This article is part of a blog series, which explores the use of Digitalization and the Internet of Things (IoT) in construction.

Construction companies are always looking for ways to improve their sites' operations through the introduction of digital tools, the Internet of Things (IoT), and data analytics to minimize:

• health and safety threats,
• over-budget spending,
• schedules overruns,
• theft and waste issues.

How to improve project cost forecasts?

McKinsey estimated that around 98% of construction industry “mega” projects experience cost overruns of more than 30%, and three-quarters are at least 40% late.

The categories we identified for potential cost overruns are mainly technical challenges, which include:

• scope changes,
• disagreements between clients, contractors, and sub-contractors, - labor and material cost increases,
• inaccurate forecasting,
• unforeseen events and inadequate monitoring.

How to Meet deadlines?

Construction projects are well-known for being late and missing deadlines

Connected IoT devices can help construction companies with project progress tracking.

By equipping site workers with wearable technologies, such as connected sensors on clothing or hard hats, construction companies can track employee movements to ensure teams are using working time efficiently.

IoT-enabled management systems help keep track of material deliveries to sites, so projects can meet deadlines, and reduce costs.

Digital twins of a building not yet built can help to ensure efficiency, keep projects on track, and keep costs under control by:

• testing designs,
• keeping plans on track through simulations, and
• improving operational processes before physical construction begins.

How to avoid theft?

IoT-connected sensors and digital tracking tools can help reduce theft.

According to insurer Allianz Cornhill, thefts from construction sites cost the UK construction industry $ 1,000 million a year.

During the COVID-19 lockdown, we had a resurgence of thefts from construction sites, according to the UK Construction Equipment Association (CEA), by 50%, as sites were not properly guarded.

How to revolutionize health and safety?

The main causes of accidents in the construction industry include: - cuts, - falls, - flying objects landing on monitoring - workers - lifting or carrying items.

Wearables monitoring hazardous materials and sensors on workers’ clothing and hardhats, connecting workers with the site managers and inspection platforms, will send the site manager an alert when workers enter unsafe site areas, potentially reducing accidents.

IoT sensors to track noise, vibration, or motion into probably unsafe areas around sites can improve their safety.

Data analytics tools used to analyze historical data can detect patterns for potential damage from environmental or site issues. Having these data available helps reduce costs from accident management, preventing potential recurring on-site casualties.

How to use astute tools for wise results?

Engineering and Construction companies worldwide are partnering with technology providers to use IoT tools, digital technologies, and data analysis to boost their performances.

In Australia, GHD, a leading regional construction company, and engineering and advisory services firm, partnered with Orange to co-innovate an Internet of Things as a Service (IoTaaS) platform called Connected Objects.

The project allows tracking the movement of materials and assets at a construction site in real-time and monitoring the number of people on-site, giving construction companies the data to optimize logistics, detect thefts, maintain equipment.

“Digital tools, data and IoT can be of huge benefit to the construction industry,” says Kevin Griffen, Managing Director of Orange Australasia. “Whether keeping track of assets, reducing the threat of theft, or making sites safer for workers, technology is revolutionizing construction and enabling sites with things that previously couldn’t be done. It helps companies drive fewer injuries, better-budgeted projects, and reduced overruns. And digital is scalable, so these tools can be used on construction projects no matter how large they are. From new factories to airports to housing estates, digital can enhance construction operations.”

Can technology transforms a traditional industry?

With data and digital tools, construction can thrive:

• 95% of construction companies have told KPMG that emerging technologies will fundamentally change their industry,
• PwC reports 98% of construction companies to expect digital tools to increase efficiencies by 12%.

The Construction industry is known for costly overruns, expensive equipment, skilled labor shortages, and increasingly short project schedules, IoT tools can leverage real-time data to help construction firms to succeed.

In Conclusion

A Procore survey identified 3 measurable benefits of performance visibility thanks to the IoT and real-time data:

• Money the survey respondents estimated that around five hours per week (c. 240 hours annually) were saved as a result of performance visibility.

Weighted to the relative sizes of the organizations and to measurable benefits of performance visibility the manpower costs involved, the results suggested average annual savings of $330,000 per business from addressing performance gaps in the UK and Ireland.

By contrast, those firms which had no visibility of performance estimated they were wasting an average of 3.5 hours per week, with average financial costs to each firm of around $345,000 a year due to poor performance.

• Quality and Safety were also improved by having performance visibility. Respondents with Performance Visibility:

• 49% registered fewer defects,

• 48% reported better tracking of safety records, and

• 46% felt visibility supported their compliance with standards such as ISO 9001 / 45001.

Respondents without visibility of their performance globally felt they were hampered:

• 30% in managing risks,
• 25% in managing defects, and
• 23% in managing safety.

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