The role of new technologies in the management of construction processes

The construction sector plays an important role in the economy of any country. Construction is one of the most important and fundamental areas, as part of the economic processes involved in the creation and modernization of fixed assets for other sectors of the economy. The efficiency of this sector - the cost of construction, the duration and modernization of fixed assets - determines the ability of the country's economy to grow rapidly and the pace of solving key socio-economic problems.

International experience shows that the role of the construction sector in the structure of the economy varies depending on the stages of a country's development. The share of this sector increases in the early stages of development (developing countries), stabilizes when the country reaches middle-income countries (newly industrialized countries), and decreases when the economy reaches a high level (developed countries). In terms of the impact of the construction sector on various spheres of a country's life, investment in residential construction has a greater driving force in developing countries' economies than investment in other sectors.

One of the main 'locomotives' that open up internal reserves for the development of the global construction sector is the active introduction of new information technologies

Technology now makes it possible to build skyscrapers and design hospitals using modern algorithms. Innovation not only changes the face of cities, but also saves billions of dollars. This is stated in the report of the World Economic Forum and The Boston Consulting Group 'Shaping the Future of Construction: Inspiring Innovators to Change the Sector.' In addition to creating new jobs and providing 6% of global GDP, the construction sector also creates the infrastructure to attract businesses.

At the same time, it should be noted that the construction sector has been extremely conservative over the years. Productivity in the construction sector generally did not increase as more and more products were produced in factories and factories with less power. However, information technology can make a difference.

According to the aforementioned report, the relevant area is most affected by informative building modeling, wireless devices and 3D printing. According to the report, the introduction of new technologies in the construction sector will save $ 0.7 to 1.2 trillion in construction and $ 0.3 to 0.5 trillion a year after 10 years of operation.

The application of new technologies in this area around the world is also changing the structure of construction management. The main requirements for modern construction project management systems are the organization of a single information space for flexible data transfer, linking work schedule positions with digital model objects and linking reports on the work done with contractors to financial systems.

For example, we will provide the following systems related to the use of information technology for construction management:

Ares Prism, a comprehensive construction management solution, allows you to keep track of construction on 5 levels: three levels for 3D modeling, fourth level for time, and fifth level for money.

Elecosoft offers a dedicated project planning software PowerProject and is the author of Bidcon comprehensive budget control software. This separation allowed for a more concise interface and a clear information model.

The Danish company GenieBelt offers software to manage the construction process on mobile devices. GenieBelt allows you to track the compliance of work with the schedule and create current tasks to quickly solve any problems that arise during the work.

The best example of a visual representation of data is Lobster software. The building construction process is modeled in 3D over time, and then actual and graphical costs are reflected in the same format. In addition to the visualization effect of a building, it is already becoming an industry standard. The use of such systems is one of the important conditions for medium and large companies in developed countries.

Previously, such programs were used only in industrial enterprises, but since the 90s of the last century, the corresponding systems have been used in all companies, regardless of the country, form of management and field of activity.

According to research by the largest companies in the world, in the two years that have passed since the introduction of these systems in any enterprise, the money spent on it returns more than 4 times, the total income increases 2.5 times, and internal processes are automated, which leads to Significant cost savings.

The fact that they can be applied in a wide variety of applications places demands on flexibility on the one hand and flexible adaptation to changes in the application area on the other. The fact that such systems operate on a modular basis allows them to gradually integrate or select functions that are relevant only to certain areas of the company. Also, the modular principle allows the use of various AIS modules (Best of breed - the best).

It should be noted that most of our companies only use accounting software. However, all existing relationships, including labor, production resources, inventory, etc. Can be managed and regulated by creating a single information space within the company through the appropriate system.

Currently, the situation in the construction sector in Azerbaijan cannot be considered satisfactory in terms of the use of new technologies. Companies that build their business on professional systems can be counted on the fingers of one hand. The main problem is that company leaders do not pay enough attention to the use of new management technologies. However, the situation is already changing.

Today, business leaders are beginning to take an interest in more systematic and orderly management, business processes and controls. According to real estate experts, the demand for new management technologies in this sector will skyrocket in 1-2 years.

Banks' requirements for transparency and management efficiency in lending to investment and construction companies will be tightened. Lending terms and interest rates will vary depending on the organization of work. Since borrowed funds form the basis of financing, construction companies will reconsider their positions on the use of appropriate software.

There are many internal reasons for using such systems. Managers are usually interested in improving the professionalism of employees and ensuring control over executive discipline. However, at the moment they do not have the tools to do this, and they only have oral meetings or reports in Excel.

It is difficult and counterproductive to remember the whole process. The manager needs special tools for comprehensive control. This includes control, which includes the logical relationship between manager's instructions and employee actions.

Budget, resources, financial planning, equipment delivery schedule, clerical work with clients and contractors, sales process, actual flow of costs and funds, analysis of objects, projects, structural units - everything can be managed centrally and interconnected using one software provided by Remart PRO

It also regulates relations with tenants from the moment of the first contact to the conclusion of the contract, provides automatic invoicing based on flexible algorithms (adjusting the inflation index or changes in the dollar exchange rate), evaluates the occupancy of retail space, the profitability of various properties and real estate based on it. The real estate portfolio can be balanced.

This will remove the responsibility of leaders to “remember everything”. Having two checkpoints will automatically inform them about the status of any task on a regular basis. By setting milestones and deadlines for a specific task, you can track the most important work, and not the entire dataset.

As a result, the quality of management will increase. High quality, in turn, will lead to increased income. It is no coincidence that today not only large, but medium and small enterprises are actively introducing new technologies into their activities. This is not an image and fashion race. This is a requirement and a necessity of the time.

In our reality, such software must first of all be functional, meet the real needs of construction companies and be adapted to the Azerbaijani market. Most importantly, the construction process must be easy to understand and easy to use, given that this is already a complex and time consuming area. If a company employee can enter several indicators without thinking about the work of the program, and it is easy to get the necessary documents and analytical reports, such a system will certainly be needed.

It should be noted that block (chess) visualization of apartments in Remart PRO also greatly simplifies the management of the sales process.

The question arises: is it not more profitable for a construction company to develop appropriate software for its business process?

The answer is that today 9 out of the 10 largest construction companies in the world use Oracle software to build their enterprise systems. Among them are Skanska, Black & Veatch, CH2M Hill. Wouldn't it be convenient for these billion-dollar companies to develop their own software?

Of course, there are many tech companies on the market and everyone is free to choose. However, if someone thinks that the program will be developed on the principle of 'get some results when you press this button,' he is making a big mistake. For a complex area such as the construction sector, developing software that includes all operations is a process that requires a lot of intelligence, logic and effort. As a result, there is a high likelihood that a non-functional and incomplete program will be created at additional cost. In this regard, the best option is to use ready-made tools that take into account all the nuances.

Remart PRO is 2-3 times cheaper than foreign analogues with the same functionality. The cost of the system is calculated depending on the workload of the integrated company. That is, of course, there is a difference in integration between a semi-detached house, a 100-apartment building and a 10-block 500-apartment building into the system.

With Remart PRO, budget, resources, financial planning, office work with clients, sales process, actual flows of costs and funds, analysis of objects, projects, structural divisions - all this can be managed centrally and interconnected. It also regulates relations with clients from the first contact to the conclusion of a contract, provides automatic invoicing based on flexible algorithms (inflation index adjustment or changes in the dollar exchange rate can be taken into account), monitors credit debts, evaluates the profitability of various objects using the analytical capabilities of the system. The real estate portfolio can be balanced.

You can find out more on the website below and watch a demo.

Remart-pro.az

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