After speaking to hundreds of contractors at the Association of General Contractors (AGC) Annual Convention in Las Vegas, I heard a lot about: lean construction, site productivity, information security, and the focus on digitization to help solve these problems.
I know that my colleagues in other parts of the world have similar conversations, and that contractors as a group tend to experience one or more of the following situations:
Does this sound like your world?
Standardization in construction has always been a struggle.
Once upon a time, construction projects were managed using stacks of paper, manuals, rows of binders, complex tables of contents, and piles of CDs. Efficient maintenance is often aggravated by personnel turnover, inconsistent formats from various contractors, and inaccessible information. These issues can lead to delayed repairs and time-sensitive calls to contractors. But these onerous struggles can quickly be addressed by shifting to optimization and automation.
Early management of information in a capital project is paramount to setting the project up for success.
Conversely, failure to pay adequate attention to information management introduces risks that, if realised, can have significant consequences. Further, a 2013 PwC analysis of 36 companies across multiple sectors has revealed that after a public announcement of a capital project delay or shutdown, a majority of companies experience a steady decline in share price. By the three-month mark following the announcement, the decline in share price averages 12 percent.
Are you doing your part to increase productivity in the construction industry by avoiding these 7 deadly project control sins?
According to McKinsey, “A 1% reduction in costs would save the construction industry approximately $100 USD billion annually.” In an industry where margins are typically as low as 3%, and there are few avenues available to reduce the cost of delivery, leaders are turning toward upgrading their project controls to address the one percent opportunity.
These are some of the ‘sins’ of project management that I see most often, and that contribute to some of that $100 USD billion being left on the table.
Maintaining a complex facility such as a hospital, hotel or shopping centre is a challenging role.
In contrast to commercial buildings, where changes are less frequent, facilities with high public traffic will experience upgrades frequently. As a result, the documents containing information about the facility are constantly changing.
As a facilities manager, you recognise that as more data points enter your facility, it’s harder to ensure that accurate asset maintenance records are kept.