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Tech-Forward Contracting: A Much-Needed Construction Solution

The usual technological environment on a construction project has a chaotic, decentralized look. Designers deliver their services with a relatively low-tech stack. Contractors may bring along a variety of software, including whichever multifaceted project management information system (PMIS) they prefer. Owners get uneven access to certain functions and databases within some of the contractors’ and designers’ software. Using their own in-house software for data management and communications, owners also receive regular reports, produced in multiple systems, from their project teams. Necessarily tech-agnostic, project management consultants adapt to the environment they find themselves in.

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At one level, the disarrayed façade can be deceiving. Many of the programs and systems can and do “speak” with one another by sharing, processing, and storing data in the cloud in real time. However, there are inefficiencies and complications. One of the most troubling, for an owner, is a lack of transparency.

For example: proposed construction changes may be batched, formatted into multiple reports, and emailed over several days to an owner. Even with a small number of changes, it can be easy to miss a few delivered in this way. Unreviewed changes can quickly cascade into claims. Minor, unreported schedule-logic changes may be invisible at first, but the whole project team will feel their impact after six months when the critical path no longer makes sense—more claims! And when these claims arise, general contractors may own the project data that owners need to make their defense. In such a high-stakes environment as construction, with its multiplicity of stakeholders, the current environment of tech-enabled obscurity is unacceptable.

Fortunately, solutions already exist. In terms of technology, there is scheduling software that allows project managers working as owner’s representatives to review and evaluate schedule-logic changes with timestamped data. This helps ensure that all changes are rooted in team agreement and in compliance with contractual requirements. Likewise, most PMIS tools provide excellent collaborative platforms for document control and change management, provided that all parties have shared access to all project data.

Aside from tech, certain project delivery methods can promote transparency at the contractual level. Integrated project delivery is an approach that begins with a commitment to shared transparency. Contractors forecast trade and material costs, as well as profit expectations, as the project develops, while owners are transparent about their full budget capacity from the get-go. This can promote alignment and mutual satisfaction for all parties.

Progressive design-build is another innovative delivery method that focuses on developing a high-quality project that meets all owner requirements through collaboration from the conceptual stage. While this can result in a satisfactory project for the owner—as well as satisfactory margins for design-builders—the lack of cost predictability at the outset may result in time wasted replanning a more affordable project.

Tech solutions and contract solutions can help increase transparency. However, at the core of a truly transparent approach are contract documents with clear technological expectations. This requires a mindset shift, as technological transparency is not yet as common as it ought to be in construction. Owners will have to work with their legal teams and their project management consultants to formulate specific contract language that enforces such requirements in a watertight manner. This marriage of the contractual and technological approaches will promote transparency, ensure access to critical data, deliver a fair playing field for owners and other project stakeholders, and increase the likelihood of project success.

Jonathan Stewart

About the Author

Hill International, Inc. Vice President Jonathan Stewart is a construction leader with more than 29 years of experience transforming operational departments and projects by driving efficiency, accountability, and cost controls. He helps to bridge the gap between business and technology with expertise in managing complex programs and multiple concurrent projects. To speak with Jonathan about your project’s technology needs, contact him via email at [email protected].

For more insights from Jonathan, click here: https://www.hillintl.com/articles/adopting-construction-technology/.

 

 

 

 

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