Welcome to construction in 2022, where intelligent construction technologies have finally arrived. The tech revolution has taken quantum leaps in the latest decade, especially in construction methods. As a result of profound, ongoing digital transformations, the Architectural Engineering and Construction (AEC) industry is undergoing dramatic shifts. As a result, boundaries are being pushed and re-imagined.
“The world is on the brink of a technological transformation; one that will disrupt the way we all live our lives, the way we work, and the way we interact. The World Economic Forum has, for a few years now, described this upcoming event as the ‘Fourth Industrial Revolution’, and has characterized it as a’ fusion of technologies that is blurring the lines between the physical, digital, and biological spheres’. Multiple industries are continuing to enter this exciting new era, transforming the way they work with the support of new digital technologies and automation, and innovative organizational structures.”
Deloitte; Predictions: Modern Methods of Construction
Imagine being able to 3D-print an entire building, or bridge, in just a few days. That is now a reality. Though still in its infancy, such scaling is possible. In addition to increasing speed and eliminating errors in quality, the 3D printing of buildings can render building materials such as cinder blocks or concrete with the most efficient usage possible, thus producing the least waste.
As more technologies continue undergoing a digital transformation, these highly disruptive technologies are transforming the construction industry. Below is a briefer on the latest trends in modern construction technologies, their impact on AEC, and how to wisely get smart.
Technology’s Impact on the Construction Industry
If you’re a real estate developer, contractor, or in any way involved with construction as an industry, you may want to prepare yourself. Digital changes in construction are rapidly changing the entire construction landscape: faster building times, smoother workflows, less waste, lowered building costs, fewer worksite personnel, and better standard quality in construction. This is creating a win-win for all stakeholders.
The many innovations available in construction today are not only making the industry safer but also helping project planners make wiser choices. This, in turn, gives developers greater control over their budgets and timelines. Perhaps best of all, innovative technology in construction also removes limitations in terms of a design concept, materials, or building location. The smart trend within built communities can also move us toward green construction, sustainability, and other eco-goals.
In just one of the many technological impacts: the ability to Design for Manufacturing and Assembly (DfMA) means that manufacturing parts for simplified assembly such as prefabricated materials or modular construction reduces both deliveries to the work site and on-site construction. This decreases travel needs and carbon emissions.
The largest known global players to adopt smart construction technologies are grouped in the graphic below. The benefits and rapid advancements of digital technologies in construction will continue to grow exponentially, making our world better, safer, wiser, and more connected.
The largest construction industry clusters of use cases include 3-D printing,
modularization, and robotics
Pitchbook; McKinsey analysis; Rise of the platform era: The next chapter in construction technology
Finding Efficiencies: Improving Construction Costs Through Innovation
Construction is one of the world’s largest industries, totaling around $10 trillion annually in building-material costs and services. Yet, despite its enormous demand, construction trails every other marketplace sector in terms of annual growth, averaging 1% growth over two decades. However, that is about to change. Digital advancements and tech innovation could not come at a better time for the Engineering and Construction (E&C) industry as a whole.
The Turner Building Cost Index measures market costs for new construction in the non-residential construction sector. This includes labor costs, materials prices, and competitive marketplace conditions for non-residential construction. Just before the COVID-19 pandemic, the Turner Index had reached 1,162, the highest cost rate in the 13 years since its creation. This was mainly driven by rising labor costs and prices for building materials. With the COVID pandemic, the Index had reached 1,189, a new peak, by the start of 2020. Since then, global supply chain disruptions and inflation again increased construction costs.
Industry analyst Deloitte, in their 2021 Engineering and Construction Industry Outlook report, underscored the indelible impact of intelligent construction technologies on the Engineering and Construction industry, hopeful about the modest improvements being witnessed at last:
“The E&C industry has been operating on razor-thin margins for many years now, and the situation has only worsened since the pandemic outbreak... To reverse this situation, E&C companies should consider several ways to create long-term efficiencies and competitive advantage in 2021. One option is to save costs via modularization and prefabrication design... Module assembly yards borrow some of the cost-efficiencies of manufacturing and could lead to considerable cost savings, ranging from 6% to 30%. Besides material costs, modularization and prefabrication can also help reduce labor costs, ensure better design and quality control, and shorten the project schedule..... Another approach is to change the focus of technology investments from isolated projects to integrated, enterprise-level initiatives... Through enterprise-scale technology investments, E&C companies can develop a connected construction foundation—a dynamic, always-on network that provides continuous access to information, analytics, and insights. Benefits are expected to include as much as a potential 10% to 30% reduction in engineering hours, up to 10% reduction in build costs, and up to 20% reduction in operating costs, improving overall margins for E&C firms throughout the entire project life cycle.”
Deloitte; Engineering & Construction Industry Outlook, 2021
The future of modern AEC technologies lies in connected construction, breaking down the silos between teams, processes, and data. Using this approach, one can fine-tune and calibrate industry needs alongside supply-chain demands; in real-time.
Construction Technologies: Disruptive Trends, Innovative Tech
The impact of connected construction, smart and integrated technologies working in unison in construction, has only just begun. Even so, this bespoken technology for the building industry is already improving market efficiencies, construction quality, timelines, and bottom lines.
These advancements couldn’t come at a better time for AEC and the entire construction industry, as the costs of projects skyrocket. Construction projects’ most costly aspects are mistakes, oversights, rework, and waste. However, there are also ramifications far beyond financial burdens, like sustainability and affecting the likelihood of word-of-mouth recommendations from clients.
Oversights in quality, materials selection, planning, controls, and other disciplines, lead to financial losses and increased safety risks. With digitally connected construction technologies, mistakes are less likely, and risks are mitigated.
The ABCs of Connected Construction Technologies
This decade has seen vast improvements in the construction industry’s cost-saving technology and intelligent strategies. These advanced industrial technologies are also largely sustainable ecological improvements to basic construction. Below is a glance at some of the most widely-celebrated smart technologies currently making a global impact.
- Augmented Reality (AR) is reshaping construction, especially in the planning phase. AR combines information from the physical and digital worlds into one immersive environment using advanced
cameras, sensors, and GPS. Augmented reality is a technology that superimposes computer-generated information into a real-world environment so that users can interact with real and virtual objects. In construction, augmented reality is used to visualize projects, assist design choices, display work to be done, and monitor progress. AR can benefit a project by allowing stakeholders to experience the built structure before construction begins. It can also help reduce rework, enhance collaboration, and improve communication between professionals. - Autonomous equipment and other on-site and off-site automation in construction technologies continue simplifying and speeding up the building process. For construction, autonomous, driverless vehicles include autonomous dozers, excavators, and haul trucks. The vehicles are usually connected to allow for coordinated actions. Another kind of autonomous or semi-autonomous construction vehicle is called a rover. They can follow workers around carrying tools and materials. Autonomous construction vehicles operate using LIDAR sensors, IMUs, and GPS technology to know their exact position on-site, and a geofence prohibits them from operating off-site. They’re often connected to other autonomous and non-autonomous vehicles on-site. Autonomous construction vehicles have improved safety, increased productivity, and precision work. They are being tested in construction and will likely be available on the market within a few years.
- BIM, or Building Information Modeling, BIM is a collaborative process that involves architects, engineers, contractors and clients in a common data environment. A
BIM model is a virtual 3D model of a construction project, which is made up of different layers corresponding to different types of information. Using the BIM model throughout the construction process streamlines the work, helps define potential problems and detects clashes before construction begins. BIM can improve the design process’s speed, quality and collaboration and reduce rework and errors, as the model is accessible to all stakeholders. BIM enables other digital technologies such as virtual reality for design, construction 3D printing, and predictive maintenance. However, it requires significant upfront investments and commitment from all stakeholders, and it may be challenging to implement in some companies. In addition, VDC or Virtual Design and Construction adds a strategic focus on managing the BIM processes,
Moreover, 4D BIM adds time-related information to a 3D BIM model, which can be used to make detailed time schedules, optimize space usage and visualize how a project will progress over time. In addition, 5D BIM adds costs to BIM components, which helps to calculate total project costs. Finally, 6D BIM includes lifecycle properties, which can be used to optimize asset management. The client can use the BIM model to manage the facility after construction to optimize the operation of the building. - Blockchain technology is being used to store and transfer data securely. Blockchain-based smart contracts ensure that money is transferred between stakeholders when certain pre-defined criteria have been obtained. This makes approval processes more transparent and legally binding. Blockchain technology may be used in the construction industry to store records on the origin of materials, make approval processes more transparent, manage contract management, and ensure that sub-contractors are paid on time. Blockchain technology is often compared to the internet’s transformative potential, as it may change how we exchange value and whom we trust. The technology can help increase the construction workflow’s efficiency by reducing transaction costs, eliminating disputes, and ensuring transparency. However, there are still challenges, such as defining criteria and standardizing processes. In addition, blockchain technology is still in its infancy, and early use cases are emerging in construction.
- Smart site sensors and cameras are installed on the construction site to help project managers optimize the working efficiency, monitor the progress and quality of
the project, and detect safety issues. Sensors can be attached to construction materials and equipment or worn by construction workers to track their location and safety. Construction tools and machinery can be tracked to increase their efficiency and transparency. Quality can be improved by monitoring curing processes, temperature, and humidity. Safety can be increased by monitoring noise, air quality, and repetitive motions. For example, connected hardhats are now part of wearable tech. These smart hardhats use IoT elements to monitor worker location, motion, and temperature automatically, alerting them to accidents or other site dangers. By leveraging AI, construction helmets could soon become more than just a safety device; they could also be used to assist with tasks such as directing workers to specific activities. - Drones and laser scanners have taken over site surveying. Small aerial drones with mounted cameras can cover large amounts of land, reducing survey costs by as much as 95%. In addition, drone imagery can make accurate topographical maps, track misplaced equipment, inspect tall structures and bridges, monitor project sites’ progress, providing real-time updates. Drones can also be used to take photos or videos of a project and 3D models of the surrounding area or structures for use in BIM or virtual reality. This can be helpful for pre-construction planning, visualization, and asset management.
- Exoskeletons are wearable devices that amplify a person’s strength and support their movements. Current exoskeleton types include power gloves; arm and shoulder
support; back support; standing support, superb for drilling; and whole-body suits. Construction workers can use exoskeletons to lift heavy items or tools at the construction site. Passive exoskeletons are less expensive and work by shifting pressure from the arms and shoulders to the core or legs. They can improve safety, reduce fatigue, and improve efficiency. As reported in the S. Gov. Commercial Construction Index, 6% of contractors were using wearable tech in 2019; and it was expected to increase to 33% in the next three years. Construction companies will likely adopt exoskeletons in more significant numbers in the future. - Fleet management improvement uses vehicle sensors, GPS technology, cameras, and other equipment to improve the costs and safety of fleet vehicles. They are a fully connected technology platform that can optimize the entire value chain: acquisition, leasing, maintenance, fuel management, supply-chain management, collision response, driver safety programs, tolls, and other compliance services. In addition, it can also provide insights into operational performance and detect potential risks.
- Green Construction has evolved to a much broader concept and is more than a trend. Eco-consciousness is the future of construction, and today, green construction refers
to the use of sustainable materials, techniques, and technologies for all aspects of the construction process. In the context of connected construction, it means using automation in areas such as energy management, water recycling, and waste management. Modern construction methods and optimized management have led directly to lower emissions, decreased waste, and increased efficiencies. Even materials have improved to include: eco-sustainable asphalt, geosynthetics, fire-resistant timbers, self-healing materials, light-emitting concrete, Kinetic paving, air-purifying bricks and cement-based conductive composite with carbon fibers, all of which can enhance the sustainability and lifespan of built structures. - LiDAR, or Light Detection & Ranging, has recently become a useful tool in construction. It uses laser pulses and remote sensors to measure the consistency of construction by shooting millions of laser beams per second to form a 3D image of the surrounding environment. It is used to capture data on the topography of the ground, vegetation, and buildings. LiDAR allows surveyors to identify the conditions within a constructed building structure, unlike other survey methods. For example, this technique can reveal the need for targeted renovation. LIDAR is especially useful in projects with limited access to the site, such as underwater, in forests, and under other extreme conditions. It is also used in surveying and mapping projects, such as the construction of highways and railroads.
- Machine Learning and AI, or Artificial Intelligence, pair big data analytics with machine tools. The idea is to help machines ‘learn’ from past experiences and make wiser decisions based on AI analytics. This makes machine learning a reality, increasing intelligent decision-making, productivity, safety, and more. For example, AI and machine learning algorithms are used in construction to predict future cost overruns, safety hazards, maintenance needs, and unplanned downtime. Every part of a construction project, from planning to project closeout, will soon be affected and improved by AI advances in machine learning. AI has been demonstrated for construction but is not yet fully implemented.
- Prefab and Modular Construction have become the new norm within Modern Methods of Construction (MMC). By crafting walls and housing elements off-site, mass
production and quality can be standardized and sent to project locations for simple assembly. Modular construction refers explicitly to instances of prefabrication where the elements are standardized modules. For example, each module can be a hotel room, factory-fitted bathroom, structural framework, or façade element. This pre-manufacturing and modularization lower emissions and reduce waste and construction time. - Construction Cloud integrates multiple asset classes and tech platforms for secure and simplified communications and BIM collaboration. This disruptive construction technology platform allows project stakeholders to access and save diverse project information in one place and access it anywhere. It creates more innovative solutions, better collaboration, automation, data analytics, greater project insights, and the evolution of smart infrastructure. However, data interoperability, considerable bandwidth and cybersecurity concerns need to be addressed.
- Robotics in construction has entered a new frontier. With the industry adapting to labor shortages and social distancing requirements, robotics has stepped in to take on the most labor-intensive industry on the planet: construction. In addition to drones, autonomous vehicles, and wearable tech, robotics can now produce humanoid laborers that use power tools and perform tasks like welding, laying bricks, tying rebar, creating formwork, assembling timber frames, installing drywall, completely unassisted, or cobots, robots that collaborate with humans; or even robot swarms. Construction robots are in development, but some are already market ready.
- XR, or extended reality, is an umbrella term for advanced software technologies being used in construction workflows. These include augmented reality (AR), as noted above, mixed reality (MR) and virtual reality (VR). With XR, construction companies can collaborate with clients in a virtual environment that can be accessed from any location. Using XR, construction companies can visualize their future construction plans more realistically. They can also offer their clients a realistic AR view of the construction site. Such technologies are improving the safety of construction sites and expanding the possibilities and limitations of building design.
- 3D Printing has evolved. As mentioned in the intro of this article, the scalability of this commercial digital construction technology allows one to print entire buildings, or
bridges, using 3D. Emergency relief housing, or small homes, can be 3D-printed at less than $10,000 per home. Construction 3D printing is a method for manufacturing construction elements or entire buildings using a 3D printer to print concrete, polymer, metal, or other materials, layer-by-layer. The most common type of printer is based on a robotic arm that moves back and forth while extruding concrete. Other methods for 3D printing include powder binding and additive welding, which can be used to print a full-scale, functioning metal bridge. 3D printers are used to create construction elements faster and more safely than traditional methods. In addition, they use less material and can produce complex shapes not possible with conventional methods.
Construction companies like Bouygues and Skanska collaborate with universities and start-ups to develop 3D printing technology. This is likely the future of construction. - Digital twin is a virtual replica of physical asset. The concept of the virtual twin has gained significant popularity in the last decade as the concept of the Internet of Things (IoT) has evolved. In the construction industry, a virtual twin of a construction asset can be used to understand and manage the performance of the asset. A digital twin can be created by incorporating sensors in the construction equipment to track its usage. The collected data from the sensors is then processed and stored in the cloud to create a virtual representation of a construction asset. Digital twins will be immensely useful in managing the life cycle of a construction project. For example, a construction development company can create virtual twins for each asset and use the data collected to perform condition-based maintenance.
The above are just some of the most disruptive and innovative technologies to change construction as we know it rapidly, and more are constantly being developed and enhanced.
Predictions & Benefits of Smart Construction Technologies
Construction tech innovations continue ramping up, enhancing productivity, standardizing quality, considerably improving operational efficiency, and even lowering costs. Finding every available market advantage in this highly competitive industry is key to sustainable growth.
The expected financial boons to construction will be both significant and timely. In 2021, Oxford University scholars called the post-COVID-19 pandemic, supply-chain issues, and other disruptions to the global economy “the worst since the Great Depression some 80 years ago.” Yet, despite these severe setbacks, scholars now expect construction to drive global economic growth in the years ahead due to the many smart, adaptive construction technologies currently emerging.
“The global construction market is expected to grow by U.S. $4.5 trillion over the decade to 2030, to reach U.S. $15.2 trillion... The Global Construction industry is set to be a global engine for economic growth and recovery from COVID.”
Oxford Economics; The Future of Construction, 2021
For developers and investors: the advantages of combining smart construction technologies cannot be quantified at this time, nor will they be limited. From AI-powered buildings to robotic constructors, from design for manufacturing and assembly to modern construction methods, digital construction innovations are already revolutionizing our future.
Source: Pitchbook; McKinsey analysis; Startup and Investment Landscape Analytics
Rather than focusing on what technologies to use, forward-thinking developers and builders should ask themselves what prerequisites must be satisfied to use them effectively: How to keep pace with the wave of innovation? How does one choose the right technology? How does one build smart, wisely? The answer lies in seeking construction-specific transformation experts to help with the planning and execution.
The Future of Construction Technologies
Implementing the right blend of construction tech efficiently and effectively is not always intuitive.
When considering the range of new digital tools available, developers and builders should take a global perspective. Construction has been revolutionized by digital technologies and smart methods, resulting in faster, higher-quality construction, with increased design creativity, lower material consumption, and more sustainable materials. It’s an exciting time to be a part of it.
Successful implementation of these and other emergent technologies in construction requires a tailored, hands-on approach. The Construct360 system looks holistically at a company’s digital business transformation, identifying present and future needs and requirements for an efficient and successful process. The Construct360 approach is based on over 30 years of international experience in construction management and a proven track record of successful projects in the Middle East, Europe, and the USA. Contact Bashar and set up a consultation. See how connected construction technologies can work for you.
Construction technology is one of the change catalysts and enablers in the Construct360 practical approach to digital transformation in construction and real estate development companies.
