How Preconstruction Can Help Change the Construction Industry

The construction industry is the largest industry in the world and one of the most impactful. On one hand, the built environment changes and can even save lives. On the other hand, construction’s negative impact on the earth is massive. According to the EPA, 25% of the United State’s non-industrial waste is produced by the construction industry, and that the 76 million tons of finished concrete used in construction accounts for 9.8 million tons of CO2.

Fortunately, the rising demand for green and sustainable construction and the incentives and benefits offered to general contractors to reach to obtain Fitwel and LEED certifications are helping to mitigate these negative impacts.

We’re a slow-to-adopt industry. It’s no secret. The LEED certification program was established in 1993, nearly 25 years after environmentalism became widely accepted in the U.S. Further, legal constraints and barriers to communication and collaboration from our past are big reasons why the construction industry is one of the slowest growing.

Cost overruns, delays, and change orders are expected. Archaic systems and even long-hand estimates are standard. Even though sophisticated technological advances like digitization, AI and AR, offsite manufacturing/prefab, and 3D modeling have proven their worth for 10-20 years in other industries, the construction is stubborn in just sticking to “what we know.” And it’s hurting us. Despite how large our industry is, in the past 20 years, we’ve seen only a 1% growth in productivity.

Multiple McKinsey & Company (one of the world’s oldest and largest management firms) studies show that industries that embrace new technologies are operating more efficiently and safely and experiencing an increase in profits.

Though construction is essential, without the incentive (i.e., money) to continue to operate your general contracting business, the pains we feel now will become dire—fierce competition, increasing owner demands and expectations, labor shortages, material costs, etc.

So, it is Beck Technology’s belief that change isn’t only inevitable for our industry to continue, it’s necessary. And that change begins in preconstruction.

Why Does the Construction Industry Need to Change?

  1. Financial Necessity

Right now, our industry is highly inefficient, and margins are very small. Simply put, we need to grow. To grow, we need to catch up to other industries. We need to become more efficient, increase our margins, and make more profit.

  1. Owner Expectations

Owner expectations are exceedingly increasing. They expect accurate estimates quicker than ever before. If you can provide a more accurate and transparent estimate with speed, you gain a competitive advantage. It will help you win more work. If this is done across the board, every general contractor experiences more volume in projects, resulting in more profit for the entire industry.

The Benefits of Embracing Change in the Construction Industry

It was only in 2004 that something we all knew finally was visualized. Architect and Chairman and CEO of HOK, Patrick MacLeamy, drew the ‘MacLeamy Curve’ demonstrating that the earlier on in a project you have to make a change, the cheaper it is. This can have a huge positive impact on the project.Patrick MacLeamy Curve

If we focus on planning, which comes in the preconstruction phase, Beck Technology believes that we can have the biggest impact at the lowest cost. Better planning equals better outcomes.

Cost Overruns and Project Delays Should be the Exception, Not the Expectation

The construction industry jointly invests only 1% in technology (2018). But there are opportunities with innovative technologies to provide:

  • A better-quality product
  • More value to the owner earlier
  • Reduce risk
  • Increase safety

With new digital technologies designed for preconstruction teams, like construction estimating software, we create a more efficient workflow, better align the estimate, schedule, and logistics plan, and provide owners a first number based on good data.

Beck Technology President, Stewart Carroll, says, “When we remove the barriers from people working together and can share information, it reduces the cost of the project, reduces risk, and increases the time the [preconstruction] team has to perform high-value activities.”

It’s high time we begin to connect the dots in the construction industry and start providing a level of preconstruction services that owners would pay for. Estimators do so much more than just enter numbers in a spreadsheet. With the right technology, estimators can harness and analyze data to provide affordable solutions to problems, find alternative building materials, keep the construction site safe, and build trust with owners.

We can’t do it without buy-in, though. Don’t you think it’s time to revolutionize the industry and change the world?

 

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