By: Clark Lowe, President & CEO — O’Connor Company

The phrase “Build smarter” is becoming more common in commercial construction. Our large-scale projects regularly run up against hurdles due to the supply chain, budgets, the labor market, and sustainability regulations. While these issues mire many in complexity and setbacks, those who build smarter may find the innovations that propel their projects forward.

When the Supply Chain Challenges Commercial Construction

Materials crucial to our project timelines, such as steel, lumber, or concrete, can become unattainable overnight. This volatility in the supply chain may result from shipping delays, factory shutdowns, international trade disruptions, or any other issues.

In this case, building smarter requires strategy. Some mitigate risk by diversifying their procurement strategies or turning to multiple suppliers across different regions. Others employ the precise scheduling and inventory management of a “Just-In-Time” approach. Both strategies may require sophisticated planning and real-time monitoring systems.

Fortunately, the innovations in predictive analytics and advanced scheduling tools enable us to plan more efficiently than ever. We blend AI’s accurate forecasts with our agile project management methodologies to stay ahead of supply chain disruptions and keep projects on track.

Agile methods entail continuously managing risks. With frequent evaluation, AI software alerts us to potential issues in time for us to develop contingency plans. By working in smaller increments and revising plans frequently, we can adjust project timelines and processes in response to material shortages or delays.

Cost Escalations in Large-Scale Builds

Cost control is a perennial challenge in commercial construction. Extended project timelines and market volatility exacerbate the issue. Here again, combining modern technology and time-honored lean construction techniques may enable us to build smarter and control escalating costs.

Real-time cost tracking allows for the regular monitoring of costs. Digital tools are used for real-time expense monitoring to identify and address budget deviations.

The real-time visibility into our budget makes lean construction techniques that focus on minimizing waste and maximizing value even more impactful. Unforeseen costs still arise, but we may better allocate funds for them and stay within budget. We also use material hedging, which involves purchasing and storing materials ahead of time to address future price increases and supply shortages.

Labor Market Pressures

Labor shortages once plagued the construction industry. However, training and development programs are rising and continue to garner additional popularity. Enrollment in trade schools has grown in recent years, with some reports indicating noticeable increases over the past couple of years. Many young adults may be ditching large student loan balances for growth and development in the trades. 

Along with the influx of new labor, other advancements help us build smarter despite employment shortfalls. Automated equipment, such as bricklaying robots, handles repetitive and labor-intensive tasks. Drones with imaging technology are used for site surveys and inspections that previously required larger teams. Furthermore, prefabrication and modular construction advancements allow crews to slash project deadlines by manufacturing building components in controlled factory settings before assembling them on-site.

Sustainability and Regulations in Commercial Builds

To effectively meet the challenge of new sustainability regulations, commercial construction projects may adopt several strategies to build smarter. One of the most crucial approaches is leveraging cutting-edge technology like building information modeling throughout the construction lifecycle. When teams use BIM’s digital representation of a building’s physical and functional characteristics, they can simulate and analyze different design scenarios, optimize resource allocations, and enhance coordination among stakeholders. This may lead to fewer errors and reduced need for rework.

Advancements in materials science also contribute to sustainable construction. New, eco-friendly construction materials such as recycled steel, cross-laminated timber (CLT), and low-carbon concrete may offer the same structural integrity as traditional options but with a significantly lower carbon footprint. For example, CLT is made from sustainably harvested timber and has the added benefit of sequestering carbon dioxide for the life of the building. Digital tools are used to integrate advanced materials into construction projects by enabling precise measurement and optimal utilization.

Energy-efficient systems and renewable energy sources also drive sustainability. For example, IoT-enabled sensor networks can optimize lighting, HVAC, and water usage based on real-time data. Renewable energy solutions like solar panels and wind turbines may also align with regulatory expectations for reducing carbon footprints.

As we know, early technology adoption in commercial construction usually comes with a hefty price tag. The increasing emphasis on sustainability means regulatory standards are becoming stricter and more expensive to navigate. However, sustainability is a price worth paying, and in many cases, the government is willing to help. Building smarter involves utilizing tax incentives and federal rebates that support new environmentally friendly technologies.

The commercial construction industry is facing various challenges. How it responds to these issues may influence its future direction. Innovations that support smarter building practices are being explored as possible solutions.

Published by Elle G