The global construction market witnessed a radical transformation with the evolution of the web, which helped with innovation being integrated across all sectors. We can see businesses moving into a more technology-oriented environment, with sustainable and resilient strategies, especially after the challenges posed by pandemic.
Despite this growth, many companies are hesitant to invest. The question about costs and budget always arises when the need is to invest. Construction companies essentially operate with time and cost in mind, owing to the fact most legal disputes arise due to untimely delivery, often resulting from the lack of a comprehensive financial framework. Companies aim to maximise profits along with meeting customer expectations, and this can only be successful in today’s competitive market if technology comes into play.
Built on tech
Construction technologies should be a top priority for project owners and companies, and shifting trends are making it easy and efficient to construct, maintain and operate with more benefits and incurring less costs. While the industry only highlights the benefits of construction technologies, it is imperative companies first understand how to easily invest.
The first step is evaluation. Evaluating technology investments is key as most companies may not have the required funds to invest. Companies should take time and understand the costs that pertain to different kinds of technologies available.
There are limited short-term gains in technology investments, and this poses a challenge for some companies to justify making financial commitments if they are operating under a tight margin. In this case, keeping a track of expenditure for various assets of a project is essential. This would help companies understand what to invest in.
For instance, it is profitable for a company to spend on AI and robotics that can replace manpower than having to pay daily wages. An added benefit is the reduced cost of risk management, and labour safety, as automation facilitates efficient use of resources.
The emergence of AI and robotics has made construction processes simpler and efficient. These autonomous technologies offer methods that reduce costs and time, and also ensure a safe working environment. Deploying can also help reduce waste, which enhances raw material management. It is crucial in these times as the cost of raw materials are not always stable.
Simultaneously, the architectural, engineering and construction sector is witnessing a transformation with Building Information Modelling (BIM), which is helping businesses visualise the entirety of the project using 3D imaging and space use simulations.
Leveraging this technology is helping cut down unit cost, increase profitability, maintain quality, optimising fleet size, efficient resource management, faster job completion with less fuel and rework, reducing excess material usage, attracting tech-savvy employees, providing optimised training opportunities, preventing theft and abuse of equipment, and reducing time and costs for maintenance and repairing. Once a company fully recognizes the value, it can smoothly allocate expenditures.
Counting the RoI
Companies should also use the Return on Investment (RoI) metric to measure and analyse the amount needed to be invested to better understand the profitability of the project. Although these options may be of use, there is still a need to better manage budgets, especially for new start-ups, small businesses, and companies that mainly rely on software technology for construction projects.
The rising demands in the real estate sector and the increase in new large-scale projects has led digital construction solution providers to shift to a subscription-based model, so that companies are encouraged to invest and increase profits and operational budgets.
Investing in innovative technologies have proven to be beneficial, but companies need to understand the usage and whether it fits into their day-to-day operations. Investing in a technology that does not add to the workings of the company, or if it lacks the skill to run the product will render the investment stagnant. Finally, research and cost know-how are vital to make the right tech investment.