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efforts to integrate digital tools into their operations, seeing the investment in technologies increasing from 15% to 18% of budgets in a year.
Digitalisation Progresses across Regions
Australia
Australia’s construction industry leverages a variety of tools, including building information modelling (BIM), data analytics and mobile apps for on-site management, to help businesses address challenges and drive better project outcomes. Construction firms in Australia reportedly use five different digital technologies on average in 2024. The industry is making headway in transforming its processes through digital tools regardless of challenges such as high costs and skill gaps
Hong Kong
Hong Kong’s significant progress in construction digitalisation is driven by initiatives like Construction 2.0 and the Construction Digitalisation Roadmap. The roadmap outlines a vision for “SMART Construction Empowered by Digitalisation,” aiming to streamline and digitalise the whole project lifecycle, with a clear target of 100% Adoption of Digitalisation by 2026.
Philippines
The Philippines sees a growing interest and investment in digital tools in the construction sector. According to an industry report, 26% of construction firms in the Philippines consider themselves “digital-first” companies, and 56% are taking steps towards digital transformation. The government encourages the use of digital technologies through guidelines and initiatives to improve construction quality and efficiency. However, challenges such as data security concerns and high costs remain.
Saudi Arabia
Saudi Arabia is undergoing a profound transformation in its construction industry, driven by the Vision 2030 initiative. Adopting digital technologies such as BIM, AI, and IoT is reshaping how infrastructure projects are designed, constructed, and managed. These technologies enhance efficiency, sustainability, and innovation in the construction sector. Implementing digital technologies has reduced project overruns by 30% and improved the overall efficiency by 20%.
Barriers to Digitalisation
- Fragmentation: The construction industry is highly fragmented, involving multiple stakeholders – clients/owners, developers, consultants, contractors, subcontractors & suppliers – which complicates the integration of digital tools.
- Risk Aversion: Many construction and engineering firms are reluctant to adopt new technologies due to concerns about costs, reliability, and disruption to established practices.
- Labor Intensity: Construction projects are labour-intensive and most of the works require on-site presence, which makes it challenging to implement digital solutions that are more easily applied in other sectors.
Strategic Adoption of Technology
Adopting technology in your projects or businesses is crucial, but it should be done thoughtfully. The strategic adoption of technology is essential for the success of any project or business. However, integrating new technology should be approached with careful consideration and planning.
Rather than hastily implementing the latest tools and software, it’s vital to conduct a thorough assessment of your specific business needs. This can involve gathering input from stakeholders, analysing workflows, and identifying the challenges you face that technology can help resolve.
Let’s look at a few examples:
If you’re experiencing inefficiencies in your project management processes, adopting a digital collaboration tool that facilitates real-time communication and task tracking can greatly enhance productivity.
On-site inspections are usually manual, and it’s time-consuming when it comes to documenting and sharing reports with other stakeholders. Integrating digital tools can streamline the process, reducing errors and ensuring consistent built quality.
The traditional paper and mail-based tender management approach is tedious and error-prone. Switching to a dedicated tender management software helps you efficiently track submissions, manage deadlines, and maintain comprehensive documentation. It helps ensure you are complying with all the necessary policies and procedures.
“A digital tool is only perfect when it addresses your business challenge.”
Its effectiveness greatly depends on how well it aligns with your objectives and addresses your unique challenges. Therefore, invest time in assessing your business needs and gathering feedback to ensure the chosen technology truly serves your business’s goals and adds measurable value.
Embrace the future of construction with confidence and innovation
The construction industry is on the brink of a digital revolution. While challenges persist, the benefits of adopting digital tools are undeniable. The industry can drive efficiency, reduce costs, and improve project outcomes by utilising technologies.
Scenario is a proven project management
information software in the construction industry for over 20 years. Our
clients manage their entire portfolios within a single system, fostering
greater transparency and oversight of information and decisions, as well as
improved collaboration across teams.