5 ways innovative technology can boost construction spend

By Rod Freeman
Rod Freeman, VP, Construction and Property Category, Globality, outlines the ways innovative technology can improve construction and property spend

Innovative technology is revolutionising the construction industry, and forward-thinking companies are reaping the benefits. From the implementation of IoT sensors on a construction site for automatic material replenishment, to the use of mobile devices for foreman to track analytics in real time and avoid manually compiling reports, technology has undoubtedly changed the game. 

One of the most important innovations is AI-powered sourcing technology, which speeds up the procurement process for buyers and can save time and money, as well as lower risk for construction and property leaders. Below are some of the main benefits to becoming an early adopter of cutting-edge procurement technology. 

1. Increase competition among suppliers 

Competition helps drive innovation and lower costs, but finding qualified suppliers can be challenging, especially the diverse suppliers that many leaders are tasked with identifying to help meet ESG goals. New AI-powered technology can quickly match qualified bidders to projects, creating shortlists that include both existing and new, diverse, providers.

2. Reduce risk 

Innovative technology can highlight important questions or issues that may have been otherwise overlooked, ensuring companies address potential risks during the procurement process and not post contract. Natural language processing can guide users through a dynamic Q&A and precisely scope services to minimise project creep. 

3. Simplify the sourcing process 

AI-powered technology enables precise sourcing at scale, simplifying the process for busy procurement teams. The cumbersome steps of the RFP process, for example, are removed, freeing employees up to focus on more high-value activities. AI identifies desired business requirements up front and then offers a shortlist of suppliers exhibiting those characteristics, making it easy to select the best supplier for each specific need. 

4. Eliminate human error 

In construction, pricing proposals tend to be complex and time-consuming, with multiple tabs, line items, and calculations. New intelligent technology can compile pricing forms automatically, which not only speeds up the process but also reduces human error. Rather than have humans collate 25 spreadsheets into a single document, for example, AI can take over the process with more efficiency and accuracy. 

5. Maximise Value 

New digital platforms can drastically shorten the amount of time required from scoping a sourcing need to awarding the work, maximizing efficiency gains. Companies can generate unprecedented cost savings through precise scoping and curated bidder lists with AI-powered category expertise, resulting in instant savings of more than 20% at a time when companies are under pressure due to unprecedented rises in input costs.

Rod Freeman is VP, Construction and Property Category, at Globality, which uses AI to automate and optimise the sourcing of complex services such as marketing, consulting, legal, HR, IT, and facilities management

Share

Featured Articles

Neoen’s Storen Power Reserve begins construction in Sweden

Notice to Proceed given to Nidec at the end of December 2022, French renewable energy producer says

Masdar works with African countries on renewable projects

Agreements with Angola, Uganda and Zambia will see development of renewable energy projects with a combined capacity of up to 5GW

Select Group awards US$816.7m in construction contracts

Contracts awarded cover more than 10 million square feet of development and are for development projects launched over the last year

Saipem awarded $1.2bn contracts for Guyana and Egypt project

Construction Projects

Saudi Arabia dominates MENA construction sector in 2022

Facilities Management

WeBuild-led consortium signs €1.26bn Italian highway contrac

Construction Projects