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Improved cost predictability experienced by 61% of owners using PMIS for most of their capital management activities

HAMILTON, NJ – November 9, 2023 – New research from Dodge Construction Network and Projectmates reveals construction business owners can improve their processes and projects by using project management information systems (PMIS) beyond core functions. In the report, Building Better With Technology: How Owners Are Leveraging Software to Improve Project Management SmartMarket Brief, it is clear that most PMIS users experience many benefits. However, more owners who expand their use of PMIS compared to those with limited utilization rate their experience of those benefits at a very high level, including:

• Better informed decisions on their projects (74% versus 39%).
• Improved design solutions (67% versus 31%).
• Better cost predictability (61% versus 35%).
• Ability to mitigate design and construction risks (51% versus 30%).

“At Projectmates, we’ve witnessed the remarkable impact that a fully optimized PMIS can have on construction programs,” says Varsha Bhave, President and CTO of Projectmates. “Dodge’s survey findings serve as further validation of what we’ve long understood: the utilization of a PMIS can significantly enhance construction programs, making owners more efficient and promoting sustainability when this technology is fully harnessed.”

STRONG STRATEGY BRINGS STRONG OUTCOMES

When surveyed, owners fell into three types: those who ensured each division in their company had at least one competent PMIS user, those that centralized their PMIS expertise into a few users, and those with no strategic approach to PMIS competence. Those with a more centralized approach report the strongest results from their PMIS strategy.

• Most of those with centralized expertise report high levels of satisfaction with the document management (78%) and schedule management (75%) capabilities of PMIS, far more than those with an unstructured approach (21% and 24% respectively).
• A large majority of those with a strategic approach to PMIS reported the tool exceeding their performance expectations compared to those with an unstructured approach. This is particularly notable when it comes to effective document management (80% versus 53%) and risk issue tracking (71% versus 45%).

“Establishing a deliberate and strategic approach to utilizing PMIS across an organization is imperative to the success of their capital program,” says Steve Jones, senior director of industry insights at DCN. “Those who manage more of their processes in the PMIS from the start are set up to achieve more than those who take a more passive approach. Our findings reveal that by creating a specific, deliberate strategy for the means and the breadth of their PMIS implementation, owners achieve far more in the long run.”

The report contains more detailed findings and additional analysis as well as two case studies on owners’ PMIS implementation and use. It can be downloaded here.

 

About Projectmates: Projectmates, part of Hexagon, is an owner-focused, SaaS-based enterprise construction project management software provider. Projectmates’ configurable and centralized platform enables owners to keep all project documents and data within a construction program up to date in one, easily accessible location — from the planning stages through closeout and handover to the facilities team. With powerful reporting and a concise view of an entire project portfolio, owners can improve communication and collaboration with architects, engineers, and contractors to streamline workflows, control costs, and deliver projects faster.

Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50 countries and net sales of approximately 5.2bn EUR. Learn more at hexagon.com and follow us @HexagonAB.

Learn more at Projectmates.com.

The post New Study: Project Management Information Systems Further Benefit Capital Building Programs When Applied to Multiple Processes appeared first on Dodge Construction Network.

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The latest safety management study reveals an increase in the implementation of safety and health strategies, but those measures could have greater adoption across the industry.

HAMILTON, NJ – October 26, 2023 – Research findings released today indicate construction contractors continue to make progress responding to issues affecting worker safety and health, such as heat and mental health, but many areas for improvement remain.

The new study, Safety Management in the Construction Industry 2023 SmartMarket Report, examines occupational safety and health challenges across the industry and shines a light where more effort is needed. It was conducted by Dodge Construction Network (DCN), the industry-leading source of construction data and insight, and CPWR, a nonprofit dedicated to reducing occupational injuries, illnesses and fatalities in construction.

HEAT

Working in extreme heat is increasingly common in construction, posing significant safety and health risks to workers. To combat this problem:

• 52% of contractors in the study report making changes at their company in the last three years to prevent heat-related illnesses onsite.
• 66% of contractors implemented a heat-safety policy at their company.

The most common practices to address heat-related issues are providing water, rest and shade and worker training. Less common practices are monitoring the environment for heat hazards and administrative controls such as pausing work in the hottest parts of the day.

But while the data indicate progress, there are large disparities by company size.  Only 21% of employers with less than 20 employees made changes to address heat in the last three years, and another 21% of the small contractors do not consider heat stress an issue at all.

“Employers need to provide workplaces that control recognized hazards, including heat,” said Chris Trahan Cain, CPWR’s executive director. “Many firms are showing that protecting their workers from excessive heat is good for safety and good for business, but this report shows many still are not.”

MENTAL HEALTH, SUICIDE, AND OPIOID USE

When asked about topics about which they want additional training and information, such as through webinars, factsheets, infographics, and toolbox talks, the study revealed a high level of interest on worker wellbeing. Fifty-two percent of contractors wanted more resources for managing mental health, suicide, and opioid use.

The next most frequently cited topic was lifting or ergonomics, safety at 34%. This is a striking finding considering that the rest of the list consists of well-known hazards that still plague the industry.

Contractors were asked whether their company provides a program for substance use or mental health, such as access to professional services. There were major differences depending on company size:

• 80% of large contractors (100 or more employees) offer programs for substance use or mental health.
• Only 29% of small companies (fewer than 20 employees) offer these programs.

Strategies like having a peer network to address substance use or mental health are relatively uncommon, but more frequent among large contractors and those that employ union craftworkers.

PRE-PROJECT AND PRE-TASK ENGAGEMENT

The study also examines the use and subsequent advantages of other good safety practices on the jobsite, including during pre-construction and pre-task planning. Both strategies show the clear benefits of engaging multiple viewpoints in these processes:

• 94% of contractors who engaged in most (7 or more) of these activities reported an increase in worker engagement with safety measures.
• 84% of those contractors reported a reduction in recordable injury rates.
• 60% of those contractors saw an improvement in productivity.

The study also examined other good safety practices, including the use of right-sized PPE, online training, and the use of technology. It found that one of the biggest opportunities for contractors to improve safety is to use data gathered on their projects more effectively: nearly one-quarter of the contractors who collect project safety data said they do not analyze it.

IMPLEMENTATION ACROSS COMPANIES

The study also dives into the effective implementation of safety practices among firms of different sizes, as well as ways to improve. For example, the study highlights safety measures that smaller firms could use that larger firms have already adopted. These methods include getting workers more engaged in pre-task planning and using free online tools to promote worker well-being.

“Many small companies don’t have dedicated safety managers like you would see at a larger company, so data like this is particularly valuable to help provide education about how the industry is improving worker safety, health and well-being,” says Donna Laquidara-Carr, industry insights research director at Dodge Construction Network.

Since 2012, DCN and CPWR have partnered to deliver studies on construction safety management. Previous reports examined commonly used safety practices and the corresponding benefits contractors experience from investments in safety. The Safety Management in the Construction Industry 2023 SmartMarket Report contains more detailed findings and analysis on each of these topics including feature articles and case studies illuminating how these insights can be more widely implemented across the industry. The report can be downloaded here.

 

About CPWR: CPWR – The Center for Construction Research and Training is a 501(c)(3) not-for-profit created by North America’s Building Trades Unions (NABTU). Its mission is to reduce occupational injuries, illnesses and fatalities in the construction industry through research, training, and service programs. CPWR is uniquely situated to serve U.S. construction workers, contractors and the research community, having partnered with the National Institute for Occupational Safety and Health (NIOSH) in NIOSH’s construction safety and health research initiative for three decades.

The post Contractors Are Addressing Safety and Health Issues, But They Can Do More appeared first on Dodge Construction Network.

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Manufacturing and transportation projects drive gains

HAMILTON, NJ —September 20, 2023 — Total construction starts rose 6% in August to a seasonally adjusted annual rate of $1.3 trillion, according to Dodge Construction Network. Nonresidential starts rose 40% thanks to a large pickup in manufacturing and transportation buildings. Residential and nonbuilding starts fell 1% and 14%, respectively.

Year-to-date through August 2023, total construction starts were 5% below that of 2022. Residential and nonresidential starts were down 18% and 9%, respectively; however, nonbuilding starts were up 22%. For the 12 months ending August 2023, total construction starts were unchanged. Nonbuilding starts were 20% higher, and nonresidential building starts gained 6%. Conversely, on a 12-month rolling basis, residential starts posted a 17% decline overall.

“Despite the August gain, the construction sector is running uphill,” said Richard Branch, chief economist for Dodge Construction Network. “Fear of an imminent recession seems to have abated, which should provide a boost of confidence to the sector. However, higher interest rates, labor shortages and significantly tighter lending standards will weigh down starts in the final quarter of the year. This will persist for the foreseeable future, lasting until interest rates start to move lower.”

Nonbuilding
Nonbuilding construction starts lost ground in August, falling 14% to a seasonally adjusted annual rate of $380 billion. The decline follows a strong July which saw the start of a $12 billion LNG project. Nonbuilding starts increased 12% in August when excluding the utility/gas plant category, which fell 45% during the month. Miscellaneous nonbuilding starts shot 39% higher, and highway and bridge starts gained 19%. However, environmental public works starts shed 1%.

Year-to-date through August, nonbuilding starts gained 22%. Utility/gas plants rose 40%, and miscellaneous nonbuilding starts were up 33%. Highway and bridge starts gained 13%, and environmental public works rose 17%.

For the 12 months ending August 2023, total nonbuilding starts were 20% higher than that of August 2022. Utility/gas plant and miscellaneous nonbuilding starts rose 23% and 30%, respectively. Highway and bridge starts were up 17%, and environmental public works rose 18% on a 12-month rolling sum basis.

The largest nonbuilding projects to break ground in August were the $3.5 billion TransWest Transmission Project spanning Wyoming, Colorado, Utah and Nevada, the $2.9 billion Mid-Barataria Sediment Diversion projects in Port Sulphur, Louisiana, and the $1.5 billion New England Clean Energy Connect Power Line in Maine.

Nonresidential

Nonresidential building starts gained 40% in August to a seasonally adjusted annual rate of $475 billion, largely due to a surge in manufacturing activity. Nonresidential building starts would have gained 24% when excluding these large manufacturing projects. Commercial starts rose 8% in August led by gains in parking structures and hotels, and institutional starts rose 35% with all sectors but dormitories increasing. Manufacturing starts rose 285% from July to August, fueled by two large projects. On a year-to-date basis through August, total nonresidential starts were 9% lower than that of 2022. Institutional starts gained 3%, while commercial and manufacturing starts fell 8% and 32%, respectively.

For the 12 months ending August 2023, total nonresidential building starts were 6% higher than that ending August 2022. Manufacturing starts were 2% higher. Institutional starts improved 8%, and commercial starts gained 6%.

The largest nonresidential building projects to break ground in August were the $2.5 billion John Palmour Manufacturing Center for Silicon Carbide in Siler City, North Carolina, the $2 billion VinFast electrical vehicle plant in New Hill, North Carolina, and the $1.4 billion Midfield Satellite Concourse at Los Angeles International Airport in California.

Residential

Residential building starts fell 1% in August to a seasonally adjusted annual rate of $418 billion. Single family starts gained 2%, while multifamily starts lost 5%. On a year-to-date basis through August 2023, total residential starts were down 18%. Single family starts were 21% lower, and multifamily starts were down 12%.

For the 12 months ending in August 2023, residential starts were 17% lower than in 2022. Single family starts were 23% lower, while multifamily starts were down 3% on a rolling 12-month basis.

The largest multifamily structures to break ground in August were the $530 million Hub on Campus mixed-use building in Knoxville, Tennessee, the $425 million 250 Water Street mixed-use tower in New York, New York, and the $340 million Ritz Carlton residences in North Palm Beach, Florida.

Regionally, total construction starts in August rose in the Midwest, South Atlantic and West regions, but fell in the South Central.

Watch Chief Economist Richard Branch discuss August Construction Starts here.

The post Total Construction Increase in August Due to Influx of Nonresidential Projects appeared first on Dodge Construction Network.

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Study shows contractors who use automated construction data technologies report significantly better project performance

HAMILTON, NJ – September 19, 2023 – It is widely known that general contractors face persistent schedule, quality, safety and profitability challenges on their projects. A new study from Dodge Construction Network (Dodge) and Versatile® reveals that greater use of site data as an analytical tool allows contractors to surmount those challenges.

The new report, Measuring What Matters: Unleashing the Power of Site Data to Enhance Construction Performance SmartMarket Report, is based on a recent Dodge survey of over 200 general contractors across the United States. The findings show that most report significant performance improvements from their use of site data. Those who use automated technology to gather data and software to analyze it report above-average improvements compared with those still using manual methods.

Although the tools to efficiently gather and analyze site data are readily available, the study also shows that many general contractors have not yet integrated these practices into their standard operating processes:

• Only 28% of general contractors track their performance frequently, with just 24% highly rating their company’s capability for doing it.
• Digital tools are still not widely used, with nearly half still relying on manual methods.
• Less than one-third report having frequent access to current site data for analysis.
• About half (46%) experience frequent quality issues (e.g., accuracy, completeness, consistency) with the data that is being gathered.
• Only 20% apply metrics at least half of the time to determine the success of their process improvement initiatives.

The study examines 12 project management activities and seven performance metrics, establishing maturity levels and reflecting how many contractors are currently using site data effectively. Unfortunately, this analysis reveals that less than half of contractors do so.

There is a notable shortfall in contractors’ internal capability to track performance by using site data: less than half of current users rating their company as highly or very highly-effective in leveraging data for either project management or performance measurement. The report reveals a correlation between higher tracking skills and better project performance, identifying an important area of improvement for construction company skills.

“The findings point to a great opportunity for contractors,” said Steve Jones, senior director of industry insights at Dodge. “Proven methods are achievable for all companies to meaningfully improve performance by focusing more attention on gathering and analyzing site data, especially with automated digital technologies. This report can serve as a roadmap and benchmark as general contracting companies continue to advance in their digital journeys.”

Additionally, the report also features an interview with James Barrett, vice president and chief innovation officer of Turner Construction Company, focusing on how data analysis is generating remarkable value for his company.

Importantly, the findings show that contractors who are taking advantage of automated technologies to gather site data and software solutions to analyze it show markedly better performance. The report includes a case study from Clark Pacific demonstrating specific benefits of this approach.

“We really hope this report gets people talking and taking action,” says Meirav Oren, CEO and co-founder of Versatile, whose company sponsored this research. “We want everyone to see how important it is to collect and use data on every job site. Together, we can make the construction industry better, smarter and future-ready for whatever comes next.”

The report contains more detailed findings and analysis on all of these topics and can be downloaded here.

About Versatile, Inc.

Headquartered in Los Altos, CA, Versatile creates technology that gives construction professionals unmatched visibility into their production rates. By delivering the right data to the right people at the right time while naturally fitting existing processes, a fragmented industry becomes a controllable process. The result? Increased productivity, predictability and safety with the insights needed to manage and bid future projects more competitively. Want to learn more? Reach out at letstalk@versatile.ai.

Media Contact:

Jackie Guilbault

Versatile

jackie.guilbault@versatile.ai

The post Contractors’ Key to Better Project Performance? Automated Site Data Tools appeared first on Dodge Construction Network.

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A new study highlights the importance of data access in the new digital age, provides insights into how to manage the top risks companies face and demonstrates that designers and contractors underestimate the cyber risks they face.

HAMILTON, NJ – September 12, 2023 – Architects, engineers and contractors are facing a heightened risk environment currently, with challenges ranging from not being able to find qualified employees, to supply chain challenges, to the constant pressure of staying competitive in a transforming digital landscape to the risk of cyberattacks. A new study from Dodge Construction Network (DCN), published in partnership with Egnyte, reveals that data resiliency is key to handling these challenges.

The new report, entitled Data Resilience in Design and Construction: How Digital Discipline Builds Stronger Firms, defines data resilience as the ability to access all project and business documents and data to support work at any time, from anywhere and on any device. The study reveals that only 39% of architects, engineers and contractors currently have this unimpeded level of access at least 90% of the time, meaning that most of the industry struggles with this issue.

The top challenges are an inability to access all documents on mobile devices, software that limits their ability to work digitally with other project team members, and a lack of timely access to documents. The findings also reveal wide variances among architects, engineers and contractors, suggesting that, while the overall industry struggles with these challenges, each type of company has a different set of priorities when they tackle them.

A majority of respondents say that these access deficiencies result in numerous performance issues, such as unplanned rework and schedule delays. “Previous studies conducted by DCN show the impact that unplanned rework and schedule delays have on construction projects,” says Steve Jones, senior director of industry insights at DCN. “As the digital transformation of the design and construction industry continues, companies with universal access to their documents will be better poised for success.”

The data suggests that cloud-based functionality can help to avoid these challenges since 85% of those who report no issues with document access are currently utilizing the cloud.

“The architecture, engineering, and construction industries have seen a surge in migrating data to the cloud in recent years empowering them to collaborate more efficiently and effectively,” says Kevin Soohoo, senior director of AEC Industry Solutions at Egnyte. “This study demonstrates how the digital revolution has empowered companies to adapt to new ways of work despite the unique challenges each of these industries have faced with the opportunities and risks that come with technology today.”

In addition, the study examines several other top risks that design and construction companies face, such as supply chain disruptions and the challenge of attracting and retaining talent. The report reviews the ways companies are managing these challenges and highlights the most frequent and most effective strategies.

One of the most concerning risk-related findings is the degree to which the design and construction industry underestimates their exposure to cyberattack.

• Fifty-nine percent say that they have experienced a cybersecurity threat in the last two years. General contractors in particular struggle with this, with 70% who have experienced a threat and 30% who have had a ransomware attack since 2021.
• The majority (72%) of architects, engineers and contractors rate themselves as having a moderate or higher degree of preparation for an attack that would cause them to lose access to documents. However, 77% say they cannot go more than five days without access to documents before they experience serious schedule impacts on their projects, and the average duration of a successful ransomware attack is considerably longer than five days, potentially leaving many firms more vulnerable than they realize.

Many other types of risks are also cited by respondents as having the potential to have a major impact on their business, including market risks and technology issues.

For all these types of risks, the study looks at the most commonly utilized and most effective strategies to mitigate and manage them.  Thus, the SmartMarket Brief provides a series of approaches for designers and contractors that have worked for their peers, thereby helping to increase awareness of the best risk mitigation strategies. Those include using cloud-based collaboration solutions, increasing automation to reduce the time needed for tasks, upskilling the workers they have and identifying alternative sources for materials.

The report contains extensive detailed findings and analysis, and can be downloaded here.

For more information, Egnyte will be hosting a webinar on September 27 with Dodge Construction Network’s Steve Jones on the findings of the report. Sign up here.

About Egnyte: Egnyte is the secure multi-cloud platform for content security and governance that enables organizations to better protect and collaborate on their most valuable content. Established in 2008, Egnyte has democratized cloud content security for more than 17,000 organizations, helping customers improve data security, maintain compliance, prevent and detect ransomware threats, and boost employee productivity on any app, any cloud, anywhere. For more information, visit www.egnyte.com.

The post Enhanced Data Resilience Will Help the Design and Construction Industry Face the Risks That Impact Their Businesses appeared first on Dodge Construction Network.

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