The construction industry’s challenges are no secret. Rising materials costs, a skilled labor shortage and overall lack of productivity improvements are driving up costs and extending timelines for many projects. The good news? Digital transformation has come to commercial real estate project management.

Project management technology is stepping up to address the construction industry’s challenges with digital solutions to disrupt the industry for the better.

Why construction project management is ripe for digital disruption

While productivity has doubled in almost every industry over the last 25 years, thanks in part to technological advances, it’s flattened out and even declined for some aspects of construction. Improving productivity could go a long way toward helping construction companies overcome such industry challenges as expensive building costs and a widespread labor shortage.

Construction materials costs rose by 5.6 percent from Q1 2017 to Q1 2018, and another 5 percent to 6 percent step-up is expected by Q1 2019. Meanwhile, the number of construction workers is down 12.9 percent from 2007, while wages have jumped 31.2 percent in the same time frame.

However, productivity is a tough nut to crack where construction is concerned. One reason is that the AEC industry and the development process itself are highly fragmented, involving multiple disparate participants with different needs and skill levels. Architects use design technologies, construction companies use planning and scheduling software, and project managers use management platforms. On the jobsite, construction workers use whatever tools are needed for their part of the work.

In addition, every job involves a unique set of participants and project scopes. In short, every project is unique prototype. Each development project involves a unique team comprising the architect, general contractor, project manager, interior designer, furniture contractor and other roles. Some may be technologically progressive, while others may be small businesses that have not invested heavily in technology.

Technology can’t solve every problem, of course. However, new construction technology innovations are emerging in the marketplace every day. These startups can provide technology that helps deliver projects faster, cheaper and with fewer resources than ever before, effectively addressing the construction industry’s persistent challenges.

Transforming construction project management

While project management is only one aspect of a construction project, the digital transformation of project management will go a long way toward remediating today’s construction project obstacles. Advancements in project management technology are based on today’s tools, but designed for tomorrow’s.

New developments should be designed to support future advances in project management technology, including artificial intelligence, data-driven insights and real-time collaboration for smooth project delivery.

One critical capability is platforms need to be cloud-based, highly secure and easily accessed by team members anywhere with internet access. A service provider can provide access to the technology platform early in the construction process, enabling all team members to maximize efficiency and avoid duplication of administrative tasks in separate systems.

Considering dozens of professionals can be working on a given construction project at the same time, leveraging cloud-based software to optimize the workflow will profoundly improve collaboration and impact the bottom line. A project management firm, its client and vendor teams anywhere in the world should be able to access a streamlined portal for all project management activities and documentation.

Global collaboration tools and dashboards facilitate real-time project task-tracking. Financial reporting and project visualization features offer multiple ways to automate routine tasks and reporting, and present complex project information using graphics that convey clear insights.

Having a scalable platform changes the conventional approach to project management. New technology not only improves productivity of conventional processes, but also enables teams to reimagine the project management process itself. For instance, certain project steps could be streamlined, redesigned or even eliminated.

A new technology platform should grow as technology advances and client needs evolve. Advanced and innovative technologies emerging from virtual reality and artificial intelligence can be introduced to benefit project teams around the world.

Numerous data sources, mail applications and even virtual reality solutions should be able to be integrated into the new technology platform, allowing users to view sophisticated data visualizations on desktop and mobile devices. Users around the world should be able to work in multiple languages and in metric and imperial measurement modes, sharing documents and collaborating on the fly.

What’s in it for clients

A project management firm that has the latest technology tools will be positioned to attract the best digital talent that makes the firm and its clients more profitable and efficient. With the adoption of a new and evolving technology platform, a team’s digital skills—and those of its clients—will evolve too, building on the advanced skills they already have to stay relevant in a rapidly changing landscape.

Construction project managers must constantly push their own boundaries to transform commercial real estate project management with industry-leading technology that provides a positive experience for users. Technology won’t magically reduce costs overnight or erase the uncertainties inherent in construction, but it’s slowly transforming the business.