FW: To what extent is the construction industry plagued by multiple different systems and technologies which rarely talk to one another? Could you outline why the sector needs to address this problem?
Minglani: An inability to capture digitalised data across the lifecycle of a project is potentially the largest issue facing the industry today. Construction contracts are still executed manually and uploaded to project management systems which are not capable of capturing the contractual clauses in a digital format. Daily progress reports are often created using pen and paper. Payment applications are submitted manually, which can include thousands of pages of backup documentation. Most systems today do not allow for the data to be captured electronically and do not have an interface to identify gaps in the construction process. Often, the paperwork is already processed before project managers can identify gaps and take corrective action, leading to cost and schedule overruns. If data is captured in electronic form across the project, project managers can track progress in real time and ensure contractual and regulatory compliance before approving payments. Interactive technologies providing real-time insights will help ensure enhanced communication between project teams.
Ottinger: One of the main and systemic challenges in the construction industry is the disparate and siloed systems used. This issue is prevalent among companies working together on the same project, as well as within many construction companies’ internal departments. The accounting system does not integrate with the construction management software. The construction management software does not pull all of the functionality from the scheduling tool. The scheduling tool does not speak with building information modelling (BIM) or the design of the building. There are so many gaps created by these issues that continue to create the cost overruns, delays and resource constraints that are so common in this industry.
Gibson: The economic value of this issue is huge. It affects not only the profitability of the contractors and design consultants, but also the absolute cost of every aspect of engineering and construction. Some estimates put the inefficiencies in the system as high as 30 percent. Realistically, 10 to 20 percent cost reductions are entirely achievable through digitalisation and more efficient construction. This is an astonishing level of inefficiency compared to any other industry.
