Among the buzzwords of the moment in construction circles, digitization dominates. If you have a sense it has something to do with tech, but are not quite sure what that means for your construction business, you are not alone. Here is what you need to know so that you can talk the talk—and steer your business forward.
Increased Efficiency and Revenue
Digitization is becoming essential in construction, because through it, builders are becoming more efficient—and with more efficiency, comes more revenue. Simply put, as Construction Dive explains: “Digitization is the process of transferring information to a computer so the computer can store, process and recall it. In business, digitization means using technology, like computers and other digital technologies to change a process or processes to increase your efficiency and revenue.” Specific examples of digitizing in construction include the use of automation and artificial intelligence (aka machine learning), as well as “robotics, cloud-based software, drones, virtual construction like BIM and many more.” As more builders have incorporated digitization in recent years, evidence of the difference it makes on the bottom line is piling up:
Teams using these new technologies are getting more accurate information about projects, construction sites are safer, better buildings are being built under cost, communication is improved and the entire preconstruction and construction process is getting more efficient. For example, studies from Dodge Data & Analytics found that GCs using BIM on more than half of their projects improve schedule performance by 60% and improve budget performance by 50% over contractors who do not use BIM. You don’t have to take anonymous reports as the only evidence. PARIC Corporation, an ENR Top 400 Contractor, uses estimating software, drones and laser scanners to help drive project decisions and build trust with owners. Andy Leek, Vice President of Technology and Innovation at PARIC, says these technologies help explain and defend why certain decisions were made.
Many contracting businesses are still exploring paths to digitization and it can be challenging to figure out which new technologies to leverage for advancement. Fortunately, some tech platforms are no-brainers from day one. For example, when you qualify for The Partnership Account® from Colonial Surety, you can leverage our complimentary digital services. Once qualified, in addition to a surety line of credit—in writing, you’ll have:
- Control of bidding and bonding, online and in real time.
- Powers of attorney to seal and issue their own bid bonds—in minutes.
- Fast, direct, confidential bid bonds—no middleman.
- Direct access to performance and payment bonds on a customized dashboard.
- Real time tracking of bids and work on hand.
- Immediate access to Colonial’s lead underwriter as new opportunities emerge.
- A private Owner’s Dashboard to view surety lines, adjust work and analyze bids.
Digitally Mediated Coordination: Interconnected Equipment
Of all the trendy tech possibilities anticipated to significantly disrupt the building industry over the next five or so years, IRONPROS believe that interconnected equipment will take the lead:
Interconnected equipment, which involves digitally mediated coordination between pieces of equipment engaged in a project is a critical way for autonomous digital processes to come to market in equipment-centric construction. IRONPROS analysts have seen this trend manifest already in repetitive construction settings like roadbuilding, where digital coordination between automated pavers, compactors and even material trucks result in a smoother, more reliable linear asset by eliminating stops caused by interruptions in the process….Examples include:
- Estimating software that uses AI to help contractors figure out which projects to bid, which to walk away from and how high or low to bid.
- Connected equipment, hand tools and wearables that send IoT data from the field to the back office for analysis and real-time decision making.
- Sensors used during construction and often left on site to monitor water leakage and even shut down water supply to mitigate damage.
- Networked robotic paving and earthwork machinery that ensure one process dovetails with the next.
With so much changing in real time, builders find that financial insights are ever more important for competing—and winning. Have more intel at your fingertips and get an edge via The Partnership Account® . With this free service, Colonial helps builders plot growth strategically, one step at a time. The Partnership Account® arms you with a private digital dashboard, providing you with a day to day snapshot of your single and aggregate limits, as well as your current and available bond capacity. As your work in progress decreases, you can even update your work on hand—increasing your aggregate so you can go ahead and move that next bid ahead. Take control of your finances—and get an edge issuing your own bid bonds, instantly, using our powers of attorney.
Get started today: Pre-Qualify and Get Free Scores Here.
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.