You are on page 1of 28

THE TRUE COST OF

HARNESSING
THE DATA
ADVANTAGE
IN CONSTRUCTION IN CONSTRUCTION
Why adopting a data strategy can bring Why adopting a data strategy
firms in Europe a competitive edge can bring companies in Europe
a competitive advantage.
FOREWORD TABLE OF CONTENTS
Foreword

Table of Contents
Projects are built on decisions. It might be owners choosing between 04 Executive Summary
two design routes – or subcontractors working out how to overcome
an installation issue on-site. Whatever their size, all of these decisions 06 Demographics
combine to determine the overall success of the build, for the owners and
every organisation involved. 07 Definitions

These pivotal moments in the project can also create risk, whether it’s 08 Chapter 1
adding cost, causing delays or even producing legal issues. And across Construction data – is more always better?
the board, we’re seeing more decisions taken during the build phase at the
project manager level: staff who are often on-site and under significant 12 Chapter 2
time pressure. Making decisions with data

The quality of every decision depends on data: having accurate, timely and 16 Chapter 3
complete information that you can use when you need it. But right now, The benefits and barriers to formal data strategies
data management is an area where many European firms are struggling.
20 Chapter 4
We might be generating more information than ever before. But whether Skills, culture and leadership are critical
that’s producing actionable insights – and better outcomes for the business
– is another question. Region Perspectives
24 Benelux: Belgium, Luxembourg, Netherlands
We’ve surveyed 1,115 construction professionals and interviewed four 30 France, Germany
contractors across Europe to understand their challenges in using data, as 36 Ireland, UK
well as where they see the biggest opportunities for the future. 42 The Nordics: Denmark, Finland, Norway, Sweden

It’s clear that using data can seem overwhelming. Many organisations 48 Conclusion
don’t know where to start – and with a lack of leadership and resistance to The Four Steps of a Successful Data Strategy
change, it can feel like an uphill struggle.
49 What’s next?
Using insights from businesses across Europe, this report shares simple
steps that every business can take to overcome these hurdles, make 50 Appendix
more data-driven decisions – and start to realise the full potential of data
in construction.

I hope you enjoy the report.

Mike Pettinella
Director of EMEA Sales
Autodesk Construction Solutions

2 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 3
Executive Summary

EXECUTIVE SUMMARY
There is a clear divide between construction companies that are
Executive Summary

benefitting from a formal data strategy, and those unable to get started.

Construction firms are generating more data than 58% of construction companies have a formal data plan in place

ever before, but only a small proportion is usable.


BUT

33% don’t

82% of professionals are collecting more data from


construction technology today than three years ago, fewer safety incidents
reduction in change orders
Companies with a data strategy say the biggest benefits are
BUT fewer missed schedules

39% say that less than half of that data is usable less rework

inaccurate
39% A lack of applicability

40% of the average organisation’s data is bad – meaning


incomplete
inconsistent
37%
Most common reasons not
untimely to have a data strategy Cost and resources

51%
35%
don’t know what data to collect
Professionals report problems Not knowing where to start
with the whole process
don’t understand how to
52% manage project data effectively
Skills, culture and leadership will be central to pursuing successful
data strategies, but many companies have barriers to overcome.

There is huge pressure to make decisions quickly, but often


professionals make them without access to the data they need. 44% of professionals say data management and analysis skills
will be important for project management staff to do their
jobs effectively in the future

70% of professionals say schedule compression means project


managers and field supervisors need to make more rapid decisions
36% of companies are providing formal training in data analysis

9% always incorporate project data into their decision making

WHILE 34% of companies cite a lack of leadership and organisational


support as the reason they don’t have a formal data strategy

64% do this sometimes, rarely or never

41% of the time, on average, bad project data results in poor decisions
By starting with a single project, construction businesses can
make incremental progress in improving their data management.

4 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 5
DEMOGRAPHICS DEFINITIONS

Definitions
Demographics

This research is based on a survey and Data — Project-related data that represents
measurements, observations or statistics. This
interviews conducted by research firms
might include BIM inputs, material quantities,
FMI and Censuswide in March 2021. safety incidents, assigned staff or cost data, for
The quantitative survey featured 1,115 example.
construction professionals across Europe.
Usable Data — Usable project data is readily
accessible, consumable, understandable, and
actionable.

Bad Project Data — Bad data is inaccurate,


incomplete, inaccessible, inconsistent or
NATIONALITY untimely.

• Belgium 100 Construction Technology — Construction


• Denmark 100 technologies include hardware like cameras
or sensors and software such as Building
• Finland 106 Information Modelling (BIM) tools that collect or
• France 100 create project data.
• Germany 102
• Ireland 102
• Luxembourg 103
• Netherlands 101
• Norway 101
• Sweden 100
• United Kingdom 100

SPECIALISM
• Project Owner 28%
• Architect/Engineer 43%
• Construction Manager/ 24%
Main Contractor
• Trade Contractor 5%

6 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 7
01 Construction data – is more always better?

01
02 CONSTRUCTION The good, the bad
and the unusable
03
DATA – IS MORE
ALWAYS BETTER?
04 Although more data is being collected, There isn’t a single outstanding issue
not all of it is usable. As one UK quality causing this prevalence of bad data.
manager put it, “It’s easy to just grab a lot When naming the biggest contributor,
more always better?
Construction data – is

of data, but this can cloud what you are professionals are quite evenly split
trying to do.” between inaccurate data (23%), duplicate
40% of the average construction data (21%), missing data (20%), wrong
In fact, 39% of professionals say that less data (20%) and poor data quality (17%).
business’ data is bad than half their data is “readily accessible, Altogether, this can make data unreliable
consumable, understandable and – creating problems, rather than adding
The use of technology in construction Collecting and handling this level of actionable” – or in other words, usable. value, for the business.
is growing – and one of the clearest information is taking up significant Only 15% believe that three quarters or
consequences is that firms can access resources. The process can be split more of their organisation’s data meets
more data than ever before. between multiple teams; as one main this definition.
contractor in the UK explained, “Right
Most construction professionals (82%) now, our quality managers in the field and Worse still, a significant proportion of
agree their organisations are collecting safety team capture all of the data we use. this data is bad. On average, respondents
more data from construction technology They give it to our data analytics team, characterise 40% of their organisation’s
today than three years ago, with 43% who analyse it and build out the reports.” data as “inaccurate, incomplete,
reporting an increase of 50% or more. But inconsistent or untimely.”
when it comes to data, is more actually On average, 49% of project management
better – for projects and for the business? and field supervision staff’s time is spent
collecting, managing and analysing
project data each week.

82%
ARE COLLECTING MORE DATA FROM
CONSTRUCTION TECHNOLOGY
TODAY THAN THREE YEARS AGO

8 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 9
01 Construction data – is more always better?

01 Problems with
02 the processes AUTODESK COMMENTARY
03
04 From a process perspective, construction There are issues with the whole process The rise of construction data means that Thinking about data management
professionals are experiencing a number of data management, from start to finish. companies can collect and access more strategically is the best place to start.
more always better?
Construction data – is

of challenges when working with their Professionals point to problems with data than ever before. But it’s very clear Consider what project data is the
project data. The most common are that: knowing what data to collect (51%), how that more isn’t always better. most valuable to your team. Then think
to collect data efficiently (49%) and how about ways to improve its reliability
1. Data from one source cannot be to manage project data effectively (52%). For example, project managers and – for example, using cloud-based
easily combined with another source Rather than pushing on with large scale field supervisors in Luxembourg spend construction technology to record data
2. There is too much data to know how data collection, taking the time to think the highest proportion of their time more accurately on-site – then you can
to use it efficiently or effectively specifically about these fundamentals collecting, managing and analysing data work from there. Incrementally, your data
may help businesses to get more from (55%) – but nonetheless report the lowest quality will improve.
3. Data is incomplete and missing their data. proportion of usable data in the business
certain aspects that would make it across Europe.
more usable
Data management is often time-
consuming and error-prone, and firms are
concerned that they don’t have the insight
to improve the situation.

10 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 11
01 Making decisions with data

01
02 MAKING DECISIONS
WITH DATA
Which of the following areas presents the
03 greatest risk to project decision making?
Most popular response by country
04
Ireland 40%
with data
Making decisions

Lack of experience with


Poor data causes poor similar project decisions Norway 44%

decisions 41% of the time


Lack of input from others,
especially senior staff
Luxembourg 44%
Decision making is one of the most pivotal But overall, construction organisations
parts of any project, but there are many point to time constraints as the single
factors that can create greater risk. biggest risk to project decision making Failure to understand
(38%). And this is a growing problem; the relationship to Finland 41%
Experience and context can be key. 70% agree that because of factors like other projects and the
When considering what adds the schedule compression and stakeholder organisation more broadly
greatest risk to their decisions, requests, project managers and field
construction professionals highlight a supervisors need greater autonomy to Belgium 44%
lack of experience with similar projects make rapid decisions. Time constraints and Denmark 42%
(35%) and failing to understand the urgent decisions France 50%
project’s relationship to the wider Germany 43%
organisation (34%).

People also matter. A lack of input from Lack of reliable data Netherlands 37%
others, particularly senior staff, (32%) and United Kingdom 40%
personal bias and conflict (25%) are also
prevalent issues.

12 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 13
01 Making decisions with data

01 Gut feeling
02
AUTODESK COMMENTARY
03 Crucially, professionals often lack the data Poor information-sharing within the
to make project decisions effectively. Only organisation can be part of the issue. For
04 9% always incorporate project data into example, the BIM coordinator noted: “The
Project managers have always been These are vital moments on projects.
tasked with making decisions quickly. Making the wrong decision can cause
their decision making – while 64% do this main challenge is always communication
with data
Making decisions

But with the Covid-19 pandemic rework, delays and extra costs, even
sometimes, rarely or never. between the ones that collect the data
disrupting projects across Europe, making the difference between a
and those that use it.”
there’s more pressure on schedules than profitable job and a loss for the
In fact, in many businesses, making
ever before. partners involved.
decisions on-site based on gut feeling So although it is being collected, data
is a strong part of the working culture. might not be making it through to those
Some countries are experiencing this It’s crucial that decision makers can
“The level of decision making in the who need it – ultimately increasing project
acutely; in France, 50% of professionals access up to date, accurate project
field has always been high, but these managers’ reliance on instinct.
say time constraints are adding risk to data whenever it’s needed. Cloud-based
decisions have been made mostly on
key decisions. tools can be a valuable resource, and
their experience and not analysis,”
help to engage other stakeholders in the
explained a BIM coordinator at a
process. That way, professionals can be
German main contractor.
sure they are making the best decisions
in the circumstances.

Bad input, bad output


The issue isn’t just a lack of data in Information is one of the best ways to
decision making. Worse still, data that’s manage risks. But right now, employees
inaccurate, incomplete, inconsistent or on-site are under pressure to take
untimely actually compromises decisions. decisions quickly, without easy access
On average, construction professionals to the information they need – or worse,
say that bad project data results in poor unsure if they can rely on the data they’ve
decisions 41% of the time. been given.

Unsurprisingly then, a third say a lack of


reliable data presents a key risk to project
decision making (35%).

14 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 15
03 The benefits and barriers to formal data strategies

01
02 THE BENEFITS AND Learning from the past
03
BARRIERS TO FORMAL A data strategy is essentially a vision Importantly, companies with a plan to

DATA STRATEGIES
for how the company will use data to its analyse data at the organisation-level
04 advantage, so it can look very different are seeing better outcomes on the
from business to business. ground, because they are able to learn
to formal data strategies
The benefits and barriers

from past outcomes.


At the construction companies with a
strategy in place, there are differences As one main contractor in Spain
35% say their biggest data strategy between what that plan includes: explained, “By tracking issues on our
hurdle is not knowing where to start • 52% of data plans outline the
construction sites, we hope to avoid
the same in the future. It’s not just
sources and collection methods for avoiding project-related problems;
Construction companies are well aware Interestingly, a third have even created priority data
that action is needed to get more from a formal position to oversee their it’s about avoiding legal problems as
their data. Many are making specific data (33%), firmly entrenching data • 45% include the identification and well. It has taken time to gather data
efforts to ensure decision makers can management in the business. description of the project data to be across many projects, but it has been a
access high quality information: collected good investment.”
But companies are split when it comes to
• 40% of construction companies implementing a formal strategy to analyse • 45% have quality assurance and Respondents point to a number of
regularly review data at set intervals data at an organisational level: in other control methods benefits, with the most common being
for quality purposes fewer safety incidents, a reduction in
words, putting a plan in place to collate • 45% have standards for project data change orders, fewer missed schedules
• 39% have established data reporting insights from different projects and drive formatting and processing
business-level improvements. or reduced delays and less rework.
and monitoring practices at the time
of collection and use
While 58% of construction companies
• 37% have structured data into a have a formal data plan in place, a
common data environment third (33%) don’t. A further one in ten
professionals (9%) don’t know either way –
suggesting that if strategies do exist,
they aren’t being well-communicated in
the business.

16 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 17
03 The benefits and barriers to formal data strategies

01
The barriers to overcome
02
AUTODESK COMMENTARY
03 At the 33% of construction companies Businesses without a data strategy
without a formal data strategy, could be missing out on opportunities
04 respondents point to a number of to learn from past projects and improve.
Many organisations are well-aware of The best approach is to start small, by
their data management challenges focusing on the project data that you
barriers in the way. The most common One innovation and quality manager in
Data Strategies
Implementing Formal

and are making efforts to improve. know can bring the most value to the
is “a lack of applicability” (39%), which the UK recalled an incident where “we
For example, although construction business. Undertake a pilot project and
could suggest professionals are failing had a project that went terribly bad. A
companies in Denmark have a high progress from there.
to see how data plans can add value to couple of years later, we had the exact
proportion of bad data (47%), they are
their business. same project. But because we did not
the most likely to have implemented a It’s also important to use digital tools
have ready access to any data related
process for identifying and repairing that that are easy to integrate, in order to
For other businesses, just getting to the first project, we made the same
data (42%). avoid data siloes and allow construction
underway is a hurdle. Professionals point mistakes all over. Everything that went
professionals to more easily build on data
to the cost and resources required to wrong was avoidable had we had the
Taking insights from multiple projects management processes for the future.
create a strategy (37%) and simply not lessons learned from the first project
is how organisations can make long-
knowing where to start (35%). available to our team.”
term improvements in the business.
Interestingly, 31% of construction
But there’s certainly no one size fits all
professionals say that the firm’s limited Although it might take time and
when it comes to data strategies – and
use of construction technology is the investment, creating a strategy to collate
just knowing where to start can be a
main barrier – which might indicate data across the business and make
problem; 47% of UK companies
difficulties with digital transformation ongoing improvements can pay dividends
without a data strategy say this is
across the board. in the long run.
their biggest barrier.

Why hasn’t your organisation implemented a formal project data plan


or strategy? Answers for “Limited use of construction technology.”

Belgium Denmark Finland France Germany

19% 38% 14% 8% 33%


Ireland Luxembourg Netherlands Norway Sweden UK

49% 24% 50% 28% 40% 11%

18 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 19
04 Skills, culture and leadership are critical

01
02 SKILLS, CULTURE Future skills
03
AND LEADERSHIP Many construction professionals believe As one contractor in Spain puts it,

ARE CRITICAL
digital skills will become even more “Data analysis skills will be critical for
04 valuable over time. In fact, 44% say data the future construction workforce,
management and analysis skills will be because data and insights can create
ership are critical
Skills, culture and lead-

important for project management and competitive advantage.”


field supervision staff to do their jobs
effectively in the future. Interestingly, 32% of professionals
A lack of leadership blocks data point to data science and programming
strategies at 34% of businesses Across the board, professionals point to and 29% highlight machine learning –
a number of analytical skills that will be believing these relatively specialist skills
Many construction firms are making The format of this training is important. important for the future of the industry, today will become much more important
greater use of technology and data Where organisations offer data including data management strategy in the years ahead.
than ever before. But success doesn’t management training, it is most (43%), data analytics (39%) and workflow
only come down to the digital tools and commonly through formal third-party optimisation (39%). At the same time, some believe that
processes in place; it’s about the people instruction (31%), informal on the job technology will be vital for attracting
on the ground and creating the right training (26%) or formal in-house training the next generation of talent into
company culture. (26%). Offering multiple formats is construction: “Young people are used
valuable. “When you train people on it, you to using technology and will expect it in
Businesses need employees who are will need different methods,” explained their jobs.”
ready and able to use new technologies – one data analyst at a UK main contractor.
and many organisations are taking steps
to upskill their staff today. Over a third of Professionals highlight the importance of
companies are providing formal training ongoing support for staff: “Training is not
in data management and analysis (36%). a one-time event. It has to be continuous.”
It’s also common to deliver training in Some even see training as a competitive
technical skills (37%), safety (35%) and differentiator, with one Spanish
scheduling (35%). contractor noting, “If we are not working
towards having these skills in people, our
competitors will.”

20 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 21
04 Skills, culture and leadership are critical

01 Culture challenges
02
AUTODESK COMMENTARY
03 However, there are signs that in some Communication is an important part of
cases company culture will present a encouraging technology adoption. “One
04 barrier to making greater use of data in the of the early challenges we ran into was
Technology is creating new Leadership will be vital to help employees
opportunities in construction, but this adopt new tools and ways of working,
future. Adopting technology represents a our approach,” recalled a innovation and
ership are critical
Skills, culture and lead-

in turn is changing the processes and whether that’s the senior leadership
significant change – and for many workers, quality manager. “We were giving iPads
skills needed in businesses. This often team or champions on every project.
that can be difficult to accept. to our field staff for taking photos and
requires a significant cultural change too It’s also critical that companies support
completing forms. They initially felt like it
– but that change can be very difficult, employees in gaining the skills needed
One UK main contractor explained, was more work and that we were adding
especially in an industry that has worked for the future through formal training and
“Some of our people just can’t get their stages that were not necessary. We had to
in the same way for a long time. proactive engagement.
heads wrapped around the reports – and explain to them why we were doing it and
it’s not because they don’t understand how it would save them time – and now
Reluctance in the leadership team Fortunately, many of today’s digital tools
them: it’s more a culture change and shift they are really happy.”
and across the business can be a are designed to be intuitive and easy
in what people are used to. There has been
major barrier. In Belgium, 40% of to use. With the right support, even
a small minority that has been resistant to Leadership is critical – but this is one area
professionals say that the biggest less confident employees can begin to
any change.” where many businesses are falling down.
barrier to creating a data strategy gain digital skills and help to unlock the
Where organisations don’t have a formal
is a lack of support from leadership benefits of data insights for the business.
Challenges with data management can data strategy in place, 34% point to a lack
and their organisation. Meanwhile, in Additionally, younger recruits into the
make people even more reluctant to adopt of leadership and organisational support
Denmark, 32% of professionals highlight business can lend their digital skills to
new tools. A common issue reported by as the main reason.
conflict on projects – which suggests an support their experienced colleagues
professionals is that errors raise suspicion
atmosphere that might not be conducive working in the field.
about the data and its usefulness and value Construction leaders must make data
to change.
– which will in turn hinder efforts to make management a strategic priority at the
greater use of technology in the business. highest level, and support adoption
across the business. Otherwise, it will be
difficult to progress – and there is a risk of
being left behind by competitors.

22 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 23
REGIONAL PERSPECTIVES
perspectives
Regional

BENELUX: BELGIUM,
LUXEMBOURG,
Belgium, Luxembourg, Netherlands

NETHERLANDS
The last 12 months have been challenging By contrast, in the Netherlands,
for Benelux construction companies, construction sites remained open with
although each country in the region reduced activity. As a result, by April 2021
was uniquely impacted by the Covid-19 the sector had returned to pre-crisis
pandemic. In Luxembourg, construction productivity levels, and confidence was
was particularly badly hit by the first wave high. Belgium has fallen somewhere in
of the pandemic, with activities falling the middle; the economy as a whole grew
by 55% between February and April 2020 at the start of 2021, but construction
when most project work was suspended. only grew by 0.1% compared to the same
period in 2020.

When it comes to the risk factors organisations face daily, different issues
surface in each country. Construction professionals were asked about the
two factors that pose the biggest risks for their project decision making:

Belgium Luxembourg Netherlands

44% 44% 37%


Time constraints and Lack of input from others, Lack of reliable data
urgent decisions especially senior staff

40% 38% 36%


Lack of input from others, Failure to understand the Lack of experience with
especially senior staff relationship to other projects and similar decisions
the organisation more broadly

24 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 25
Belgium, Luxembourg, Netherlands Regional perspectives

Data in decision making Data strategy divides


perspectives
Regional

To explore how construction companies Interestingly, looking back over the last As in every region, there is a clear divide Companies with a formal data strategy
Belgium, Luxembourg, Netherlands

in Benelux use data, respondents three years, construction companies in between construction companies that in place were asked about the benefits
were asked how often project data Luxembourg report the lowest increase have a data strategy, and those that don’t. they receive from it, such as less rework
is incorporated into their companies’ in data from construction technology Companies without a formal data strategy and fewer missed schedules. Belgium is
decision making. Luxembourg is one of in the business across Europe (just 31% in place were asked what their biggest the country where companies with a
the countries that does this least often say it has gone up by more than half). barrier is, with some pointing to limited data management plan are the least
across Europe: Luxembourg companies also report the use of construction technology. likely to be realising these benefits
lowest proportion of usable data in the from it; by comparison, in Luxembourg,
• Belgium: 28% always or often business in Europe, and indicate that Dutch companies without a data strategy companies are amongst the most likely
incorporate project data into their biggest data management are the most likely to say that a lack of to report advantages.
decision making challenge is knowing what project data construction technology is a key barrier
• Luxembourg: 24% always or often to collect (56%). – perhaps suggesting a significant divide So, although companies in
incorporate project data – but 43% between companies with digital tools and Luxembourg might be struggling
say rarely or never However, Luxembourg is one of the data strategies, and those lacking either: with data management, the few with
counties where the highest proportion a formal strategy in place are seeing
• Netherlands: 44% always or often of project management and field • Belgium: 19% point to limited use of a clear advantage.
incorporate project data supervision staff’s time is spent construction technology
collecting, managing, and analysing • Luxembourg: 24% point to limited
Respondents were asked how much of project data each week. This takes use of construction technology
their data they would characterise as bad 55% of staff time in Luxembourg,
– inaccurate, incomplete, inconsistent compared to 38% in Belgium and 50% • Netherlands: 50% point to limited
or untimely – and how often that results in the Netherlands. This suggests that use of construction technology
in poor decisions, producing broadly companies in Luxembourg are still reliant
consistent results across the region. on manual data gathering processes,
which may in turn explain why project
• Belgium: 38% of the data is bad – data is so rarely used in decision making.
resulting in poor decisions 41% of the
time

• Luxembourg: 46% of the data is bad


– resulting in poor decisions 47% of
the time

• Netherlands: 43% of the data is bad


– resulting in poor decisions 44% of
the time

26 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 27
Belgium, Luxembourg, Netherlands Regional perspectives

The view from Benelux


perspectives
Regional

Sander Lijbers
Belgium, Luxembourg, Netherlands

District Manager – Benelux and Europe East


Autodesk Construction Solutions

There’s a mixed picture when it comes to with some Belgian companies taking the
data management in the Benelux region. opportunity to progress into augmented
Dutch construction companies have long and virtual reality technologies. There
been seen as forerunners in their use of is however a divide in many businesses,
digital technology and data, but there between younger, digitally native
are some signs that the rapid pace of employees and those who might be older
digitalisation has been slowing. and more reluctant to change. Meanwhile,
in Luxembourg, most companies are at an
The challenge in many organisations early stage in their digital journeys.
seems to be working out the next step
to take: data is being collected on the Throughout the region, construction
ground, but now it’s not clear how it should companies should focus on integration as
be used to drive wider improvements. they adopt more digital tools and continue
For many Dutch companies, disjointed with their transformation. Selecting a
systems are a significant hurdle. platform that can be easily integrated with
other systems will be key for getting the
In Belgium, the use of cloud tools most value from data in the future. At the
has accelerated – matching and even same time, upskilling – to ensure that the
outpacing the Netherlands in some workforce is supported and engaged with
respects. The pandemic has driven digital tools – will be a marker of success.
greater interest in data-sharing tools,

28 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 29
REGIONAL PERSPECTIVES
perspectives
Regional

FRANCE, GERMANY
France, Germany

Construction businesses in France and By contrast, in Germany construction


Germany have faced quite different sites remained open; despite some
prospects over the last twelve months. delays due to social distancing, there was
During the first wave of the Covid-19 almost no decline in construction activity.
pandemic, most French construction Confidence is high and the industry is
sites closed down – with industry- expected to grow by 2.8% in 2021, with
wide activity plummeting by 64% from infrastructure projects like the Fehmarn
February to April 2020. Belt underwater tunnel, linking Denmark
and Germany, underway.
More sites were able to remain open
during subsequent lockdowns, although However, construction professionals in
in April 2021 construction in France was both countries are very aligned when
still more than 5% lower than pre-crisis it comes to the greatest risks faced on
levels. Permits for residential and non- individual projects: lack of time and lack
residential buildings fell sharply in 2020, of information.
suggesting further challenges in the
future pipeline.

In fact, these issues seem particularly prevalent compared to the other


countries surveyed; when asked what presents the greatest risk to project
decision making, France was the country in Europe most likely to point to
time constraints, whereas German companies were the most likely in Europe
to highlight a lack of reliable data:

France Germany

50% 43%
Time constraints and Time constraints and
urgent decisions urgent decisions

36% 41%
Lack of reliable data Lack of reliable data

30 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 31
France, Germany Regional perspectives

Data in decision making Data strategy divides


perspectives
Regional

To explore how French and German COMPANIES Companies were asked whether they have Companies without a formal data strategy
France, Germany

construction companies use data, a formal data strategy in place – and if so, in place were asked why not – and whether
respondents were asked how often what it encompasses. Alongside Ireland, a lack of construction technology was
project data is incorporated into decision Germany is the only country where most the main barrier. Interestingly, in France
making. France is the European country
where professionals report using data the GERMANY data plans include standards for project
data formatting (58%), collection methods
the fewest companies cited a lack of
technology as an issue, possibly pointing
most often: REPORTS THE for priority project data (52%) and quality to higher adoption across the sector:
LOWEST PROPORTION assurance measures for collected data
• France: 55% always or often OF BAD DATA (54%), suggesting a mature approach to • France: 8% point to limited use of
incorporate project data into data management. construction technology
decision making

• Germany: 41% always or often


incorporate project data into
FRANCE • Germany: 33% point to limited use of
construction technology

decision making REPORTS THE JOINT


FEWEST RESULTING German construction companies
BAD DECISIONS are the most likely in Europe to have
Respondents were asked how much of GERMANY, A MATURE APPROACH structured their data into a common data
their data they would characterise as bad TO DATA MANAGEMENT environment (45%). Moreover, alongside
– inaccurate, incomplete, inconsistent Ireland, Germany is the country where
or untimely – and how often that results companies are most likely to give formal
in them making poor decisions. Both training to project managers and field

58%
countries performed very well by this supervisors on data management and
measure, with German companies analytics (44%), supporting longer term
reporting the lowest proportion of bad efforts to improve data management.
data and French companies reporting PROJECT DATA
the joint fewest resulting bad decisions FORMATTING
in Europe:

52%
• France: 33% of the data is bad –
resulting in poor decisions 28% of
the time
COLLECTION METHODS
• Germany: 30% of the data is bad – FOR PRIORITY
resulting in poor decisions 31% of PROJECT DATA
the time

54%
QUALITY ASSURANCE
MEASURES FOR
COLLECTED DATA

32 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 33
France, Germany Regional perspectives

The view from


perspectives
Regional

Germany and France


France, Germany

Marvin Theissen
District Manager – Western Europe
Autodesk Construction Solutions

Data management is hugely significant Germany is one of the most mature


for construction businesses in France countries with regards to data
and Germany. Projects in both countries management, and a key driving force is
face acute time pressures, with French demand from public and private sector
companies compensating for pandemic- clients. Importantly, many German
related delays and Germans meeting companies are already benefitting from
high demand. Fortunately, businesses common data environments (CDEs), which
recognise the value of good quality data can eliminate siloes and enable leaders to
for making informed decisions at pace. get business-wide insight. This will give
the German industry an excellent platform
It’s interesting that many French for further transformation, and help the
companies report using data to make whole construction ecosystem – from
project decisions, but there’s still design through to facilities management –
progress to be made when it comes to to take advantage of data.
standardisation across the business. That
means adopting good practices, such
as standard data formatting and quality
assurance measures, as well as investing
in formal training. That will enable
companies in France to gain the most
insight from data at an organisational
level – and boost their productivity in the
long-term.

34 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 35
REGIONAL PERSPECTIVES
perspectives
Regional

IRELAND, UK
Ireland, UK

After a difficult year, construction Construction businesses in the UK


companies in Ireland and the UK are can also look ahead to some recovery
looking forward to a strong recovery in in 2021, with growth of 12.9% forecast
2021. In Ireland, the industry as a whole across the industry. The infrastructure
is predicted to grow by 15% over the sector is set to perform especially
course of the year – and while this won’t strongly, with projects like HS2 and
mean a return to pre-crisis levels, it is a utilities upgrades underway.
significant rise over 2020.
However, UK organisations are facing
Although Irish companies continue to longer term changes: for example, the
face a skills shortage, there are signs continuing impact of Brexit on talent
that the sector could be well-placed to and the supply chain. Equally, the
attract talent in the longer term; pay in government’s Construction Playbook
construction is good compared to other will require businesses to use digital
EU countries, reaching close to the tools and data to support public
national average wage. Importantly, Brexit sector bids, which will mean changes
has not so far resulted in widespread for many organisations.
challenges for Irish companies receiving
equipment and materials.

Interestingly, a lack of information is a challenge that both Irish and UK


professionals point to across their projects, when asked about the factors
posing the biggest risks to decision making. In fact, the UK is the country
most likely to point to a lack of reliable data:

Ireland United Kingdom

40% 40%
Lack of experience with Lack of reliable data
similar decisions

39% 39%
Lack of understanding of Lack of experience with
the relationship to other similar decisions
projects and the business

36 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 37
Ireland, UK Regional perspectives

Data in decision making Data strategy divides


perspectives
Regional

To explore how data is used by Irish and However, this has a resource implication. Companies were asked whether they have However, in both countries there are
Ireland, UK

UK construction companies, respondents In Irish businesses, project managers and a formal data strategy in place – and if so, companies without data strategies in
were asked how often project data is field supervision staff spend the most what it encompasses. In Ireland, where place – and for some, a wider lack of
incorporated into decision making: time in Europe on collecting, managing companies do have a data strategy in construction technology in the business
and analysing data, occupying 62% of place, there are likely to be several good is the main reason. In fact, in Ireland,
• Ireland: 34% always or often their time compared to 39% in UK. processes set up. this is the most common blocker for
incorporate project data into
those companies that don’t have data
decision making Alongside Germany, Ireland is the only strategies, whereas in the UK it’s
• UK: 44% always or often incorporate country where most data plans include relatively uncommon:
project data into decision making standards for project data formatting
(55%), collection methods for priority • Ireland: 49% point to limited use of
project data (50%) and quality assurance construction technology
Respondents were also asked how much
measures for collected data (55%).
of their data they would characterise • UK: 11% point to limited use of
as bad – inaccurate, incomplete, construction technology
inconsistent or untimely – and how often Likewise, UK companies also have

58%
that results in poor decisions. The UK good data practices established. After
performed very well by this measure, Germany, UK is the country where DATA PLANS IN IRELAND
reporting the second lowest proportion of companies are most likely to regularly
bad data and bad decisions in Europe: review data at set intervals for quality
SAY THAT DATA HAS
purposes (45%), to improve the
INCREASED BY AT LEAST HALF
55%
• Ireland: 41% of the data is bad – IN THE LAST THREE YEARS information available to decision makers.
resulting in poor decisions 46% of
the time STANDARDS FOR
• UK: 32% of the data is bad – resulting PROJECT DATA
in poor decisions 31% of the time FORMATTING

Across Europe, Irish companies


reported the highest recent
increase in project data generated by
50%
COLLECTION
construction technology; 58% say that METHODS FOR PRIORITY
data has increased by at least half in the PROJECT DATA
last three years.

55%
QUALITY ASSURANCE
MEASURES FOR
COLLECTED DATA

38 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 39
Ireland, UK Regional perspectives

The view from


perspectives
Regional

Ireland and the UK


Ireland, UK

Marek Suchocki
Industry Engagement Lead
Autodesk

Construction companies in Ireland and In the UK, client demand and appetite for
the UK are increasing their focus on data change are driving technology adoption
management. In Ireland, we’re seeing across the sector. Owners are demanding
a rapid rate of change as companies digital workflows and data handover, while
transition from analogue to digitalised the government is now mandating BIM
processes and begin to make use of adoption for public sector projects.
project data. Client maturity, rising
awareness and the need to deliver a high And positively, organisations are
workload with limited resources are all responding by incorporating data more
likely to be driving this digital adoption. closely into their projects. In fact, it’s
really encouraging that construction
It’s positive that advanced companies in professionals highlight poor data as the
Ireland are developing comprehensive biggest risk that they face, as in fact this
data plans. Generally, however, there’s shows an increasing reliance on data for
still plenty of work to be done in most project execution. The next stage will be
businesses, as shown by the relatively for businesses to ensure that they can use
high proportion of bad data and the insights from multiple projects to drive
relatively high effort required to gather internal improvements, from productivity
it. Focusing on adopting and embedding and quality to safety. This will help both
digital tools for the site will help UK and Irish businesses to meet ongoing
businesses to collect data efficiently and uncertainty in the months ahead.
accurately, while providing formal and
informal training for project managers
will ensure they can use this data to drive
decision making.

40 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 41
REGIONAL PERSPECTIVES
perspectives
Regional

THE NORDICS:
DENMARK, FINLAND,
The Nordics: Denmark, Finland, Norway, Sweden

NORWAY, SWEDEN
In the Nordics, construction industries However, Nordic construction companies
have been less severely impacted by face wider changes: all four countries
the Covid-19 pandemic than some have committed to taking a leading role
other European countries, due to in the global green recovery, with the
a lower proportion of lockdown respective Prime Ministers underlining
closures. Between February and April, the role of both public and private
construction activity in Finland dropped sector organisations in this transition to
only moderately – while in Denmark and sustainable development.
Sweden, it actually increased. Despite a
year of challenges, by April 2021 Finnish
and Swedish companies had returned to
pre-crisis activity levels.

From project to project, Nordic companies tend to point to time


constraints, lack of experience and communication challenges
as posing the greatest risk to their decision making:

Denmark Finland Norway Sweden

42% 41% 44% 42%


Time constraints and Failure to understand the Lack of experience Time constraints and
urgent decisions relationship to other projects with similar decisions urgent decisions
and the organisation

39% 36% 36% 36%


Lack of experience with Lack of experience with Lack of input from others, Lack of input from others,
similar decisions similar decisions especially senior staff especially senior staff

42 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 43
The Nordics: Denmark, Finland, Norway, Sweden Regional perspectives

Data in decision making Data strategy divides


perspectives
Regional

To explore how Nordic construction • Denmark: 47% of the data is bad – When it comes to whether companies Finland is the only country in Europe
The Nordics: Denmark, Finland, Norway, Sweden

companies use data, respondents resulting in poor decisions 47% of have a strategy for data management, where most companies without a data
were asked how often project data is the time there is significant variation across strategy point to the cost and required
incorporated into decision making. While the region. In fact, Sweden is the only resources as the biggest problem, at 57%.
Finland and Sweden perform well, Norway • Finland: 45% of the data is bad – country in Europe where the majority
is the country that does this the least resulting in poor decisions 44% of of construction companies don’t have a Norway is the country in Europe where
often in Europe: the time formal plan for collecting and analysing companies are the least likely to have
• Denmark: 34% always or often • Norway: 49% of the data is bad – data across projects – 42% have a plan, structured their data into a common data
resulting in poor decisions 48% of and 58% don’t – compared for example to environment, at 27% compared to 45% in
incorporate project data into Denmark where 73% of businesses have a
the time Germany. On the other hand, Norwegian
decision making formal data plan. companies are the most likely to have
• Finland: 45% always or often • Sweden: 38% of the data is bad – created a formal position to oversee
incorporate project data resulting in poor decisions 39% of Companies without a formal data data; Norway is almost twice as likely as
the time strategy in place were asked why not Denmark to have done so (42% compared
• Norway: 20% always or often – and some pointed to limited use of to 22%). Likewise, Norway’s construction
incorporate project data – but 51% Alongside Germany, Denmark is the construction technology as a barrier. By companies are the most likely in Europe
say rarely or never European country most likely to have this measure, Sweden looks to have the to offer formal third-party training on data
a process for identifying and repairing largest proportion of companies where management (45%).
• Sweden: 40% always or often poor data (42%) – so although companies a lack of technology is hindering data
incorporate project data identify a high proportion of bad data, management:
there are measures in place to address it.
Respondents were also asked how much • Denmark: 38% point to limited use
of their data they would characterise Data management appears to be of construction technology
as bad – inaccurate, incomplete, particularly time consuming in the
inconsistent or untimely – and how often Nordics. In all four countries, more
• Finland: 14% point to limited use of
that results in poor decisions. Again, construction technology
than half of project management and
Norway performs the worst of any country field supervision staff’s time is spent • Norway: 28% point to limited use of
in Europe by this measure: collecting, managing and analysing construction technology
project data – Denmark: 51%, Finland:
51%, Norway: 53% and Sweden: 55%. • Sweden: 40% point to limited use of
Outside the Nordics, this is only the case construction technology
in Ireland and Luxembourg.

44 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 45
The Nordics: Denmark, Finland, Norway, Sweden Regional perspectives

The view from


perspectives
Regional

the Nordics
The Nordics: Denmark, Finland, Norway, Sweden

Nicholas Klokholm
District Manager – Nordics, Baltics and Poland
Autodesk Construction Solutions

Data management is a challenging A lack of understanding about data


problem – and right now, no construction management across organisations is a key
company in the Nordics has quite issue. There are ways to gather insights
managed to solve it. Organisations are more efficiently: for example, using BI
trying different things and many separate (business intelligence) modules to gain
initiatives have been set in motion. But an overview of all the organisation’s data.
so far, these measures are pretty siloed: Nordic construction companies need to
there’s no overall plan from a C-level gain an understanding of the approaches
perspective, and that can leave people available – and look for digital platforms
feeling like they’re fumbling in the dark. that make it easy to integrate their data. I
believe that will help them to take the next
In my opinion, the biggest blocker for true step in their data management.
digital transformation in the Nordics is
the way we organise our projects. Every
team can decide on the processes and
tools that they want to apply on each
project, choosing whatever suits their
individual needs best; this is completely
autonomous from the wider company
objectives, because we don’t have a
strong top-down approach in place.
In turn, the data harvested from each
project is only shared internally at the
end – but rarely looked at again to gain
insights and knowledge.

46 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 47
Conclusion

CONCLUSION WHAT’S NEXT?


Conclusion

What’s next?
With the rise of construction technology, In the meantime, bad data can have far
1 Start small and begin with data selection before data collection
organisations can access more data than reaching consequences. Industry data Improving your data management can Having this single focus helps to direct
ever before. suggests that: seem overwhelming, so it’s best to attention and minimise distractions;
• Globally, bad data may have start with one small and clearly defined in the end, intentionally gathering a
There are significant advantages for the project. Focus on the place where your smaller volume of actionable data points
businesses that can use this data well. contributed to a total global industry
cost of €1.58 trillion in 2020. organisation could most benefit from is more valuable than a larger volume of
On projects, teams can make better data-driven insights: for example, unactionable data points. Once you’ve
decisions and mitigate risk, to finish on • When considering a contractor that tracking the most common snags or refined your process and can show clear
time, on budget and realise a profit. performs €1 billion in work annually, safety issues on-site. Consider whether results, you can then take lessons from
this indicates that upwards of €165 your business can gain measurable and this onto the next data management area.
At a business level, firms can take million of their revenue could have demonstrable value from this analysis,
learnings forward from project to project been impacted by bad data. which is often at the points where
to avoid repeating past mistakes, make impact meets speed.
evidence-led improvements and even • Decisions made using bad data may
spot issues before they occur. have had a global rework cost of

But reaching this point certainly


€75.82 billion, or 14% of all rework
performed in 2020. 2 Focus on buy-in to gain organisational support
isn’t easy. And with ongoing project
pressures, many businesses can find it
• Applying this to a single €1 billion Integrating data insights into project Articulating why changes are happening,
contractor, €7.1 million of waste decision making represents a encouraging open discussion and
hard to simply get started.
could have been avoided by making significant cultural shift – so getting the providing continual reinforcement will
decisions using accurate data. buy-in of the project team is critical. help to achieve buy-in over time.
Creating a communication plan is key.
However, every construction business can
make incremental progress to improve
their data management – and below are
some simple steps for getting underway. 3 Poor data equals poor results, so put quality first

For data to be valuable – and even usable Consistency is key for gaining
– it has to be accurate and consistent, organisation-level insights, so it’s
and that takes proactive effort. Even critical to be able to combine project
small inconsistencies, like multiple datasets. Bear this in mind when
names or spellings for suppliers, can choosing your technology partner. A
limit the value of the whole undertaking. common data environment and either a
Define clear processes for capturing single technology platform or integrated
good data – and ensure that this is a technology platforms are needed to
foundation of your overall strategy. support the flow of data – and to form the
basis for your long-term data ambitions.

48 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 49
APPENDIX
Appendix

Material waste and schedule overruns are


common concerns in construction and
those challenges are only increasing in
scale. A recent study from Transparency
Market Research projected that global
construction waste will reach 2.2 billion
tons by 2025. And with megaprojects
becoming increasingly common,
McKinsey found that 77% of them are
delivered at least 40% late.

Research from IBM estimated that bad


data cost the US economy $3.1 trillion in
2016. This startling figure represented
16.5% of gross domestic product (GDP)
that year. When applying this ratio of
bad data to the global economy in 2020
– GDP of $84.5 trillion – bad data may
have caused a global impact of nearly $14
trillion, or €12 trillion.

50 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 51
Appendix

In 2020, Bad Data Cost the Global


Construction Industry Over 14% of all Rework in Construction
Globally is Caused by Bad Data

€1.579 TRILLION An earlier study from Autodesk and FMI highlighted that poor project
data and miscommunication is responsible for 48% of all rework in the
United States. And in 2020, the global cost of rework was estimated to
represent 5% of all construction spending, or €534 billion ($625 billion)
according to Navigant.

Taking into account projections by Reuters that construction While bad data is not the only factor that causes rework, a McKinsey
accounted for 13.2% of global GDP in 2020, bad data may have study highlighted that 43% of organisations do not consistently make
contributed to a total industry cost of $1.848 trillion or €1.579 trillion. high quality decisions. Furthermore, one out of every three poor
decisions are made as a result of bad data. This means decisions using
Calculating the Cost of Bad Data bad data may have had a global rework cost of €75.82 billion ($88.69
billion), or 14% of all rework performed in 2020.
16.5% The Percentage of Bad Data’s Impact to GDP of United States in 2016 3

$84.5 Trillion 2020 Global GDP


Global Rework Caused by Bad Data.
$13.94 Trillion 2020 Global Dollar Cost of Bad Data

13.2% 2020 Construction Sector Share of Global GDP $12.5 Trillion Global Construction Spend

5% Construction Spending on Rework


$1.84 Trillion Total Cost of Construction’s Bad Data in 2020

$625 Billion The Cost of Rework Globally

43% Firms Not Consistently Making High Quality Decisions

When considering a contractor that performs €1 billion in $269 Billion The Cost of Rework From Making Poor Decisions
work annually, it indicates that upwards of €165 million of their
33% Bad Decisions Attributable to Bad Data
revenue could have been impacted by bad data.
$88.69 Billion The Cost of Rework Associated with Bad Data
What does this mean for you? Here’s an example…

€1 Billion Revenue of a €1 Billion General Contractor

16.5% Cost of Bad Data

€165 Million Cost of Bad Data for a €1 Billion Contractor

52 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION | 53
Appendix

When applying this data to the revenue of a single €1 billion contractor, they
would have performed €50 million in rework in 2020. Assuming 14% of this
rework was caused by bad data, it means that €7.1 million of waste could have
been avoided by making decisions using accurate data.

What does this mean for you? Here’s an example…

€1 Billion Revenue for a €1 Billion General Contractor

5% Construction Spend in Rework8

€50 Million Cost of Rework for a €1 Billion General Contractor

14.19% Percent of Avoidable Rework Caused by Decisions Using Bad Data

€7.1 Million Value of Avoidable Rework from Bad Data

54 | HARNESSING THE DATA ADVANTAGE IN CONSTRUCTION

You might also like