As a construction technology veteran with over twenty years of experience, whenever I ask construction businesses how they manage cost, their typical response is: “We use spreadsheets.”
In fact, the KPMG 2015 Global Construction Project Owners survey states that “50% of construction companies have not yet introduced an integrated Project Management Information System (PMIS )”*. Old-school spreadsheets still prevail, and the construction industry still has a long way to go in adopting digital project management solutions.
Aconex is privileged to work with some of the most innovative owners, developers, contractors and EPCs in the world.
We launched the Aconex Connect Awards program in 2016 to recognize these forward-looking organizations for their industry best practices and accomplishments.
The 2017 Aconex Connect Awards honor 30 customers worldwide for innovation in delivering significant construction and infrastructure projects efficiently and successfully. Customers were nominated for the Aconex Connect Awards in three categories: Hero Award, Project Award, and Enterprise Award.
Selected global honorees include: Balfour Beatty, China State Construction, John Holland, Louis Berger/Egis Rail JV, NGE, Parsons, Rio Tinto, Riyadh Metro, and VINCI Construction Grands Projets.
Aconex hosted on 11 May, in Dubai, a roundtable discussion with industry leaders from client bodies, consultancy firms and contractors to discuss the importance of project controls for the Middle East region’s ever challenging construction sector.
Background: Lower oil prices impact Middle East private sector projects
Since late 2014 lower oil prices have put downward pressure on government budgets, which has constrained infrastructure spending across the region. At the same time, lower oil prices have meant the region’s oil exporters have less funds on deposit within the regional banking system which has constrained the level of liquidity available for private sector projects.
We live in a time of both great opportunity and great risk for the construction industry.
In a recent Aconex survey conducted in August 2016, we learned that organizations face three key challenges:
- Establishing a single source of truth – a reliable source of information all project partners can draw from.
- Finding a flexible solution – integrated technology for an organizations’ day-to-day processes.
- Standardizing portfolio management and reporting – applying standardized processes and measuring performance across a portfolio of projects.
We’ve all seen the warning signs. Large projects are taking longer to complete and huge cost overruns are common.
McKinsey & Company have run the numbers and tell us: “Large projects across asset classes typically take 20% longer to finish than scheduled and are up to 80% over budget.”1 This comes at a time when the average project size is growing, the complexity is becoming harder to manage, and the need for sustainability and good business practices is greater than ever.