A report released by McKinsey this last summer estimates that the construction industry stands to gain $265 billion in profits in the near term, thanks to the accelerated adoption of tech. Industry veterans have often noted that construction is a traditional and hyper-fragmented community where everything is always different—for every firm, every locale and every project. The complexities within the market and the lack of standardization have made technology adoption a slow haul. At least until recently.

The construction industry’s modernization has sped up over the last few years. It’s been influenced by the adoption of iPads, acceptance of cloud-based programs, the steady rise of industry pros taking the reins of solutions-based tech companies, as well as the more recent challenges posed by the COVID-19 crisis.

Most of the big players were already knee-deep in construction tech proposals or partners but, in 2020, the industry realized a shift. More construction firms of all sizes are looking to level-up their technology to enable more remote work from back-office personnel; to empower foremen and jobsite managers to find new efficiencies; and to streamline workflows that have been outdated for years.

As more construction firms look to incorporate technology into their daily processes, one ongoing challenge for management has been discerning value. There are so many options, ranging from quick and easy applications, to programs based on augmented reality and “Internet of Things,” that it’s become easy to miss the real opportunities afforded—namely, increased productivity and stronger efficiencies.

No matter what a company’s unique needs are, there are a few key elements to look for in any construction tech:

• Process: This first one is an easy tell. If a construction tech company shows up at the office and says that they can solve all the contractor’s problems without asking a whole lot of questions: RUN. Choose a construction tech company that has a defined approach to evaluating needs and implementing systems. Construction is a complex industry, with a ton of unique issues that vary firm by firm. Seek out a team that is not just driven to sell a product, but instead to understand the company’s people, processes and technologies, as well as where there may be blind spots. Technology has the ability to tighten up an entire company, but only if its leaders take the time to identify the loose boards first.
• Configurability: One of the biggest things slowing construction companies down on the tech frontier is the intense need for configurability. Anyone who has ever managed a project knows that no matter how hard you try to make things uniform and simple, exceptions exist at every jobsite. In fact, in construction, exceptions are basically the rule. There is always one work activity that needs to be tracked differently, or the critical piece of information that doesn’t “fit” into the standard form. These cases often keep teams using paper and pencils—because it’s easy to account for differences when a contractor is not married to a rigid system, a specific formula, or data entry plan. Ask the tech company how they plan to configure their product to the contractor’s needs. This isn’t about recreating an entire platform but, rather, personalizing the last mile.
• Delivery: Delivery teams bridge the gap between expensive consultants “implementing” software and project teams downloading the 57th new application out of the Apple store. In addition to evaluating current processes, they can help to generate buy-in from internal stakeholders, accelerate the process to execute and find early wins. The right delivery team will stay with a contractor to increase its overall success, while also fostering trust and lasting value. Ultimately—in a hyper-fragmented and hyper-localized market like construction—these teams create a customized and personal approach to implementation, helping customers realize ROI and creating stronger, long-term partnerships.
• Integration: Successful technology implementation often begets more technology implementation. Once executives can prove the positive impact on the bottom line, the team and ongoing projects, the drive to find more efficiencies becomes greater. This entails more than just a simple marketplace integration and unfortunately, not all construction technologies play nicely together. Choosing a tech partner that is able and wants to integrate is vital.

Consider the Riskcast/Tenna relationship as an example. Riskcast Solutions is a construction platform focused on real-time job costing and productivity; Tenna is construction software addressing equipment fleet operations. While there is some overlap between those tools, it was apparent during a recent demonstration that a customer was evaluating multiple different processes across several of its stakeholder groups. By being aware of other technology and using experience from the field, Riskcast worked with the contractor to envision some new possibilities.

As a result, both Riskcast and Tenna won the business, separately but with planned connectivity. The customer, a construction joint venture in Virginia, is currently rolling out both systems while the collective teams work on early connectivity to reduce work for crews. Once connected, the group plans to exploit the best from both systems, implement more advanced workflows and leverage the analytics to bring increased value.

While this type of hybrid partnership is unique, it’s achievable for creative contractors looking for an new edge for their clients.

All things considered, however, executives should remain suspicious of adopting ineffective applications and programs that can’t sustain value. Contractors and project teams should absolutely dive into technology, not as a Band-Aid or a quick fix, but with the goal to create long-term efficiencies that can only be provided by partners that deliver quality solutions, understand the contractor’s end-game and have a strategy to get there.