in association with

DISCUSSION PAPER
Reimagining construction:
The vision for digital transformation,
and a roadmap for how to get there
CONTENTS

3 PURPOSE
4 EXECUTIVE SUMMARY

6 1. THE VISION FOR CONSTRUCTION

6 IMPROVED PRODUCTIVITY AND PROFITABILITY
7 FASTER, MORE EFFICIENT CONSTRUCTION
8 MORE PREDICTABLE, STREAMLINED CONSTRUCTION
8 SAFER PROJECTS
9 ATTRACTING THE TALENT OF TOMORROW
9 BETTER OUTCOMES FOR CLIENTS AND END USERS
10 NEW BUSINESS MODELS
10 GET THE INDUSTRY VIEW

11 2. THE DIGITAL TECHNOLOGIES DRIVING CHANGE

11 INFINITE COMPUTING IN THE CLOUD
12 BIG DATA
13 SYMMETRICAL COLLABORATION IN THE CLOUD
13 COLLISION OF THE DIGITAL AND PHYSICAL WORLDS
14 SITE AUTOMATION
15 MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE
15 PREFABRICATION AND DIGITAL FABRICATION
16 INTERNET OF THINGS
16 THE BLOCKCHAIN
17 SOCIAL AND MOBILE COMPUTING
17 GET THE INDUSTRY VIEW

18 3. STEPS TO DIGITAL TRANSFORMATION

18 LEADERSHIP AND MANAGING TECHNOLOGY STRATEGICALLY
20 OVERCOMING BARRIERS TO TECHNOLOGY ADOPTION
23 TIME AND COST – THE SMALL BUSINESS PERSPECTIVE
24 THE ROADMAP FOR DIGITAL TRANSFORMATION

26 CONCLUSION
27 USEFUL RESOURCES
27 FURTHER READING
28 CUSTOMER STORIES

2
PURPOSE

This paper re-imagines the future for
construction. It provides a vision of an industry
transformed by the use of digital technology
over the next 3 to 10 years, and lays out the
key steps construction firms need to take to
get there.
It answers the key questions posed by
construction leaders and managers responsible
for strategy, business development, innovation,
operations, projects, functions, technology
and more. It is particularly relevant for those
working for, or with, general contractors,
smaller contractors and speciality trades.
These questions include:
It is based on a webinar broadcast by The
Chartered Institute of Building (CIOB)
in May 2018 and a roundtable hosted by
Construction Manager Magazine in September
2018. It features contributions from expert
representatives from AECOM, BAM Design,
Baxall, Beard, Hill Bespoke, ISG, Mace, Skanska,
Willmott Dixon, Autodesk and the CIOB.
Join the conversation on Twitter:
#whatifconstruction

• What does a construction industry

transformed through the use of digital
technology actually look like?
• What are the most exciting technology
trends for the next ten years?
• What is the roadmap: the key steps, in
particular the first, needed to realise
this vision?

3
EXECUTIVE SUMMARY

Digital technologies are transforming “Technology is about to really

every industry, and construction is no
exception. Infinite computing, robotics,
machine learning, drones, the Internet of
Things (IoT), augmented reality, gaming
engines, and reality capture, to name just a
few, are innovating the design, build and
operation of buildings and infrastructure.
From AI-enhanced decision making on future
work pipelines, to algorithms designing
estimates, and big data powered scheduling –
the implications are profound. The result will be
a more profitable, resilient and agile industry,
and a better built environment. Traditional
barriers to project entry such as capital,
knowledge, and efficiencies will crumble as
digital technologies democratise and level
the playing field, particularly for smaller
businesses. But, these new digital tools will
also open doors for new competitors from other
industries to enter.
change our industry and it’s
important to keep it simple.
Initially it’s going to be about
productivity, so how do we use
technology to do things better
and more efficiently?
That unlocks better profitability
for the industry which is
something that we all very much
need and desire, and it also
unlocks the ability to provide
better outcomes for our clients
and the end users that occupy the
buildings that we create.”
Matt Gough, Director of Innovation at Mace

For many, these changes can’t come soon

enough. By 2030, population growth,
urbanisation and economic expansion are
predicted to increase global demand for
construction output by 85%1. Rising complexity
and risk, constrained finances, the skills gap,
and growing sustainability concerns are
already driving contractors to develop new
ways of thinking about and delivering
buildings and infrastructure.

The paper examines the why, what and how

of digital technology. It details what the
construction industry has to gain by adopting
new digital technologies over the coming
decade, and then gives examples of the specific
technologies that can bring about these
improvements. Finally, the paper provides
guidance to contractors on the key steps to
overcome the main barriers to adoption.

1
http://www.globalconstruction2030.com/

4
“Technology is driving a new and profound relationship with the built
environment and will undoubtedly enable exponential changes in our
professions with new levels of productivity and business models which
are truly disruptive.

In an ever smart and networked world with increasing levels of

intelligent and connected built assets we will see themes such as
Building Information Modelling (BIM) converging with advanced
manufacture, sensing, data analytics and the digital economy to
shape a move towards faster, smarter and better performing
built infrastructure.

However, to unlock these benefits we need to marry these maturing

cyber physical technologies with a competent and diverse workforce
where our behaviours and values provide the foundation for such a
shift. Getting the balanced scorecard of teams who integrate, lean
workflows and open technology exchange must be our priority and
consider change as a holistic and whole life approach.”

David Philp
CIOB Digital and Asset Management SIG Chair and CIOB Trustee

5
1. THE VISION FOR CONSTRUCTION

IMPROVED PRODUCTIVITY AND PROFITABILITY

Drastically improving productivity and

profitability remains one of construction’s
biggest challenges. According to McKinsey, Average UK
an increase in labour productivity means that construction project
margins fell to just
higher value can be provided to customers
1% in 2017.4
with the same or fewer resources, which
1%
translates into a desirable mix of higher-quality UK Construction: Margin
Pressure, 2017, EY
buildings and infrastructure at lower cost for
owners, higher profitability for contractors,
and higher wages for workers2. Productivity
and profitability are inextricably linked. For
example, if the workforce is 10% less efficient
than expected, profits are currently reduced by
a minimum of 5%3. So what’s the best way to
improve productivity?

“The need for change is based on productivity and cost. If we carry on

the traditional way we will take on average 20% longer than intended.
The project teams are asking how we get better and the answer at
present is inevitably some aspect of digital transformation.”

Paul Connolly, Technical Services Director at Mace

Digital technology is already making a

difference for early adoptors and technology
Research from KPMG found has the potential to offer a fast track way
that the top drivers for to transform the selection, funding and
delivery of projects – making processes
innovation and disruption
more efficient, faster and cheaper. In turn,
in the construction industry this will improve profitability across the
are efficiency, planning supply chain. Dominic Thasarathar, Industry
and cost reduction.5 Strategist for Construction at Autodesk, says:
“Digital technologies will iron out a lot of the
Building a Technology Advantage, inefficiency in the design and build process,
Global Construction Survey 2016, either at the front end through better
KPMG planning or at the back end through things
like machine learning.”

2 
https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/Reinventing
%20construction%20through%20a%20productivity%20revolution/MGI-Reinventing-Construction-Executive-summary.ashx
3
http://training4contractors.org/2016/04/profit-margins/
4
https://www.ey.com/Publication/vwLUAssets/UK_Construction_Industry_-_Margin_matters/$FILE/ATTJK7IP.pdf 6
5
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2016/09/global-construction-survey-2016.pdf
Research from the World Economic Forum backs
this up. It predicts that 10 years of full-scale
digitalisation of the construction industry will Just a quarter
lead to huge annual global cost savings. of construction
projects in the last
For non-residential construction, savings in 75%
three years came
the design, engineering and construction within 10% of their
25%
phases are expected to increase from $0.7 original deadlines.8
trillion to $1.2 trillion - and in the operations
phase, from $0.3 trillion to $0.5 trillion.6 Climbing the Curve, 2015 Global Construction
Project Owner’s Survey, KPMG
Meanwhile, McKinsey reports that moving to a
manufacturing-style production system could
boost productivity in the construction sector
by up to 10x.7

“In some cases buildings are still being delivered 50% late and 50%
over budget and there are still defects on site. Productivity has only
increased by 1% in the last 20 years, so the industry is ripe for takeover.
We have to move forward rapidly as otherwise other industries will
take over.”

Andrew Pryke, Managing Director at BAM Design

FASTER, MORE EFFICIENT CONSTRUCTION

Just a quarter of construction projects in Digital technologies will make the construction
the last three years came within 10% of their process more efficient by bringing these key
original deadlines.9 The highly fragmented and parties together. Greater integration across
disjointed nature of the industry is one of the the supply chain will, in turn, accelerate
primary reasons for this. project delivery and enable more projects to be
delivered to deadline.
Charles Egbu, Vice-President at the Chartered
Institute of Building (CIOB) says integrating the
construction process – bringing the key parties
together across design, build, operations and
decommissioning– is essential. He says: “Too
often the construction process is disjointed
when trying to connect all members of the
supply chain, the small size organisations,
the consultants, the big contractors, and those
who are key players like the clients and the
policy maker.”

6
http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf
7
https://assets.kpmg.com/content/dam/kpmg/pdf/2015/04/global-construction-survey-2015.pdf
8
https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/


Reinventing%20construction%20through%20a%20productivity%20revolution/MGI-Reinventing-Construction-Executive-summary.ashx 7
9
https://assets.kpmg.com/content/dam/kpmg/pdf/2015/05/construction-survey-201502.pdf
MORE PREDICTABLE, STREAMLINED CONSTRUCTION
Bringing key parties together across the full
project lifecycle doesn’t just drive efficiency;
it also results in better quality buildings
and infrastructure.
Digital technologies improve collaboration,
allowing everyone on the team to access
the same data in real time. This makes it
easier to quickly test the viability of different
approaches, and spot and correct errors
early on. The result is more predictable,
streamlined construction.
Connectivity also makes it easier to bring in
diverse and specific skillsets. This combined
expertise results in better quality buildings and
infrastructure for clients and end users.
SAFER PROJECTS
Assuring on-site safety has always been
important. And, as construction projects
increase in size and complexity, health and
safety become even more critical.
“Digital technologies will help reduce the
number of health and safety incidents in
construction and improve the welfare and
wellbeing of constructors and also those
“If an asset is to be worth its salt, it has
to draw from a variety of skills,” says
Charles Egbu.
“If you look at build quality it’s
important to note that quality in
construction is not something
that is bolted on, it’s something
that permeates right from the
beginning of a project to the end,
and technology has a role to play
in that.”
Charles Egbu, Vice-President at the CIOB
who are likely to draw on the asset when
it’s complete,” says Charles Egbu.
Technology will enable managers to predict
what will happen on site without putting lives
at risk. Drones, for example, allow contractors
to carry out surveys, or inspect eaves or look
at chimneys without having to physically
climb on rooves.
8
ATTRACTING THE TALENT OF TOMORROW

The construction industry is perceived as an Firms that implement a digital strategy to

unattractive sector that needs stimulation include people along with processes and
and a revived image to attract the talent of technology are more successful in attracting
tomorrow. In the UK, 43% of hi-tech firms and retaining talent.
struggle to recruit science, engineering, maths
and technology (STEM) graduates and more
people are leaving the sector than are
joining it.10

80% of employees prefer to work for digital

leaders and that’s not limited to millennials
but applies across every age group.11 In fact,
employers who are not ‘digitally mature’ and
do not offer opportunities for employees to
develop their digital knowledge and skills are
five times more likely to see people leave the
company within a year.12

BETTER OUTCOMES FOR CLIENTS AND END USERS

Buildings and infrastructure don’t always fully With access to insights on occupancy, usage
deliver on their intended outcomes. Take, for patterns, energy consumption, and more,
example, the toll road that doesn’t bring in owners and constructors could make better,
expected revenue or the social housing that more informed decisions about a building
doesn’t improve its residents’ quality of life. and its immediate infrastructure. This could
lower costs, increase capacity, improve end-
Digital technologies can help the industry to user experience, or even maximise value by
make better decisions about what assets to identifying new usage capabilities.
build, as well as the mix and nature of those
assets to ensure projects meet expectations.
Smart sensors generating vast amounts of
data will enable connected buildings and
infrastructure to become more responsive
to the needs of owners and end-users.

10
https://www.telegraph.co.uk/business/ready-and-enabled/stem-skills-shortfall/
11
https://sloanreview.mit.edu/2015-digital-business-interactive-tool/employee/
12
https://www.trainingjournal.com/articles/features/digital-transformation-retain-talent
9
NEW BUSINESS MODELS

Digital technologies are disruptive. They have “What the construction industry
the power to break and remake business can gain by adopting this new
models, reshape definitions of value in markets, wave of technology is to really
and create not only new forms of competition,
shift from the rear-view mirror
but new competitors too.
focus that it’s had on productivity,
For example, the ability afforded by the IoT timely project delivery, and low
to harness insights and feed learnings back margins, and really catapult itself
into future projects will present new business into a new era of new business
opportunities. Combining asset data with
models and experimentation to
large external datasets such as population
demographics and wealth levels, could help
compete differently, whether
contractors mitigate uncertainty in project that’s in domestic markets or
pipelines. This would enable them to invest whether it’s overseas.”
in specific opportunities with a far greater
degree of confidence. Dominic Thasarathar, Industry Strategist for
Construction at Autodesk
And, as contractors gain greater understanding
of how assets are used, how they perform
across their lifecycle, and total associated
costs, they have the opportunity to move into
totally new business models, such as
Real-Estate-as-a-Service.

GET THE INDUSTRY VIEW

Watch these videos to discover:

W
 hat will be the biggest change that technology brings
about in construction in the next 10 years?

W
 hat the construction industry stands to gain by
adopting new digital technologies in the next 10 years?

The CIOB view on digital technology

10
2. THE DIGITAL TECHNOLOGIES DRIVING CHANGE
Today, the number of new technologies
emerging is breathtaking. Individually, each of
these has the potential to change one or more
aspects of the industry. Collectively though,
the interaction between technologies is giving
rise to something bigger. It’s fundamentally
transforming the very way in which we design,
build and operate buildings and infrastructure.
And those changes are about to transform the
industry by radically improving productivity,
quality, safety, reducing environmental impact,
and changing business models.
The following 10 key technologies offer
considerable potential to help drive
transformation of the construction industry
over the next 10 years. Most of these
technologies are available now.
• Infinite computing in the cloud
• Big data
• Symmetrical collaboration in the cloud
• Collision of the digital and physical worlds
• Site automation
• Machine learning and artificial intelligence
• Prefabrication and digital fabrication
• Internet of Things
• The blockchain
• Social and mobile computing
INFINITE COMPUTING IN THE CLOUD
Cloud computing has the potential to transform
the future of design. It will give even the
smallest contractors access to ‘infinite’,
on-demand processing power. When connected
with big data and smart algorithms, infinite
computing in the cloud will allow the industry
to solve highly complex design problems and
make the best possible design decisions.
For example, it could enable project teams to
For more information on these
technologies, download the
Autodesk Construction Manifesto.
And watch the future of
construction video from Autodesk,
made with the CIOB.
“The CIOB looks at the role
that technology plays from a
very holistic point of view i.e.
across the entire life-cycle.
Not just technologically driven
but impact on collaboration,
commercial models [block-chain
enabled], new roles [such as data
scientists] and a shift towards
construction in the context of
advanced manufacturing. We
believe that technology and
innovative use of data has a
role to play in almost all aspects
of construction and the built
environment.”
Charles Egbu, Vice-President at the CIOB
Learn more
‘start with the end outcome’ to ensure buildings
and infrastructure bids are successful.
Infinite computing in the cloud will enable
them to explore thousands of combinations of
parameters – for example, material choices,
financing options, procurement paths, and
physical dimensions, to arrive on a design that
offers the maximum return for the lowest total
cost of ownership.
11
BIG DATA AND PREDICTIVE ANALYTICS
Learn more

When it comes to harnessing insight from big Data and its effective collection, analysis,
data, the construction industry has lagged communication and management are central
behind other sectors like finance and retail. But, to digital transformation.
with the increase in use of Building Information
Modelling (BIM) and other project technology
tools, large amounts of highly structured
data is being generated in construction too.
By mining this data, it is now possible for the
Better use of data by
construction industry to predict the future. everyone in the industry
is central to digital
Searching for patterns across projects, transformation.13
together with external data sources, could help
contractors identify everything from early signs
Unlocking Construction’s Digital
of problems in the supply chain, to the best
Future: A Skills Plan for Industry,
way to optimise cashflow and the root-cause
2018, CITB Research
of projects going over time and over budget.

13
https://www.citb.co.uk/documents/research/unlocking_constructions_digital_future_full_report_1_oct2018.pdf

12
SYMMETRICAL COLLABORATION IN THE CLOUD
Learn more

Construction teams often span multiple
organisations and geographies, making
collaboration complex. All too often, the
inefficient flow of information throughout
project supply chains results in last-minute
reworks, unexpected costs and project delays.
Traditionally, collaboration in the industry has
been an asymmetrical process with multiple
parties working in isolation across the supply
chain. Clashes are only detected when these
individual models are aggregated towards the
end of a project.
Teams that are connected via the cloud will
be able to collaborate in ‘symmetry’ in
real time across geographies and boundaries.
The result will be more streamlined and
efficient workflows and flexible project
resourcing, leading to increased productivity,
as well as more creative and predictable
project outcomes.
“It’s the ability to work together.
To work truly as a team, and
draw the skills, the knowledge
and the competencies, and the
creativity of the individuals that
make up the team, and when we
are able to do that it brings the
power that creativity can usher
out, and it allows us to add value
to that which the client and the
paymaster wants from the project
they’ve commissioned.”
Charles Egbu, Vice-President at the CIOB
Discover how Mace used cloud-based construction
management for new Facebook data center.

COLLISION OF THE DIGITAL

AND PHYSICAL WORLDS
Learn more

All designs must function in the real world
as built assets. Yet, predicting how buildings
and infrastructure may interact physically,
environmentally, socially and economically
with their surroundings is complex. By merging
the virtual and physical worlds, technologies
like augmented reality (AR), virtual reality (VR)
and gaming engines are making it simpler for
project teams to design in the context of
real-word systems.
from clients and end users by allowing
contractors to ‘walk’ them through designs
prior to construction. These technologies also
offer the opportunity to enhance training or
health and safety by bringing information to
the point of usage in an ergonomic way.
Learn how IGA is building the world’s
largest airport from scratch with BIM
and digital technologies.

From design to operations to maintenance,

contractors can identify mistakes in the virtual
world, rather than further down the line in the
real world when they are costly to rectify.
AR and VR also make it easier to communicate
design intent and gather real-time feedback

13
SITE AUTOMATION
Learn more

Drones and reality capture laser scanners “My favourite technology and the
can improve the pace and cost of projects
thing that I really enjoy working
by providing an easier, more comprehensive
and safer way to perform surveys, scans and
with is the drone – the flexibility
inspections on tall buildings and structures, of it and what it can bring. To
as well as remote assets like pipelines or rail be able to see in an instant what
corridors. Feeding imagery taken from drones you’re looking at, and then take
into reality-capture software – which stitches
that vision back to your desk.
photographs together to create 3D models –
quickly and easily brings the real world into the
The time it saves on site, the
digital environment on a large scale. availability and access to that
material.”
Robotics are also gaining traction in
construction. As a highly unautomated industry, Annette O’Connor, Managing Director at
connected robots could have a major impact West Gate Maintenance
on productivity. Captured data, fed back to the
control system, will adjust the robot’s operation
and drive greater efficiency and higher
Watch to see construction experts from
accuracy. Construction robots will transform Scaled Robotics, Bryden Wood, and AI Build
bricklaying and masonry, improving the share insights on how their companies are
reinventing the industry.
speed and quality of construction work, while
demolition robots could provide a safer and
cheaper alternative to manually tearing down
structures at the end of their life.

14
MACHINE LEARNING AND
ARTIFICIAL INTELLIGENCE
Machine learning (ML) and artificial intelligence
(AI) will play a significant role in mitigating
risk in project management at the construction
site. For example, using AI, contractors will be
able to automatically assign priority to issues
and assign a ‘risk score’ to subcontractors
working on site to indicate the amount of risk
that they are exposing a project to. This is
based on data about past behaviours, current
workloads, and more.
Safety on site will also be improved. AI will
allow project teams to predict potential issues
before they happen. Safety managers will
PREFABRICATION AND DIGITAL FABRICATION
Prefabrication and digital fabrication will
accelerate the delivery of construction projects,
by enabling teams to manage projects from
design through to real-world assets with the
minimum number of physical ‘touches’, waste,
cost and supply-chain overheads.
Prefabrication will allow contractors to use
standardised elements for buildings and
infrastructure. This could allow the industry to
unlock manufacturing-style productivity levels.
The biggest impact on productivity would come from moving
toward thinking about construction as a production system,
where possible encouraging off-site manufacture, minimizing
on-site construction through the extensive use of pre-cast
technology, assembling panels in factories and then finishing
units onsite.14
Reinventing Construction: A Route to Higher Productivity, February 2017, McKinsey
14
https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/

Reinventing%20construction%20through%20a%20productivity%20revolution/MGI-Reinventing-Construction-Executive-summary.ashx
Learn more
better understand exactly where they should
focus their planning and training efforts and
will be alerted to look out for specific problems
when they do their safety walk.
AI will also enable self-driving or generative
design. It removes the need to instruct tools
(by setting rules or applying conditional logic),
minimising bias and opening up new ways of
working towards solving design challenges.
Designers will be able to specify design goals
and then explore infinite permutations of a
solution to find the best option.
Learn more
Where standardisation isn’t appropriate, digital
fabrication, in particular 3D printing, will allow
teams to turn a 3D model into a finished real-
world object at the touch of a button. Having
a bespoke item made may no longer be more
expensive than buying a standard off-the-shelf
component. Rather than focusing on cost or
constraints, contractors will be able to select
the most ideal solution for a project and deliver
it with minimal waste.
15
INTERNET OF THINGS
The Internet of Things (IoT) is going to help
the industry redefine and unlock new forms
of value from built assets. Digital technology
will become part of the DNA of buildings and
infrastructure, through sensors and systems
linked by the IoT, allowing better use of
information to make buildings more responsive
to the needs of their owners and occupants,
inform future work pipelines, and improve the
built environment.
Connected built assets open up new
possibilities on three different levels:
• The individual asset
Traditionally the value of an individual asset
was fixed at the time of construction. Now,
the ability to digitally light up assets enables
new ways to add value through repurposing
and mixed usage.
• At a systems level
Connecting assets across cities will make
it possible to optimise the usage and
maintenance of infrastructure systems such
as public transport, utilities networks, and
more.
THE BLOCKCHAIN
Blockchain technology could add more
transparency to every type of agreement and
transaction in a construction project. It could
be particularly beneficial in much-disputed
areas like payments and equipment leasing.
For example, the blockchain could mitigate
the risk of cascading payments that have
dogged the industry for so long. By acting as a
trustworthy contract administrator, blockchain
technology could offer an error-free process
for the monitoring of contracts. If a contractor
has finished their part of the project and the
Learn more
• Infrastructure master planning
Mining collected data through predictive
analytics will help to better understand our
cities as ecosystems. This will help to steer
decisions on which assets should be built
and enable the construction industry to be
more confident about future pipelines
of work.
“Through connected built
assets, the industry can become
the custodians of the built
environment. When we
understand how the built
environment is being used
through all this connected data
we will be able to steer future
demand and usage.”
Dominic Thasarathar, Industry Strategist for
Construction at Autodesk
Learn more
inspection is successful, then they would be
automatically paid, regardless of what layer
they’re at in the supply chain.
Blockchain technology also has the potential
to transform the leasing process for heavy
equipment like cranes, compressors and
excavators. The blockchain could automatically
manage the reams of paper documents that
need to be signed and maintained, as well as
track and record the operational status of the
asset during the lease period.
16
SOCIAL AND MOBILE COMPUTING
Learn more

Some sectors have undergone huge

transformation through increased uptake of
social and mobile computing. The construction Digital technology is transforming
industry still has some way to go but it is easy real-world construction projects.
to see the benefit of digital marketplaces for
Learn more about what’s happening
fulfilling transactional pieces or work, and
today from this selection of
crowdsourcing too – where large numbers of compelling case studies that use
people collaborate to solve problems online. digital workflows today.
For example, allowing contractors to access,
on demand, the best skills at the right time.

Skanska - Combining mobile and cloud technology

on site.

GET THE INDUSTRY VIEW

Watch the videos to find out:

 W
 hat are the most exciting technologies for the
construction industry to consider using in the next
10 years?

What possibilities could be opened up by having

connected built assets?

17
3. STEPS TO DIGITAL TRANSFORMATION

“For us as an industry I think what’s interesting is not necessarily

what we have to gain - there’s a huge amount - but what we stand
to lose. Construction as it stands is the least digitised of any sector
and we can’t continue to be in that place because other industries
are having huge transformations and really benefiting from the
adoption of technology much faster than we’ve been able to do.”

Matt Gough, Director of Innovation at Mace

LEADERSHIP AND MANAGING TECHNOLOGY STRATEGICALLY

An understanding of the digital technologies • People strategy

set to transform the construction industry
is essential, but it’s not enough on its own.
Successful companies will be those who
integrate digital technology into their corporate
strategy and leadership.
Here are four key areas to consider:
• Business strategy
Digital technologies, like AI, fundamentally
change the way work is done. This, in turn,
has a knock-on effect on wider business
strategy for construction companies – for
example the fees they charge, the value
they provide, and the way they position
themselves in the market. If they can solve
complex challenges effortlessly – be that
design, commercial or whole-life, then what
should their value proposition be?
Dominic Thasarathar says: “At one extreme
they might compete with advisory firms
focusing on outcomes, at the other they
might hyper-optimise delivery processes to
offer the lowest price. In between there’s a
whole raft of opportunities, but companies
can’t take too long in deciding, or stand still
as the democratic nature of technology will
reward ‘first-movers’.”
When it comes to digital technologies,
leadership teams should think beyond
traditional return on investment (ROI) for
the project or for the business and start to
consider the emotional ROI for employees.
They need to make employees feel included
in the digital journey. Emotional ROI could be
particularly relevant for milennials who may
value experiences more than a career path.
Malcom Clarke, Managing Director at Baxall
Construction, says: “Fundamentally it’s
about a business model that provides
sustainable profit and enables people to
feel rewarded and proud. We added a
measure of enjoying being in construction.
For too long people were sitting in a horrid
place. They dreaded it.”
Mark Norton, Head of BIM at global
construction services company ISG, agrees:
“Emotional ROI considers a persons’
motivation and aspirations within the
company. A coordinator moved to surveying
when technology was introduced, and he
became really engaged and moved on leaps
and bounds. We also had a guy in R&D and
when we put in patent applications he was
more chuffed with that than a pay rise.
You can do things to engage people. It’s not
always finances; it’s interest in their job.”

18
• S
 kills
The increasing digitalisation of construction
requires the industry to reconsider its
At the heart of
approach to skills and the way it identifies digitalisation is a need
future skills requirements. But it’s not as for a digitally-skilled
straightforward as sending everyone on an workforce. Construction
IT training course.
businesses not only
need to be able to use
“ As technology providers we technology, but to make
believe deeper collaboration the most of it. The right
with the industry will have the skills are a key catalyst
greatest impact. Maybe that for digital growth.
means new business models.”
Leaders need skills in
Dominic Thasarathar, Industry Strategist for implementing digital
Construction at Autodesk change and creating
the right structures and
culture. Managers and
“To seize the opportunities presented by
these emerging technologies we will have to
operatives need problem-
embark on a training programme unlike any solving skills and greater
other our industry has seen before. Our new digital savviness.16
analysis estimates that we will need to reskill
over 600,000 construction employees over Unlocking Construction’s Digital
the next two decades, from trades vulnerable Future: A Skills Plan for Industry,
to technological change to new roles created 2018, CITB Research
by technology.”
Moving to Industry 4.0, Mace15

“There’s something for everyone model versus leaping to something else?

to learn. It’s exciting, but it In terms of skills, many in the industry have
does mean someone could come said we need more tech-savvy people, which
is true. But consider that, as technologies
and take over. But bringing like AI mature, the skillset required will shift
people from the gaming from the tech-savvy to those who are skilled
industry into construction to in ‘knowing the right question to ask, in the
bridge the skills gap is exciting. right way’. They won’t need to get under the
It’s not about muddy boots; hood of technology.”

it’s robotics and AI.”

Cross-industry partnerships and
collaboration will also be critical in
Andrew Pryke, Head of Design at BAM
addressing the skills gap. Felipe Manzatucci,
Director of Digitalisation at Skanska, says:
 ominic Thasarathar asks: “How much time
D “We need to open our eyes and realise that
should the industry dedicate to solving the we are all in the industry. We need to realise
problems that have taxed its legacy business there are no barriers between BAM and

15
https://www.macegroup.com/perspectives/171027-moving-to-industry-40


16
https://www.citb.co.uk/documents/research/citb_constructions_digital_future_report_oct2018.pdf


19
 Skanska and Autodesk working together.
By collaborating we are driving success in the
industry and we will all benefit.
We need to acknowledge that we’re not taking
away others’ intelligence or market share, but
we’re helping each other with education.”
• Culture change
Across the construction industry there is
a reluctance to take risk. There are many
reasons for this stasis; the opposing business
goals of project participants, the manner in
which projects are procured, fragmentation of
the supply chain, lightly capitalised balance
sheets, the uniqueness of each project, the
variable cost nature of contracting, and more.
To compound matters, the cyclical nature of
the industry provides only limited windows in
which to address these issues.
 But, to make the most of digital technologies,
the industry needs a more agile mindset
and a recognition that it might fail in order
OVERCOMING BARRIERS TO TECHNOLOGY ADOPTION
Integrating digital technologies into the
corporate strategy creates a solid top down
approach, but it’s likely employees and
clients will, sometimes unconsciously,
put up resistance.
Here are four key areas to consider:
• Employee inertia
Digital technologies necessitate new
workflows. For some this is easy, but for
others change can be difficult. Building
information modelling (BIM), for example,
has many advantages but someorganisations
have found that their employees have been
reluctant to embrace it.
Andrew Gamblen, Digital Manager at Willmott
Dixon, agrees: “At the start of BIM there was
to succeed. This will be challenging for
many, especially in terms of getting buy-
in from stakeholders who require proof of
ROI. Leaderships teams must navigate this
mindset change to create a culture where
people are free to innovate rather than
bogged down by fear of failure.
“Technology adoption and uptake
isn’t the issue. The biggest barrier
to adoption is more fundamental
than that. Even just onsite
devices are a big mindset change.
It’s a corporate change. There are
a lot of sites where internet and
mobile phones are banned. The
fundamental way we think is the
thing that needs to change.”
Stefan Mordue, Regional Consulting Manager at
AECOM and the CIOB Special Interest Group
a lot of resistance to it, so we had an uphill
battle. But, by focusing on what it is trying to
do – the data management, it then acts as an
enabler for everything else for construction.
All of a sudden in 6-9 months there has been
huge uptake from everyone – supply chain
and internal people. What we have found is
that making it so that it’s at grass roots, so
people on site and in construction teams are
leading it, and they want to do it, has made
uptake very fast.”
• Client resistance
Not all scepticism is internal. Clients can
also prove resistant to change. Kirsty Lever,
Regional Construction Manager at Beard,
explains: “We are a very traditional building
contractor, so our workforce doesn’t want to
embrace [digital technology] and a lot of our
20
 clients don’t want to embrace it, but that’s
more that they don’t want to pay for it. It’s a
brick wall for us.”
Similar to employee inertia, one of the ways
to overcome client resistance is to show
them the benefits. Once they understand,
they will come back for more despite the
additional costs in some instances. “Just do
it and let them come along for the ride,” says
Mike Beckett. “Then the client sees it’s BIM
and employs you for the next job. Don’t sell it
to them, just tell them they’re getting it.”
M
 alcom Clarke agrees: “We are working with
schools that didn’t want [BIM] but we carried
on and have just shown after two years there
is 47% less energy used than the benchmark.
The client is now asking about their other
19 academies across the south east, saying
they don’t know what the others are costing
against the original design.”
E
 ducating clients about the benefits of
digital technologies is also important.
Mark Norton says: “It does come down to
education. We have done a few teaching
sessions. [Clients] were disinterested until
they saw results and once they restructured
[their programme], it took two weeks off, so
they now want everything 4D sequenced. It’s
education and demonstration - if you can
demonstrate the value people get it quickly.”
• S
 kills gap
The current skills gap is a pressing issue
that must be addressed. There needs to be a
push to change qualifications, courses and
apprenticeship programs to include digital
skills and introduce more digital training
programmes on site.
Regarding digital skills, Andrew Gamblen
says: “Those on [Willmott Dixon’s] graduate
programme spend three to six months with
the digital team. Our ethos is to keep our
digital teams small though, as we want it to
be business as usual.”
Meanwhile, on-site training can upskill the
existing workforce. Paul Connolly, technology
director at Mace explains: “We have training
programmes based around familiarisation
and education. We give [our employees]
tools to see if they can drive a model, open
a model. Then we have teams on site, so
each project has a digital engineer who
trains 20 or 30 people. It has to be habitual,
just like updating your CSCS card. Make it
part of the process.”
Mentoring can also be used to address
the skills gap. “We still have an ageing
workforce we need to keep with us for 25
years,” says Mike Beckett. “I am fanatical
about technology, but I find it harder and
harder to keep up. There is room for two-way
mentorship where young people can show
the grey hair brigade and vice versa.” Stefan
Mordue agrees: “Technology doesn’t negate
the need for experience, so coupling those
two skillsets can only be good thing.”
Moving forward, all employees will need the
skills to be able to:
• Think creatively about problems and their
solutions
• Understand how to use digital tools
• Assess which tools to use in which
circumstances
• Manage the data that flows to and from
the use of these tools
21
 Two core competencies needed to push
the construction industry forward
Flexible
mindset

• Curiosity
• Problem-solving
• Creativity
• Emotional intelligence
Seek out
• Communication improvements,
make them
happen

Understanding
tools and data Consider

ry
alternatives

st
du
In
• Knowledge of how
specific tech works
• Range of tech avaliable/
being developed Do what
they’re told
• How data can support
tech development
• Collecting, storing,
sharing, using data

Use what Know what’s Know how to

they have available solve problems,
implement change
Source: CITB Research 17

CITB Research groups these skills into two • Identify their basic skills needs
core competencies that are needed to push the • Proactively drive their own professional
industry forward: having a flexible mindset and development to include the skills needed
an understanding of tools and data. for both a flexible mindset and digital
technology and workflows
But it isn’t just the organisation who should • Seek the required knowledge/skills
take responsibility for upskilling the workforce. appropriate to their role
Individuals must also take charge of their own • Seek opportunities where they can get
digital transformation. Here are the key actions involved – just do it, keep it simple and
employees should carry out: seek results
• Stay in the game – it’s exciting and a whole
new world of opportunity is opening up!

17
https://www.citb.co.uk/documents/research/citb_constructions_digital_future_report_oct2018.pdf


22
TIME AND COST – THE SMALL BUSINESS PERSPECTIVE
Digital technology adoption across the
construction industry is on the rise, but there
is still a way to go until many reach maturity –
especially small-to-medium-sized businesses
(SMBs). In contrast to larger organisations,
where training is more readily available, some
SMBs fear that digital technologies will cost
them more time – and therefore money.
But to do nothing may cause greater harm
in the long term.
Annette O’Connor, Managing Director at family-
run building contractor West Gate Maintenance,
says: “If we don’t embrace and take forward
technologies we’re going to become dinosaurs
in the market and we’ll make ourselves extinct.
Technologies very much are being driven
by the big boys and the big construction
companies and we are being forced into it, but
by embracing technology we’re improving our
own productivity, we’re improving our own
safety and we’re bringing forward ideas that
make ourselves invaluable to some of the large
contractors. Our clients want to see technology,
they want to know what we can offer them.”
Malcom Clarke advises to focus on the
efficiency gains rather than immediate costs.
He says: “The efficiency gains pay for it twofold.
We’re still hitting SFA targets, are below
budget and our margins have gone up and our
supply chains’ margins have gone up too. The
efficiency gains are phenomenal.”
Find out how Fortis, a smaller general contractor of
75 employees, saw the potential of enabling digital
workflows to improve the quality of its projects.
23
THE ROADMAP FOR DIGITAL TRANSFORMATION

Digital transformation can be daunting for “Just get on with it. Whether a client wants it,
those just starting out. Breaking the journey whether staff or supply chain realise what it is,
down into key steps helps to make the whole just do it and eventually everyone follows as
process more manageable. Drawing on the they will eventually see it’s a better way.”
insight of experts and those working in the Malcolm Clarke, Managing Director at Baxall
industry, this roadmap highlights the steps Construction
construction firms need to take to realise a
new and more successful future. Collaborative working

Take a more integrated approach to design,

build and facilities management and prioritise
the development of collaborative, real-time
1. Manage processes and shared information across the

technology supply chain.

strategically “Realise there are no barriers between BAM and

Skanska and Autodesk working together… by
“For ‘at scale’ digitalisation, leadership needs collaborating we will all benefit.”
to fully understand the potential of digital Felipe Manzatucci, Digitalisation Director
technology and how to make it flourish through at Skanska
changes to organisational structure, skills
investment and culture.”18
Unlocking Construction’s Digital Future: A Skills
Plan for Industry, 2018, CITB Research
3. Educate
and skill the
workforce
2. Change Understanding digital tools and data
the culture
“Educate and demonstrate to people what
[digital technology] can do. Teach them how to
Just do it: flexible mindset fish rather than give them fish.”
Mark Norton, Head of BIM at ISG
Seek opportunities for involvement in your
organisation’s digital transformation, and At the heart of digitalisation is a need for a
think creatively about the challenges and digitally-skilled workforce. There needs to be
their solution. a push to change qualifications, courses and
apprenticeship programmes to include digital
“The organisations that are most successfully skills and introduce more digital training
integrating technology are those that are using programmes on site.
digital tools to solve specific problems.”
Unlocking Construction’s Digital Future: A Skills
Plan for Industry, 2018, CITB Research

18
https://www.citb.co.uk/documents/research/unlocking_constructions_digital_future_full_report_1_oct2018.pdf


24
Learning from other industries
“Technology transfer and joint ventures. Get the
millennial to move from Airbus to Mace
or Skanska.”
Andrew Pryke, Managing Director at
BAM Design
What can the construction industry learn
from manufacturing, with its high productivity
and its lean, systematic method for
waste minimisation?
4. Digitise
processes
Collaboration
The emergence of real-time collaboration
environments should help shift the industry
to symmetrical collaboration as connectivity
through the cloud will enable all project
participants to effectively work in one ‘virtual’
project office.19 Constructing with the Power of
Digital, Autodesk
Digital workflows
Today BIM workflows are being adopted across
the supply chain, evolving from a tool that
has historically been used to drive efficiency
within design, into one that connects design to
the build process, and from there to facilities
management.
One [supplier] said he didn’t realise [the build]
was a BIM project but [did say]: “I now know
why we used 60% of resources and took us
half the time to build it. We got on site and
everything was in the right place.”
Malcolm Clarke, Managing Director at Baxall
Construction
Optimise data usage
Data and its effective collection,
communication and management are central to
digital transformation.20
Unlocking Construction’s Digital Future: A Skills
Plan for Industry, 2018, CITB Research
19
https://www.autodesk.com/campaigns/the-power-of-digital-for-construction

20
https://www.citb.co.uk/documents/research/unlocking_constructions_digital_

future_full_report_1_oct2018.pdf
25
CONCLUSION

It’s an exciting time to be in construction, as supply chain. Those leaders who appoint digital
digital technologies promise to bring about technology evangelists at a grassroots level, as
unprecedented change. But there’s no point well as mentors to increase digital skills across
waiting for the competition to get ahead. the workforce; or those who educate clients and
Now is the time to embark on your digital employees about the benefits of new digitally-
transformation journey. supported processes like BIM will succeed in a
digitally-transformed industry.
The vision:
Successful individuals will be those who
Digital technologies have the potential to drive proactively drive their own professional
greater productivity and profitability, creating development to include the skills and
more value as well as much safer construction knowledge needed for a flexible mindset
projects. Technology will generate insights that towards digital technology, workflows and
enable planners to better understand our cities data management.
as ecosystems, enabling organisations to better
predict pipelines of work. Design will be more Finally, the good news is that Autodesk and the
predictable and streamlined, and there will be CIOB are here to help get you started.
greater integration across the supply chain,
leading to better outcomes for the client and
end users of the asset. And digital technologies
will secure the future of the industry by
attracting future talent and disrupting the old For further information
order to open up new business models and please visit us online at:
opportunities.
www.autodesk.co.uk
To date, the industry’s rigid structure –
commercially, contractually, in terms of the lack
@Autodesk_UK
of certainty around pipelines of work, etc – has #whatifconstruction
made it difficult for construction companies
to take a big bet on technology in the way https://www.ciob.org/
that other industries have. However, digital @theCIOB
technology adoption is now more democratic
thanks to its increased commoditisation. This
significantly lowers the barrier to adoption,
particularly for SMBs and those looking to offer
more value and new services.

The roadmap:

Successful organisations will be those whose

business leaders integrate digital technologies
into their corporate strategy and put in place
initiatives to break down barriers to adoption.
For example, those who encourage a culture
of innovation to use digital tools to solve
problems, streamline workflows, optimise
data management and collaborate across the

26
USEFUL RESOURCES
BIM+ library of news and project case studies:
http://www.bimplus.co.uk/news/
CIOB training courses:
BIM Technician: https://www.ciobacademy.org/
product/bim-technician/
BIM Management: https://www.ciobacademy.
org/product/bim-management/
6-week free BIM course: http://www.
bimcampus.co.uk/
FURTHER READING
Roundtable: Skanska, Mace, BAM,
AECOM debate digital transformation,
Construction Manager: http://www.
constructionmanagermagazine.com/insight/
round-table-mapping-digital-transformation/?li
nkId=56960061
Debate on Re-Imagining The Future of
Construction, On-Demand Webinar with
Autodesk and CIOB: https://www.autodesk.
co.uk/campaigns/ciob-future-of-construction/
webinar
Find out what the future of construction might
look like in this video from Autodesk, made
with the CIOB: https://www.autodesk.co.uk/
campaigns/eoc-video-study
Find out more on digital technologies in
Constructing with the Power of Digital,
Autodesk: https://www.autodesk.com/
campaigns/the-power-of-digital-for-
construction
Moving to Industry 4.0, Mace:
https://www.macegroup.com/
perspectives/171027-moving-to-industry-40
Autodesk free introduction on how to use
software, Autodesk reseller network for
product and BIM training: https://academy.
autodesk.com/
Autodesk knowledge network: A rich repository
of more than a million contributions from
Autodesk, its community, and its partners
https://knowledge.autodesk.com/
The Fourth Industrial Revolution: What
it Means and How to Respond, World
Economic Forum: https://www.weforum.
org/agenda/2016/01/the-fourth-industrial-
revolution-what-it-means-and-how-to-
respond/
Building a Technology Advantage: Global
Construction Survey 2016, KPMG:
https://assets.kpmg.com/content/dam/
kpmg/xx/pdf/2016/09/global-construction-
survey-2016.pdf
Unlocking Construction’s Digital Future: A
Skills Plan for Industry: https://www.citb.co.uk/
documents/research/unlocking_constructions_
digital_future_full_report_1_oct2018.pdf
Reinventing Construction: A Route to Higher
Productivity, McKinsey: https://www.mckinsey.
com/~/media/McKinsey/Industries/Capital%20
Projects%20and%20Infrastructure/Our%20
Insights/Reinventing%20construction%20
through%20a%20productivity%20revolution/
MGI-Reinventing-Construction-Executive-
summary.ashx
27
Rethinking Productivity Across the
Construction Industry: The Challenge of
Change, The Economist Intelligence Unit:
https://damassets.autodesk.net/content/dam/
autodesk/www/solutions/bim/images/stories/
EIU_Autodesk_Construction_WEB.pdf
Global Construction 2030, Global Construction
Perspectives and Oxford Economics: http://
www.globalconstruction2030.com/
CUSTOMER STORIES
Selection of real world projects:
http://www.autodesk.co.uk/solutions/bim/
overview/customer-success-case-studies-
construction/realworldprojects
Mace uses cloud-based construction
management for new Facebook data center:
http://www.autodesk.co.uk/customer-stories/
mace-clonee
GRAHAM Construction’s strategy is to focus
on three key areas - people, processes and
technology:
https://videos.autodesk.com/zencoder/content/
dam/autodesk/www/campaigns/emea/videos/
melanie-v3.mp4
JJ Rhatigan are building a BIM strategy to stay
ahead of the game:
http://www.autodesk.co.uk/customer-stories/jj-
rhatigan-bim-strategy
Fortis Construction: A 75 employee general
contractor with a mission:
https://www.autodesk.co.uk/customer-stories/
fortis
Skanska: Combining mobile and cloud
technology on site: http://videos.autodesk.
com/zencoder/content/dam/autodesk/www/
campaigns/emea/videos/skanska-norway-
customer-video-en.mp4
UK Construction: Margin Pressure, 2017, EY
https://www.ey.com/Publication/vwLUAssets/
UK_Construction_Industry_-_Margin_
matters/$FILE/ATTJK7IP.pdf
Balfour Beatty uses Autodesk BIM 360 to
transform London’s former Olympic Stadium
into a new world-class venue:
https://www.youtube.com/
watch?v=0g5NDrGuzy0
Dutch Housing Construction: Van Wijnen
keynote session at Autodesk University:
https://www.youtube.com/
watch?v=Waho7gNMPqA
Housebuilding: how Hill embraced BIM to boost
productivity and reduce waste at the New
Union Wharf development in London.
https://damassets.autodesk.net/content/dam/
autodesk/www/campaigns/era-of-connection/
hill-customer-story-a4-en.pdf
IGA turns to BIM for construction of Istanbul
New Airport, using technology covering the
whole project lifecycle:
http://www.autodesk.co.uk/customer-stories/
iga-istanbul-grand-airport
Redshift Live: How robotics, 3D printing,
and AI are changing the face of construction:
https://www.autodesk.com/redshift/live-
birmingham/
28