefit, the industry advances.

And that’s what Bluebeam exists to do: empower people to advance the way our world is built.

What is your advice for introducing new technology to ensure successful adoption by veteran employees?

Mike Ode
President
Payroll4Construction.com
Imagine someone picked out your next car or truck for you and told you: “This is what you’re going to drive now.” Even if it’s a good vehicle, most people aren’t going to like it forced on them. That’s how an experienced employee might feel who’s told they now have to do their job with a new piece of technology.

So what’s the secret to getting end users on board with implementation? Involve them in the decision.

Employees need to experience buy-in, which happens when they feel heard and that they’re given a stake in the process. It starts with communicating why change is happening and how you hope to benefit their day-to-day work as well as the company. Part of forming the big picture is getting their input. End users bring unique perspectives that can help your selection, as well as your planning.

From those conversations, you can identify champions to lead as early adopters. These employees can help ease the apprehension of others and reinforce your communication about what the team can expect.

Ryan Driscoll
Marketing Director
GPS Insight
One of the questions we often hear from construction organizations when implementing GPS tracking software into their fleet is how to introduce the technology to their veteran employees. To ensure there is a successful adoption of the technology across the organization, we recommend open communication with employees about why it’s being implemented and address their concerns from the start.

The most common concern employees have about GPS tracking is that the technology is overly intrusive. “Big Brother” is a term used far too often when describing it, which simply isn’t true.

Using GPS tracking data to coach drivers will increase safety, improve productivity, enhance customer service and ultimately increase revenue. By explaining to employees that the technology will be used to drive organizational growth and not as a tool for punishment or invasion of privacy, they are far more likely to be on board with the initiative.

What new technology do you foresee impacting the future of the construction industry?

Noam Reininger
Chief Data Officer
Gordian
Preconstruction planning is one of the most inefficient aspects of the construction life cycle, and I expect data science to have a profound impact on productivity and capital deployment.

Imagine a fast food restaurant chain plans to open 100 new stores during the next five years. Each store will be in a different location, and in time material and labor costs will rise and fall in different markets. It would be best to optimize the build schedule to determine when and where the next store goes up. Knowing what major costs are going to be in the future would lead to scaling with greater confidence and flexibility.

Data and analytics can make that happen. Using data science to integrate historical costs with predictive benchmarks can unlock a level of accuracy that has never been possible. Conventionally, we’ve had to rely on yesterday’s data for tomorrow’s construction projects, leading to sub-optimal decisions. With properly deployed data and analytics, we save real time and money.

Accessing predictive data that accounts for real market conditions will prove critical in budget management from design through construction.

How can construction companies harness VDC to increase productivity?

Brad Barth
Chief Product Officer
InEight
Construction was predominantly a 2D world less than a decade ago. Today, the majority of design is done in 3D, opening the door to benefits that extend beyond architects’ and engineers’ offices.

Contractors are rapidly embracing virtual design and construction with increased investments in people and technology. The focus is on extending VDC into traditional project controls functions, such as project cost management and field execution—areas that are ripe for productivity gains and overhead reduction.

Estimators, work planners and field engineers can easily access current 3D models on portable devices. And, with the right tools, contractor teams can connect the information in 3D models to estimates, work plans and quantity claiming. This eliminates redundant data entry and allows critical project controls functions to react almost instantaneously to design changes.

VDC has proven to be effective in driving better project team communication and minimizing rework. In the near future, we’ll wonder how any aspect of project controls was done without 3D models and the data they contain.

With today’s technology, is it possible for a contractor to go completely paperless on a project?

David Malenoir-Evans
VP of Product
Procore
As construction technology continues to expand and solve the needs within the industry, the “sticks and bricks” trade is moving toward a paperless building process.

Construction is a fast-paced, ever-changing environment. It is a world where paper trails are almost instantaneously outdated––bringing confusion and potential rework to those in the field. Hard copies are not easily updated, disseminated, or communicated––making paper an obstacle, not a solution.

It has become clear that construction technology is conducive to maximum productivity through ease of communication, timeliness, and dissemination of updated information––all aspects of construction that are necessary for a project’s success.

Construction management technology is beginning to gain momentum and the industry is eager to adopt effective solutions. Procore is one of the many solutions that aims to connect teams, applications and devices—without a piece of paper. The goal of these solutions is to provide users with the real-time data they need to accelerate their business.

How can a construction company use IoT for better asset optimization?

Austin Conti
CEO and Cofounder
Tenna
Construction companies can use rapidly evolving IoT technology to optimize their assets by increasing uptime, improving productivity while eliminating time spent looking for tools, and guaranteeing a higher ROI on expensive purchases. IoT monitors asset location, condition and status so they are readily available for projects or can be maintained during downtime.

IoT solutions reveal an asset’s normally “hidden” data, such as engine hours, and build accountability among the workforce when handling and returning smaller assets and tools.These real-time insights facilitate predictive analysis and help construction companies pre-determine when their assets will need maintenance to eliminate costly breakdowns.

IoT asset management makes scheduling and financial planning proactive rather than reactive.

A single platform is the best way to maximize the usefulness of IoT, gain insights across all asset classes, and fully leverage data to optimize time and performance. Look for a vendor that manages entire asset suites together—from small tools like power drills to compressors, jackhammers, vehicles and larger equipment like dozers and cranes.

How does technology investment improve the bottom line for contractors?

Murray Lodge
Senior Vice President and General Manager of Topcon Construction Business Unit
Topcon Positioning Systems
Contractors have experienced tremendous benefits in newer, more technologically advanced machines and equipment. Highly successful contractors have adopted precision measurement systems, GNSS machine control, and geospatial management and collaboration software to ensure seamless coordination among all involved in their projects—revolutionizing grading, excavation and paving.

Technology can help with the labor shortfall and fill the skills gap. Place a smart, inexperienced worker in the cab of a dozer or motor grader governed by GPS machine control with a 3D site plan displayed, and with proper training he will quickly become productive.

Technology has not only proved to save time and improve accuracy, but its impact on productivity has been significant. The future is getting closer to us; it’s inevitable. We continue to develop new technologies and refine the innovations we’ve brought to the market—all with the objective of helping construction contractors to be more efficient, accurate and productive in what Topcon calls “The Intersection of Infrastructure and Technology.”

What is the real power of technology?

Erin Cave
VP of Product Management
Verizon Connect
The value of any business technology should be measured by its ability to help you simplify the journey to profitability.

Smart technology improves the connections between measurement, processes and people. It helps simplify complexity so construction businesses can make better decisions and improve their profitability.

At Verizon Connect, our technology is all about delivering information and insights from your vehicles, equipment and crews that can help you measure, understand and simplify your processes; improve efficiency, productivity and safety; and even lower your fuel and maintenance costs.

We’re committed to delivering solutions that give construction companies the data they need to run their businesses better.

How do business intelligence dashboards help construction managers ensure projects are running smoothly?

John Rosch
Regional Sales Manager
Explorer Software
Business intelligence dashboards are becoming a more vital part of running a company in the construction industry. Today’s construction companies collect large amounts of data from the various projects they have in operation, and many construction managers find compiling the data into reports to be an intimidating process.

Business intelligence dashboards provide an easy way to process the wealth of information to make the data actionable.

Dashboards give managers a tool to easily visualize the data in key performance indicators to make more informed decisions and develop action plans to address quickly changing aspects of the projects. Utilizing KPIs, a company can deliver project information to key personnel to stay on budget and on time. The best providers of dashboard technology allow users to easily create and customize KPIs, which are updated with real-time data, for reporting and analysis to ensure the greatest beneficial impact for the company. With dashboard technology, a construction manager can gain meaningful insight into how to use their data effectively and become more profitable.

How can companies managing multiple projects maintain secure records of formal project communications?

Jerad Ferrell
Chief Marketing Officer
RedTeam
Contractors are presented with many technologies and applications in the market and data fragmentation presents enormous risk to the organization.
I advise contractors to focus on a core platform to centralize a large portion of critical day-to-day activities, such as managing contracts, RFIs, change orders, submittals, issues and safety incidents—essentially a system designed to protect the business.

The typical builder we encounter suffers from application and data sprawl: scattered files, a ton of mobile apps overlapping in functionality and risk in many areas. Take note of all the tools being used in your strategy and ensure you survey end users to learn about tools that may have been deployed to fill an immediate need.

Technology can become institutionalized before you know it, and convincing teams to course correct can be extremely difficult, costly and time-consuming for the individuals responsible for system performance and protecting their company.

When is it appropriate to move from BIM 3-D model-based design to BIM 4-D or 5-D?

Jon Witty
Vice President and General Manager
Sage
Knowing when to move to 5-D BIM ultimately comes down to meeting project owner needs. When the owner wants constant updates on the cost and risk impact of numerous design decisions, 5-D BIM delivers that information almost instantly.

Due to 3-D models, owners can make changes right up to when construction begins, and beyond. In response, estimating teams often create hundreds of estimates on just one large project. Consequently, 5-D BIM, which connects cost components to the 3-D model, is being adopted to respond faster to owners’ cost analysis requests. For many contractors, the estimating staff hours saved by reducing estimate cycle times offsets the cost of 5-D BIM tools.

Today’s technology is also making 5-D more practical. Integration between model-based design systems and estimating software is now available. This new technology recognizes that models are still evolving and often are missing estimating-related information. To address this, some 5-D BIM tools can supplement 3-D takeoff with 2-D input.

What are the most important considerations when trying to match potential technology solutions with current processes?

Abe Cohen
Senior Vice President, Marketing
Viewpoint
First, it’s critical to think one or two steps beyond your current processes and consider how you plan to grow over the next one to five years. Choose technology that can scale with your business and adapt as your processes evolve. You don’t want to replace systems every few years, requiring your team to relearn everything. Pick a technology partner that invests in improving its products, because your business will rely on those technologies as you grow.

Second, look for a provider that specializes in construction and understands industry best practices. Off-the-shelf technology originally built for something like the manufacturing or retail industries can’t easily handle work-in-progress reporting, change order processing and ongoing service contracts.

Finally, look for a provider that can offer an integrated platform that’s easy to use for your entire team: folks in the office and the field and even extended project teams of architects, subcontractors, etc. Providing trusted, integrated data for different user roles inside and outside your organization will improve collaboration, productivity and decision-making.

Author

  • Construction Executive

    Construction Executive, an award-winning magazine published by Associated Builders and Contractors, is the leading source for news, market developments and business issues impacting the construction industry. CE helps its more than 50,000 print readers understand and manage risk, technology, economics, legal challenges and more to run more profitable and productive businesses.

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