Engineering Construction 4.0 Revolution

Author: Francesco Legname Page 1 of 43
Engineering & Construction 4.0 Revolution:
How Digital Technology and Lean Thinking Can Do It

Engineering & Construction 4.0 Revolution:
How Technology and Lean Thinking Can Do It
Introduction
Unlike other industries, engineering and construction (E&C) has historically been slow to adopt
new technologies and to flexibly adapt to the changing world. This is especially true nowadays,
being the world changing at a faster pace than ever before.
Indeed, large capital construction projects have been constantly increasing in terms of size and
complexity, while schedules have been squeezed over time as a consequence of a reduced time to
market, pushing Customers/Operators to accelerate start-up of their own plants to sustain
profitability of their large capital investments. There is an estimated 85% growth in the volume of
construction output by 2030.
According to The Boston consulting Group (BCG), construction is stuck at the same productivity
levels as it was in the mid-1990s. Workers at construction sites still spend about 30% of their time
simply waiting to do their jobs, for any number of reasons — materials haven’t been delivered,
equipment is broken, or a precursor step is delayed. To get a handle on the scale of this problem,
BCG used a measure known as “percentage plan complete” (PPC). A good proxy for both
productivity and cost, PPC is stuck at around 50% in the construction industry, as shown below:
However, despite this negative scenario depicted, today E&C Industry has a tremendous
opportunity to positively disrupt the whole business value chain and experience a significant
increase of productivity and a much higher rate of successfully delivered projects.
The keys for this breakthrough process to occur are “digitalization” and “lean project
management”. Already more and more construction projects are introducing in their systems and

work processes digital sensors, mobile devices, collaborative platforms to exchange information
and visualize data more effectively and efficiently, new software applications integrated with a
central platform of building information modeling (BIM). However, to benefit the full potential of
all the opportunities available and carry out a real revolution of the whole industry (what I like to
call the E&C 4.0), it is crucial to fully integrate in a systematic way all the practices, principles,
technologies, etc., relevant to these two areas.
According to BCG, systematical application of traditional lean techniques can reduce budget costs
and improve PPC from 50% to about 62%. However, combining both digital tools and lean
techniques PPC can further improve up to 70% - 72% (see figure below).
Therefore, to make the implementation of this new “paradigm” easier (i.e. digital lean), following I
wish to propose a framework that I like to call as “Digital Lean Project Value Delivery 4.0”.

“Digital Lean Project Value Delivery 4.0” Framework

1. Lean Project Management
Lean techniques are already quite spread over the manufacturing industry. Lean was originally
created by Toyota to eliminate waste and inefficiency in its manufacturing operations (Toyota
Production System – TPS). The result is a reduction of cost and lead-time as well as an increase in
quality. Particuarly, the typical improvements recorded by companies adopting a systematic Lean
manufacturing approach are the followings:
• Inventory reduction
• Lead-time reduction
• Productivity/Capacity increase
• Quality improvement
• Floor space improvement
• Cost reduction
• Value added per person
• Improved profit margins
• Overall efficiency increase
Lean principles and techniques can also be transferred and applied to Projects. In particular,
according to Lean Construction Institute and McGraw Hill Construction, Lean practioners have
reported the following significant benefits in their capital construction projects (% of high level of
achievement is also indicated):
• Improved Safety (39%)
• Greater Customer Satisfaction (38%)
• Higher Quality Construction (36%)
• Reduced Project Schedule (34%)
• Greater Productivity (33%)
• Greater Profitability/Reduced Costs (30%)
• Better Risk Management (21%)
Technology and digitalization makes the adoption of Lean principles even easier and more effective.
Therefore, it is time for the world of capital construction projects to reap the same kind of benefits
that Lean has achieved for manufacturing – creating more value with fewer resources, and
together with the digitalization process revolutionize the whole E&C industry (i.e. E&C 4.0).
It is crucial for leaders and executive embarked on lean transformations to focus their efforts on
the three fundamental business issues (3Ps):
1. Purpose: What are the customer problems to solve?
2. Process: How will the organization assess the right value stream for customers with all the
steps properly linked and optimized?
3. People: How can people within the organization be actively engaged and kept higly
motivated in thinking Lean, systematically identifying value, eliminating waste and
continually improving the value stream?

Waste:
Lean is a way of thinking which exhibits two foundational principles: eliminating waste and
continuous improvement. By adoting this approach, as a result, more value with fewer resources is
being created. Studies have shown that about 70% of the activities performed in the construction
industry are no-value add or waste.
From the Toyota Production System (TPS) seven common categories of wastes (Muda in Japanese)
are identified. These are usually identified with the acronym of TIMWOOD:
1. Transportation
2. Inventory
3. Motion
4. Waiting Time
5. Over Production
6. Over Processing
7. Defects
Moreover, some other common wastes that have been identified are the followings:
8. Over Burdening
9. Unevenness
However, especially in E&C Project environment, characterized by a significant amount of people
working and information exchanged, I would identify two more categories of wastes, whose
elimination can contribute significantly to the successful delivery of projects:
10. People
11. Information
Before the details of lean construction can be addressed, it is important to first understand these
foundational principles.
Transportation: unnecessary movement of equipment and materials.
Inventory: excess products and materials (raw materials, work-in-process or finished goods)
not being processed as not supporting the immediate need.
Motion: unnecessary movement of people.
Waiting Time: wasted time waiting for the next step in a process.
Over Processing: more work or higher quality than is required by the customer.
Over Production: production that is more than needed or before ti is truly needed.
Defects: production that is scrap or requires rework.

Over Burdening: excessive demand that causes the system, equipment, or person to work
beyond its reasonable capacity and natural limits. Over burdening people results in safety
and quality problems. Over burdening equipment causes breakdowns and defects.
Unevenness: fluctuation in demand that causes the workflow to be uneven.
People: underutilized talent and resource that are available inside the organization.
Information: inefficient communication and misused data.
Principles of Lean Thinking:
As already explained, Lean is a way of thinking aimed to identify value, eliminate waste in work
processes and increase overall efficiency. The goal is to help organizations achieve operational
excellence. To be Lean is fundamentally to provide what is needed, when it is needed, with the
minimum amount of materials, equipment, labor, information, and space.
Following I propose seven core principles of Lean Thinking that can be adopted as a Lean Project
Management Framework:

1. Serve People and Empower Team: projects benefit people, and people undertake projects.
Projects should serve customers, society members, employees, owners, and team
members. These interests should not be seen as conflicting, even though they might be
perceived in that way, but to be considered as mutually supportive. It is possible to align
the interests of all these stakeholders, and the project should aim for that.
Many organizations talk about empowering people. In truth they may ask for people’s
opinions on ideas but that is closer to involving people than truly empowering them. To
empower people means that team members are truly encourage and allowed to solve
problems for themselves. In this regard, leaders must coach and mentor their teams,
developing the team’s capability along the way, and to give teams problems which stretch
their capabilities without exceeding them. In this way work becomes interesting, learning
occurs, and a continuous improvement cycle is created, avoiding also generating the 10th
waste identified as “unused/underutilized people talent”.
2. Define Value: total project value is a combination of the following values:
• Value for the customer
• Value for the project owner (the sponsoring organization)
• Value for the project team members and partners
• Value for the society
The success of a project is measured by its net value. Projects that do not create value
create waste. Projects that create value that is less than its costs they generate have a
negative return, which is also a manifestation of waste. Therefore, to increase the net value
of the project, we need to:
• increase the net value created by the project
• reduce project costs by eliminating waste.
For projects, value is objectified through certain characteristics, such as features, price,
quality, time, and place. However, it should be kept in mind that value has always subjective
components and many aspects that cannot be easily objectified.
In project management value is specified by identifying objectives, deliverables, and
requirements. Acceptance criteria are also defined. Value or end result of the project is
what the customer is truly purchasing. However, initial requirements, a statement of work,
or a requirement document may not be clear. If value statements are in conflict, the project
manager must therefore work in close relationship with the customer to resolve that
conflict.
3. Map Value Stream: a value stream includes all the actions, deliverables, etc., both value-
added, and non-value added, currently required to deliver the project to the customer. By
analogy to the physical material that flows through the manufacturing process, we can
assume that it is information that flows through project management processes. As the
information flows through this process, project management activities performed add

value to the information. It would transform initiating inputs data into deliverables such as
scope statement, project management plan, risk register, etc. The current state project
management value stream can be mapped and analyzed in order to eliminate waste in
processes, make the remaining value-added flow and move project management processes
towards the future value stream state, which would show short and rational response to
customer expectations for new products or services and change requests.
Create Continuous Flow of Information: once the value is defined and the value stream is
identified, the step here is to create continuous flow by eliminating backflows, scrap,
rework, and interruptions. No stoppages, no waste is the central tenet here. In analyzing
value streams, work will fall into one of three types:
• Value-Added Work: Those works are essential changes to product/service. You
would look at maximizing this category as there are providing customer value (Form,
Fit, Function).
• Value-Enabling Work: Value-Enabling Work is a category that has potential for
elimination in the future (with identified improvements) but can’t be eliminated
immediately. These are necessary to run the current process. Technology,
environment, culture require these activities. You should look at minimizing this
category of work.
• Non-Value-Added Work: Non-Value-Added Work can usually be eliminated quickly
and is not dependent on improvement of other areas. This is the work nobody
needs, and it is pure waste. You should look at eliminating this category of work.
All the waste (“pure” or “necessary”) in a process can be classified as one of the 11
categories previously seen.
Particularly for project management processes, unplanned overtime waste can come from
an uncontrolled scope change or also called scope creep. This is the consequence of adding
new functionalities without assessing the impact on the project objectives and without
getting a formal approval from the steering committee and/or the customer. We can
imagine situation where the customer is bypassing the project manager and addressing
scope change requests to project team members ending into scope creep. To avoid such a
waste, the project manager must manage customer's intimacy. Possibly, an extreme
improvement would be that the project manager collocates with his customer. Additional
inspections waste would improve the performance or the end result but not the process
delivering the result.
Establish Customer Pull: with improved flow, time to customer can be dramatically
improved. The challenge here is to avoid delivering value before the customer request it.
Also, you should not provide to the customer more than the agreed initial scope. By adding
out of scope functionalities, you can expect that it will negatively impact your project triple
constraint. For instance, if you make more work than required at a certain time, it will be
pulled in waiting to be expedited to the next step. You should also avoid here to execute

project management activities in a batch. Indeed, if there is any product change request
then you would end up with obsolescence and therefore waste.
This makes it much easier to deliver products as needed, as in just in time manufacturing or
delivery. This means the customer can pull the product from you as needed (often in weeks,
instead of months). In manufacturing, we let the customer pulling the flow by means of a
Kanban system. Kanban allows the implementation of a just-in-time system. It uses cards to
signal the need for an item by triggering the movement, production, or supply of a unit.
Communicate & Collaborate Effectively: Undoubtedly, inefficient communication and
collaboration are a major reason for project failure. They are at the root of any delay, cost
overrun, quality issue, misunderstanding of stakeholder expectations, lack of project
alignment, and waste. Communication is the act of sharing meanings between people. The
purpose of communication is to inform, express feelings and emotions, share ideas,
thoughts, and knowledge, and to influence. Through communication, people reach mutual
understanding and facilitate each other's growth. One cannot perform project management,
and project stakeholders cannot co-create value without communication. To be effective,
the project-related communication should be:
• Meaningful (should add value)
• Clear
• Transparent (everyone on the project should be able to see the work of the others,
which will facilitate finding ways for improvement)
• Emphatic
• Respectful
• Timely
• Decentralized
… and as much as possible:
• Frequent
• Simple
• Informal
• Face-to-face
• Synchronous
• Visual
In a project context, collaboration is a process where stakeholders work together to co-
create value for each party. Effective collaboration requires involvement of all stakeholders
in creating project value from concept to realization. Those stakeholders should be
empowered to own the project and motivated to bring project benefits into existence. Co-
creation continually engages all stakeholders in reaching mutual understanding and
consensus on the shared goals and the value that the project will create for each party. This
process relies on the collective wisdom and the full potential of people involved. Co-
creation is facilitated by effective communication, servant leadership, collaborative and
decentralized project management, and a self-organizing project team that includes the
client and the partners.

High Performing Teams have found that Visual Management (e.g., dashboards, posters,
charts, graphs, look ahead schedules, etc., displayed on the meeting space walls, along with
shared technology platforms), drive Collaborative Communication. Particularly, Visual
Management and Collaborative Communication enables the team to promote open dialog,
visualize progress, quickly see and address problems that surface, and keep team members
informed about the progress of the project.
Digital technologies such as BIM, integrated collaborative platforms, mobile devices
facilitate the process and ensure individuals outside the office are tied into it.
There are other forms of collaboration that can be applied to the stakeholders. For instance,
Collaborative contracting is perhaps the most beneficial and least utilized of all the lean
construction tools available. Collaborative contracting approaches encourage a lean culture
from the project definition phase all the way through the execution and completion of the
project, and sometimes even beyond. In contrast to the traditional design-bid-build
contracting - still the most common contracting methodology - collaborative contracting
brings in the owner, design team, contractor, and sometimes even subcontractors early on,
before the design is finished. This allows the various parties to work together and
simultaneously establish solutions in design, constructability, and the construction process
as a whole before any construction activity is ever performed. The principles behind
collaborative contracting approaches are nearly identical to those of lean in that it
eliminates waste in projects and stresses the importance of continuous improvement.
Another form of collaboration is the Last Planner® System, a form of collaborative planning
which is achieved through creating a predictable workflow and minimizing waste on a
construction project. Pull planning is one of the most common aspects of the Last Planner®
System that is currently practiced in today’s construction industry. Pull planning requires all
trades involved on a project to assemble and work backwards from an established
milestone in order to clearly define the resources (e.g., time, labor, materials, etc.) that will
be required on a project. This pull type of system ensures that only the necessary resources
and work are being delivered, hence reducing the need for physical buffers (e.g., storage
space or time). This aligns with lean principles through the process of collaboration,
continual improvement, and eliminating wastes.
Build Knowledge & Continuously Improve: Projects undertaken under uncertainty should
be viewed as knowledge-creating initiatives. Knowledge alone is not sufficient to judge,
decide, and act. It works in a system together with learning, skills, and wisdom. Knowledge-
building refers to creating, transmitting, and keeping knowledge. In the context of the
project management process, knowledge about successful and unsuccessful practices for
improving the process needs to be created. In this regard, each project shall have a system
of Lessons Learnt in place, which shall be maintained and regularly updated along the
execution of the project and be part the project close-out documentation. Moreover,
through a collaborative platform, it is possible to create a centralized system of knowledge
management inside the organization, where anybody can have access at any time to get the
relevant knowledge and transform it into a valuable stream of information.

To conclude with the definition of Lean Project Management, the flowchart below illustrates a
possible Lean Project Management toolbox. It reconciles the project management process group
model based on the PMBOK framework with the Lean principles described in this paper. One could
consider here Lean and Six Sigma principles as a common methodology to reach excellence in
projects. We will have project management processes and those must be carried out with a certain
level of excellence. But at the same time, we need to deploy Lean principles to early define the
value in the customer's word. One would expect to see project managers collaborating functional
managers to determine and measure capabilities to meet customer requirements. Value added
and value-enabling activities would flow triggered but customers need. Continuous improvement
of project management processes will ensure that you maintain an acceptable level of
performance. Ultimately, this will lead to project excellence.

2. Project Digitization
As already mentioned, unlike other industries, engineering and construction (E&C) has historically
been slow to adopt new technologies and to flexibly adapt to the changing world. Therefore,
though transforming, today the construction sector is one of the least digitalized sectors in the
economy. At the same time, the integration of digital technologies is often viewed as a key element
to tackle some of the main challenges it is faced with, such as labor shortage, competitiveness,
resource and energy efficiency, and productivity.
Digitalization in the construction sector can bring significant opportunities for the whole value
chain not only by improving existing practices, but also by integrating disruptive technologies and
tools that can lead to new processes, business models, materials, and solutions. In sum, digital
technologies can help the sector build better, and tackle several issues, including labor shortages,
labor productivity, waste and greenhouse gas emissions, health and social challenges.
The economic and social impact could be substantial, as the construction industry accounts for 6%
of global GDP and employs more than 100 million people worldwide. Within 10 years, full-scale
digitization could help the industry save an estimated 12-20%, equal to between $1 trillion and
$1.7 trillion annually, according to The Boston Consulting Group.
Image: Future of Construction, World Economic Forum, Boston Consulting Group
The technologies used in the construction sector can be organized in three categories: data
acquisition, automating processes, and digital information and analysis
Data acquisition refers to the unprecedent availability of massive amounts of data from sensors,
scanners and connected devices (IoT) concerning all aspects of the construction, from geo-
localization to humidity levels, from energy usages to air quality, from video recordings to seismic
measurements. The availability of this data will allow for a growing range of analytical services to
improve productivity in the construction process in all its phases (e.g., design and engineering,

construction, operation and maintenance, etc.) and its sub-sectors (e.g., real estate, manufacturing,
architecture and engineering).
Automation processes through the adoption of robots, 3D printing, drones and other machineries,
automation security (or cyber-security) play a very important role in the development and
modernization of the sector. By automating certain activities, not only the final quality of the
project increases, but workers are also less exposed to risks and new materials and techniques can
be deployed. This category of digital technologies is hence most relevant for the construction
phase which is often overlooked when it comes to the digitalization of the sector.
Digital information and analysis are crucial for connecting all innovative technologies in this sector
and processing the available data, thus leading to significant improvements and transformations in
the way the work is done. In fact, the added value of having real-time information, precise
measurements, and historical stock-taking databases will be increasingly important and essential
for the sustainability and competitiveness of the sector.

Current market analyses show that among data acquisition technologies, sensors are the
technology with the highest level of market maturity and technological readiness. 3D scanning is
being increasingly used, while IoT is not yet widely adopted, although it is developing rapidly. As
for Automating processes drones are being increasingly used, notably through the development
and improvement of the sensors that they are equipped with, while robots and 3D printing (or
additive manufacturing) are still at the development phase and utilized only for very specific and
limited tasks. Last, the effective use of digital data represents the future of the digitalization of the
construction sector. In fact, data analysis is needed to give a meaning to all the data gathered and
deliver tangible improvements and benefits. However, as the technologies and innovations in this
category are deeply connected to the maturity of the data acquisition and automation
technologies, their status varies significantly from one to the other. Building Information Modelling
(BIM) is more and more utilized in the construction sector; however, it is often limited to the
design phase of (large) projects. Virtual and Augmented reality and Artificial Intelligence are still at
development stages and cannot yet be considered as market ready. Digital Twins are for the
moment limited to a few pilot projects, but the majority of public and private stakeholders
consulted agrees that they have high potential for the future.
These technologies are, in some cases, heavily interconnected. To give an example, drones can be
equipped with various sensors and robotic parts. At the same time, 3D scanning, BIM, Augmented
reality and Digital Twins are also deeply interconnected, as they refer to similar technologies being
used in different ways or to different stages of the same technology (e.g. augmented reality in the
construction sector can be seen as the combination of BIM projects with visual sensors; a Digital
Twin is a BIM project regularly updated by using data from several sensors, scanners, etc.). The
Figure below provides a high-level overview of some of the possible interactions between different
digital technologies mentioned, which is not meant to capture all possible interactions and
implementations, but rather provides a concrete illustration of their interconnectedness as
aforementioned.

Digital technologies can be applied not only throughout all phases of the construction process, but
also at any point of the building’s lifecycle, as shown in the next figure below. However, these
technologies tend so far to be used mostly in specific cases, such as in historical heritage sites to
appreciate the assets and in newly constructed buildings, as it is easier and more cost-effective to
integrate them from the beginning and structure the project based on their use, rather than
undertake additional investments to implement them in already-existing buildings.
2.1. Data acquisition
Sensors: sensors are electronic devices that offer the possibility to collect data and monitor
the performance of individual types of information during the building’s entire lifecycle,
namely in the architectural design, engineering, construction, operation and maintenance,
renovation and demolition phases. Over the last several years, the use and adoption of
sensors have increased significantly in the construction sector. Sensors are amongst the
data acquisition technologies with the highest level of market readiness and represent the
central point for the future of the construction sector.
As the sector gradually moves towards data-driven models, sensors will become
increasingly important as they represent the main source of real-time data, both on the
construction site and once the building has been completed. However, there is still a gap
between new buildings, which generally tend to have a greater adoption of sensors, and
older ones, which are the majority of existing buildings and where the investment to
upgrade them with sensors sometimes not undertaken due to the costs required. It should
be said, however, that sensors are also becoming increasingly accessible as they mature.

Sensors can wirelessly deliver real-time updates on a project status, the location of vehicles,
deliveries and assets, or the condition of various features as they are built, thus providing a
significant amount of precious and updated data to construction companies and other
stakeholders. During the design phase, sensors are often integrated in drones to survey the
future construction site and assess its conditions and characteristics, as well as to take
photos and precise measurements. This allows architects and engineers involved in the
design phase to develop their design while having access to very precise data on the
building environment. During the construction phase, sensors have a three-fold benefit:
prevention and safety, optimization, and efficient management. In fact, a sensor embedded
in a machine allows machine operators and site managers to promptly assess when the
machine needs maintenance, thus not only reducing overall reparation costs for companies,
but also decreasing the risks for the personnel using the machine. The use of sensors also
facilitates the transition from planned maintenance towards predictive maintenance, which
can bring up to 20% of cost reduction in the total lifecycle of a project. The same logic can
be applied to sensors embedded in personal protective equipment used during
construction, which can significantly improve safety in construction sites and protect
workers’ health.
Importantly, sensors can not only collect data, but they also direct this data to computers
and cloud networks for analysis, for example through IoT systems, and feed directly into
Digital Twins, BIMs, etc., or used for other analytical (e.g. benchmarking of energy
performance) and functional (e.g. regulating the heating) purposes. This allows both
construction companies and final users to gather relevant information and assess ways to
optimize, for example, fuel spending and energy usage, to reduce costs and make the most
out of their machines and equipment, thus maximizing Return on Investment (RoI). These
potential benefits suit very well with the Lean Principles highlighted in the relevant section
of this paper.
Example of sensors application in construction industry

Internet of Things (IoT): IoT is the concept of connecting to the internet household
appliances, devices, sensors, vehicles, etc. thus allowing for communication, remote control,
exchange of data, etc. For this reason, IoT is closely related to sensors as, in most cases,
they provide IoT with the required data input, alongside drones and 3D scanners. At the
same time, IoT technology is deeply intertwined with the concept of cloud computing, i.e.
external servers equipped with storage capacity and specific data processing software. By
leveraging on cloud computing, IoT can gather data from different physical devices (e.g.
sensors, working machines, etc.) and outsources the analysis and / or storage of such data
to the cloud, hence without the need for such software to be installed directly into the
devices and with the possibility to access to such data from multiple devices.
IoT is an emerging technology in the construction sector and its application is still primarily
in the R&D phase. Nonetheless, it is reasonable to say that its implementation is being
tested mainly in the construction, management, and demolition phases. During the
construction phase, IoT can be used by project managers and site supervisors to monitor
workers’ safety by using a system of connected sensors to ensure that they are not
exposed to hazardous substances or to situations of physical danger. Furthermore, by
connecting building machinery to the cloud, IoT allows to manage the fleet and, more
generally, the construction process remotely, which can facilitate construction in areas that
are not accessible to workers, that are polluted, or dangerous to be in. Preliminary studies
have linked the use of IoT in construction projects with an estimated average cost saving
around 22 – 29% of the total project costs.
In the management of buildings, facility managers and building owners can use IoT to
connect different devices, such as sensors for room temperature, electrical power
measuring, and actuators for heating, ventilation, and air conditioning (HVAC Systems) to
provide structural monitoring and energy savings. Finally, IoT can support construction and
demolition waste management activities. More specifically, IoT allows for the deployment
of sensor-based tools for monitoring on-site trash levels, determining how waste loads vary
across the year and, thus, optimizing the operating mode to prevent waste pileups. At the
same time, it allows for the calculation of the most efficient waste collection routes in order
to reduce recycling and disposal costs.
Example of IoT applications in construction industry

3D Scanning: 3D scanning is the process of creating a 3D model of a real-world object or
building by scanning it from all possible angles. A 3D scanner emits millions of laser points.
By calculating how long the light takes to return and by measuring the coordinates of the
laser points and how the angles change, the scanner accurately calculates the shape,
dimension and the location of the object(s) scanned. Depending on the 3D scanner used
(i.e. if it is equipped with a GPS device), the data points gathered can also include
topographic data of the scanned buildings. This process can be used in the construction
sector to create 3D models of existing buildings and infrastructures for which there is no
digital information. The 3D data captured by the scanners is then incorporated in BIM
models or Digital Twins for further elaboration and use with the information already
available.
Before, during, and after the construction phase, 3D scanning can be used for surveying
and analyzing a wide range of construction types and locations, with greater precision than
other tools. The main benefits of 3D scanning in the construction sector are generally two-
fold. First, scanning allows a rapid and precise measurement and collection of millions of
data points in a very time-efficient and accurate way. Secondly, since the data gathered is
much more accurate, this removes the necessity of guesswork, second measurements and
approximations, which all increase the final cost of the project and increase the possibility
of errors. In fact, it is estimated that the adoption of 3D laser scanning can lead to a 5-7%
reduction in project costs and 10-12% improvement in project timing, with up to 80%
reduction in site time, hence representing a significant improvement over the long run if
consistently used.
More specifically, 3D scanning is often combined with other sensors in specific drones to
survey and scan the area designated for the construction, so as to gather measurements
and other data before and during the construction process. After scanning, the point-data
can be converted to a 3D model. This allows to both adapt the design to the specificities of
the building environment, and to obtain data to be integrated into BIM models and / or to
create Digital Twins. For instance, 3D scans can also be used by project managers and
promoters to compare the designed model (BIM models) with the status of the
construction, so as to assess if everything is in line with the initial plan, or with the final
outcome.
Example of the use of 3D Scanning

RFID: Radio frequency identification (RFID) technology is increasingly being used on
construction projects to increase efficiencies, manage assets, and reduce theft. RFID
systems consist of a reader or interrogator, which is a two-way radio transmitter that emits
a signal to labels or tags. The tags contain a microchip to store and process information
and an antenna that receives and transmits a signal to the reader. In passive systems when
the reader emits electromagnetic waves, it powers the tag, which transmits the data back
to the reader.
As the cost of RFID systems continue to drop, their use in construction has continued to
grow. There are a variety of ways in which construction companies are taking advantage of
RFID.
• Equipment and Tool Management: Tools and equipment often get lost on large
construction sites. RFID technology can track the thousands of high-value assets
used at construction sites. The system enables a company to know on a daily basis
where assets are located, thereby reducing the need to order or rent new items as
replacements for equipment that cannot be located. Tracking assets was typically
accomplished manually, with crews physically checking inventory levels and writing
down serial numbers on a piece of paper. RFID solutions are an easy way of keeping
track of which tools have been checked out, which employee checked them out, as
well as how long the tool was used once it is checked back in.
• Inventory Management: RFID has reduced the practice of acquiring excess
inventory due to items missing. Without an RFID-based tracking system, assets
often have to be scrapped, because it is impossible to trace how old they are, or
when they were inspected and certified. The system provides access to available
material and reduces errors related to misunderstandings regarding which
equipment is actually delivered to a site. Construction companies typically lack a
centralized site for all assets. Paper records kept onsite can become lost or be
incorrect, and are often not being recorded into a computer system. RFID
electronically stores location and status data about the assets being used, so that
onsite construction managers, or staff members at remote locations, can view
which items are being stored or installed as construction takes place.
• Workforce Management: An RFID-enabled solution can track the number of
workers on jobsites, as well as their identities. By using this, construction project
managers and supervisors can capture the identity of each worker entering or
leaving a site. The data related to individuals provides details such as which
contractors have employees onsite, the number of workers at that location, and
whether those personnel have the necessary training or certification required to be
there.
• Enhancing Safety: Ensuring worker safety is always the most important
consideration at any jobsite. A method being used is to install readers around
potential hazards like guardrails or open elevator shafts. When a worker wearing a
tag approaches a potential hazard, the reader would activate an alarm to alert
them of the danger. RFID readers can also be used to create barriers that would

alert project managers when workers enter unauthorized areas. There is also fall
protection equipment that is using RFID technology. The system allows safety
personnel to track the location, inspection, and maintenance of the various fall
protection systems they are using on the jobsite.
Data collection during production, storage, shipping and erection using RFID.
Geographic Information System (GIS): Geographic Information System (GIS) is a computer-
based system for capturing, storing, checking, and providing data related to the position
on the earth’s surface. GIS is being used in various fields of construction industry like
transportation, environmental impact assessment, urban development, resource
management, site selection, and land surveys, etc. GIS not only speeds up the modelling
process and data extraction from the various sources but also ensures data integrity and
accuracy. GIS forms an effective foundation for planning and monitoring construction
activities. By using GIS based management, rework can be avoided up to 20% for time.
GIS and BIM are highly interrelated, as BIM may use data from GIS, such as site
information and spatial analysis, and may produce data useful for GIS, such as energy
performance data. For instance, the merger of topographic data with BIM models provides
urban planners with the possibility to develop urban digital models, to visualize and
analyze the user-friendliness of the urban environment.

Example of GIS applications
2.2. Processes Automation
Robotics: the use of robots on construction sites is still very limited, and the market
adoption is at the infancy stage, but robotics production market is predicted to grow
steadily over the next few years. The scope of robotics in construction is broad,
encompassing the majority of the stages of construction, from initial construction to its
operation and maintenance, to the eventual dismantling and recycling. For example, in the
construction phase, robots can deliver more precise and uniform work. They can replace
human workers in tasks that involve difficult physical labor and / or presence in hazardous
environments, or replace tasks that are repetitive. This leads to a two-fold added value. On
the one side, it reduces safety risks for workers; On the other side, it significantly reduces
the possibility of mistakes, including accidents.
In turn this translates to a higher quality of construction, lower final costs and decreased
likelihood of delays. For instance, the use of exoskeletons, i.e. robotic body devices worn
by the worker, can improve performance and significantly reduce safety risks when doing
tasks such as lifting heavy loads, or using equipment in uncomfortable positions. Robots
could also be used to motorize traditional physical activities, such as brick laying,
excavation, or wall painting. This element would bring greater efficiency, better quality of
work and less safety risks for on-site workers. These activities can also be automatized by
being combined with other technologies, e.g. sensors, drones, and BIM, to execute the
task without the need for physical human presence on the construction site.

Example of Exoskeleton application in construction industry
3D Printing: known also as Additive Manufacturing, 3D Printing is the process of creating
an object by adding layers of material (e.g. plastic, metal or concrete) upon one another
under the control of a computer using a Computer-Aided Design (CAD) or BIM file to guide
the 3D printer’s nozzle. Currently, the application of 3D Printing is limited to relatively
small-scale applications while the printing of larger parts and the use of more than one
material are still a challenge. Pilot projects on the use of 3D printing for an entire building
have taken place, but for the moment they remain uncommon. 3D printing is often
combined with laser cutting machines. While being two completely different construction
processes, laser cutting can lead to similar outcomes as 3D printing and can also be applied
in context where 3D printing still struggles to be used (e.g. wood elements).
The role of 3D Printing occurs primarily in the construction phase, contributing to an overall
construction cost reduction by using more time-efficient and material-efficient machines,
thus also reducing the final amount of construction waste, particularly if used to produce
modular elements. 3D-printed elements benefit from the characteristics of the material
they are built from and are proven to be more durable, thanks to the way materials are
produced and assembled. For this reason, it is also used for building lightweight and energy
efficient building facades and structural elements such as bridges. Furthermore, 3D printing
can not only substitute traditional means of production, but can also achieve unique
designs and shapes that are less attainable using traditional methods.

Example of 3D Printing application in construction industry
Drones: Drones are aerial vehicles equipped with high-resolution cameras and other
scanning equipment. Drones can provide live streaming videos and photos, which can be
further elaborated through dedicated software to create 3D models, for instance, for BIM
use. This also allows for reality-capture solutions and real-time comparison between
planned and implemented solutions. In 2018, this sector saw a 239% increase in the
adoption of drone technology. According to European Construction Sector Observatory, the
use of commercial drones in Europe (i.e. excluding military drones, toy drones and other
drones for recreational activities) is expected to show a significant market growth in the
period up to 2022 (+397.4% in revenues), to then stabilize in the period 2022-2025
(+143.2%).
The use of drones throughout a construction project provides therefore an unparalleled
record of all activities; cuts planning and survey costs; increases efficiency and accuracy,
and eliminates disputes over the status of a project at a given point in time. Mainly, a drone
is used in the construction industry for surveying and inspection purposes. Drones are
equipped with downward-facing sensors, such as RGB, multispectral, thermal or LIDAR, and
they can capture a great deal of aerial data in a short time. During an aerial drone survey
with an RGB camera, the ground, its features and buildings are photographed multiple
times from different angles, and each image is tagged with coordinates. First, these highly
detailed geotagged images can be used for assets and inspections, for example, of building
roofs or hard-to-reach areas. They can also be used to monitor areas across long distances,
such as vegetation rows, roads and railroads. Taking the technology a step further,
photogrammetry software can combine the images to generate geo-referenced 2D maps,
elevations and 3D models. These maps can be used to extract information such as precise
distances, surface and volumetric measurements.
Drones can also open up new applications that were previously very hard or costly to
access or closely track. Think of monitoring or inspecting hard-to-reach areas in
construction sites or industrial plants. This results, together with a significant efficiency
improvement and costs reduction, in a significant improvement of personnel safety. Indeed,

in oil and gas industry drones have dramatically reduced employee exposure to work at
height (among the top causes of industrial fatalities) and to inspection in confined spaces.
The next steps for drones are to become autonomous and mirror the development of
subsea drones (remotely operated vehicle or ROV).
Example of Drone application to work at height
Cybersecurity: Cyberattacks are now happening every 39 seconds, according to a University
of Maryland study, and organizations often receive thousands or even millions of alerts
each month. Moreover, billions of people and countless businesses have been affected by
data breaches. In 2018, breaches cost roughly $148 per lost or stolen record — nearly $4
million overall per incident. Therefore, it is apparent that nowadays security staff are tasked
with monitoring a much larger attack surface than in prior years, including mobile devices,
cloud infrastructure and IoT devices.
Security automation is the machine-based execution of security actions with the power to
programmatically detect, investigate and remediate cyberthreats with or without human
intervention by identifying incoming threats, triaging and prioritizing alerts as they emerge,
then responding to them in a timely fashion. Security automation can carry out most of the
work for the organizations’ security team, so that they no longer have to weed through and
manually address every alert as it comes in. For instance, among other things, security
automation can:
• Detect threats in your environment.
• Triage potential threats by following the steps, instructions and decision-making
workflow taken by security analysts to investigate the event and determine whether
it’s a legitimate issue.
• Determine whether to take action in response.
• Contain and resolve the issue.

All of this can happen in seconds, without requiring any action from the security staff.
Therefore, with security automation, repetitive, time-consuming actions can be taken out
of the hands of security analysts so they can focus on more important, value-adding work.
In addition, security automation can also provide rapid threat detection. According to
research by ESG, IT teams ignore 74 percent of security events/alerts — even when they
have security solutions in place — due to sheer volume. Hence, not only can security
automation detect and resolve these common issues, but it can also eliminate human error
that comes with inexperience, work overload and negligence.
Cybersecurity Trends in 2021
2.3. Digital Information and Analysis
Building Information Modeling (BIM): BIM is arguably the most developed and used
digital technology in the construction sector; however, its market adoption in the EU is still
moderate. In fact, in Europe, 29% of construction companies uses BIM 3D (which includes
information sharing and the creation of graphical and non-graphical information); while 61%
have never used it. The numbers drop considerably concerning BIM 4D with only 6% of
companies implementing it. BIM is currently mainly used in design and construction
phases; however, it can bring numerous benefits and advantages throughout the entire
lifecycle of any asset, be it a building, industrial plant, infrastructure, etc., as shown in the
figure below.

Application of BIM to the entire construction value chain
In BIM, the deliverable are intelligent objects and not just 3D models. These intelligent
objects also contain the required information about the object itself above visualization
aid it provides. The different levels of BIM maturity are explained as:
• Level 0: traditional method that involved the use of papers.
• Level 1: with the introduction of the computer age, the construction drawings were
done on Computer Aided Programs (CAD) like AutoCAD first in 2D then later in 2D.
• Level 2: which is the current level that involves BIM.
• Level 3: which is the future of BIM, that will be more integrated thus referred to as
iBIM.
BIM has also evolved in way of dimensions. The evolution in dimensions to have 4D, 5D
and 6D BIM are related to the added information that can be placed in the models and
intelligent objects. These dimensions are sometimes classified as follows:
• 4D BIM: that includes programming and scheduling information
• 5D BIM: that includes Quantity Schedules and Costing Information
• 6D BIM: that includes Facilities and Asset Management
BIM contributes to important efficiency gains, lower costs, lower possibility of mistakes,
faster delivery with less miscommunication, inaccuracies and delays, growing business
opportunities and lower emissions and waste. BIM is of most relevance for large, complex
and integrated infrastructure projects, involving a wide range of activities and stakeholders;
its benefits are, nonetheless, also relevant for smaller projects. Different studies suggest
that BIM implementation in construction projects can reduce overall costs by around 7%,
with benefits particularly concentrated in the construction phase. Nonetheless, significant
benefits can also be achieved in the other phases, such as a 15% saving in planning, risk
assessment, safety and assurance costs, waste production reduced by up to 15%, and

construction waste management costs by up to 57%. Indeed, 75% of companies adopting
BIM reported positive returns on their investment with shorter project life cycles and
savings on paperwork and material costs.
Furthermore, BIM has already showed that can be very well used in aiding the
achievement of Lean Construction objectives. The main objectives that Lean Construction
has are, for instance, waste elimination, increase in value to client and team collaboration.
All these objectives have been obtained when BIM is applied. In such case studies where
only BIM and not Lean construction where applied, the results showed that some
characteristics of Lean construction were evident in BIM application. The hypothesis is
thereby formed that Lean construction and BIM should be conjoined and always applied as
one. Therefore, BIM may be redefined to be a lean process itself.
The main interactions between Lean and BIM can be summarized as in the table below:
Utilization of BIM to ensure the production phase achieves the lean construction
objectives. The different approaches that have been applied to construction are enhanced
by BIM in the following ways:
Lean Construction Intersection with BIM
Structural clash test
Design alternatives to select most suitable design
Performance simulations to select most energy
efficient solution
Visualization of solution that ensure clear
understanding of the model
Analysis for best result
Understanding between Client and Suppliers by
use of 3D models and walk throughs
Automated generation of changes and material
schedules and quantities
Provide accurate information to prefabrication
Visualization of work flow to check for process
conflicts
Continuous Work Flow
Last Planner System: with 4D BIM, work can be
planned to detail in all the required levels, of
master plan, phase plan and weekly plan.
Collaboration
Ability to work concurrently on same solution by
different teams and in different locations
Elimination of Waste (time, materials, etc.)
Customer Value (achieve requirements)
Reduced Cycle Times

• Just In Time (JIT): by using BIM, the planning process can be made to have more
offsite works done. Virtual building models contain detailed information that can
facilitate new approaches to fabrication, including modularization, prefabrication,
and 3-D printing of individual components. Many benefits result, such as better
sequencing of construction processes, a reduction in weather-related delays, safer
working environments, and improved material yields.
• Concurrent Engineering: working parallel in design is possible with the different
disciplines than merged together. The information is easily available to the actors
that require it.
• Last planner System (LPS): with 4D BIM, the planning process can be planned to
detail in all the required levels, of master plan, phase plan and weekly plan.
Digital Twins: For the E&C industry, a digital twin integrates real-time data from a built
asset with its digital representation to create insights across the project lifecycle. Usually,
data is gathered by on-site sensors that continuously monitor changes in the building and
in the environment and report back the updated state in the form of measurements,
updated data and pictures, which are then processed by a dedicated software and updated
in the Digital Twin. A Digital Twin differs from BIM for the amount and type of information
it includes, as BIM models do not include real-time data collected directly from the
construction site or building in operation, nor a track record of past issues and
interventions. For his reason, it is possible to say that BIM provides the basis for a Digital
Twin, since it reproduces a broad set of characteristics that enable simulations of future
behavior; however, it does not provide direct physical-digital linkages and, as such, does
not serve as a virtual operation tool. Nonetheless, the two technologies can be combined
on daily construction activities.
Digital twins give multi-dimensional views into how an asset is designed and how it’s
performing, including occupant behavior, use patterns, space utilization, and traffic

patterns. A digital twin offers a means to test "what-if" scenarios, including the impact of
design changes, weather disruptions, and security events. It collects substantial data under
one environment. The benefits of using Digital Twins in the construction sector are
multiple, mainly focused in the construction and maintenance phases, and primarily
related to the kind of information fed into the Digital Twin model. During the construction
phase, project managers and construction companies can leverage on Digital Twins to
compare the initially planned time schedule laid out in the 4D BIM model with the actual
situation on the construction site, thus allowing project managers to identify the
deviations and divergences and promptly take actions. By combining this technology with
on-site sensors and / or drones, it is possible to constantly have real-time updates of the
project, which allow for better management, timely identification of mistakes and,
therefore, decreased possibility of delays. Additionally, both during the construction and
the maintenance phases, Digital Twins can provide automatic resource allocation
monitoring and waste tracking, allowing for a predictive and more efficient approach to
resource management.
The global digital twin market was valued at USD 3.8bn in 2019 and is expected to reach
USD 35.8bn by 2025. Gartner predict that half of all large companies will use some form of
one by 2021 – resulting in a 10% improvement in effectiveness.

Depending on the degree of maturity and digital transformation, different types or levels
of Digital Twins can be identified as follows:
• Level 0 - Pre-digital twin: this level can be seen as the pre-step of the digital twin,
where data is collected to capture reality (e.g. point cloud, drones,
photogrammetry, etc.).
• Level 1 - Descriptive twin: the descriptive twin is a visual replica with live, editable
design and construction data, including 3D models and BIM.
• Level 2 - Informative twin: the informative twin uses increased integration with
sensors and operations data for insights at any given time.
• Level 3 - Predictive twin: the predictive twin captures real-time data, contextual
data, and analytics to identify potential issues.
• Level 4 - Comprehensive twin: the comprehensive twin leverages advanced
modeling and simulation for potential future scenarios as well as prescriptive
analytics and recommendations.
• Level 5 – Transformative (or Autonomous) twin: the transformative twin has the
ability to learn and make decisions through artificial intelligence, while using
advanced algorithms for simulation and 3D visualization.
As a twin develops, each element increases in complexity and connectivity, and
subsequently value. It’s important to note that these elements are not necessarily linear or
sequential, so a twin might possess features of higher-order elements before lower-order

ones. However, complexity is best considered logarithmically, whereby the higher-order
elements are significantly more complex than the lower-order, foundational ones (see
Table below).
Virtual and augmented reality: Virtual and Augmented Reality (VR/AR) is a technological
innovation that incorporates virtual elements into real surroundings or directly by
visualizing the whole environment. More specifically, Virtual Reality refers to a completely
simulated digital environment, usually with a degree of user interaction possible, whereas
Augmented Reality consists of layering digital elements in the real-world environment
through computer-generated sensory inputs.
VR/AR in construction makes it possible to combine digital architectural models with the
physical reality of a construction site, or to directly visualize the final outcome of a project
even before construction works have started. Also, in the construction sector, VR/AR can
be used to simulate real world situations and scenarios, and, consequently, it has a wide
range of applications in several phases of a building lifecycle, in particular in the design,
planning, construction, and management phases. They can be used to visualize complex
projects, and to provide a simulated environment in which engineers, project managers
and clients can experience and work on the digitally constructed virtual model, thus having
a realistic visualization of the final result, its characteristics and functionalities.
Furthermore, VR/AR can be used to give workers hands-on experience and training prior to
entering a construction site.
To summarize, VR/AR can be used in everything from project planning to communications
and more specifically for project presentation, progress capture, better collaboration,
enhanced safety and construction training.

Economists estimate the latest VR technologies will lower construction costs by around 90%
and could save the industry up to USD 15.8 billion that is typically lost due to errors born
from the use of inadequate data. As such, the AR/VR market is expected to see a 77%
CAGR from 2019-2023.
Example of AR/VR application for Progress Capturing
Artificial Intelligence: Artificial intelligence (AI) is a disruptive technology consisting of a
machine that through Artificial Neural Networks, i.e. a computing system programmed to
emulate the way the human brain processes information and mimics human functions, like
problem-solving, pattern recognition, and learning. In the construction sector, the
adoption of AI is still very limited and mainly confined to pilot projects, with tests being
made in structural analysis, design, and optimization. In the design phase, AI can support
architects and planners with generative design approaches, meaning that AI integrated
with BIM software is able to explore all the possible variations of a design, given the
constraints and boundary conditions from which designers and engineers can choose from.
Machine learning has recently started to be used to identify potential errors and
incompatibilities linked to variations in the design. In fact, software has been developed to
perform, following modifications to the original parameters, massive automatic checks of
the conformity of all kinds of computable rules and interferences, without direct human
control, thus significantly reducing the time required by public administrations to approve
construction projects.
During the construction phase, construction companies and building material
manufacturers and distributors can use Artificial Neural Networks to, for example, predict
cost overruns based on factors such as the project size, the type of contract and the
competence level of project managers. Historical data such as planned start and end dates
are used by the project manager to feed into predictive models to envision realistic
timelines for future projects. Moreover, the implementation of Artificial Neural Networks
can be used for structural damage assessment or structural health monitoring. When it

comes to construction and demolition waste, AI can be used to predict waste generation
and, if combined with appropriate sensors, automatically sort construction waste. The first
real-life applications of AI in the construction sector demonstrated a potential for up to 40%
increase in labor productivity and project completion saving more than 10% of the budget.
Conceivable or real-life use cases for AI in different stages of the construction project
lifecycle are manifold and a selection of significant implications to the construction value
chain can be listed as per the picture below.
Digital Simulations and Rapid Prototyping: New modeling techniques—simulation
enhanced through holographic technology, for instance, and rapid prototyping with 3D-
printed models—speed up design iterations and improve visualization. The latest research
development relates to the development of graphical presentation of construction plan via
the four-dimensional (4D) geometrical model. The 4D visualization technique provides an
effective means of communicating temporal and spatial information to project participants.
3D graphics combines with time generates the 4D-CAD model.
Visualization of construction plans allows the project team to be more creative in
providing and testing solutions by means of viewing the simulated time-lapse
representation of corresponding construction sequences and prompting users to think
about all missing details. This representation or simulation process using all these
techniques comes under virtual prototyping and this helps in the life cycle and safety
management of a construction project.

Example of 4D Model Simulation (i.e. 4D Planner)
Virtual prototyping (VP) is a computer aided design process concerned with the
construction of digital product model (virtual prototypes) and realistic graphical
simulations that addresses the broad issue of physical layout, operational concept,
functional specifications and dynamic analysis under various operating environment. The
VP technology has been extensively and successfully applied to the automobile and
aerospace fields. An automobile can be fabricated virtually using the VP technology and
allows various team members to view the 3D image of finished products, evaluate the
design, and identify the production problems prior the actual start of mass production.
Through various research efforts, the VP concept is formed as an effective dynamic
construction project planning and scheduling tools.
There are basically three main phases in implementing virtual prototyping. They are
project requirement collection phase, 3D models building phase, and process simulation
phase. Table below depicts the tasks, information, and people involved in these three
phases.

The difficulties of implementing virtual prototyping in construction project come from
three major areas: 1) computer hardware requirement, 2) information collection and
dissemination, and 3) communication of virtual prototyping ideas. Virtual prototyping
applications compute activities sequence and illustrate the activities in a real time 3D
virtual environment. It requires massive computational power to drive the simulation.
Therefore, the contractor has to purchase workstations dedicated for the virtual
prototyping works. Difficulties in information collection come from conflict of interest. The
main contractors may, for instance, usually sublet major works like concreting,
reinforcement fixing, building services installation, system formwork, etc. They usually do
not have a comprehensive database of productivity rates of different trades. In order to
accurately simulate construction process, productivity rates and number of workers for
different trades have to be collected from sub-contractors. However sub-contractors
usually refuse to give this information due to confidentiality and protection of their
interest. The main contractor has to make their own estimate based on experience in the
planning stage and then make measurement of it during actual construction. Difficulties
are also encountered in disseminating simulation information to the workers, as the
communication chain from the main contractor end at the leader of the sub-contractors
but not the workers. It is up to the worker leader on how or whether to disseminate the
information to workers. In order to produce a practical and thorough simulation of

construction works, input from the planning personnel of main contractor and sub-
contractors is necessary. Their ideas have to be collected in the initial simulation planning
stage and also in the simulation review stage. However, it is found that calling up all the
parties to attend meeting for virtual prototyping works is difficult due to the lack of
interest of sub-contractors. It is necessary to persuade sub-contractors on accepting
benefits of virtual prototyping at the very beginning.
Example of digital simulation of lifting activities using 3DMove system (by Mammoet)
Big Data: In the construction industry, as in other sectors, big data refers to the huge
quantities of information that have been stored in the past and that continue to be
acquired today. The construction industry produces vast amounts of data every day. As the
industry expands, huge data repositories continue to fill with information on everything
from blueprints and building models to communications and cost estimates. Unfortunately,
these repositories are often unstructured and difficult to access without the right tools.
That’s why technology created to harness big data in construction is so important.
“Big data” refers to any large or complex set of information that requires advanced
analytics systems to process and manage. This information can come from multiple
structured or unstructured sources, like cameras, sensors, mobile devices and log files.
Traditional information systems are good at recording basic information about project
schedules, CAD designs, costs, invoices, and employee details. However, they are limited in
their ability to work with unstructured data like free text, printed information or analog
sensor readings. Often, they can only handle orderly digital rows and columns of numbers.
The idea of harnessing big data is to gain more insights and make better decisions in
construction management by not only accessing significantly more data but by properly
analyzing it to draw practical building project conclusions. In fact, big data isn’t useful on
its own. It’s what you do with it using big data analytics programs that count. To see how

big data is already being used by the construction industry, the design-build-operate
lifecycle that increasingly defines construction projects today is considered below:
• Design: Big data, including building design and modeling itself, environmental data,
stakeholder input, and social media discussions, can be used to determine not only
what to build, but also where to build it. Historical big data can be analyzed to pick
out patterns and probabilities of construction risks to steer new projects towards
success and away from pitfalls.
• Build: Big data from weather, traffic, and community and business activity can be
analyzed to determine optimal phasing of construction activities. Sensor input from
machines used on sites to show active and idle time can be processed to draw
conclusions about the best mix of buying and leasing such equipment, and how to
use fuel most efficiently to lower costs and ecological impact. Geolocation of
equipment also allows logistics to be improved, spare parts to be made available
when needed, and downtime to be avoided.
• Operate: Big data from sensors built into buildings, bridges and any other
construction makes it possible to monitor each one at many levels of performance.
Energy conservation in malls, office blocks and other buildings can be tracked to
ensure it conforms to design goals. Traffic stress information and levels of flexing in
bridges can be recorded to detect any out of bounds events. This data can also be
fed back into building information modeling (BIM) systems to schedule
maintenance activities as required.
As data gets bigger and bigger, therefore, the need to boil it down to the actionable
essentials gets bigger too. A survey of construction companies by software vendor Sage in
2014 found that:
• 57% want consistent, up-to-date financial and project information.
• 48% want to be warned when specific situations occur.
• 41% want forecasting, allowing them to better prepare for best and worst-case
building events.
• 14% want online analytics to see for instance precisely which factors are affecting
profitability and by how much.
Big data analytics can enable or offer opportunities to improve each of these aspects. The
variety of inputs in big data allows better levels of certainty about status reports and
forecasts. The analytics can provide more helpful indications of risk levels before a
threshold is exceeded and an alert generated. They also offer insights that traditional
systems simply cannot. The value of big data is expected to increase by USD 30 billion in
2021 and 2022, making it one of the most valuable commodities in the world. Every
industry can benefit from big data analytics, and most are working to adopt the latest big
data processing and storage tools to stay ahead of the game.

Some of the most relevant big data technology stats and trends include:
• The big data market is expected to reach $99.31 billion in 2021. (Forbes)
• Big data increases a business’s chance of making better strategic decisions by
69%. (BARC)
• Companies that utilized big data analytics reported an 8% increase in revenue.
(BARC)
• 14% of construction companies want to increase their online analytics usage. (Sage)
• 57% of construction companies want access to consistent financial and project data.
(Sage)
• 97.2% of organizations are investing in big data and AI. (NewVantage)
Some of the benefits of big data analytics in construction include Building Efficiency
increase, Environmental Impact reduction, Collaboration promotion, and Working
Conditions improvement.

Collaborative Platforms (Digital Collaboration): The digitization of work has become an
integral part of today’s world and Digital Collaboration is one of its pillars. When it comes to
Digital Collaboration, it is important to forget about the traditional workspace and the
working methods that come with it. No longer fixed offices and physical meetings, but
smart workstations and meetings for which it becomes essential to adopt appropriate
digital technologies that are functional to the objectives.
With this in mind, the concept of the team is also being radically changed: the smart team
is born, a mobile, global team, driven by a single need: digital communication and
collaboration to achieve shared goals. The goal for all stakeholders is to know in real time
the alignment and adherence to time, cost and quality foreseen in the planning phase in
order to be able to implement necessary adjustments in a timely manner. Moreover, the
team can no longer be conceived only as belonging to the internal organization, but must
include continuous interactions with the chain of suppliers outside the organization and the
client itself. Team productivity is no longer bound by space and time constraints; the only
goal is to achieve the final results, which can only be achieved through the synergistic
collaboration of the individual users in the team.
The construction industry is not exempt from this still relatively new type of work, which is
why it must welcome the digitization of the sector as an opportunity and exploit all its
benefits. Essentially, construction collaboration technologies are deployed to support the
requirements of a multi-disciplinary construction project team. This is typically drawn from
multiple companies, all based in different locations with their own IT systems, and is
brought together – usually temporarily – to plan, design, construct and, in some cases, to
operate and maintain the resulting built asset. It is common for construction collaboration
technology to be cloud based, or hosted as a centralized database. These platforms enable
information to be shared and accessed in real-time by all team members.
Construction collaboration technologies (i.e. Integrated Collaboration Platforms) replace
localized sets of data held by individual team members or companies. A centralized
repository or data store is created that can be accessed by all authorized team members,
usually using a lowest common denominator technology: a computer equipped with an
internet browser and a telecommunications link to the internet. The platforms'
functionality also reflects the industry's extensive use of graphical information - most
notably design drawings - and the need to be able to access, view, mark-up and comment
on designs.
The core characteristics of construction collaboration technologies can be summarized as:
• Organization features (i.e.: security settings, user administration, information
administration)
• Communication features (i.e.: file publication, management, feedback)
• Management features (i.e.: management of specific workflows, teams, work
packages, multiple projects, standards)
• Sharing, viewing and working with CAD-based drawings (including use of viewing
tools)

Some of the main benefits of Digital Collaboration in construction can be summarized as
follows (these are just some of the main benefits that efficient Digital Collaboration can
bring to the construction industry):
• Unified Communication and Collaboration: The whole team always has information
about the project available without exclusion. This eliminates misunderstandings
and miscommunications.
• Data always available: All data is always available to team members, the only
condition being a connection to the Internet.
• Project documents always up to date: Online documents can be constantly updated
and doubts about the document’s up-to-date status can be eliminated.
• Customization of work and reporting: Thanks to special dashboards it is possible to
customize the monitoring of construction projects and to create specific reports
that can be shared with the team for further alignment on project progress.
As collaboration is crucial to deliver value for client, digital collaboration turns out to be a
well-adapted technology to become an integral part of the Lean Construction tools helping
to achieve this paramount goal of value delivery.

Conclusions
As today about 70% of construction projects are over time and budget and the industry still
experiences hundreds of deaths and thousands of injuries per year, it has been demonstrated that
E&C organizations (i.e. Contractors, Owners, Operators, etc.) that will systematically apply Lean
Thinking and combine it with the relevant digital technologies available, going through a “serious”
and integral digital transformation process, will shape the future of the industry (E&C 4.0), gaining
a disruptive competitive advantage and leading the industry for several decades ahead. All the
technologies described in this document suit very well with the Lean Construction principles and in
some way appear to be the natural tools to be adopted in order to maximize the potential benefits
offered. Hopefully the framework presented in this document can provide a sort of guide for all
E&C organizations and professionals aiming to take part to this revolution.

Thank you!

Engineering Construction 4.0 Revolution

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