A Smart Guide to Connected Construction

Posted on March 20, 2021

Are you planning to go fully digital? Don’t just Invest in any Technology Solution; Design Your Digital Transformation

The construction industry has amazing opportunities albeit the high risks. But the pressure is even more intense for executives, given the tight profit margins and little room if any, for errors. In essence, project outcomes directly impact business outcomes.

Despite the steady growth experienced globally, alongside new, impressive technologies that are transforming the sector, today’s rapidly changing landscape insinuates that companies ought to operate at higher levels of efficiency and sophistication in order to keep with fresh client demands and fierce competition.

Not forgetting the industry-wide challenges that are becoming huge stumbling blocks for construction companies spanning all sizes. For instance, even with the current need to ensure high levels of productivity, the shortage in labour is taking a toll on the industry.

Today, about 80% of contractors are concerned about their ability to find and hire certified workers, according to a 2019 study carried out by the Associated General Contractors of America (AGC).

To mitigate this emerging risk, majority of construction companies are growing beyond digital infancy by making the most of the available selection of tools to effectively measure performance, automate processes and improve visibility.

Nonetheless, contractors still struggle to determine the kind of innovations that can propel their businesses forward. Given that a mere 25% of engineering and construction (E&C) firms report they are effective in managing risk, it’s obvious that there is a huge gap between the adopted technology and its impact.

According to suggestions provided in a new AGC report, forward thinking companies in this industry that yearn to stay ahead should consider implementing one-off technology solutions and, “prioritise technology strategies to create innovative corporate cultures.”

With this, construction executives will have to adopt the rightful technology that enables digital transformation by establishing a solid foundation from ground up; one that links up the entire project lifecycle.

Digital Transformation

Digital Transformation is a term commonly used to describe any digital initiative undertaken in a company. However, in most cases technology is usually applied on a one-off basis, taking on a role like that of a patch fix than a part of a real business strategy.

A single solution can significantly improve a given process or workflow, but in the absence of seamless integration with goals and other systems, inconsistent and disconnected processes render it impossible to minimise risk. Consequently, fragmented information and teams result in costly reworks, delays and resource waste.

For beginners, let’s first see the definition of digital transformation. The Enterprisers Project defines “Digital transformation as the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.”

That’s correct. Digital transformation isn’t just centered on fixing issues but building change cross businesses. Within the construction industry, new technology implementations supporting this transformation should deliver:

  • Sustainable and foreseeable profit margins
  • Superior resilience throughout the industry
  • Agility in growing and transforming, so as to make the most of new markets, connections, and business opportunities
  • Better collaboration and partnership between all stakeholders so as to deliver better outcomes to the construction environment

Digital transformation focuses on developing a new model for innovations within the business. When it comes to the construction industry and the challenges of linking huge volumes of data and users, the main aim of this change should be centered on connection—connecting users, data, processes and the various project phases. So far, no one is yet to deliver on this promise of connecting construction from the design phase through to operations and turnover.  

The Future of Building

According to one expert Jay Snyder, FMI, Technology Practice Lead, “While construction firms continue to invest in technology, the business-critical issues of communication and data management need more strategic attention than they currently receive.”

At kelpee, the focus is on creating a foundation to enable digital innovation to succeed, allowing project stakeholders to pool resources early in the project, delivering greater transparency in changes and guaranteeing data continuity. All these would support better decision-making and more predictability—the cornerstone to establishing scalability and business resilience.

Kelpee is founded on three key pillars of connected data and technology:

  • Cloud Technology: Best-in-class technology designed for simplicity and power – uniting office, headquarters and field teams starting with sales and design through to construction and operations
  • Industry Network: The sector’s main online network of builders, owners, designers, and trades
  • Process Automation: Process automation means more resources can be allocated to professional services.

So, how exactly does the connected construction system enable executives to design, develop and effectively manage a technology strategy capable of supporting their business objectives? Let’s find out.

Build an Innovation Strategy

When it comes to creating a winning business strategy, any construction company must ask three important questions:

  • How can we make money?
  • How can we save money?
  • How can we lead the competition?

At the centre of it all, kelpee empowers construction executives to strategically and effectively manage their most valuable business outcomes by improving quality, controlling costs, winning business and staying on schedule.

Improve Quality 

Well-established construction companies boast robust quality control and assurance plans. With a connected construction environment such as that which kelpee supports, facilitates and improves existing quality plans. 

  • Improve Handover Experience: A seamless handover process enhances customer satisfaction and the contractor’s reputation.  There’s better experience during project turnover/handover thanks to reduced defects, improved digital documentation and enables the customer to seamlessly move from the construction phase to operations.
  • Reduced Number of Variations Onsite: In most cases, variations or constructability challenges are discovered too late in the process. Managing potential problems using designs that ensure the ultimate build is successful demands collaboration between all project stakeholders and an effective review process to handle emerging issues before resulting in reworks on the site.
  • Reduce Rework During Construction: Reworks are unplanned works and mostly happen in the process of changing orders, rectifying errors, poor scheduling or poor quality. With keen insight and visibility at all design problems and proper team communication, reworks and their cost implication on the project can be significantly minimised.
  • Reduce Defects at Handover: Defects at handover do reduce a project’s profit margin, and arise as a result of problems not detected and resolved during the construction process. But with improved transparency and standardised workflows, departments can systematically identify, track, and resolve all issues as they arise.

Control Costs

Cost control is certainly imperative for business leaders focused on risk management and ensuring financial stability. Armed with innovative technology that links the entire construction lifecycle, construction firms can achieve more financial stability through:

  • Improved Forecast Accuracy
  • Improved Subcontractor Qualification
  • Reduced Costs

Stay on Schedule

Stringent project schedules put increased pressure on construction executives to ensure teams stay on track. kelpee offers software for leaders to enhance productivity and detect issues in schedules before they occur. This is made possible through improved:

  • Plan to Actual Ratio
  • Resource Planning
  • Schedule Control
  • Lean Planning

Win Contracts

Staying ahead of the competition requires construction companies to own a comprehensive strategy that will see them win new and repeat business. With a well established builders’ network, you can connect to project owners, contractors and sub-contractors and take advantage of smart risk analysis to position each project well-up for success. With this, you are guaranteed:

  • Increased Bid Efficiency
  • Increased the Number of Successful Projects
  • Improved Win Rate
  • Improved Stakeholder Engagement
  • Expanded Service

Digital Transformation Starts with Connected Construction

Risks within the construction industry will only continue to grow. Willing forward-looking companies in the sector ready to embrace a new construction model will be able to manage risk and push their businesses to greater heights. It’s time for leaders to invest in digital transformation well integrated with connected construction.