To complete a construction project within timeline and budget is a daunting task. Most cases, they seem to hold a mutually exclusive relationship. According to a study by "Mckinsey", 98% of projects incur cost overruns or delay. Unlike other industries that utilise development and maintenance processes that are often repetitive and standardised across the scope of their operations, the complexity and size make a one-size-fits-all approach inappropriate in the construction industry. Every project, though from the periphery, may look similar but requires a unique approach, hence a distinctive output. It is very much like a large machine with various moving parts that work in conjunction. These multiple parts and unique strategies can, therefore, at numerous instances, cause breakdowns arising out of miscommunication, teamwork issues and disputes. As a Project Manager, the ease with which you can identify problems and link them to the right tasks dramatically relies on how you can retrieve data of critical importance very easily and monitors the impact of an issue against your plan or master schedule.
But the question is how to make this happen?
The answer is independent of the size or the type of project-digital tools that have been built explicitly for construction.
But the pace at which construction industry has been open to embracing change is relatively low, many in E&C think that their tools are fit for purpose just because they can exchange information in real-time or, even worse, just because they are averse to change management. Much of which has resulted in construction projects ending up relying upon conventional tools such as WhatsApp notifications which are not built for a business use case in the first place, old Excel spreadsheets, emails, or even whiteboards for information exchange. In most cases, it would be too late for the project teams to realise that they are on a path to an array of disconnected information. When it comes to construction claims, this could mean penalties that could cost your project margins itself in a competitive market like today.
Hence the use of construction-organisation-specific digital tools that are tailor-made can make a huge difference instantly. Envisage the value that you could harness by being in a position to, record, inspect and update your tasks with a closed-loop digital collaboration tool, instead of having to keep everything in your head for hours until your task is complete; not only will such a tool to ensure visibility and accountability, but it can also ensure that you do not miss out on a crucial piece of information. Yet again, to do that you need a construction-specific platform that is attuned to construction-specific tasks and reflects reality at any given time.
When disputes happen!!!!
A construction dispute can be an interplay of various reasons, such as people issues, process issues, project issues or technical or legal compliance issues leading to project delays or cost overruns. , it is necessary to address and resolve all disputes at the right time in order to avoid severe fallouts in a project.
"Resolve claims when they are big enough to see, and small enough to solve"
Otherwise, there is a danger that every process and the task will freeze. An "on-hold" situation can cause severe delays and put the project under enormous financial pressure.
There is no doubt that to solve these disputes; you have to quickly get back to the epicentre of the situation and arrive at the reasons that caused this in the first place. But the question is at what cost, or do you have the time to go through bundles of photos and emails without any direction, and then eventually learn that the data that you need is tumultuous and comes with a lot of stress and frustration.
Construction specific software rooted in big data can be a lifesaver as it ensures a seamless data collection form the construction site and correlates it with your short term planning, and your master schedule. In that way, you can keep a record of all the data you need to protect your project from a claim in a matter of few clicks. In this manner, you can not only get the upper hand while resolving claims but also resort to an informed decision-making process to prevent any such disputes on numerous occasions.
“Big data refers to the dynamic, large and disparate volumes of data being created by people, tools, and machines. It requires new, innovative and scalable Technology to collect, host, and analytically process the vast amount of data gathered in order to derive real-time business insights that relate to consumers, risk, profit, productivity management, and enhanced shareholder data“
How can Technology resolve claims?
It is a given that there will be problems that will surface from time to time, considering the scale and complexity of a construction project. Hence what is imperative is to tackle these issues and lessen their magnitude using comprehensive construction-specific digital tools. Let’s take a look at how it can benefit an organisation.
1. Data -Your single source of truth
Data is data and is invariant with the tool or the firm which enforces the Technology, what would make a difference primarily is the way you capture your data and how you choose to interpret any insights you gain from it. In a construction firm, the most critical link in doing this is your first level managers such as foreman or site engineer. Hence it is vital to deploy tools in its mobility form that can be very easy for them to comprehend and use. These tools must incorporate features such as options to capture photos/input the data of every activity on a day to day basis and allow custom role-based dashboards for project managers or mid-level managers, which will enable them to monitor the progress on a day to day or weekly. This way, one can tackle problems before they grow out of proportion. An anecdote of when tailor-made solutions built specifically for construction industry supersedes conventional tools like WhatsApp or spreadsheets or emails on matters concerning information exchange and cash flow.
2. Reduce redundant tasks
The process of documentation is always humongous in any project, and it consumes a lot of effort and time given the massive amounts of data produced. In most cases, project managers have to engage in pointless meetings and take unnecessary phone calls. To make matters worse, they may have to deal with reports and updates that lie scattered across different platforms and at times customise it to suit the task at hand. Using a cloud-based centralised repository that automatically updates on every instance of change will help retrieve the latest information relevant to your need. In addition to that, automating these data-related tasks for the sake of efficiency will free people to focus on aspects of a project that needs due attention. These cloud repositories can help you settle a claim or a dispute very quickly as well and serve as the historical database that can help you plan your upcoming actions more strategically. Once again, this re-emphasises what a construction-specific tool can do over conventional means of information exchange like WhatsApp or other legacy tools.
3. Effective communication
The foundation of any project is the exchange of information among people, and any lag in parsing the important updates could result in unprecedented bottlenecks. Hence one of the most important aspects is the visibility of data and its accountability. A digital tool with closed-loop functionalities ensures that it does not miss any piece of information. Being able to share any issues in real-time can save all sides ( your clients or subcontractors) from a lot of back and forth running around and can apprehend a dispute even before it can surface. That's of foremost importance if you want to keep your project going.
With that said, it is self-evident that you can't afford to trust the progress of any project on data that is not real-time or up to date, Meaning, any data that lacks connection with your weekly schedule and your master programme. It is a crucial connection that can help you put in adaptive mode instead of fire- fighting mode.
Time to act
It is a well-known fact that construction is one of the oldest professions in the world, but at the same time, an overlooked fact is that it is still among the least technologically advanced sectors in the industry. The recent pandemic has taught us a lot, and it has shown all the more the reason why there needs to be a paradigm shift in the way industry operates. If companies opt to do nothing, peers who have already thought through times will undoubtedly take advantage of the innovations, leaving those who shunned the Technology at a distinct disadvantage. Companies that do not wish to be left behind need to be willing to experiment with and proactively implement these new technologies.