In my six years of working in the Australian construction market, a consistently voiced customer concern is the relentless pressure on margins.
With many tenders now allowing almost zero-margin, construction firms must find ways to stand out from the competition besides offering the lowest initial tender price, while at the same time reducing internal costs. In this environment, reliable repeat client business, or winning tenders where price isn’t the sole deciding factor, can be the difference between surviving and thriving.
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.
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.
As anyone who works in the oil and gas industries knows, major capital projects in the energy sector are exceedingly complex undertakings. Developing a refinery, oil field, or gas plant usually involves dozens of parties across multiple countries.
A survey of 100 projects by Aconex found that most involve more than 500 participants from 29 organizations. On average, these users exchange more than 300,000 documents and 400,000 pieces of correspondence; all told, in excess of 1.2 million decisions must be made before each project is complete.
Project leaders have never felt so pressured to improve efficiency: margins keep shrinking, projects grow more complex, access to craftspeople is squeezed, and wage pressure mounts.
Many general contractors have turned to construction management technology to power processes and people, minimize project delays, and measure project performance with confidence. To deliver a project on time and under budget, project teams have to efficiently manage “the digital world” – all the information, communication, and actions that support the physical asset build.