INFRASTURCTURE

Getting ahead

U.S. infrastructure investment opportunity is a wakeup call for construction contractors: Are you contracting ready?

This year is set to become the first time in many years that infrastructure overtakes residential construction as the primary source of income for construction contractors. The Infrastructure Investment and Jobs Act signed into law last November, has provided a monumental $1.2 trillion of funds to supercharge US infrastructure that is badly in need of reform. This provides a rich opportunity for construction & engineering (C&E) contractors to win big, but only those who can guarantee strong and timely project delivery. Will your project performance live up to the scrutiny of contracting for outcomes? Kenny Ingram, VP of C&E at IFS, explains how the adoption of innovative construction technologies combined with value-added construction techniques will produce a construction model that can’t fail.

Despite the integral role infrastructure plays in modern society, it is often neglected with a severe lack of funding. This is no exception for the US, where the infrastructure investment gap has now reached a $2.59 trillion deficit. This lack of funding has real costs for real people. By the year 2039, continued underinvestment could end up costing the average US household up to $3300 per year. The once-in-a-generation investment set out under the Infrastructure Investment and Jobs Act (IIJA) aims to overhaul US infrastructure systems to promote productivity, equity, and sustainability within the US economy. But who is going to build it?

Contracting for outcomes: datadriven processes are the hallmark of reliable construction projects

C&E contractors that can guarantee on-time, on budget, and high-quality project delivery will be in the most favorable position to be awarded the highly sort after Public-Private Partnership (PPP) contracts to rebuild US infrastructure. Contractors must improve their efficiency and project delivery to ensure taxpayers’ dollars are optimized and government objectives are met. Here,

construction technology is the ideal medium to address both contractor and government objectives for a win-win scenario.

Modular manufacturing eliminates risk – from design to build

Within five years, half of all construction projects will use modular manufacturing and/or 3D printing, with prefabricated modules accounting for up to a quarter of the construction. Infrastructure constructions are high-risk and complex projects, with a wide scope for unexpected disruption to project outcomes. Modern Methods of Construction (MMC) can improve construction efficiency from design to build, by limiting risk factors and promoting standardization. Modular, offsite and prefabrication construction entail pre-manufacturing modules in a controlled environment to simplify on-site assembly. This reduces the level of on-site risk and ensures all components are ready before construction begins.

Building Information Modeling (BIM) is already part of the selection criteria for UK contractors, as it is recognized for its powerful capabilities for improving efficiency. By seamlessly integrating data sets into a 3D model, layers of data from existing construction assets can be added or overlaid, to allow repeated design processes and standardization of construction modules. This has yet to be popularized in the US, however the use of BIM and modular construction could prove to be deciding factors in the selection process for competitive infrastructure contracts.

Never miss a thing with automated monitoring systems

To avoid project delays and budget overruns, project managers need constant visibility over all project activity in real-time, which can be especially challenging in large-scale infrastructure projects. However, digital technology can automate the monitoring process and centralize data to enhance project visibility.

Internet of Things (IoT) sensors monitor and feed real-time data from multiple locations into a digital system creating a virtual overview of project activity. Sensors in construction equipment can help project managers organize efficient use of equipment and resources for optimal operation. They can also monitor on-site conditions, such as temperature and humidity, that cause delays and even damage to construction. Augmented Reality (AR) devices can also perform automatic measurement scans at the exact same location without the need for human calculation, providing precise updates of project progress. Access to this level of accurate, real-time data heightens project managers’ responsiveness to crises so that the right action can be taken at the right time to avoid incurring unexpected costs and delays.

Servitization is the new deciding factor in construction contracting

The IIJA is not a short-term fix but is intended to facilitate long-term economic development. This means that contractors who also have a long-term approach to project management will be in a unique position to win contract stakeholder approval. Servitization is the way to go. Contractors that provide service throughout the entire lifecycle of the construction asset will not only provide higher ROI by prolonging infrastructure longevity but will also unlock more value from infrastructure contracts.

Construction organizations should use on-site data to foresee where repairs, retrofits, and servicing will need to take place and schedule these ahead of time before it is urgently needed, reducing infrastructure downtime, and keeping businesses running. A service approach to construction and engineering provides an extra revenue stream for contractors lasting the entire lifespan of the construction asset, and this often spans decades for infrastructure. A constructionspecific ERP is necessary to manage all the processes that are executed across the whole asset lifecycle. This allows businesses to transition to a true digital asset lifecycle model, operate with one version of the truth, and provide greater value for tax funds.

Data-driven construction offerings will win future contracts

MMC and data-driven processes have become a universal signal of a contractor’s ability to deliver quality projects efficiently and reliably. The IIJA presents an unprecedented opportunity for C&E contractors to win big with high-stake PPPs but to also make a considerable contribution to the future of US society. But to capitalize, contractors must improve project delivery and productivity. Here, integration of key technologies and construction techniques will ensure projects are delivered on time, on budget, and to a high quality and place forward-thinking C&E contractors ahead of the competition.

For a list of the sources used in this article, please contact the editor.

Kenny Ingram is, VP of C&E at IFS. IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. IFS’s industry specific products are innately connected to a single data model and use embedded digital innovation so that customers can be their best.