Trust is the bedrock of any successful construction project. From the seed of an idea or need to final handover and on into operations. Trust weaves an intricate web of connections across various stakeholders - architects, contractors, sub-contractors, suppliers, the public, clients and end users. And too often, given the complex nature of construction projects, we test and break that trust - time and cost overruns, safety and environmental incidents, quality issues, and information gaps.
The Information Age & Digital Transformation
We have been living in the Information Age since 1970. Industries around the world are constantly transforming themselves to keep pace with evolving technologies which innovate the production, use and exchange of information.
This is no different in the built environment, where for my entire career the methodologies, processes, and tools have been changing at a fantastic pace for how we design, plan, and execute construction. That’s not to say we always get it right or that we’re always at the forefront of new technology. There have been frustrations - normally occurring when mass behavioural change is required - BIM and Information Management have certainly been a rocky road.
But trust remains an issue. With forward thinking procurement models such as Enterprise, as well as more traditional arrangements trust is vital - and the breakdown of it is often the cause of our productivity, safety, and commercial issues.
In the next phase of the industries digital transformation will we see emerging technologies like Smart Contracts, Knowledge Graphs, and the Internet of Things (IoT) take up a role in shoring up trust in construction projects?
Let's delve into how these technologies can foster a trust-rich environment and transform the landscape of construction management.
Smart Contracts: A New Paradigm of Trust
At their core, smart contracts are self-executing contracts with the terms directly written into lines of code. In construction, they could serve as a solution to time-consuming manual contract management and dispute resolutions. Smart contracts can automate payments when certain conditions are met. This reduces the scope for conflicts. This fosters an environment of trust and transparency, as every stakeholder knows what to expect and when.
Knowledge Graphs: Boosting Collaboration and Insight
Knowledge graphs offer another innovative way to enhance trust. By presenting information in a structured and interlinked manner, they allow stakeholders to see the 'big picture'. Knowledge graphs can illustrate relationships between different project elements like tasks, resources, timelines, and dependencies, providing a comprehensive understanding of the project. This not only aids in better decision-making but also enhances trust by promoting transparency and shared understanding.
Internet of Things (IoT): Enhancing Quality Assurance and Compliance
Probably the best known of these three technologies is IoT, with its network of connected devices, can play a pivotal role in upholding trust in construction projects. Real-time monitoring of construction sites, machinery, and materials ensures adherence to safety standards and quality norms. IoT can track unauthorized deviations, automatically triggering alerts. This constant vigilance helps maintain quality, prevents cost and time overruns, and reinforces trust among stakeholders.
In synthesis
Of course, a combination of these technologies can be incredibly powerful. Building all three emerging technologies into an enterprises processes and tool stack will release more benefit than in isolation. Generating information in IoT, storing it in a Knowledge Graph to support analysis and query, and then resulting in triggering Smart Contracts for efficient transacting is a very powerful workflow - minimising human intervention and the possibility of error or bias.
However, there are barriers to adoption of this technology which I’ll discuss next.
Barriers
Whilst these emerging technologies do offer opportunity they don’t come with out risk, cost, and friction.
Technology Cannot Replace Human Trust: Whilst technology can enhance efficiency and transparency, it cannot replace the human element of trust. Personal relationships, reputation, and face-to-face interactions play a significant role in building trust.
Risk of Technological Dependence: There are huge benefits to digital transformation, but what about over-reliance on technology? It can pose risks, such as system resilience or cyberattacks, potentially disrupting operations and potentially erode trust rather than build it.
Cost of Implementation: Implementing new technologies like smart contracts, IoT, and knowledge graphs can be expensive. Small or medium-sized enterprises may not have the resources to invest in these technologies, and the ROI may not be immediately apparent or guaranteed.
Technological Learning Curve: We’ve seen before in digital transformations in construction that the learning curve for using these technologies might be steep for some individuals, potentially leading to resistance, incorrect usage, or decreased efficiency.
Legal and Regulatory Challenges: Particularly for smart contracts, there will be legal and regulatory challenges or ambiguities that could complicate their usage. Recognition or enforcement of smart contracts may not be available within contractual frameworks, which could potentially lead to legal disputes or challenges.
Privacy & Security Concerns: IoT devices and knowledge graphs often involve the collection and analysis of large amounts of data, which can raise privacy and security concerns. If not properly managed, this could erode trust among stakeholders.
Given the benefits and barriers - how can we best bring these technologies in to our projects and organisations?
Effective Implementation
By integrating these technologies, the construction industry can significantly strengthen trust, resulting in smoother collaborations and successful project completions. But how can we leverage these technologies effectively?
Actionable Steps to Leverage Trust-Building Technologies:
Educate and Train: Make sure all the stakeholders are educated about these technologies. This could involve training sessions or workshops.
Integrate with Governance/Processes/Systems/Standards: New and shiny doesn’t mean forgetting governance, standards, and process. These technologies should all be woven into processes such as information management, legal, commercial, quality, etc…
Choose the Right Technology: Evaluate the needs of your business and project, selecting the appropriate technology.
Involve Experts: Consider consulting with or employing experts in smart contracts, knowledge graphs, and IoT to support the planning and implementation.
Create a phased Implementation Plan: Do not try to implement all at once. Begin with one project, observe the results, learn from the experience, and then scale up.
Support Behavioural Change: Changing what people do and how they do it is the biggest hurdle to digital transformation. Use Behavioural Change Management techniques and make it part of our Implementation Plan.
Review and Adjust: Regularly review the impact of these technologies on key project metrics such as programme adherence, commercial results, change control, or non-conformance reporting. Plan-Do-Check-Act. Be open to adjustments and improvements as you learn more about their application and influence.
As we navigate the digital transformation of the construction industry, understanding these technologies and their potential for fostering trust is crucial. Now, let's consider what these advancements mean for our future projects.
What does this mean?
The integration of smart contracts, knowledge graphs, and IoT could mark a monumental shift in the construction industry. If embraced these technologies may not only streamline our processes but also build a foundation of trust that benefits all stakeholders. This transformative approach to construction project management fosters transparency, enhances collaboration, and ultimately can lead to more successful project outcomes. The future of construction is digital, interconnected, and built on a bedrock of trust. How can you integrate these innovations into your next project?
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