How General Contractors Improve the Value of Technology

I received an exciting publication published on August 23, 2023. It is a SmartMarket Brief that examines the current state of digital project management for general contractors in the US construction industry.

The report includes findings from a survey of over 200 general contractors, construction managers, and design-builders. It focuses on the use of technology for project management and construction-related processes, the challenges faced by general contractors, and strategies for improving the value of technology adoption.

The most automated processes

The survey looked at 11 processes, ranging from scheduling and document management to payment management and business intelligence and analysis. Of the 11 processes, only three show higher than 80% average technology use. The most automated processes are:

• Construction Process Management (e.g., RFIs) – 85%
• Scheduling – 84%
• Document Management – 81%
• Cost Management – 79%
• Bid Management – 75%

The challenges

The surveyed general contractors mentioned several technology-related challenges. The top five were:

1. Some solutions are too complex
2. Too many different solutions / Need to consolidate our technology stack
3. Need to replace some of the current solutions with better solutions
4. Need more functionality in our technology stack
5. Some solutions lack adequate mobile capability

Strategies to improve the value of technology

When they were asked about the strategy that would significantly improve the value of technology for their company, they rated the three alternative strategies as follows:

Consolidate: 77% – Consolidate functionality into more comprehensive solutions that reduce the number of point solutions.

Integrate: 70% – Invest in improved integrations between our existing solutions

Add: 53% – Add more point solutions to increase overall functionality.

The percentages predict a significant (i.e., medium, high, or very high) degree of positive effect.

This top-rated strategy avoids integration issues by focusing on platform solutions with multiple pre-integrated functions and inherent integration capabilities. According to the report, this is the most effective way to deal with integration issues and achieve more value from technology.

Conclusions

The report authors conclude that deeper engagement enhances general contractors’ perceived value from technology. While effective data integration presents challenges, it offers significant opportunities. Despite these challenges, most contractors intend to adopt more technology for their projects within the next three years.

To get your copy of the insightful 34-page report, go to https://www.construction.com/resource/optimizing-digital-project-management-for-general-contractors/.