Five Major Trends That Change Construction

By Anastasios Koutsogiannis
The building sector has been expanding at a steady rate since 2011. It’s indicative that global
construction is anticipated to be worth up to $10.3 trillion by 2020. And that’s not all. In 2018, a
global GDP growth of 3.6 percent is forecast for the industry.

It is evident that the future of construction looks very promising despite the productivity and the
workforce challenges that the sector is battling against. This positive shift for the sector is the
result of many different factors.

One of the most crucial parameters has, of course, to do with the advent of new technologies.
Digital tools have already started transforming the way we build. The daily work on construction
sites looks quite different than 10 years ago and it is anticipated to change even more in the near
future.

With that in mind, what should be expected from 2018? Well, a new era emerges for
construction, while technology will most probably gain even more ground. Here are some of the
top upcoming construction trends.

1. Big data
Data is already playing a critical role in construction. Nevertheless, it is still regarded as an
unexplored territory with great potential for the building sector. Being more of a traditional
industry, construction had (and still has) many problems in both capturing and keeping proper
track of the collected data. That’s something that has to change in order for the sector to boost
productivity and become better in learning from its own mistakes. In other words, a better
exploitation of the gathered data will eventually lead to a more insightful construction industry.

Regarding the ways in which big data is anticipated to help the building sector, they could be
summed up in the following:

• Designing a project. During the initial phase of the project, big data could provide valuable help
in regards to examining the impact of the building on its surroundings. Historical data could point
out any potential project or environmental risks and pave the way for a smooth construction
process. The construction of the Brown School of Engineering in the US is a very good example
of that.
• Optimizing the building process. Big data can optimize the construction process in a number of
ways. The use of weather, business, traffic, geolocation and many other types of data can be a
great ally in the effort to identify the optimal period for the completion of a project task.
 • Monitoring the building operation. Big data can also help with monitoring the ‘journey’ of the
project after its completion. Sensors included in the structures of a building can provide valuable
feedback regarding its condition and even be used as a basis for scheduling maintenance tasks
when that’s necessary.

2. Building Information Modeling (BIM)

Building Information Modelling (BIM) is already taking over the sector with the ambition to
open up the construction industry. Just recently, the UK government introduced the BIM Level 2
mandate in an effort to empower collaboration between the numerous construction agents. It’s
true that its implementation hasn’t proceeded perfectly yet, but the message has been sent. BIM
has remarkable potential for the building industry, as it can contribute to construction in a
plethora of ways.

From the real-time transfer of information to cost and facilities management, BIM is expected to
revolutionize the project process and simplify the communication between the different parties.
5D BIM is an excellent example, as it introduces briefer project cycles and contributes to
financial and time savings. Based on the NBS National BIM Report 2017, 78 percent of the
participants in the research perceived BIM as the future when it comes to project information. On
top of that, 70 percent believe that BIM will eventually contribute to serious cost reductions in
the upcoming years, while 60 percent are of the opinion that BIM will accelerate successful
project completion.

3. Construction software
At the moment, construction is by far one of the least digitized industries. More analytically, the
total IT spend in construction is below 1 percent. Nonetheless, construction agents have started
realizing the critical role that project management software can play during the building process.

Construction software is seen as a valuable tool instead of a luxury, due to its multiple
contributions to the progress of the project. Real-time communication, straightforward access to
project data and increased accountability are only a few of the benefits that building software can
have for a construction project.

According to the 8th Global Project Management Survey, in 2016 poor project management
planning resulted in just 53 percent of construction projects completed on budget and only 49
percent completed on time. These numbers emphatically show that the construction sector is
bleeding time and money and that a shift to a more digital-friendly future is the only way
forward for the industry. Mark Farmer’s ‘Modernize or Die’ report, which was published a few
months ago, supports this view and underlines the importance of digital tools, such as
construction software, for a more accountable and transparent building process.
4. Robotics in construction
Robotics are gaining more ground in construction day by day. The need for faster completion of
repetitive tasks in combination with the arrival of cutting-edge technology has transformed the
daily routine on a construction site. Masonry construction robots and smart helmets are already
considered active components of the building process. It’s evident, then, that robotics can have
multiple benefits for the progress of a project. In the long run, it’s a faster, cheaper and safer way
to work on site.

Virtual reality (VR) and augmented reality (AR) are also expected to become indispensable for
the building industry in the near future. One of the strongest benefits that both VR and AR can
provide is virtual walkthroughs, which can be used for selling a property or for detecting costly
building clashes or safety bottlenecks during the design and modeling phase. Safety training is
another indispensable way to use VR. AR can provide a great overview of the project’s outcome
based on the available data and can add a new dimension to the way construction agents are
using BIM technology.

5. New labor workforce needs

It’s no news that the construction industry is under extreme pressure when it comes to the skilled
labor shortage. However, the advent of new technologies is expected to change things and
redefine the needs of the sector. More specifically, the replacement of many manual workers by
robots will most probably create a demand for a new type of workforce in construction.
Knowledge workers are the future of the industry and they will need to be technologically savvy
and able to adjust and thrive in a highly digitized environment.

It goes without saying that this new emerging reality provides a unique opportunity for
construction to redefine its profile in the market. Simply put, the global building sector can
become an appealing option for a young and highly competent workforce, as it will be able to
provide a promising long-term career inextricably connected with technology and robotic
solutions. Such change can be a great boost for the industry in its endeavor to embrace
automation and come one step closer to a more efficient and transparent future.

All in all, it is clear that the construction industry is changing. It is becoming more versatile,
more technology-oriented and more digitized. This transformation will offer many solutions in
terms of improving efficiency and productivity on the jobsite.
Written by Anastasios Koutsogiannis - Content Marketing Manager, GenieBelt
Our construction team

Mike Karlins
Construction Practice Leader
Mike is an audit partner based in The Woodlands office and has
more than 30 years’ experience in audit services, agreed-upon
procedures, financial services, operational improvement and
mergers and acquisitions. He also has extensive experience in a
variety of financial reporting engagements for private companies in a
wide range of industries including construction, manufacturing, oil
field services and distribution. Mike serves as the Campaign
Treasurer for Brady for Congress and Brady Victory Fund . He is the
secretary/ treasurer for Construction Industry CPAs/ Consultants
Association (CICPAC) and a member of the tax and legislative
committee for Construction Financial Management Association
(CFMA). Mike has served has Chairman of the Board for both The
Woodlands Area Economic Development Partnership and The
Woodlands Area Chamber of Commerce. Mike is also a Certified
Public Accountant and earned a Bachelor of Science in Accounting
from the University of Illinois at Urbana-Champaign.

Lori Morales
Tax Partner
Lori is a tax partner in our Houston office and has nearly 20 years of
experience in public accounting. She works with companies in a variety of
industries including energy, manufacturing, real estate, construction, and
professional services. Lori’s primary focus is on helping family-owned,
middle-market companies navigate the intricacies of federal and state tax
compliance and assisting them with all manner of business tax consulting
from tax planning to ownership succession as well as business expansion,
mergers and acquisitions, and more. Prior to joining Calvetti Ferguson, Lori
worked with a renewable energy start-up company, assisting them with all
aspects of accounting, finance, and business development. She is a
Certified Public Accountant, member of CFMA, and earned her Bachelor of
Science in Accounting from the University of Missouri – St. Louis.

Ken Sibley
Tax Partner
Ken is the Partner in charge of the Dallas office of Calvetti Ferguson and
has more than 30 years in the public accounting industry. He is experienced
in audit, tax and consulting with clients in planning, internal control, fraud
prevention and litigation matters. Prior to joining Calvetti Ferguson, he was
the founding member of Sibley & Company, P.C., which merged into a
national firm in 2011. Ken is a Certified Public Accountant and earned a
Bachelor of Business Administration in Accounting from the University of
North Texas. He is also a member of CFMA, Certified Fraud Examiner, as
well as certified in Financial Forensics.

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Our construction team

Sarita Akin
Tax Senior Manager
Sarita is a tax senior manager and has more than 25 years of
experience in public accounting and industry. She has advised
clients in the oil and gas industry, family-owned businesses and the
individuals who own them, multi-state corporations and benefit
plans. Sarita’s expertise is in the preparation of individual,
partnership, fiduciary, estate and corporate tax returns. She is a
Certified Public Accountant and earned a Bachelor of Business
Administration in Accounting from the University of Texas at Austin.
Sarita is the sub-committee chairperson of the Finance Committee
for the San Antonio Livestock Exposition and Go Rodeo Roundup
and a member of CFMA.

Scott Contreras
Audit Manager
Scott is an audit manager and has nearly 10 years of experience in
public accounting. His clients operate in the oil and gas, construction
and retail, and manufacturing and distribution industries. He also has
extensive experience auditing employee benefit plans. Scott is a
Certified Public Accountant, member of CFMA, and earned a
Bachelor of Science in Mathematics and Accounting from Sam
Houston State University.

Kyle Kmiec
Tax Manager
Kyle is a manager in the tax practice and has over eight years of
experience in public accounting. His focus is on partnership,
corporate, real estate, and personal income taxation. Kyle is a
Certified Public Accountant, member of CFMA, and earned a Master
of Business Administration in Accounting from Midwestern State
University.