The success of a construction project depends on accurate and up-to-date data. All construction projects need to collect project data to improve efficiency, reduce delays, and keep operations running smoothly. Project data helps with forecasting and analytics, which will benefit future projects.
The importance of data in the construction industry cannot be understated. However, the industry is still having difficulties collecting and using data to its full potential.
Challenges in Construction Data Collection
According to McKinsey Global Institute, the construction industry is among the least digitized, second only to agriculture.
The industry is slow to adopt new processes and technological innovations. A significant portion of data collection is often done using manual methods, such as spreadsheets and even handwritten notes. Handwritten reports, in particular, are time-consuming, and this time is also doubled when trying to decipher messy handwriting, scanning it for digital copy, or re-entering information for online records.
However, that doesn’t mean there is no tech presence in the industry. There are several software applications currently in the market that address various aspects of construction business operations. That said, the industry is yet to embrace these technologies fully. Almost half of all construction companies spend less than 1 percent of annual sales on information technology, according to the 2018 Construction Technology Report by JBKnowledge.
Unsurprisingly, the biggest challenge in construction data collection is inefficiency. Manual methods take much time to process, not to mention the errors that also need time to correct. The lack of standardization and the use of multiple systems to store them also complicate the way data is communicated between a construction site and the back office.
Construction projects will only increase in scale moving forward. With the increase in demand for construction, new government regulations, and the increasing shortage of skilled labor, the future of data collection is not going to be easier. As projects increase in complexity, digitization and big data technology are the essential tools that are crucial to a construction company’s success.
Trends in Construction Data Collection and Use
Big data analytics and business intelligence are some of the hottest trends in the industry today as suppliers and subcontractors are slowly realizing their benefits. These tools allow construction companies to collect and analyze a greater amount of data than that of manual methods. Let’s take a look at the major trends in construction data collection and how it is used.
1. Improving productivity and streamlining job processes
The construction industry has a persistent productivity problem. According to a McKinsey Global Institute 2017 report, the global labor-productivity growth in construction has remained stagnant at only 1 percent a year over the past two decades, despite a 2.8 percent growth in the total world economy.
Big data has a massive role in improving construction site productivity. By analyzing data from job sites, project managers can pinpoint inefficiencies in the workflow, streamline job processes, find opportunities for automation, and even cut costs.
Using digital data for design documents, specifications, and project plans makes communication, brainstorming, and problem-solving more efficient. Instead of fetching documents in the job trailer or requesting them from the head office, workers can easily pull up reports and plans on the spot. Sensors also make it easier to track how supplies, tools, and equipment move around the construction site, reducing the time wasted looking for them and allowing employees to get the job done faster.
2. Creating accurate cost estimates
One of the universal priorities of construction project management is completing aproject within the specified budget. Unfortunately, cost overruns are the norm in the construction industry, with up to 80 percent of large construction projects going over budget. Having access to accurate data translates to better budget planning. Big data analytics provide valuable insights into the prices of materials, availability of suppliers, and the number of personnel required by the project. The data from past projects, such as supply levels, equipment used, and timeline, are especially useful in projecting cost estimates. More importantly, the budget information can be updated in real-time. Since project managers and stakeholders know that they are looking at the latest information, they can make faster and better decisions.
3. Reducing risk and Increasing job site safety
Workplace accidents and injuries are required to be reported to the Occupational Safety and Health Administration, the data for which is used to identify establishments with high rates of injuries. However, this data is also useful in reducing risk and increasing job site safety.
By analyzing data related to accidents and injuries, construction companies can identify the materials, equipment, or practices that pose a safety risk to workers. This data can also help ensure that job sites comply with the strictest safety standards and government regulations. Sensor technology can also monitor the maintenance and repair of equipment, making it easier to address potential accidents before they happen.
The Future of Construction Data Collection
If oil is what fueled the industrial revolution, it is data that fuels the digital age. The construction industry’s reliance on traditional and manual methods makes it ripe for disruption. The current system for collecting and analyzing construction data do not meet the needs of project managers, especially in this time where projects are increasing in complexity.
The industry is trending towards digitization. For contractors to gain a competitive advantage, they need digitized data collection and analytics processes lest they risk getting left behind.
About the Author: Patrick Hogan is the CEO of Handle, where they build software that helps contractors, subcontractors, and material suppliers secure their lien rights and get paid faster by automating the collection process for unpaid construction invoices.
