Can Technology become a Competitive Advantage for Mid-sized Construction Companies?

 

Construction is one of the core sectors in the United States contributing around 4.1% of the country’s GDP. Like every other business sector, US construction includes a large number of small and medium-scale construction companies. These companies have their perennial struggles to make a mark and maintain an edge in the market above the rest of the competitors in their niche.

 

This blog is to make the case that technology could be a major factor in the race to win over competing firms.

 

Technologies and Technical Edge

The good news is that technologies are already available that have been tested in the heat of real-world situations and have delivered meaningful value. A range of such solutions can be utilized by mid-sized construction firms for various benefits.

 

Building Information Modelling, BIM is one such technology that can make a significant difference across functional areas.

 

For those who came in late, BIM provides an intelligent digital representation of the features and characteristics of the buildings by allowing you to build digitally before you build physically. Construction companies can use BIM to develop models that can be linked to material requirements, project status, and required investment at each stage. Design experiments and plans can be developed and modified based on the detailed models. All this allows you to bring detailed designs and documentation forward in the cycle to great advantage.

 

For one, BIM can help you win more bids. You can quote for projects with greater confidence in your material, time, and cost projections. This means you can reduce buffers and factors of safety that you would otherwise have to bake into your bids. You can bid lower, but more realistically. Your bids will look more complete, better planned, and (yes) more competitive. That’s a winning formula.

 

You can also deliver projects better with BIM. More than half of all construction businesses overrun estimated schedules or costs at the end of the construction projects. With BIM, mid-sized construction corporations can stay on top of progress all the time to deliver on schedule and within budget. BIM helps deliver projects faster as it enhances collaboration and communication and provides a single source of truth for all stakeholders to work on. Operational processes can become smoother and more efficient. That apart, project documentation can be more comprehensive and transparent. The building, once complete, can also be handed over to the Facility Management in an easier-to-manage state, complete with the latest “as-built” information. All this leads to higher customer satisfaction levels, a significant competitive edge.

 

BIM allows even mid-sized construction companies to maintain high precision in designs and provides ease of modification. The digital construction models created using BIM tools provide a 360-degree view of the building parts. Construction companies can use these drawings and models to provide a virtual tour of the construction site to the clients. This helps improve the customer experience and project an innovative and forward-looking image.

 

New technologies are available to manage internal operations, drive efficiencies, and optimize project activities. Technology options like data analytics, AI, and the IoT are being spoken of to address specific construction planning and execution issues. New construction approaches like offsite construction, 3D printing, and modular construction are emerging as great options to deliver faster. All these need complete, accurate, real-time, and validated data about the construction site, which can be provided by BIM models. Leveraging these powerful tools can help mid-sized companies leapfrog their rivals in performance and quality.  

Set of Benefits

The massive competition in the construction industry makes it hard for organizations to differentiate themselves. They have traditionally focused on factors like design skills, timely deliveries, budget management, customer service, and quality of construction. Technology can drive improvements in all of these areas. A competitive edge can be gained and maintained by construction firms when they provide customers with high-quality outcomes as per promised timeframes and within budget. With technology, mid-sized construction firms can meet these expectations better. They can deliver better outcomes and provide a more professional engagement experience across the full lifecycle.

 

Apart from construction, technology can also play a role in operational activities to great effect. For instance, structured and automated customer relationship management and customer support tools can add to a more wholesome customer experience. The quick resolution of customer queries, improved customer collaboration, and constant communication leads to improved trust. Customer reviews and comments are of huge importance as brand reputation and brand value are built that way. Technology allows construction companies to keep customer engagement and satisfaction levels elevated.

To Sum it Up

Technology can provide immense benefits to organizations in the construction sector. For mid-sized construction companies, the use of technology could be a great way to differentiate themselves, win more bids, deliver projects better, provide a better customer experience, and manage customer relationships better. Doing that set of activities well can help them gain an edge over the competitors.