Construction is lagging behind in digitalisation

Opinion piece by Henrik Schødts, Project Director for the New North Zealand Hospital, Gyrithe Saltorp, CEO of Vilhelm Lauritzen Architects, and Michael H. Nielsen, Director of the Danish Construction Association. Published in Licitationen on 22 October 2018.

At a time when technology is advancing rapidly, access to knowledge is greater than ever, and some of the largest construction projects in Denmark’s history are underway, we have a unique opportunity to create growth and exports. Through a targeted sector strategy, we can digitalise the construction industry here at home and create an international role model. This is an ambition that should be supported by both industry players and decision-makers in Denmark.

So what are we waiting for? Denmark is one of the most digitalised countries in the EU, where, according to Statistics Denmark and Eurostat, 42% of Danish companies have a high or very high degree of digitalisation. Unfortunately, this does not apply to construction companies, where the same figure is only 8% in Denmark, compared to 14% in the EU.

Skills boost for all parties

Fortunately, there are signs that change is on the way. The toolbox is now well-equipped. The challenge is to integrate digitalisation into every link in the value chain – and into the culture. From clients to consultants to contractors, and all the way out to the building site. We believe this must be done through an upgrade in skills and a change in mindset.

The benefits will be shared by all – more ambitious and sustainable buildings, less waste, more value, and a better bottom line for all parties involved. Let’s build right and avoid exhausting and costly claims.

The right approach from the start

The construction of the new super hospital in North Zealand, expected to start next spring, is a historic opportunity to demonstrate a fully digitalised process. The curiosity is there, the technology is there, and the ambition is there.

The government launched its ambitious digital growth strategy earlier this year, so the timing is right as well. Now we just need to do it. We don’t have all the answers, but we have ideas on where to start.

The client as the driving force

Make the client the driver of the digital framework. The construction industry finds that clients rarely demand digitalisation with enough ambition.

When the public sector builds, it should be an unbreakable requirement that the project is developed digitally in a way that integrates with the relevant systems. This incentive was previously part of the so-called ICT Executive Order, but few projects have complied with the agreement during execution. In the future, ICT agreements should therefore address how the entire construction process is managed. The client must present a comprehensive digitalisation strategy from the start – and choose the software and how the parties will use the information created by the technology on the construction site, in the design process, and in planning the build.

Demand openness

The client should also set the framework for the specific exchange format for the different systems used by the parties, so that they can communicate with each other and drawings and data can flow freely. All parties should be able to make decisions on an informed basis, as only the current material is available.

Move digitalisation to the construction site

Move digitalisation onto the building site – and ensure that the system is simple, intuitive, and portable, like MobilePay. This way, all employees can use the system to communicate, coordinate, or document on their smartphones, learn from day-to-day activities on site, and use it to plan and improve the work.

Make logistics digital

Make logistics digital, as in other industries. Today, wasted time is one of the biggest obstacles to efficient construction.

Training in the budget

Include ongoing training in the budget. Allocate funds specifically for training contractors and construction workers in digital tools, so that everyone has an equal opportunity to participate.

Let’s start the dialogue on what full digitalisation requires and identify the obstacles. We need the digital revolution – not for the sake of digitalisation itself, but to create value and quality in what we build.

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