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TECHNOLOGYfocus<br />

Challenges for construction<br />

Should current global crises be considered as challenges or opportunities? Are construction<br />

companies merely holding their heads above water, or should they be seeking to regain control?<br />

The digital tsunami is a phrase that's<br />

increasingly being used to describe<br />

the torrent of data being generated<br />

by and thrown at companies, with the<br />

expectation that they will somehow make<br />

sense of it all. And the digital tsunami is<br />

just one of many challenges that the<br />

construction industry is currently faced<br />

with. Others include skill shortages and<br />

health and safety, evolving construction<br />

methods and the looming net-zero carbon<br />

debate, and critical issues rising from the<br />

current pandemic and Brexit such as<br />

material shortages and rising prices.<br />

Riding the digital tsunami is an apt<br />

metaphor for dealing with the wealth of<br />

information we have available, and which<br />

we should not be afraid of using. Properly<br />

managed, all of the issues we are coming<br />

across can be addressed and problems<br />

mitigated. That is the role of Access<br />

Construction, whose ERP and estimating<br />

software gives project managers the<br />

information they need to make those<br />

critical decisions, but more importantly,<br />

presents it in a meaningful way that shows<br />

the impact they will have on a project's<br />

profitable outcome.<br />

MATERIAL SHORTAGES<br />

Let's look at the shortage of building<br />

materials, which happens to be one of the<br />

most widely discussed issues at the<br />

moment. The COVID pandemic is being<br />

blamed for some of this, but there are<br />

developing problems with all different<br />

types of materials. There is an increased<br />

global demand for steel, for example, and<br />

British Steel for various reasons is not<br />

accepting new orders. Increased growth<br />

in infrastructure projects is hoovering up<br />

current supplies.<br />

Timber is increasingly being used for<br />

environmentally friendly construction<br />

projects, which is going to hamper the<br />

hoped-for increase in housing projects.<br />

The shortages in usable plastics, such as<br />

polyethylene and polypropylene, is<br />

suffering from an increased global<br />

demand incurring raw material shortages -<br />

resulting in price increases.<br />

To put it bluntly, construction companies<br />

can no longer rely on the goodwill of<br />

suppliers, fixed prices and scheduled<br />

delivery dates. Tenders should not ask for<br />

fixed price bids, but should be based on<br />

inevitable price fluctuations and the<br />

changing market circumstances that<br />

trigger them. Keep your head to the<br />

ground and you will know when or what<br />

shortages will occur or are occurring, and<br />

you can feed that into your project<br />

budget's 'what if' scenarios to gauge the<br />

impact on your cash flow or profitability.<br />

There's a more serious issue here though<br />

- force majeure. The contract you have<br />

with your supplier should be tagged as a<br />

contract relevant event, insulated against<br />

contractual penalties and insured against<br />

associated losses and expense. Speak to<br />

Access Construction before you send out<br />

your next round of tenders and ensure that<br />

bids accepted and contracts raised cover<br />

all legal and financial obligations.<br />

Remember also that your supplier is a<br />

partner, and is likely to be suffering the<br />

effects of adverse market conditions as<br />

much as you are.<br />

MODULAR CONSTRUCTION<br />

The demand for modular construction is<br />

an opportunity rather than a challenge. It<br />

has ramifications for the supply chain,<br />

project planning and scheduling,<br />

sustainability and skill shortages. The<br />

shortage in raw materials will probably be<br />

felt by building component manufacturers<br />

as hard as building contractors, but<br />

volume manufacturers will be able to<br />

stockpile materials in larger quantities and,<br />

consequently, pre-order materials which<br />

can be processed and delivered to<br />

contractors on a just-in-time basis.<br />

This means that builders can more or<br />

less guarantee pre-manufactured<br />

components when they are needed and<br />

20<br />

<strong>Jul</strong>y/<strong>Aug</strong>ust <strong>2021</strong>

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