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Maximizing The Value of Data For Construction Companies

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A C O N S T R U C T I O N C O M PA N Y ’ S G U I D E

For Maximizing
The Value Of Its Data
W H I T E PA P E R

28%

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LEVEL 4 1 | Data Applications


Introduction
Industries around the world have evolved by leveraging data to
improve areas of their business, which has directly affected their
bottom lines. This whitepaper will unveil immediate opportunities
companies in the construction industry have to improve their
performance using data.

The Purpose Of This Guide Is To:

Identify current issues with the construction industry’s


status quo and where they pose a significant challenge

Provide clarity on how the construction industry can


utilize data to enhance performance

Topics Covered

The construction industry as a whole is lagging behind on data


integration. Industries around the world have embraced data but
construction has not seen the same acceptance. Organizations
that embrace advances in technology and leverage data will
have significant advantages in the industry.

This paper discusses the advantages of using data from the


early pre-construction phase through warranty.

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Table Of Contents

The Case For Leveraging Data In Construction 4

Data-Driven Bidding & Planning 5

Data-Driven Project Delivery 6

Data-Driven Corporate Governance 7

Data-Driven Warranty Management 8

Data-Driven Dispute Resolution 9

Data-Driven Payment Approvals 10

The Challenges Of Using Data 11

Collecting Data 12

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3 | Data Applications
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The Case For Leveraging Data


In Construction
The construction industry is full of risk. Each project has the potential to
significantly affect the bottom line – both positively and negatively. As managers
in the industry, action must be taken to avoid negative project outcomes. In
cases where a negative outcome is unavoidable - understand the situation as
early as possible, initiate mitigating measures, and minimize the financial impact.

Data is the main driver of change in all industries. Manufacturing shares several
similarities with construction, the benefits of using technology and automation
to collect and analyze data are widespread and have become critical to boosting
productivity and managing risk in manufacturing facilities.

Changing Habits Is Key

There are two key challenges organizations face when leveraging construction
data. First, data in the construction industry has traditionally been unreliable
and subjective. Second, managers are not in the habit of relying on data for
making decisions – instead, relying on historical precedence.

These challenges are becoming easier to overcome. Data is now more reliable due
to advances in technology and data collection. Also, due to the COVID pandemic,
the acceptance of technology and data use has accelerated worldwide. The
combination of these factors has made it easier to leverage construction data
to increase productivity and profitability.

Changing the habits of construction managers is a difficult process. That said,


the younger generation is more willing to adopt technology and, in some cases,
demands it. As data continues to prove its value, organizations will see an
increase in acceptance of its use.

What This Guide Is About


In the following chapters, we will describe numerous production data applications
for active and historical construction projects. Learning how to collect and leverage
data can unlock new ways of controlling your projects, which decreases the risk
that a project will diminish your margins for the year. Data can be leveraged to
assist in all stages of a project - from estimating to the end of the warranty period.

In the last two chapters of this guide, we will discuss some disclaimers and
warnings based on our own experiences in the field, as well as some of the tools
that can assist businesses in improving the data collection and analysis process.

4 | Data Applications
Data-Driven Bidding & Planning
1
The bidding process is stressful. Any small mistake can destroy margins or even cause a
loss on the project. The number of variables to consider is astronomical, and time is short.
Reduce Buffers And Risk With Data-Driven Bidding Using Data For Scheduling

Historical data will help minimize risk while preparing Once your bid is accepted, planning is your next challenge.
a competitive bid. Data provides you with accurate Today, we rely on our planning and pre-construction
historical performance data based on recent projects. team to produce a schedule. The schedule is typically
It will also help to understand the risk involved with a based on their past experience and timelines provided by
project based on previous project issues. As a result, subcontractors. Each company has internal benchmarks
estimating teams can better quantify risks to make for estimating scheduled durations. These benchmarks
appropriate contingencies. are rarely updated and do not take into account variables
on each project. Historical data provides an objective
With more accurate bids you will require estimate for each scheduled item and accounts for the
fewer contingency allowances, take less project type, size, location, and many other factors.
risk, and be more competitive. Seeing the estimate range also provides excellent data
for planning buffers into the schedule.
Trust is a key factor for clients making a decision on
Different sequences produce different results. Currently,
their preferred bidder. Providing accurate bids, which are
the experience or creativity of your scheduler is relied on
supported by historical data, can help to build confidence
to produce the ideal sequences for the project’s schedule.
that you will deliver the project on time and on budget. It
The spotlight box below describes a process we have
puts the client and the general contractor on the same
recently assisted a few of our clients through. We have
page in terms of estimates and risk factors in the project.
tackled this exact issue - with mind-blowing results.
Being able to show that numbers in the bid are based on
real data can go a long way in building that critical trust. Dependencies are a critical part of every schedule. In
many cases, critical dependencies are missed making the
Data can also help with your supply chain. Having
critical path unclear. In other cases, we see dependencies
accurate historical data available to your estimating
that have been assumed but, in reality, are not real.
team will reduce the project’s risk. Data can be used
Eliminating those from your schedule can lead to a
to verify that subcontractor quotes are compliant with
shorter schedule and maximize the efficiency of your
the bid documents. Outliers are easily spotted and
site. Historical data can be leveraged for critical lessons
can be followed up on. This reduces your risk by not
and makes it clear which dependencies are critical - and
accepting a bid that is low due to missed scope - which
which are not.
the subcontractor may try to make up somewhere on
the project.

USE CASE
303
Data-Driven Plan Improved Performance By 50%

General contractors analyze activity performance data


through the Buildots platform. Using the data, they
search for instances where performance was above
or below the company’s average to determine how
sequence changes could improve results. For example,
one of our customers found that flexible duct segments
could be installed before AC units. Due to that change,
ductwork performance improved by 50% with minimal
material cost increases.

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5 | Data Applications
Data-Driven Project Delivery
2
Challenges that occur as a result of a lack of data have caused workflows on the job site
to evolve. Examples of workflows that have adapted to overcome the lack of data include
weekly trade meetings, monthly payments, progress reports, commercial reporting, and
supply chain management. These processes have been designed to compensate for the
subjectivity of the project status and performance.
Historical Performance Data Using Data For Better Short-Term Planning
Think of each of these situations and what they would The need for accurate data is far greater when it comes
be like if you had accurate, historical performance to short-term planning, in order to keep everyone
measurements. You’ll realize that these processes would accountable and ensure an accurate starting point. On
be redundant or look completely different, allowing you to a weekly plan, an activity mistakenly marked as complete
achieve the same results with much less effort. Take for can make completing the rest of the plan impossible.
example, a one-on-one meeting with the subcontractor’s With the right data, you can plan and measure correctly
foreman. You can sit in front of a report showing accurate - increasing the effectiveness of those processes.
progress information compared with the schedule they
Sentences like “The first time I know a two-week activity
have agreed on - accurate down to the single socket
is late is at the end of those two weeks” are ones we
level. Not only that, but you also have similar data for
constantly hear during industry interviews. But this
all other subcontractors on-site that you can review
doesn’t have to be the case. Instead, if you have the
together to analyze and uncover root causes for that
right data at the right time - within a day or two, you can
trade’s challenges.
understand where things are. From there, getting to the
Data Use In Small Teams root cause and fixing the underlying issue is relatively
Small teams are also able to leverage data for massive easy. This can be extended beyond a single activity, as
benefits. A minor delay can be solved within a week or it is also true for the whole project or the next critical
two by leveraging accurate data. Without the use of data, milestone.
a small delay may go unnoticed and turn into major issues
requiring more time or financial investment to overcome.

In smaller organizations, the importance of each working


USE CASE
hour is amplified. By becoming data-driven, these teams
can save time by reducing the number of major issues Data-Driven Workflow Analysis Speeds Up Glazing
they have to deal with. Each member of the team can A project team using Buildots was having a problem with
use data to be more productive, and these increases in glazing performance on their site. The glazing contractor
productivity combine to become a significant contributing was not closing in apartments on schedule, which was
factor to a small team’s profitability. causing repeat mobilizations. After reviewing the data
with the foreman, they discovered that the pace of the
JUN window installations was going as planned but was
scattered throughout the project. By identifying the issue
16% JUL and correcting the sequence, the glazing contractor
was able to complete work in 8 apartments per week - a
-3.9
significant increase and more than the planned schedule

NO PROGRESS
of 5 apartments per week.

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PROGRESSED

6 | Data Applications
Data-Driven Corporate Governance
3
One poor project can often over-shadow all successful projects in a year. Construction
companies deploy different measures to reduce the chances of that happening for each
of their projects. Measures range from strong regional management to project control and
scheduling departments.
Increased Focus
The first thing data can help you with is focus. Objective
information showing which projects are going well, and
which projects are struggling, can help you focus on the
right ones. As a regional director or a planning department
lead you have limited time, and it would be better spent
on projects with the largest potential for improvement
or where risk levels are the highest.
LEVEL 4
Accessibility And Training
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Imagine a project being led by an inexperienced project
manager that is about to miss a critical milestone. He
might misread the severity of the situation he encounters,
or worse, thinks the situation is under control. In your
role as a manager, data makes you more accessible.
With access to data, you can leverage your experience
to better mentor young project managers. A few hours
of mentoring might have saved the project a few million
dollars.
Better Time Management
Site visits are also a big problem. Not because they 28%
are unnecessary, but because currently, they are the
only way to get a grip on the situation. This means
your experienced personnel, who sit at head office,
are limited in how much time they can contribute to These measures have two key goals: helping
your teams because of travel constraints. Instead of teams to maximize margins for each project
spending two hours commuting to a major project, they and doing everything in their power to avoid
could be reviewing the data for several smaller projects
them becoming a margin-killer.
in a shorter period of time, and they don’t often get to
visit. Smaller sites also benefit from more involvement
and insights in order to avoid errors and stay on track. Supply Chain Benchmarking
The last exciting example of data use at the enterprise
level is supply chain benchmarking. The ability to analyze
historical data of subcontractors throughout your project
USE CASE
portfolio provides an immense advantage in your ability
Data Prevents Margin Killer Project
to deliver projects on time by picking the right partners.
A Buildots client had a project that was showing signs Being transparent with your trade partners about the use
of becoming a margin killer. Off-site, they decided that of data can also lead to a stronger partnership. Data can
senior executives would need to get involved to help the be leveraged to help your trade partner improve their
site team. The key resource to getting the project back efficiency on-site and reduce labor costs on their future
on track was the use of data. Data allowed the team projects as well.
to identify issues with pace for several trades and to
evaluate options to get the project back on track and out
of the danger zone.

7 | Data Applications
Data-Driven Warranty Management
4
Warranty periods in construction introduce immense risk to general contractors. Often,
they have a long tail of re-work that has to be managed and sometimes paid for by the
general contractor for years after construction ends. Leveraging data to both minimize
and predict the costs of warranty contributes to the general contractor’s bottom line.
Once an issue has been reported, historical data can help manufacturing or installation fault. Accessing data for
research the reason for the fault, identify the root cause, all other installations of this valve throughout the project
and hold the right parties accountable. Historical data - and identifying where the risk exists - might lead to a
helps in understanding the sequence of events that led decision to replace all valves immediately and prevent
to the fault. Paired with visual data, you can investigate having to deal with the outcomes of leaks happening
the issue and work out all the details. across the building.
Having records can help assess if there’s potential for Managing faults on top of your production data, in line with
additional issues in the future. This assessment might your BIM, could help investigate the activities that lead
lead the contractor to proactively decide to attend to to the most re-work and faults in the future. It could help
the root cause instead of waiting for issues to happen. identify which subcontractors have the highest chance
As a result, the issue is dealt with efficiently and with of causing issues and help focus your site teams to
reduced costs. For example, imagine understanding double-check those critical activities during construction.
a specific valve has the potential of leaking due to a

USE CASE
Detailed Back Data Reduces Future Risk
One of Buildots’ key clients impressed us with how
they manage post-construction faults. They manage
45% -2.3
everything in a database - all classified with critical DONE
metadata. Their metadata includes the organization MAY
at fault, the cost of the fix, the cost of the fix on the 16%
general contractor, the time to fix, and if the fault was NO PROGRESS JUN
avoidable. By leveraging their database of information,
they constantly optimize their supply chain to reduce risk
on high-risk activities.

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13%

8 | Data Applications
Data-Driven Dispute Resolution
5
Disputes are unfortunately commonplace in the construction industry. Using data in
construction will result in fewer disputes, quicker resolution at a lower cost, and justice.
Disputes have more than a monetary cost. The time they are today. As the legislation becomes enforced to
spent to uncover the truth is a burden when in reality a higher degree, more reporting of compliance will be
everybody wants to get on with the project and their required. Automating as much of this process as possible
business. Traditional methods of record keeping are will be - if it isn’t already - a high priority for contractors.
not enough to keep up with the modern construction Disputes with government officials and inspectors will be
site. Management personnel spends hours of time reduced by using data to prove the project’s compliance
tracking down information that properly stored data can with legislation.
answer. Data can be leveraged in many ways to benefit
Disputes do not always take place in real-time. Some
contractors and adds an extra tool to the toolbox when
disputes may take several years and on average it takes
it comes to managing disputes.
around a year after a claim is raised before it is reviewed
Data Based Evidence and resolved. Day-to-day detailed record-keeping is not
By leveraging indexed data, a contractor will reduce a high priority for site teams. Employee turnover, deleted
the number of disputes arising from change orders. For emails, and light record-keeping lead to difficulty resolving
example - on a large-scale apartment complex, several disputes. By using data to back up what happened at
doors were installed that did not meet the adequate the time, you remove hearsay’ and human error. Data
performance level for soundproofing. The doors are all does not have the ability to forget or omit information.
going to be replaced with a new type of door for better
performance. Data will allow you to have instant access
to the number of doors that were installed and need to
be replaced versus the number of new doors that were
LEVEL 4
installed and need material-only changes. Data removes
the need to recall details months later or fight with your
-1.8
subcontractor over what work was and wasn’t completed.
Data and technology can provide contractors with visual- NO PROGRESS

based evidence. You are empowered by visuals and data OCT


that provide backup during any disputes that may arise. NOV

Visual evidence takes on even more importance when SEP

related to scheduling. By using technology, you have


visual proof showing scheduled items being missed or
are behind schedule. Many disputes that will arise on a
site will come from what wasn’t done instead of what
was done. Visuals will provide clarity on what was and
wasn’t done and - crucially - for how long.
Globally, the construction industry is becoming more
legislated, and this will only continue. Green building
principles will continue to become more stringent than

USE CASE
Cutting 40% Off Initial Claim With Data
A Buildots client made a design change that affected the installation of kitchens on a residential project. Unfortunately, the
design wasn’t changed until after a large number of kitchens were installed. Using Buildots, the general contractor was able to
provide an exact timeline with dated photos of each kitchen installation. The accepted value was 40% less than the initial claim
amount and the result was an accurate reimbursement payment and major time saved for all parties.

9 | Data Applications
Data-Driven Payment Approvals
6
During the payment application process, both overpayments and underpayments may
occur. Stakeholders can build trust through data-driven payment processes that ensure
fewer disputes and less wasted time.
Leveraging data and visuals in the payment application A healthy supply chain is critical for project success.
process allows for greater transparency. Data allows for An efficient payment process allows subcontractors
objective assessments of progress made on the project. and suppliers to maintain a healthy cash flow. Payment
As a result, all stakeholders have reduced financial risk terms and material payments far in advance of the
from misjudged payments. work being performed make a contractor’s payment
application process critical for the project’s supply
Human error and busy schedules can lead to problems
chain. Subcontractors and suppliers cannot delay their
creating a well-documented paper trail. Technology
workforce’s salaries – delayed payments put the entire
and data help overcome this challenge by automatically
supply chain at risk.
producing required documents to support the review
and approval of payment applications. Data also allows for better control of extras on a project.
By leveraging project data, a contractor can avoid as
Automatically generating payment documents speeds
many unrecoverable costs as possible. Accurate project
up the entire payment process. The global shortage of
data allows managers to understand where extras are
professionals makes reducing the workload on personnel a
coming from - reducing the financial risk to the contractor.
priority. Organizations using data to support the payment
process have the ability to overcome some of the staffing
challenges present in today’s workforce.

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PAYMENT 83%

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47%
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% $

USE CASE
Accurate Progress Percentages Allow For Fair
And Quick Payments
In a recent case, Buildots was able to assist a UK-based
construction company with their payment application
process by providing them with our data-driven progress
reports on a 100,000 sqm project (over a million sqft).
Using accurate completion/progress percentages
per each trade analyzed by the system, allowed their
quantity surveyor to validate the payment requests,
and confirm, and process payments. The invoices were
approved or re-adjusted to ensure that all stakeholders
were compensated according to their actual delivery.

10 | Data Applications
The Challenges of Using Data
Collecting and managing data in an organization requires the right people, skillsets, and
processes. Data is never perfect, but there’s a minimum level of accuracy and completeness
required to get its full value. For each benefit described in this document, there are different
requirements that must be met for the data to provide accurate insights.

Most organizations start by relying on their tech vendors Embracing Change


to manage the data for them, for example relying on People are comfortable with their routines - especially
products like Salesforce to manage your client and sales when making big decisions. It takes an excellent manager
data. This way you are relying on your tech vendor to to drive their organization to search for data, and several
understand which data needs to be collected to provide searches to drive an organization to collect it. No matter
you with accurate insights and forecasts. At some point, how much effort is put into capturing data, if managers
sometimes years into their data journey, organizations don’t ask for it when making decisions, it has no value.
move to manage that internally, as cross-platform insights As a result, people will stop capturing it and worrying
and analysis are required. about its accuracy.
Contextual Information On the other hand, you can see people who stick to using
One of the most critical factors in the usability of data is data for everything - which can be just as bad. If you
context. Assume you have progress data regarding your are entering the residential market, the worst thing you
new residential high-rise project that is not connected to can do is use the historical data from your company’s
your model or schedule. For most use cases, this data is commercial projects. You might have some data that is
useless. It cannot be processed efficiently and cannot relevant, but for most, it’s probably better to trust the
be analyzed with quantities from BIM or dependencies experience of people in your organization.
from your schedule. All organizations have different blind spots. As managers,
Before collecting data, consider what your use case will it’s natural for us to focus on solving issues in areas of
be and what result you are trying to achieve. Working the business where data is available. We often feel it is
backward will allow you to better understand the data the most effective use of our time to focus on critical
and the context that you require. If data is not connected - and obvious - problems that the financial reports are
with your planning documents then calculating planned showing. What we tend to forget, is that big problems
versus actual costs becomes an impossible task. usually arise from those blind spots and that we should
be investing a large portion of our time to address those
blind spots using data.

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Blind Spots
11 | Data Applications
Collecting Data
This whitepaper introduces novel ideas for adopting the use of data to increase efficiency
and affect your business’s bottom line. Most of the use cases covered in this document rely
on effective data collection practices that were implemented at the project level, which
unfortunately is not the case for many companies.
There are two main types of data that are often missing in projects that can provide the
benefits described in this document:
Progress data is the more critical data type for most Tech vendors such as Versatile can help with similar
use cases. The progress of each activity - at any point outputs for exterior work and superstructure.
in time - can be easily understood for each project.
Resource data is key for measuring productivity
Progress data enables immediate use cases for projects
and performance metrics. Measuring the number of
highlighted under the Data for Delivery chapter of this
tradespeople on the job site, heavy machinery, and other
paper. It also generates critical historical data which is
resources can help shed light on the root causes of the
the basis for all other use cases.
delays and issues we have with our delivery process.
Buildots collects progress data covering all interior works
In the market, you can find various solutions, from simple
on the job site - meaning everything except the frame. As
barcodes to tech vendors such as Genda and Trusstor
the data is connected with your designs and schedule,
that help track labor and equipment on-site.
it opens a whole world of possibilities including all use
cases described in this white paper.

Human-Dependent Data Sources

Many companies are attempting to manually collect data with


their existing workforce by using spreadsheets and various
mobile applications. In most cases, this effort leads to partial
and subjective data.

Combining automated data and manual verification can


provide you with the most accurate and efficient way
to manage activities on-site, for example, tracking the
installation of an electric socket using automated captures
and analysis, and following up with verification that the
socket works through a manual report, will ensure you have
a complete picture of the lifecycle of that socket and the
confidence that it was completed to standard.

12 | Data Applications
Start Leveraging
Data And
Outperforming
Your Competition
Buildots empowers true Connected
Construction. Our AI-based technology
gives construction companies the power
to stay connected with what’s happening
on-site. Wearable 360-degree cameras
automatically capture every element.
The data is compared with the original
design models and schedules to provide
an accurate, objective status, giving
construction companies complete
visibility and control. One central platform
connecting all aspects, connecting
you straight to reality. Welcome to
construction as it should be.

Learn more about how


Buildots can maximize the
Book a demo
value of data, and start
making data-driven decisions.

T: +44 20 3984 9580 | E: INFO@BUILDOTS.COM | BUILDOTS.COM


262 High Holborn, London WC1V 7EY, United K ingdom
13 | Data Applications

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