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Building Blocks
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July 08, 2002 (Computerworld) -- The U.S. construction industry, which accounts for more than 8% of the country's gross domestic product, isn't known for aggressively using technology. Although sectors such as financial services and transportation are riding on the IT fast track, many builders and contractors are sloshing through wet cement.
That's changing, as both contracting and construction management companies embrace Web and wireless technologies to speed projects and cut costs. Driving the change is a growing demand for faster completion of projects with fewer mistakes and, in turn, greater profits.
Some construction companies say Web and wireless tools are providing relatively quick benefits for an industry that has traditionally had narrow profit margins.
Clark Wilson Homes Inc., a home-building company in Austin, Texas, is using both wireless and Web technologies. At a cost of $250 per worker, the company has deployed Palm Inc. devices equipped with scheduling and note-taking applications from Strata Systems LC, also in Austin. Using the devices, managers overseeing the construction of multiple homes can quickly track progress and pass on instructions to contractors, subcontractors, construction crews and suppliers directly from the work sites. Clark Wilson's total investment in the hardware and application software was less than $5,000.
Managers and builders using the devices can outline the details of projects in progress, update timelines and collect notes and sketches and then upload data to a Web portal or a desktop computer, from which documents can be faxed. Salespeople can use wireless devices to generate or complete contracts with buyers while in the field.
"We're seeing much greater efficiency, improved scheduling and fewer mistakes in projects" since using the wireless applications, says Hutch White, IT development specialist at Clark Wilson, which builds, decorates, furnishes and landscapes model homes for each project and maintains on-site sales offices. "The more you can reduce cycle time, the more you can profit. If you build four houses [in a given period] instead of two, you can double your profits."
Clark Wilson may expand the deployment of Palm devices in the fourth quarter to its warranty service operators, who would use the devices when inspecting homes to record items that need to be fixed and to e-mail the information immediately to the main office.
Barton Malow Co., a $1.2 billion provider of construction management, design and general contracting services in Southfield, Mich., is using wireless iPaq devices to let project managers take notes and revise schedules from job sites.
Phil Go, CIO at Barton Malow, says the company wants to use wireless technology to provide Web access from the construction sites and is testing some wireless products for that purpose. "Wireless is still in the early development stages and we are a little concerned about security, but we are committed to using it," he says. "This is because the technology gives workers in the field access to data more quickly and allows them to exchange information with others involved in a building project directly from the site."
For the past 18 months, Barton Malow has been using Web collaboration software hosted by San Francisco-based application service provider Citadon Inc. to connect with contractors, subcontractors, architects and building owners, as well as for project management. Barton Malow operates a portal that is accessible by password to anyone involved in a particular building project. Users can get updates on progress, suggest changes and help solve problems as soon as they arise.
"The biggest advantage to using the Web for project management is that the time it takes to resolve issues is cut significantly," Go says. "Something that used to take weeks now takes two or three days. We get projects completed on schedule and sometimes ahead of schedule."
Interior Architects Inc., an architectural design and facilities management firm in New York, has also reaped benefits from Web initiatives. It used Web collaboration software from Burlington, Mass.-based Framework Technologies Inc. to create its portal, a platform from which it shares documents and building designs with clients worldwide.
The portal has made it much easier for Interior Architects to work with clients in developing and revising designs or resolving facilities management problems, slashing time and cutting costs from the process, says Peter Frantz, chief technology officer.
"We've cut 25% of the cycle time out of everything we do," Frantz says. "People can make better decisions because they have the [latest] information at their fingertips." He says the portal is available to clients, contractors and suppliers during a project.
Frantz says Interior Architects saved $7.5 million during a two-year period in which it worked on a series of real estate projects, valued at $47 million, for a major health care provider. He attributes the savings to time saved in the design process, improved communication with partners and automation provided by Web applications.
Not every company in the construction industry can expect those kinds of savings, but many of them will look to reap gains by deploying Web, wireless and other technologies. Violino is a freelance writer in Massapequa Park, N.Y.
STATISTICS
U.S. CONSTRUCTION INDUSTRY
7.9M
employees
667,000
companies
$856B
in business done in 1997
$4B
in U.S. exports in 1998
(All statistics represent the most recent data available.)
Source: Construction Specifications Institute, Alexandria, Va.
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