The Digital Transformation of Construction: A Big Opportunity Awaits
Digital transformation presents an enormous opportunity for the construction industry, a sector long plagued by inefficiencies and fragmentation. Digital tools like Building Information Modeling (BIM), digital twins, and artificial intelligence (AI) are not just technological advancements; they are game changers that can help overcome longstanding challenges to enhance productivity and profitability.
The Historic Challenges of the Industry
Historically, construction has been a slow adopter of technology compared to other industries. Dr. Sheryl Staub-French, a prominent civil engineering professor at the University of British Columbia, highlights that construction ranks among the least digitized sectors, only outperforming agriculture and hunting in this regard. This lack of digitalization has led to significant issues: information loss, repeated efforts, poor communication, and overall inefficiency throughout project lifecycles.
In an environment where significant cost overruns and project delays are common, the need for digital tools becomes even more pressing. Dr. Staub-French notes, "We deal with a lot of uncertainty, which contributes to our slow adoption of technology." Nevertheless, this slow pace also highlights the substantial opportunities available for transformation.
The Root Causes of Inefficiencies
One critical issue Dr. Staub-French identifies is "suboptimal project organization." Every project generates vast amounts of information, but much of this is lost or poorly shared. As a result, teams often recreate, verify, and re-enter data, multiplying opportunities for error. Nowadays, project handovers are managed through the digital delivery of thousands of PDFs, yet the quality of this data remains inconsistent.
To effectively harness the benefits of digitalization, the construction sector needs to focus on structured, reliable information that can be easily automated and streamlined.
A Shift in Culture is Essential
Changing the landscape of construction requires more than just adopting new technologies; it necessitates a significant cultural and organizational transformation. According to Dr. Staub-French, this includes re-evaluating how organizations work, setting strategic goals, and redefining their value propositions.
Key components to achieving digital transformation include BIM, digital twins, and AI, all of which Dr. Staub-French described as the backbone of modern digital delivery systems. BIM, for example, can lead to a 10-20% reduction in construction costs, a productivity boost of 20-28%, and a 30% reduction in design changes.
The Promise of Digital Twins
While BIM has become widely used during design and construction phases, its application in the operational phase remains limited. Dr. Staub-French emphasizes the potential of digital twins to revolutionize operations. Digital twins provide real-time, live representations of facilities based on accumulated data, making it feasible to leverage useful information more efficiently.
Despite notable examples, such as Toronto and Vancouver International Airport (YVR) employing digital twins for project management, the industry has yet to fully embrace the operational applications of BIM and digital twins.
AI as a Game Changer
The role that artificial intelligence can play in this transformation cannot be overstated. Although still in its infancy within the construction sector, AI promises to tackle the overwhelming amount of information generated with BIM. According to Dr. Staub-French, "AI is the last piece that we’ve needed to make this whole ecosystem work." The potential for AI to improve data management, streamline processes, and enhance decision-making in construction is immense.
Collaborative Delivery Models
Another critical factor for successful digitalization is adopting collaborative delivery methods like alliance contracts and Integrated Project Delivery (IPD). These approaches focus on principles such as shared risks and rewards, transparency, and trust, which ultimately lead to projects being completed on time and within budget.
Global Perspectives and Learning Opportunities
Globally, many countries have already implemented BIM mandates and embraced digital twin technologies. The United Kingdom is often cited as a model of success, combining BIM mandates with industry training and established data standards. Dr. Staub-French notes that Canada lags behind, being the only G7 nation without a national BIM mandate, which presents an opportunity for improvement.
Moreover, the National Research Council of Canada is investing significantly in the industry to drive digital transformation, providing a unique opportunity for innovative advancements. Regions like Québec have already emerged as leaders in this domain.
Toward Systemic Change
In conclusion, moving toward digitalization in construction requires collaboration among government, industry, and academia. Leadership at all levels must institutionalize digital delivery standards and integrate them into procurement processes.
The path to digital transformation will be challenging, but, as Dr. Staub-French aptly advises, staying the course is essential. It’s about more than just technology; it’s about systemic changes in work practices and delivery models.
As we navigate this transformative journey, the industry must cease reverting to the status quo, embracing the collaborative efforts needed to fully realize the benefits of digital transformation.
Cheryl Mah is the managing editor of Construction Business.
