Building smarter: How digital tools reduce confusion and boost efficiency

The world of construction is a captivating one, filled with intricate processes, diverse materials, and a myriad of stakeholders. Room for misunderstandings, confusion and discussion? Absolutely. These misunderstandings can sow the seeds of delays, cost overruns, and compromised quality, jeopardizing the success of construction projects.

Recent research sheds light on a concerning reality: a significant percentage of construction projects fall victim to misunderstandings, resulting in possible budget overruns ranging from 10% to a staggering 30%. Among the primary culprits? Changes mid-project, which often lead to spiraling costs and delays. Add to this mix misinterpretations of material requirements or specification alterations, and the result is procurement and construction headaches. Furthermore, inadequate communication within project teams can further exacerbate these issues, leading to unmet project requirements and subsequent delays.

However, amidst these challenges lies a beacon of hope: digital transformation. In our latest SmartCraft Digimeter survey, an overwhelming 86% of respondents reported substantial improvements in their business processes and reduced losses through the strategic implementation of digital tools. By leveraging digitization to enhance transparency and eliminate misunderstandings, businesses are empowering themselves to navigate construction complexities with newfound efficiency.

The Agekil success story

Jan Ferdell, Agekil‘s business manager, highlights how their adoption of the digital project tool Bygglet has revolutionized their operations.

“By working digitally, we have managed to minimize the risks of misunderstandings with our clients and our internal construction processes. For example, change order management is a classic time thief. If you haven’t reconciled your change orders with the client and obtained approval for changes, conflicts can arise. This can quickly extend the time, leading to significant financial exposure, resulting in poorer liquidity in the company. It’s important to have all parts in place so that you get a common thread throughout the business, which we have succeeded in by working with digital project management.”

Resistance to change

Yet, despite the undeniable benefits of digital transformation, the construction industry still grapples with hurdles such as resistance to change and perceived investment costs. Nevertheless, the promise of digitization far outweighs these challenges. By prioritizing the reduction of misunderstandings through digital tools for project management, communication, safety, and risk management, construction companies can chart a course towards a future characterized by efficiency and success.

For further queries, please contact:
Gustav Line, CEO
Phone: +47 952 67 104

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