People working in the construction industry can do some pretty amazing things. Contractors can erect high-rise towers built of steel using tower cranes, excavators can move mountains of earth to an exact grade and engineers can plan a city’s infrastructure using surveying equipment.

But when you think about it, when it comes to integrating something on a smaller scale such as a new laptop or software – fewer have made significant strides in the industry. Maybe that’s because for many, it’s a departure from the old way of doing business.

For some, just replacing that dot matrix printer with a laser jet might have been a leap. For others, operating a complex IT system is just another part of building their business. In reality, experts say, these tools can have the greatest impact on improving business; however, “adoption rates in our industry are slow,” observes Brad Mathews, vice president of sales at Dexter + Chaney, a construction software developer based in Seattle.

“The use of technology is expanding the opportunities that you have to do things,” Mathews says. “It’s not just for the office staff anymore – it’s in the field. People in the industry need to realize how capable they are at doing things.”
    
Where to Start
In part, the lag in adopting technology has to do with the perception by middle and field management that every project is so unique, that they are unable “to see the bigger picture and the efficiencies [of technology],” says Glenn Matteson, a senior consultant with FMI Corp. “[Contractors] get into a rut and focus on the details and how to solve problems rather than to avoid problems,” he says. “I think that can get into the way of the process of how we procure, estimate and bid work.”

Moving into the technological age is more than just building up your business, and it occurs in a much more complicated way since the results and benefits of doing such are not always clear, Matteson says. 

The ideal way to integrate technology into the workplace “is to start small,” Matteson says. “Find an internal champion and go from there. If it starts at the top, you can coach and guide and take small measures – find the baseline and figure out if production was better, for example.”

Several applications used in construction can be enhanced or reinvented using technology, Matteson says. Real-time wireless documentation, global positioning systems (GPS), documentation and estimating software can all help the contractor deliver projects faster, more accurately and for a fraction of the cost.

Set-up for Success
Much like a project needs all parts of the construction team to work together, implementing any form of new technology won’t work without total buy-in. “Like any new idea, it’s going to take a push internally to get everyone on board,” Matteson notes. “Pick a smaller job or a smaller investment and start with those advocates who can speak to the successes.”

Mathews says before adding any new process, contractors need to first understand the need for doing so. “What it really begins with is an understanding of your own company,” Mathews claims.

“If something isn’t broke, then there’s not a lot to gain from bringing in a new application. Look where you have the most problems and inefficiencies and start there – that’s where you have the most to gain. Try to envision what change will look like when it happens and be able to recognize it when it does.”

Take, for example, Livermore, Calif.-based Top Grade Construction. A civil engineering firm with core competencies in excavation, grading and paving, Top Grade saw the chance get an edge on its competitors by investing in GPS-based systems for its fleet of graders. Since 2001, the company has put $4 million into incorporating the technology.

Integrating new systems into the business required a shift in thinking and total buy-in from the top down. “We have adopted a mindset internally that technology is key,” Vice President of Operations Brian Gates says.

The company’s internal modeling department can convert CAD files to 3-D models, which then can  be calibrated on the GPS system for precision grading. “It allows us to be quicker in terms of starting a job; we are able to increase production and lower the costs,” Gates notes. “In our mind, the competitive advantage is the cost savings that we can pass on to the owners in the building process.”

Top Grade has also brought the process in-house – literally – by implementing an application suite from Oracle to automate and track payroll, organize HR information and manage purchase orders. “From a technology adoption standpoint, we have an opportunity to embrace technology in a variety of different facets,” Gates notes.

Use What You Know
Although Top Grade is backed by strong revenues, integrating new technology does not necessarily involve big bucks. In fact, Matteson and Mathews both say the cost of technology isn’t really a barrier at all. “Rarely is it money,” Mathews says. “[Avoiding technology] is more about not understanding the impacts or being able to see how it works in the company.”

On the other hand, increased pressure to complete jobs under fast-track schedules, lack of formal training and ignorance about the benefits of technology can all hinder implementation.

Careful training and facilitation of knowledge transfer when turnover occurs is also important, Mathews says. “What you see over time is that the knowledge of staff using a particular system may erode, especially when one person leaves the company who may know the software really well,” he says.

Without continuous technology training, Mathews says,  knowledge leaves the door with the former employee. When combined with the implementation of new versions of software, for example, the skill-set on a particular program can fall significantly, making technology less-effective. “[Companies] need to provide continuous training, and it needs to be formal,” he notes. 

Matteson suggests improving on a company’s existing resources. Contractors, for example, can start by applying the equipment they have in a smarter way. Put simply, companies should do more using less. Matteson uses the example of the heavy-highway and civil contractor who knows little about how its fleet performs in terms of lost fuel costs due to idling time, or the effects of a poor maintenance program. So by outfitting an already top-performing piece of heavy equipment with a telematic device, field productivity is positively impacted. And Mathews says that a simple upgrade to a software application can translate to significant cost savings.

“Improving productivity gives us the opportunity to be more profitable,” Mathews says. “When you improve your outcomes, you drive costs down.”

For Top Grade, substantial increases in production from using GPS technology occurred in just six years. Additionally, costs for survey staking decreased because it no longer depended on survey crews to determine grade control in the field.

“I think it comes down to trying something and see if it improves productivity,” Matteson says. “Look back at the innovations we have had so far. Where were you before you had a cell phone? You probably did fine without it, but look at what it has changed. I think that people will have a gradual acceptance of technology.”