Can Construction 4.0 Improve the Industry?

This article is part of a blog series on Construction 4.0 technologies, exploring how they are changing the way we do business in the construction industry. The technological revolution in the construction industry is now called Construction 4.0. It is all about connectivity to improve the way we do business in the Architects, Engineers, Construction, and Operations (AECO) industry.

What is Construction 4.0?

Construction 4.0 shifts the construction industry towards greater digitization.

There is still no international consensus on what the concept of construction 4.0 is, but here are some of the definitions we found the most relevant:

The use of connectivity technologies everywhere to help real-time decision-making.
Finding consistent and interdependent processes using modern technologies in the construction industry.
Meeting the industry’s current challenges to mitigate risks and reduce costs
Bringing connectivity between the physical space and the digital world through Building Information Modelling (BIM).

The technologies will gradually change the way we work, reducing waste by mixing the physical environment with its digital representation, to anticipate at the design stage, errors we normally discover during the construction stage which implicate costly reworks.

Construction 4.0 is an evolving innovative concept within the encompassing industry:

Prefabrication

To save time and money, more projects prefabricate sections of a building in warehouses before delivering them to a construction site.

For instance, using 3D printing allows you to design bespoke parts digitally and print them on a specific part of your construction.

Computing

BIM, laser scanning, cloud computing, artificial intelligence (AI), and immersive technologies can change the way you plan and design new structures in your projects.

3D simulations in virtual reality (VR) allow you to visualize, feel the space, and evaluate a build's quality before construction work begins.

The information produced before the construction starts allows for speeding up processes and improving the performance of the structures by capturing, analyzing, and storing data.

Internet of Things (IoT)

Construction is using sensors, robots, and drones to automate repetitive and hazardous tasks for higher safety on construction sites, and faster, more reliable processes than the ones in traditional methods.

The adoption of the Internet of Things (IoT), allowing data exchange via software, sensors, and other technologies, accelerates the completion of projects.

Associated Technologies

Construction 4.0's main technologies include BIM, digital twin, and immersive technology called Virtual Design and Construction (VDC).

VDC is a process in the cloud that creates a virtual representation of a construction project by planning, analyzing, and collaborating before actual construction begins. It identifies potential issues at the design stage and optimizes the construction process.

The Construction 4.0 revolution helps to streamline and automate the entire project life cycle.

BIM models are used as digital twins to determine the constructability and profitability options (BIM 4D and 5D), to ensure the construction is sustainable using analysis software.

Other technologies such as artificial intelligence, the Internet of Things, wearables, robotics, and drones help automate construction site processes and improve safety.

At the design and construction phases, the interconnectivity of these technologies helps manage a virtual counterpart of the physical world.

Making decentralized decisions by using the cloud and the technologies mentioned above facilitates the collaboration in real time.

When the construction is in use, BIM and IoT can improve maintenance, planning and shorten repair processes. They also help monitor the performance of the construction and implement an effective system for preventive maintenance management.

Construction 4.0 ramifications

It implies that a paradigm shift takes place in your organization. You must integrate information, processes, knowledge, and people to deliver projects on time and within budget.

Introducing innovative technologies, policies, and training will foster collaboration and speed up the delivery of your projects.

Considering multidisciplinary prefabrication and Design for Manufacture and Assembly (DFMA) techniques involving manufacturers at the beginning of the supply chain (no longer at the end) to meet increasingly complex design demands may open interconnection to enable decentralized decision-making in the context of greater integration.

Importance of data

Data production and management are a crucial part of construction 4.0 success and require new business models.

You cannot only rely on data and information traditionally generated during the design and execution of construction projects. You have to include the data needed at the operation stage.

The speed and amount of data coming from sensors and other systems require that you use new platforms to analyze, interpret, and connect them to the existing business software.

The above will allow you to provide new services and innovative products that connect your construction site with smart factories, and smart designs, to build smart constructions and cities.

For example, WtEnergy, a clean energy startup based in Barcelona (Spain), has developed a clean technology to minimize waste in landfills and the environmental footprint associated with energy consumption in the construction industry.

Embracing digitization

It will depend on the maturity of your organization to decide which tools you need to implement to complete your transformation.

Innovation comes so rapidly that you need to monitor their evolution closely to ensure that you are using the right tools and methodologies, and that you are ready to use them.

Before making decisions to move forward you should ask yourself the following questions:

  • Will the technology we want to introduce help us to reduce wastage and duplication?
  • Will the processes we automate help us to control quality, time, and budget on our projects?
  • Will the new management system help us to improve our bottom line as well as our reputation?
  • Will we gain competitiveness in such a narrow margins market?
  • What security do we need to protect ourselves from cyber-attacks?

What are the benefits of Construction 4.0?

Save time and money

If you use BIM and introduce modern technologies in your processes, your projects will be planned and scoped appropriately to avoid inefficiencies and delays.

BIM also improves decision-making and cuts down on waste. It is a great tool to save time and money by reducing error, improving margins, and increasing the speed of output.

Improve standards and productivity

Process automation using digital technologies brings consistent, efficient and higher quality results.

Improve sustainability

Constructing smart assets requires the use of technology. Smart assets allow better and more efficient use of resources. You may create comfortable, safe, and sustainable spaces with IoT sensors, building management systems, and artificial intelligence.

Analyzing the weather conditions by collecting real-time data helps reduce energy consumption by optimizing lighting and air conditioning systems.

You may avoid wasting water by installing sensors to manage the piping system.

Linking decentralized devices and energy sources, such as solar panels and microgrids, facilitate the reduction of power sources. decentralized energy systems and their impact on power sources.

Reduced reliance on centralized grids

Generating power locally with solar panels and microgrids reduces the electricity transmission over long distances from a single power plant minimizing losses and improving overall efficiency.

Increased grid resilience

Decentralized systems operate independently. During power outages, they provide a backup power source for critical infrastructure lowering the risk of disruptions to electricity supply.

Integration of renewable energy

Incorporating renewable sources like solar power, in decentralized systems contributes to a cleaner energy mix minimizing reliance on fossil fuels.

Demand management

Microgrids optimize energy consumption by adjusting the demand to improve grid stability.

Community empowerment

Local communities by generating their power can lower energy costs and increase energy security.

For example, you can print entire homes with all types of materials. Maine University’s Advanced Structures and Composites Center (ASCC) recently shared details on a 3D printed home they produced. The construction is entirely recyclable and consists of bio-based materials, all-natural wood fibers, and bio-friendly resins.

Improve site safety

Automation reduces the number of accidents for workers.

For example, augmented and virtual reality can reduce the dangers of hazardous site inspections with data provided by drones and surveys done virtually before construction even starts.

With immersive technologies, you can also enhance your training programs, increase collaboration, and improve communication to prevent casualties.

Reduce risks

Building a BIM model and reviewing the design progress using VR, before construction starts, significantly benefits the construction industry. The model identifies and resolves design errors, at an early stage, improving collaboration between stakeholders, minimizing costly rework, and providing a more accurate visualization of the final project, leading to better decision-making throughout the design process.

Involving facility managers during the design stage will improve the efficiency of your construction and predict future maintenance programs reducing unforeseen malfunction during the use of the building.

What are the challenges facing Construction 4.0?

Some barriers should be removed before construction 4.0 is embraced more widely.

Main construction technology challenges

A survey in the UK found that system integration issues, out-of-date devices, platforms that are not aligning processes across a company, and outdated software, explain most of the everyday challenges of the construction industry.

This is prejudicial and causes a potential loss of income. The challenges the survey highlighted, are discussed below.

27% of respondents found it difficult to understand the new capabilities of new systems which require strong training programs to mitigate the risk.

Out-of-date software or manual updates created issues for 26% and 20% of respondents respectively as they are not integrated with other software in their company or externalized tasks on their projects.

Workload management issues on construction projects such as unclear task assignments were an issue for 22% of respondents.

A further 20% recognized a technology skills gap, and 19% were concerned about the limited functionality of tools.

Employment Opportunity

Construction 4.0 will help reduce the repetitive and hazardous tasks found in the construction industry, replacing many traditional, skilled jobs.

Trade staff need to be re-trained to concentrate their effort on more rewarding and less dangerous jobs.

The performances of the architects and engineers will be enhanced so they can focus on more advantageous offsite technologies rather than onsite construction.

Investment

Construction 4.0 requires money upfront to invest in new digital technologies. This could be a barrier to construction companies, especially for the small ones as it could impair their opportunities to compete with the larger ones.

New companies offering “technologies as a service,” to smaller companies unable to afford the initial investment, will appear on the market, to offset this hurdle. For example, you can access through a subscription or service model rather than purchasing the software outright the following applications:

  • BIM software subscriptions
  • cloud-based project management platforms
  • drone-based site surveying services
  • AI-powered construction analytics tools
  • virtual reality design platforms
  • modular construction component,

Coaching and Training

Every recent technology implementation requires that your staff learn new skills. You will have to train your workforce before introducing digital modernization in your company.

When the technology is in place you will have to coach them to use the new software and machines.

You may also have to recruit new people or provide your existing workforce with an education in BIM management and modeling.

Universities and training providers must design innovative programs to respond to these new requirements.

Resistance to change

Change resistance in the construction industry is a big barrier to implementing a construction 4.0 strategy, so you must distinctly spell out the benefits of the new processes you want to implement.

You also should describe what is in it for your employees if you want them to adapt to the new improvements as a team.

In conclusion

2025 appears to be a momentous year for construction. Be ready to embrace the change and get more opportunities.

To deal with the worldwide main requirements, which include improving infrastructure, reducing the housing shortage, and creating sustainable buildings and smart cities, you need to re-invent your portfolio offer to respond to the new requirements in construction 4.0.

The improvements expected from implementing Construction 4.0 are increased synergies, new competitive advantage and knowledge, higher profitability, and shorter life cycles.

Investment requirements can be high in your diversification and will involve risks such as the burden of debt so be careful in your venture.

Construction is an industry in constant evolution. So, you must continue to invest in technology, if you want to survive and explore new ways to grow through strategic diversification.

Our technology diagnostic looks at the best way to incorporate modern technology into your workflows and how to move your organization to cloud computing so you can open new possibilities for your daily planning tasks and make sure your data never leaves the optimally secured data center.

The technology appraisal report will help you explore what investment is required to improve your projects’ productivity and collaboration as well as the ROI you can expect.

Implementing BIM can be daunting, but Driving Vision is here to help you at the pace you are comfortable with. Get started by getting in touch now

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