Technology in construction

How construction firms are using technology to build a future of connectivity and efficiency.

In the construction sector, companies typically allocate 8-10% of their revenue towards Information Technology (IT) expenditures, reflecting the industry’s growing reliance on digital solutions to streamline operations, improve safety, and manage complex projects. As construction firms increasingly adopt new technologies, their key requirements and challenges highlight the evolving role of IT in the sector.
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Headline summary

In the construction sector, companies typically allocate 8-10% of their revenue towards Information Technology (IT) expenditures. Here are the key insights regarding their requirements and challenges.

Top needs from a technology supplier

  • Assistance in Making Informed Technology Investment Decisions
  • Responsive Support Services
  • Protection against Cyber Threats

 

Top needs from technology

  • Dependable Systems and Access for Reliable Operations
  • Flexible Connectivity Options, Available Upon Request

 

Top connectivity needs

  • Resilient connectivity of various types (WiFi, 5G etc), reliable access to off-site systems and cloud services.

 

Top technology investments

  • Connectivity Solutions
  • Cloud-based Systems

 

Top barriers to technology adoption

  • Challenges in accessing necessary skills and expertise
  • Financial limitations
  • Uncertainties about future investments

 

In essence, companies within the construction sector aim for reliable systems, flexible connectivity, and cloud-based solutions while facing challenges related to skills acquisition, financial constraints, and uncertainties in future investments. They seek technology partners that offer guidance, responsive support, and robust cybersecurity solutions.

One: top needs from technology

Dependability and flexibility.

Dependable Systems for On-Site Operations
On-site reliability is critical in construction, where teams rely on technology to access blueprints, schedules, and project management systems. From managing supply chains to tracking worker safety, dependable systems ensure that construction projects remain on time and within budget.

Flexible Connectivity Options
Construction companies need flexible and resilient connectivity, especially in environments where fixed infrastructure might be limited. Solutions such as Wi-Fi, 5G, and satellite links provide the necessary access to cloud services and off-site systems, even in remote or challenging locations.

Two: top barriers to technology adoption

Facing challenges head on.

Access to Skilled Workforce
As with many industries, construction firms struggle to recruit and retain employees with the necessary technical skills. A shortage of trained staff capable of managing and implementing sophisticated digital solutions limits how effectively firms can adopt new technologies.

Financial Constraints
Many construction businesses, particularly smaller firms, find the upfront costs of digital transformation daunting. Financial limitations can prevent them from adopting advanced technologies like AI, forcing them to rely on older, less efficient methods.

Uncertainty Around Future Investments
The construction industry is highly cyclical, and firms often face uncertainty when it comes to future investments. This unpredictability makes it difficult to commit to large-scale technology projects, especially if there is doubt over long-term returns on investment.

Three: top technology investments

Digital transformation, Cybersecurity, Data Protection and AI.

Connectivity
Connectivity is essential for coordinating between multiple teams, suppliers, and stakeholders. Investments in mobile and broadband solutions enable construction sites to stay connected to central systems, allowing real-time updates and collaboration. This connectivity also supports the increasing use of drones, wearables, and other IoT devices to monitor safety and site conditions.

Cloud
Cloud-based platforms are transforming how construction companies manage their projects. These systems enable real-time sharing of project data, help automate reporting processes, and support collaboration across teams located in different regions. Firms can also use cloud platforms to store design documents, compliance records, and contracts, ensuring these critical files are available whenever needed.

Four: most valued technologies

The technologies construction companies value most. 

The most valued technologies in the construction sector today are Fixed Network Connectivity, Artificial Intelligence (AI), and Customer Experience Technologies. 

Fixed network connectivity ensures that construction sites have reliable access to centralised systems and cloud-based platforms, enabling seamless communication and data transfer. It’s the backbone of any modern construction project, ensuring workers on-site can stay connected to project managers and suppliers.

AI is being used to optimise project management and predict potential delays or issues before they arise, allowing firms to adjust plans proactively. AI is also transforming site safety by monitoring equipment use, worker behaviour, and environmental conditions, reducing the likelihood of accidents. 

Customer Experience Technologies are becoming more critical as firms seek to improve communication with clients. From real-time project dashboards to immersive virtual reality (VR) presentations, these technologies allow clients to track progress and engage more directly with the project’s development. 

It is helpful to recognise the value that these technologies offer when used together. With the right implementation, these tools are helping construction firms enhance operational efficiency, improve safety, and increase customer satisfaction.

Case Studies

Case studies for how construction companies are using technology

Kier Group and Project Management technology

Kier Group, one of the UK’s leading construction and infrastructure services companies, adopted project management technology in 2022 to enhance its project management capabilities across its UK operations. It needed to streamline project management processes, enable better real-time collaboration among teams, improve tracking of project milestones, and secure more efficient document management.

By adopting a construction management software platform that facilitates project planning, documentation, and collaboration, it improved project delivery, increased efficiency, and strengthened collaboration across project stakeholders and members.

Galliford Try and BIM

Galliford Try, a major UK construction company, implemented Building Information Modelling (BIM) technology in 2021 to enhance its design and construction processes. It uses BIM tools to create intelligent 3D models, facilitate better visualisation of projects during the design phase and improve co-ordination during construction. The technology has enable Galliford Try to improve design accuracy and streamline workflows as well as saving time and money.

Digital Construction Report 2023 by NBS & Glenigan

The Digital Construction Report 2023 by NBS & Glenigan provides comprehensive insights into the latest technology trends within the UK construction industry. It highlights how construction professionals are adopting digital tools to address industry challenges, enhance sustainability, and improve project outcomes.

Key Technologies Highlighted:

  • Building Information Modelling (BIM): Continued adoption for better design accuracy and project coordination.
  • Artificial Intelligence (AI): Increasing use for project planning, risk management, and quality control.
  • Drones and LiDAR: Enhanced site surveying and monitoring capabilities.
  • Virtual Reality (VR) and Augmented Reality (AR): Improved training and client presentations.

Benefits:

  • Increased Efficiency: Streamlined workflows and reduced project delays.
  • Enhanced Safety: Improved site monitoring and risk management.
  • Sustainability: Better resource management and environmental impact assessments.

Source: Digital Construction Report 2023 | NBS & Glenigan

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