Rising cost pressure makes construction companies invest in technologies that provide insight for creating and managing building projects faster and more economically
BANGALORE, INDIA: Building Information Model (BIM) technology presents a great opportunity for the construction industry, as managing construction projects with BIM can result in substantial savings for businesses.
The model envisages virtual construction of a facility prior to its actual physical construction and helps to analyze potential impacts and ambiguities well in advance.
Praveen Rao, CEO, ElecoSoft India explains the reasons behind the comparatively low adoptions of BIM technology in the construction projects in India and its impact on the overall project delivery process.
CIOL: IT adoption in the construction industry is remarkably low. What holds them back from investing in IT?
Praveen Rao: The key reasons that holds people back from adopting technology is the cost factor. Construction companies see it as a cost rather than an investment that would help them solve some of the issues that they encounter in completing projects.
The industry tends to solve the issue by assigning more manpower to solve the problem which doesn't always work. Also, project managers, sometimes are apprehensive over adopting non-traditional methods of delivering projects.
However, the situation is changing with the rise of new-generation stakeholders who understand the latest technology and believe that IT adoption is a priority with any construction company or project. In India. There has been rapid growth of the real estate, be it in metros or tier two cities which is pushing companies in the sector adopt IT-enabled services for greater process efficiency and to solve issues that prevent projects from being delivered on time.
CIOL: More than half the construction projects face cost overruns and time extensions. How effective is IT in dealing with these problems?
PR: With the intense competition and shrinking bottom lines, real estate orgnaizations need to generate real-time management reports and observe business closely. It becomes utmost important for companies to invest in the right project management solution. Especially for companies handling multiple city projects, project estimation solution that help manage high material wastage and increasing land prices are growing popular.
Vendors must offer better project management solutions that guarantee higher operational efficiency for companies. Innovative and flexible pricing models are also vital to cater to a large audience, especially as solution providers look to tap the SME and unorganized segments.