Quantity surveyor and founder of CQS Solutions Tim Lloyd explains why getting on board with the latest technology is not only desirable but essential if the construction industry is to thrive in the global market.
All of us in the construction industry are only too aware that we need to embrace new technology if the industry is going to overcome the serious issues it faces today.
Digital transformation holds the key to many of our biggest challenges and the amount of technology out there is quite staggering. It’s already widely available in all aspects of design, procurement, construction and operation.
Machine learning and AI as well as smart contracts and product platforms are already making a difference to ways of working and should become standard practice in public sector construction projects according to the UK Government Construction Playbook.
But the industry’s issue is not a lack of relevant technology. It’s more about persuading all agencies involved in a project to adopt these new ways of working. Until we overcome that reluctance to take on digital innovation in what is a very traditional industry, we will not remain competitive in a global market.
A number of organisations globally, including the UK Government, are leading the way by publishing guidance, setting strategic outcomes and highlighting the issues which appear to be barriers to adoption and implementation.
The UK Government is absolutely clear in its desire to see the construction industry transform its ways of working. It has laid out its gold standard for digital transformation in the latest version of the Construction Playbook.
The Playbook was published in December 2020 and outlines Government guidance and best practice on sourcing and contracting public works, projects and programmes. At the beginning of September 2022 the Government published an update – the Construction Playbook (Version 1.1).
It puts digitalisation and new technology at the heart of the Playbook. It recommends that the industry must ‘harmonise, digitise and rationalise demand’ as well as further embedding digital technology in payment mechanisms and pricing approaches.
The Government is pushing for this wider adoption of digitalisation to speed up the development of the ‘platform approach’ to public sector procurement alongside ‘modern methods of construction.’
The Playbook says that the Government will be looking to ‘procure construction projects based on product platforms comprising of the kit of parts, production processes, knowledge, people and relationships required to deliver all or part of construction projects.’
The Production Platform Rulebook, updated just last month with edition 1.2 published by the Construction Innovation Hub, defines the product platform approach as a new way of thinking.
‘The product platform approach is a new way of thinking, a new way of designing, a new way of constructing and contracting – one which requires collaboration and an open mindset – but one which is already proving a success.’
But the new way of working to achieve the product platform approach is dependent on the latest technology using defined interfaces to combine and configure each component within a particular project.
It’s just part of the emphasis on digital working and digital processes which are at the forefront of the Playbook.
The 2022 update on the Playbook also advises contracting authorities and suppliers to use the UK Building Information Management Framework to standardise the generation and classification of data, its security and exchange. The aim is to use digital technology to improve the consistency and quality of data which is currently often fragmented and difficult to access.
At the same time the Playbook expects suppliers to invest in automated digital payment and contracting systems to improve transparency across the supply chain.
All these are important steps in the journey towards the digital transformation of the industry. The new technology now available is a game-changer for all parts of our industry and the Playbook is driving that change.
And yet industry thinktank, Constructing Excellence, recently reported that the Playbook was often not being used for projects under £10 million even though Government guidance is that the Playbook should be used on all public contracts and certainly anything over £15 million.
We at CQS Solutions have already seen the benefits since we linked up with a leading software company to use the latest digital innovation for our clients.
But the digital transformation can only take place when the entire industry gets on board with the changes. And to do that it needs to see the Playbook as a helpful mentor rather than a bureaucratic handbook.
The Playbook is our best route to diving into the digital revolution but unless we fully embrace its guidance and recognise the value of its digital advice, we will still be splashing around in the paddling pool while the rest of the world heads for the freedom of the deep seas.