The Outlook of Data Transparency in Construction
The future is crystal clear. Digital trends that have finally emerged in Construction will not vanish when things return to a sense of normalcy. Health concerns and strict covid regulations have sparked an industry wide shift to software adoption. This provides a transformational opportunity for innovators to revolutionize how Contractors collaborate moving forward. At the core of this fundamental change in collaboration is a term called “data transparency” and it’s going to completely change the game!
For the foreseeable future, there’s much more risk inherited for every project stakeholder. Whether you’re an owner, contractor or supplier, in one way or another, your team will be impacted by something outside of your control. And now more than ever, a project’s outcome depends on the individual contractors’ ability to execute amid uncertain business conditions. The need for real-time information couldn’t be greater.
As unforeseen issues unfold on a daily basis, schedules, budgets, and safety all hang in the balance. For project outcomes to be successful for everyone, many teams will need to work together in unity. Data transparency can make that happen!
What is Data Transparency?
Data transparency is having the ability to access and work with data regardless of where it’s located and what software the information is stored in.
Who Benefits From Data Transparency?
The short answer is that everyone benefits! Owners, contractors and even supply chains all stand to benefit from increased data transparency across construction projects. Whether it’s internal department silos, or external teammates, data transparency removes the barriers from obtaining universal project information that can play a key factor in the project’s profitability.
General Contractors
Considering the amount of uncertainty baked into project schedules, General Contractors are actively looking to hedge risk by increasing visibility into sub contractors’ daily operations. This applies to both office and field related milestones. And with data transparency, this makes it much easier to accomplish.
When General Contractors can seamlessly obtain daily updates from their subs without requiring direct communication, this saves a huge amount of time and money for everyone involved. Scheduled activities onsite can be thoroughly planned and unforeseen risk suddenly evaporates from the equation. With more real-time information available, project teams can create win/win resolutions to avoid issues before cost impacts are incurred by one party or another. This helps build strong relationships with recurring project teams.
And when disputes do arise, teams can leverage tangible data to justify cost or schedule impacts. Data transparency reduces risk, promotes hyper accountability and creates trust between everyone involved.
Trade Contractors
In today’s environment, daily decision making affects the budget. And the budget affects the bottom line. So it’s best to leverage all of the information available to make data driven decisions with confidence.
Removing misassumptions and barriers to critical information will have a positive impact at all levels of execution. Operational efficiency alone can greatly improve from data transparency between departments.
Considering labor shortages and overall market uncertainty, having the ability to streamline daily updates for clients is a huge differentiator among competitors and Contractors that can offer this level of insight can command a premium for the risk reduction their organization provides.
Supply Chains
Supply chains have experienced a lot of turbulence due to various factors including tariffs, project shut downs and labor shortages across the world. The more real-time visibility Suppliers can get on upcoming demand is essential for supply chains to maintain any type of consistency.
For suppliers, the more data that can be streamlined early and often can prevent sourcing constraints or abnormally high costs from affecting your margins.
Industry Tailwinds For Increased Data Transparency
18 Months ago, the thought of establishing “data transparency” on a construction project was nearly impossible. In comes a global pandemic and the outlook has changed quite dramatically for the industry.
Even before Covid, many other industries were already experiencing the efficiency boosts of the digital revolution. However these “benefits” have proven to be illusive for most Contractors, until now.
Fortunately with the sweeping adoption of “work from anywhere”, this sparked a much awaited paradigm shift to increased software adoption in Construction. This means there’s much more tangible data that exists and therefore can be made available with the right set of tools.
Reopening Guidelines & Restrictions
Strict reopening guidelines have increased the need for detailed construction schedules that limit exposure and maintain social distancing requirements among the workforce. To meet these requirements, it requires intensive planning at all levels of execution. Clearly defined tasks and procedures must be shared quickly among project teams to stay in sync.
Whether it’s in the office, in the shop or at the jobsite, full transparency of daily activities being scheduled and performed are essential to maintaining schedules and budgets for everyone involved.
Business Confidence Has Wavered Due To Risk & Uncertainty
There’s no doubt that industry wide confidence has wavered during the pandemic. A wide majority of construction companies have cut spending budgets and some have even refused to bid projects due to health concerns and the impact of a company wide shutdown to their business.
The brave companies that are bidding work have experienced lower margins with much more risk to account for on a daily basis. Labor shortages, supply chain issues and even shipping delays all impact a contractor’s ability to execute on time and stay within budget.
Data transparency is the only way to mitigate this type of risk with any confidence. Owners and GC’s are actively seeking trade contractors that can deliver more insight to daily operations behind the curtain.
Trade Contractors that are capable and willing to share this information are much more likely to stand out from their competitors. Data transparency helps establish long term trust between parties and this capability commands a premium considering the risk reduction benefits it provides to the project.
Conclusion
Believe it or not, construction methods of the past are finally behind us. The rise of industry wide software adoption has brought the notion of “data transparency” to centerstage. This creates a massive opportunity for innovators to change how Contractors’ collaborate together both internally and externally.
Every project stakeholder stands to benefit from data transparency as better information typically results in better execution. Having the capability to establish a sense of data transparency is a true differentiator between competing bids. Contractors that can capitalize on this opportunity will outperform for years to come!
