New Delhi: Despite substantial investments, the construction industry is struggling to gain the full benefits of technologies including advanced data and analytics, mobility, automation and robotics. That’s the key finding from Building a technology advantage – Global Construction Survey 2016, the annual state-of-the-industry report from KPMG International.
Of the 200-plus senior construction executives taking part in the survey, just 8% of their companies rank as “cutting edge technology visionaries,” while 64% of contractors and 73% of project owners rank as “industry followers” or “behind the curve” when it comes to technology.
“The survey responses reflect the industry’s innate conservatism towards technologies, with most firms content to follow rather than lead” says Geno Armstrong, International Sector Leader, Engineering & Construction, KPMG in the US. “Many lack a clear technology strategy, and either adopt it in a piecemeal fashion, or not at all.”
Two-thirds of survey respondents believe project risks are increasing. According to Armstrong, this is an industry ripe for disruption, yet less than 20% of respondents say they are aggressively disrupting their business models.
“Projects around the world are becoming bigger, bolder and more complex — and with complexity comes risk,” notes Armstrong. “Innovations like remote monitoring, automation and visualization have enormous potential to speed up project progress, improve accuracy and safety.”
Commenting on the India findings of KPMG International’s Global Construction Survey 2016, Neeraj Bansal, Partner and Head, Building, Construction and Real Estate Sector, KPMG in India said, “India is among the fastest growing construction market globally and is poised to become the third largest globally by 2025 with size of USD 1 trillion. The increasing size and quantum of projects is gradually driving complexities and unprecedented project risks in construction industry.
The risks are rising, as highlighted in the survey – more than 80 per cent of project owners and contractors in India believe that project risks are increasing rapidly warranting adequate project management strategies to address these evolving, more complex risks.
Select Indian contractors and project owners are now focussing towards adoption of evolved concepts such as centralised PMO (Project Management Office) coupled with project performance measurement and reporting systems such as Project Management Information System (PMIS) etc. The effectiveness of these concepts can further be enhanced with the usage of advanced technologies such as robotics, data analytics for purposes such as estimating, bidding, performance monitoring etc.
The lessons from this year’s survey highlights that to get real benefit from new innovations, engineering and construction companies and major project owners need a strong technology vision and should consider how they can better integrate technology into their processes and culture.”
Lagging use of data, mobility and integrated project management technologies
According to the survey, engineering and construction firms, and project owners, are not taking full advantage of the volumes of data at their fingertips — almost two-thirds of those surveyed don’t use advanced data analytics for project-related estimation and performance monitoring. Moreover, only a quarter of respondents say they’re able to ‘push one button’ to get all their project information. And even fewer claim to have single, integrated project management information system (PMIS) across the enterprise.
“Integrated, real-time project reporting is still a myth, rather than a reality for most” according to KPMG’s Armstrong. “That’s largely because firms tend to use multiple software platforms that are manually monitored and disconnected, which severely compromises their effectiveness.”
Mobility is another technology with huge potential to analyze and track performance via hand-held devices for large construction projects. A significant majority of respondents employ remote monitoring for projects sites, yet less than 30% say they make use of mobile devices routinely on all their projects, while a similar proportion don’t use mobile platforms at all.
Similarly, only a third say they’re employing robotics and automation.
Project controls – room for improvement
The fact that more than two-thirds of the survey respondents believe their project controls are either “optimized” or “monitored” suggests processes are in place – but not necessarily delivering the required results. Only 27% of respondents believe their controls are truly globally consistent.
The survey also finds less than a majority are realizing the full benefits of Earned Value Management (EVM) to measure cost and schedule performance – with over 40% saying they do not use EVM at all.
Getting the most from technology
Harnessing the true potential of technology requires construction companies and project owners to get clearer about their technology vision and strategy.
In Armstrong’s view, “The rapidly evolving infrastructure challenges of the next decade demands both owners and engineering and construction firms embrace technology more strategically and at a far more rapid pace than in the past.”
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
Unique experiences at Lodha Belmondo
INDIA’S TOP STUDENT VOLUNTEERS FELICITATED AT THE 10th ANNUAL PRAMERICA SPIRIT OF COMMUNITY AWARDS
‘Indian parents and children have varied views on health & well-being, reveals Aditya Birla Health Insurance’s – ‘Indian Parental Care Survey’
7TH EDITION OF THE DUBAI FOOD FESTIVAL ALL SET TO KICK OFF ON 26TH FEBRUARY
H.P. Srivastava of DCCIA conferred with Achievers Award
2014 The Global Indian New Network (TGINN)