Embracing Con-Tech: The Future of Infrastructure with Digital Twin Technology

By Elena Theodoropoulos

Historically, the construction industry has lagged behind in adopting digital innovation, despite skyrocketing demand for infrastructure. This surge is largely driven by significant government investments, such as the $1.2 trillion Bipartisan Infrastructure Law in the U.S. and Canada’s $180 billion Investing in Canada Plan. However, the strong demand clashes with a persistent shortage of skilled labor, prompting the need for technological innovations, collectively known as ‘con-tech,’ to enhance efficiency and productivity in infrastructure delivery.

What is Con-Tech?

Con-tech encompasses a range of technological tools that can be utilized throughout the construction lifecycle—from the design and planning stages to construction, and even into operations and maintenance. Key innovations within this realm include advanced design software, robotics, and tools for efficient scheduling and budgeting. Additionally, con-tech provides mechanisms to monitor construction site progress and ensure safety, creating a holistic approach to managing construction projects.

Ontario’s Leap into Digital Twin Technology

A major milestone in Canadian public infrastructure projects occurred with Ontario’s recent $5 million investment in digital twin technology. This investment signifies a transformative shift in infrastructure project management, bringing forth substantial benefits for risk mitigation. By embracing digital twins, Ontario aims to optimize project delivery while minimizing time and financial expenditures, all the while enhancing workers’ safety on-site.

The adoption of digital twin technologies is also reshaping the insurance industry’s approach to construction. Insurers are now acknowledging the value of these technologies in reducing risks, leading some to offer lower premiums or even subsidies for implementations that utilize this innovation. The benefits of digital twin technology extend beyond the construction phase, creating a win-win situation for contractors, project owners, governments, taxpayers, and insurance companies alike.

Understanding Digital Twin Technology

Digital twin technology refers to a sophisticated virtual replica of a physical asset, system, or process. This digital model continuously updates in real time, providing a dynamic and accurate representation and enabling the testing of various ‘what-if’ scenarios. The concept of digital twins has evolved since the 1960s, with NASA being a pioneer by replicating spacecraft for operational studies.

While similar to Building Information Modelling (BIM), digital twins stand out because they offer real-time operational insights. The construction industry is particularly suited for this technology, given the complexity of managing both the projects and the resultant assets. By employing digital twins, every aspect of a construction project—from initial design to ongoing maintenance—can be effectively mapped and monitored.

The Risk Mitigation Advantages of Digital Twins

Digital twins play a crucial role in promoting real-time monitoring across construction projects. Embedded sensors in structures provide ongoing data, allowing project teams to detect issues such as stress or water damage early on. During the planning stages, they enable simulations of different scenarios that promote informed decision-making, ultimately reducing risks and potential delays.

For instance, when exploring options for a new rail line linking an airport to the city, a digital twin can showcase 3D models of various route possibilities, ensuring efficient and stakeholder-driven planning. Throughout construction, the progress can be monitored against the designed model, maintaining adherence to timelines and budgets.

Moreover, digital twins enhance on-site safety by virtually simulating construction processes, leading to the identification and mitigation of potential hazards before they affect workers. Technologies that provide data integration—such as 360-degree videos—allow for remote issue identification, creating further opportunities for cost-saving interventions.

Benefits of Digital Twins for Insurance Companies

The integration of digital twin technology has far-reaching implications for the insurance industry, especially within the construction sector. With global insurance costs rising annually by approximately 25%, leveraging digital twins can significantly mitigate expenses. In Canada, insurance costs typically account for around 3.5% of project value, spiking up to 10.4% in some states like New York.

Unlike traditional methods that rely heavily on historical data, digital twins offer a more proactive risk analysis framework. Insurers can visualize projects and assess various risk factors dynamically, thus tailoring coverage options more accurately. Having real-time data greatly enhances insurers’ confidence in identifying and mitigating risks before losses materialize, often leading to lower premiums for project owners.

Moreover, digital twins facilitate an efficient claims process through detailed documentation of the entire construction life cycle, allowing stakeholders to exchange information swiftly. In the event of an incident, these insights simplify the claims process, enabling quicker repairs and less disruption to projects.

Saving Taxpayer Dollars

The adoption of digital twin technology in public infrastructure projects translates directly to cost savings for taxpayers who ultimately foot the bill. By minimizing construction cost overruns through early issue detection, digital twins help ensure timely project completion within budget, reducing fiscal burdens on the public.

Digital twins also enhance transparency and accountability in infrastructure projects, offering a clear view of project progress. This transparency aids in the efficient allocation and expenditure of public funds.

Once construction is completed, digital twins continue to add value. They support optimized maintenance practices through predictive analytics, potentially extending asset lifespans and minimizing the need for expensive repairs—contributing to long-term cost savings for taxpayers.

The Path Forward in Digital Transformation

Ontario’s substantial investment in digital twin technology exemplifies a forward-thinking approach poised to revolutionize public infrastructure projects. By enhancing risk mitigation, digital twin technology presents substantial benefits for governments, taxpayers, insurers, and the construction industry.

For governments, utilizing digital twins fosters improved project management, ensuring adherence to timelines and budget constraints while complying with safety regulations. For taxpayers, this translates to efficient use of public funds and enhanced infrastructure. Insurers gain from refined risk assessments and expeditious claims processes, while construction professionals enjoy a safer and more productive work environment.

As the evolution of digital twin technology continues and its application becomes more prevalent, its role within the construction sector is likely to expand, ushering in a new era of smarter and more efficient public infrastructure projects. Companies embracing digitization now stand to reap long-term benefits, building and maintaining resilient assets for the future.

Elena Theodoropoulos is the Vice President and Account Executive for the North American Construction and Infrastructure Group at NFP, an AON company.

[This article originally appeared in the November/December 2024 issue of ReNew Canada.]