Like other sectors, the construction industry is generating unprecedented amounts of data. However, all this data is only valuable if appropriately utilized, and this is where data analytics can help.
Data analytics is the process of analyzing raw data to find trends and answer questions.
Through data-driven insights, construction companies can make sense of all the information they generate daily and use these predictive analytics to improve project outcomes.
Here are 13 ways to leverage this data-driven approach in your projects.
Planning and Project Modeling
Data analytics proves its worth even before the first brick is laid. Predictive analytics, a subset of data analytics, uses historical data from your team or another company’s past projects to guide your upcoming projects.
For instance, it can identify areas where a previous project failed, suggest areas for improvement, and forecast future trends.
Another application of predictive analysis is in building information modeling (BIM) software. This tool allows project stakeholders to visualize an entire project (design, material, cost data, etc.) before construction begins to detect potential clashes or issues and make strategic decisions that reduce costly errors or delays during construction.
Resource Allocation Optimization
Construction sites can change quickly due to factors like weather, labor issues, and material availability. However, data analytics can provide actionable insights that help construction teams make the most out of available equipment and personnel to minimize downtime and reduce waste.
For instance, through real-time tracking, supervisors can detect delays on one portion of the job site and then send idle equipment to an area where it’s needed.
Using data analytics to allocate resources improves efficiency and saves the planet. According to a study by the National Library of Medicine, the construction industry is responsible for 30% of all waste generated in the United States. So, by using data analytics, you’re killing two birds with one stone.
Just as call center data analysis helps customer service to predict customer behavior, construction firms can use data analytics to optimize resource usage.
Cost Analysis and Budgeting
Project managers typically examine past jobs, check market trends, or request bids from subcontractors to determine project costs. An important step in this process involves accurately calculating the square feet of your property to ensure precise material and labor estimations.
While this approach has largely worked, it is still prone to occasional errors. When this happens, people get paid late, work gets delayed, and the project may go over budget. These are issues that can be mitigated by leveraging data analytics.
Similarly, industrial marketing strategies can leverage these analytical insights to understand market trends and customer preferences better, enabling more effective targeting and positioning of construction services.
Securing business loans can provide the capital to implement advanced data analytics tools, enhancing cost analysis and budgeting accuracy.
The right technology uses AI (artificial intelligence) to do most of the work for you. It combines information from various sources into comprehensive reports to guide decision-making.
Subcontractor Performance Evaluation
Working with subcontractors can be tricky due to data gaps and the limited visibility of their activities. But with data analytics software, you can easily collect information on subcontractor work and ensure you’re getting your money’s worth.
With data insights, you can analyze contractor performance metrics, such as quality of work, budget compliance, and adherence to schedule. You can also make informed decisions when selecting contractors and managing contracts.
In addition, construction data analytics can also help you incentivize contractors. For example, you can link payment structures, bonuses, and penalties with specific KPIs to motivate contractors to meet project objectives and deliver quality work.
Improved Communication
Several parties are involved in the decision-making process for construction projects. Communication must be clear, consistent, and efficient. Advanced technologies like cloud based PBX (private branch exchange) and video conferencing software can support this effort.
However, cloud construction management software can take data analytics to the next level. Cloud-based construction management platforms provide 3D graphics, spreadsheets, charts, and other business documents to keep everyone abreast of the project’s current status. With this information, your organization can make data-based decisions and keep everyone happy.
Equipment Management
Equipment delays are one of the main reasons for project delays and additional costs. Using data analytics and asset management tools, you can track equipment data in real-time and avoid over- or under-utilization.
Using data analytics, companies can compare equipment performance across industry standards to quickly detect underperforming equipment and make informed decisions for upgrades or replacements.
More benefits of using data analytics in equipment management include optimizing equipment selection, reducing equipment downtime, and streamlining procurement processes.
Quality Control and Risk Management
Construction firms historically relied on feedback from unsatisfied customers to discover quality control issues, which always resulted in conflicts. That has all changed with data analytics. This technology helps you analyze quality control data from inspections, testing results, and real-time defect reports. As a result, you can identify and rectify patterns faster.
For example, if multiple inspection reports reveal similar defects in a specific building area, data analytics can highlight this trend. Then, you can rectify the issue promptly, preventing further problems.
Advanced Safety Measures
The Bureau of Labor Statistics reports that 20% of workplace deaths in 2021 happened in the construction industry. Half of fatal slips, trips, and falls occur in the construction sector–workplace safety must be a priority in your firm.
Fortunately, data analytics can predict accidents, making this achievable. Software like BIM uses data analytics to improve safety by detecting job site hazards, such as clashing objects and fall spots. You can then fix these issues before work begins to save time.
You can also use data analytics to train your employees before construction begins. For example, modern tech like augmented reality (AR) creates images of your job site to simulate potentially dangerous scenarios. That way, you gain valuable insights to make necessary adjustments before starting the project.
Schedule Management and Optimization
Project managers regularly coordinate personnel, materials, and equipment, which can sometimes be overwhelming. But thanks to data analytics, it doesn’t have to be.
These tools can analyze equipment and personnel activities and create advanced reports. You can then use them to redistribute tasks, identify gaps or overlaps in schedules, optimize personnel assignments, and adjust work hours.
Thus, you can improve project schedules and minimize bottlenecks and downtime.
Protection Against Cyber Threats
Among many other sectors, the construction industry has adopted cloud computing to allow stakeholders to access project information from anywhere, unfortunately making construction businesses targets of malicious actors.
A 2022 Automation in Construction report analyzed the rise of technology and how the industry must respond. The study highlighted that one of the main challenges construction forms face is exposed design information. Construction project managers must prioritize cybersecurity.
Implementing data analytics throughout your organization allows other departments, like IT (information technology), to benefit from this technology. For instance, with data analytics, IT can use vulnerability scans, log analysis, and other analytic-based information to protect your business.
Performance Monitoring and Benchmarking
You want to ensure all your investments pay off, and data analytics can help. This technology can tell you if that new crane pays for itself over time. It also compares your usage to industry standards, letting you know if you’re maximizing your investment. If you aren’t, it suggests areas for improvement.
Data analytics also allows you to track employee performance against KPIs (key performance indicators) so you can reward high-performing employees. Doing so boosts morale and encourages others to excel.
Construction Robotics
It is not a secret that the construction industry is facing an extreme labor shortage. According to Associated Builders and Contractors, construction firms will need to attract an estimated 540,000 additional workers in 2023 in addition to the average pace of hiring.
Experts propose using technology, such as automation, as a solution, and many companies are already adopting it. Robots on job sites are laying bricks, installing dry walls, paving roads, and performing pipe work.
Other automation tools include printing robots, demolition robots, autonomous vehicles, and many more. These tools generate a wealth of data through their sensors and operation, and with data analytics, you can optimize their performance. This results in more efficient construction processes, reduced costs, and improved safety for workers on the job site.
Reduced Human Errors
Manually documenting essential data, such as reports, delivery receipts, and timesheets, increases the likelihood of errors. However, automating this process ensures higher quality, accuracy, and easily accessible data that will guide you toward making informed decisions.
Using data analytics to automate your business processes also increases workflow efficiency, saving time and resources.
Data-driven Construction
We live in a data-driven world, and any business that intends to remain competitive must embrace data. Data analytics digs through the vast amount of information available to help construction project stakeholders make better decisions. It supports every stage of the project, from planning to completion.
With data analytics, construction firms can enhance site safety, allocate resources effectively, and improve budgeting, estimation, and overall work performance.