The engineering and construction industry is unique in more ways than one
The engineering and construction industry is unique in many ways. For starters, projects typically have a larger number of stakeholders (foremen, architects, project owners, engineers, subcontractors and more...) involved compared to other industries. But they're not just more numerous - they're generally much more dispersed than the average stakeholder found in other industries. What's more, according to a KPMG study, only 31% of all projects have stayed within 10% of budget over the past 3 years. The Construction and Engineering industry can ill afford to accept this new norm, as more and more project budgets come under scrutiny and overall industry productivity remains stagnant. There are many technological SAAS tools available today that tackle this very problem, but only a few that actually deliver field operations performance. One tool that does this very well with the end-user in mind is Civalgo.com. CIVALGO is a web-based platform that optimizes the work of construction contractors by simplifying the comparison of their planning data and execution results. On top of all this, the construction industry is also suffering from a shortage of skilled labor; it seems we've put less emphasis on business skills in recent years, leading to lower productivity, increased safety concerns and higher labor costs for owners and contractors. Some companies like TradesFactor.com are trying to help the industry and the skilled labor shortage by providing a platform for sharing skilled trades resources.
Okay, but what does this mean for an E&C project, and how does digital collaboration play a role?
Digital collaboration involves using digital technology to communicate and collaborate, both on and off the job. It enables the connection of multiple individuals on the same project - and when done well, it can enable an E&C team to accomplish more with fewer resources.
A transition to digital collaboration can seem scary at first, especially for engineering and construction companies that have resisted such changes in the past. However, when done right, this transition can be more of an adaptation without changing the entire communications pipeline.
Clear and effective communication through proper zipper planning is essential to keep all stakeholders on the same page. An error in communication, even for the smallest changes, can have incredibly costly consequences for all stakeholders.
It also means we have to have everyone and everything connected. At the same time, we need to focus on promoting the importance of skilled trades and providing the necessary opportunities for them.
It also means having data, and lots more data...
We need to have sensors that provide us with information on the entire work site, from assessing soil conditions, to temperature, to equipment telemetry, to concrete maturity and so on.
We need better real-time work planning - which gives us the ability to track materials and resources to improve project execution.
We need to reduce workplace risks by using real-time visualization to help plan work, identify potential hazards and comply with safety requirements.
We need to be able to have just-in-time project management, connect virtually, and see digital dashboards for real-time updates to help track and understand construction progress.
We need to be able to have real-time information on almost every aspect of a construction operation, and always available to relevant stakeholders, either on site or off, to help improve collaboration.
At all times, we need to be able to provide accurate data that is available in real time, whether for geolocating information, tracking and mapping personnel locations, live annotations, or improving the transfer of information as it has been built to continuously improve project execution.
All of the above is possible today with the right digital collaboration practices, tools and processes, which in turn will provide better streamlined processes for communication, collaboration and execution.
All the above is great, but not really possible without a few basic rules for successful execution?
Always work in a common data environment (CDE).
Make sure your project data is available both internally and externally.
An essential key is to establish appropriate standard operating procedures (SOPs).
Make sure you work with standardized universal file formats, don't think that just because you use it, it's the best.
Never stop communicating, in my book, this is the most important one. It doesn't mean that just because we use technology to collaborate that we should stop communicating, pick up the phone and call or even better go with a face-to-face.
Moving towards Digital Collaboration takes time, as we have to adapt our working methods, but also sometimes change our corporate culture in order to be effective in digital collaboration.
These are just a few ground rules for E&C companies when adopting digital collaboration.
It is evident from our customer base that there are clear examples of contractors and E&C owners successfully reducing costs and improving schedule performance by aggressively pursuing digital solutions, this seems to prove that integrated digital collaboration solutions and business process optimization increase efficiency, transparency and accountability.
But taking the step to digital maturity alone can be overwhelming.
Contact us today to see how we can help you!
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