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Executive Guide:

Improve Business Results


with Construction Project
Management in the Cloud

Custom content for Autodesk Construction Cloud by studioID


Executive Guide: Improve Business Results with Construction Project Management in the Cloud

Table of Contents
3 Why using technology is critical in today’s competitive marketplace

4 How digitally connected construction workflows improves five essential KPIs:


Winning Business
Cost
Quality
Schedule
Health, Safety and Environment

9 Managing risks for strategic growth

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

Why using technology is critical in


today’s competitive marketplace
To truly improve performance, firms must use the power of technology
to connect workflows, which optimises five vital outcomes—winning
business, cost, quality, schedule and health safety and environment.

Numerous reports from FMI1 to McKinsey2 point to the same To truly improve project performance, it’s essential to track
conclusion: Harnessing technology and connecting workflows leading indicators, or predictive measurements 3 — and that’s where
are vital to success. That’s because traditionally construction has using technology to create connected workflows 4 comes in.
measured lagging indicators, which leads to schedule creep, cost
overruns and lost profits. “The main issue is productivity. The key challenge is that
the focus on KPIs mainly targets lagging indicators. This
In this e-book, we’ll explore how digitally connecting means that you don’t know you’re doing well on the project
workflows dramatically improves five essential KPIs: until you nearing the end. And then it’s too late,” said
1. Winning business Matt Keen, senior industry strategist at Autodesk.

2. Cost
What are the specific outcomes you should think
3. Quality about as you leverage construction technology
4. Schedule and build out your workflows internally?

5. Health, safety and environment

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

How digitally connected construction


workflows improves five essential KPIs

1 Winning Business
Speed and accuracy are crucial • Better stakeholder engagement. “Connecting data for owners
in winning bids — and connected Technology enables visualisation

workflows yield both. For example,


and other tools that get the client and developers sets builders
to actively participate in all phases.
design-build projects are completed Measuring engagement through post- apart from the competition
102% faster than traditional design- bid surveys following successful bids
bid-build projects, according to will help identify what differentiated because it allows them
the contractor during the bid stage.
DBIA.5 Here are other ways connected to give stakeholders the
workflows help win more business: • Higher bid win rate. Lost bids are a cost
to the business. Using tech to monitor information they need to be
• win rate is a key metric for bid teams.
Increased bid efficiency. Using successful for future upgrades
technology and automation can
• Expanded service offerings. Such
dramatically increase efficiency in
services include self-perform, or new facilities. Data is
delivering compliant/innovative
investment, facilities management,
bids that differentiate the
industrialized construction, using
cyclical in construction.”
contractor from the competition.
digital technology and BIM, and
• More successful projects. Using providing sustainability or post- Cara Wilczynsk
connected workflows helps projects occupancy services. These are Customer Outcome Executive
stay on budget, on time, and incident- all opportunities to increase Autodesk
free with high quality. But key project the profit margin or reduce
metrics must be captured to identify cost or risk on a project.
areas for continual improvement.

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

2 Cost
Costs relating to construction, • Reduction in nonrecoverable costs.
materials and skilled labour are Issues that can’t be contributed to a
third party (such as poor or missing
expected to increase by 6%, 7% and 6%
materials or lost time due to poor
respectively in Asia Pacific, showing scheduling/delays) must be covered.
that the cost of delivering projects Connected workflows show key
in the region are expected to rise.6 value metrics, including actual profit
margin versus project profit margin,
percentage of contingency attributed
Connected workflows help contractors to nonrecoverable costs, and amount of
get a true picture of performance — and nonrecoverable costs per project value.
control costs — in the following ways:
• Improved subcontractor qualification.
Assessing subcontractor performance
• More accurate forecasting. Accurate versus cost allows a contractor to
and timely reporting that gives the true mitigate costly risk. Technology
story of a project’s financial health is shows key risk metrics, such as
imperative. Staying true to forecast risk of subcontractor default and
shows good management of the subcontractors with poor track records.
business in line with senior leadership
and owner/shareholder expectations. “If you’re not managing workflows,
• Better cost controls. Cost management suddenly you have a $10 million job
of change orders and pay application with $5 million in change orders,”
processes ensures sound cash flow said Sunil Dorairajan, senior director,
management for project stakeholders.
construction industry strategy at
Autodesk. “Contractors have to ask
themselves, ‘How profitable am I
when I’m walking away from this
project?’ With connected workflows,
that answer gets better and better.”

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

3 Quality
A majority of rework is often caused by • Fewer constructability issues. Incomplete “Quality is one of the most
poor project data and miscommunication, design and lack of design review cause

this in turn often leads to budget blowouts.7


expensive field issues. Connected difficult things to measure as
workflows ensure collaboration between
Here’s how connected workflows address all project stakeholders and a robust it is deemed subjective, but
those issues and reduce those costs: review process to manage all issues
before they lead to rework on-site. quality is also a process. When
• Less rework. Technology brings together
• Reduction in defects at handover. High you connect workflows, you
key workflows – fabrication planning, design
aftercare (warranty) costs erode a
detailing, visualisation, site administration,
project’s profit margin. With connected can see insights in real time
layout, commissioning, quality management
workflows, a data trail ensures that
and document management – to reduce, and
defects are addressed before handover.
from the data about who’s
even eliminate rework.
• Better overall handover experience. performing well and who’s
A connected workflow with consistent Warranty and poor handover experience
document control is key to project visibility impact worker and customer satisfaction.
performing poorly. Catching
and avoiding rework. Without a standardized
document control process, teams waste
Enhanced digital documentation supports issues early means they have
the customer in moving from construction
countless hours looking for the most up to operations – and provides an opportunity less impact on the bottom line.”
to date information. Standards like ISO to increase customer satisfaction and
19650 are increasingly being adopted and contribute to the contractor’s reputation.
even requested by asset owners to define Matt Keen
the collaborative processes for managing Senior Industry Strategist
information over the project lifecycle. Autodesk

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

4 Schedule
Schedule slippage results in added • More efficient resource planning.
costs from overtime/second shifts for Correct allocation and planning
of resources (labour, materials,
more than 65% of general contractors,
etc.) are essential to ensuring that
according to a Dodge/Autodesk the master program is followed.
report.8 Connected workflows address The better resources and logistics
those issues in the following ways: are sequenced, the less chance
there is of project overruns.

• Optimise schedule. Identifying


Case in point, 80% of project owners
opportunities to reduce risk and
optimize the schedule leads to and clients in Australia and New Zealand
potential savings for the client and take on added costs due to overtime
the contractor. This optimisation can and scheduling issues. 87% have had
also reduce the likelihood of claims if
to extend the project end date.9
program dates/schedules aren’t hit.

• Improved plan-to-actual ratio. “If you want to improve schedule


Improving plan-to-actual ratios in
control and resource planning, you
schedule builds floats into the program
and provides the opportunity for need to have the right people working
contractors to deliver the project on the project, have the materials
early and enhance their fee. in the right place at the right time
• Better schedule control. Schedule and track quality management on
control is about how the master the work you’ve completed,” Keen
program is related to monthly, said. “Using data and insights from
weekly and daily planning of tasks/
connected workflows is absolutely
activities. Effective short-term planning
(such as pull planning) can ensure paramount to being able to do that.”
correct discipline in scheduling.

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

5 Health, safety and environment


Nearly 40% of firms aren’t using any • Better safety awareness and education. • Fewer work hours on-site. Careful logistics,
technology to gain a strategic advantage, Using connected workflows gives schedule and process planning, together
construction teams better awareness with the use of technology, can reduce
according to the 2020 JB Knowledge
of project risks with timely information the number of hours workers must be
ConTech report.10 But 60% of general based on real-time reported incidents – a on-site. This can reduce the risk of being
contractors and trades feel using software proven method to reduce risk and increase exposed to hazards that can cause harm.
to manage safety and/or inspections during hazard identification on projects.
• Less environmental impact. Connected
construction is of high value to improving • Lower insurance premiums. Demonstrating workflows allow contractors to source
this process. Connected workflows are better working practices through robust materials and products with health and
key to that goal in the following ways: processes/use of digital technology the environment in mind. Demonstrating
can reduce a construction company’s a positive effect on the community and
exposure to risk. Demonstrating this wider society can boost employee morale,
ability to insurance providers can attract talent in a labour shortage, lead
help reduce insurance premiums. to greater productivity and innovation,
attract loyal customers with their own
CSR requirements – all while delivering
better project performance.

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

Managing risks for strategic growth


Robust risk management is critical for planning business growth strategies.
Using technology to connect preconstruction to the actual swinging
hammer is crucial. By connecting people with processes you can identify
any issues or risks, and take the necessary steps to mitigate.

Having clear visibility across all projects using executive dashboards enables
business leaders to track their financial health and other performance indicators.

Timely access to real-time, actionable data unlocks even more


potential for new opportunities, so you can make informed decisions
as you plan for long-term strategic growth of the business.

References:

[1] Jay Snyder. “The Role of Construction Technology [4] Grace Ellis. “Why Connected Construction [8] “The Key Performance Indicators
in COVID-19 Recovery.” Workflows Power Better Building.” (KPIs) of construction.”
FMI Corp, Jun. 2020 Digital Builder, Aug. 2021 Autodesk, Nov. 2019
www.fmicorp.com constructionblog.autodesk.com autodesk.com

[2] Maria João Ribeirinho, Jan Mischke, Gernot [5] “There’s a better way to build.” [9] Benchmarking Construction Industry
Strube, Erik Sjödin, Jose Luis Blanco, Rob DBIA Workflows - Australia and New Zealand
Palter, Jonas Biörck, David Rockhill, and Timmy www.dbia.org Autodesk, 2021
Andersson. “The next normal in construction: construction.autodesk.com
How disruption is reshaping the world’s largest [6] Pace of new construction work slows
ecosystem.” across Asia-Pacific region [10] “JB Knowledge 2020 construction
McKinsey & Company, Jun. 2020 Royal Institution of Chartered technology Report.”
www.mckinsey.com Surveyors (RICS), 2021 JB Knowledge, 2020
https://www.rics.org/en-hk/ jbknowledge.com
[3] Matt Keen. “How Autodesk Build Will Deliver on
Key Value Drivers in Construction.” [7] Pete Schott. “Construction Disconnected: The
Digital Builder, Feb. 2021 High Cost of Poor Data and Miscommunication.”
constructionblog.autodesk.com Plangrid, Aug. 2018
blog.plangrid.com

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Executive Guide: Improve Business Results with Construction Project Management in the Cloud

See the Future of Connected Construction


construction.autodesk.com

Our industry requires solutions that connect their information, teams, and technology —breaking down data silos and disconnected
processes that hinder true transformation. As we navigate the ever-present push to do more with less, we need to uncover new
ways of working, enhance connected digital workflows, and incorporate advanced analytics. To support us on this journey of
transformation, we must lean into tools that connect construction — from design to plan, build, handover, and operations.

Built on a unified platform and common data environment, Autodesk Construction Cloud is a powerful and complete
portfolio of construction management products that empowers general contractors, specialty trades, designers and
owners to drive better business outcomes. Autodesk Construction Cloud combines advanced technology, a unique builders
network and predictive insights to connect teams, workflows and data across the entire building lifecycle.

While the industry experiences


unprecedented transformation, our
mission remains the same: to help
construction teams meet the world’s
rapidly expanding building and
infrastructure needs while making
construction more predictable, safe,
and sustainable. And we’ve remained
steadfast in our promise to deliver the
industry’s most compelling solutions,
connecting data, teams and workflows
from the field. This is our commitment
to connected construction.

LEARN MORE

10
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