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- [DPC] Beyond the Technology Dilemma: Construction's Hidden Truth
[DPC] Beyond the Technology Dilemma: Construction's Hidden Truth
The Data-Powered Construction Sprint is a 6-week journey to help you overcome construction technology frustrations and unlock your company’s potential.
We started by looking at the Construction Technology Dilemma and then explored the hidden costs of the ConTech Quagmire. Click here, if you missed previous lessons.
As we move forward into understanding the Power of Clarity, check out this thought leadership article from Chris Ovens, Aedo’s CEO, where he reveals the hidden truth of construction: it’s driven by information.
Information Powers Construction
Is there anything more raw and real than construction? Towering cranes, concrete, steel, and heavy equipment shape our cities and skylines. It's as physical as any industry out there.
Others see it as a people-industry, where skilled tradespeople and project teams bring visions to life. Approximately 1 out of every 15 people work in construction or a related field.
I'd suggest that beneath the surface of these perceptions is a hidden truth: at its core, construction is an information business.
Let me explain.
Information fuels every aspect of construction - the plans, specs, contract, budgets, communication, disputes, and flow of money that define every project. Information is the unseen force that drives each phase, from concept to completion.
Someone started with an idea - maybe nothing more than an notion - and information ebbed and flowed until there was a new eighty-story tower rising out of the ground.
Magical. But messy...
The Messy Chain of Information
You might make the argument that every industry is information-driven. I buy that argument.
You might also argue that no other industry has the myriad of diverse, complex, interconnected stakeholders as construction. Owners, architects, engineers, general contractors, subcontractors, unions, suppliers... this is just the tip of the iceberg of the primary project stakeholders.
Every action, activity and nuance of a project sets off a ripple of information across countless stakeholders. Each party adds their layer of complexity, and with that, information gets really messy, really quickly.
Add to this misaligned incentives, evolving project scopes, logistical challenges, and complex contracts; creating chains (and trains) of data that often feels impossible to keep in check.
Wait! There's more...
Cash! The flow of money that fuels everything, between entities based on schedules and milestones. Contracts are amended, deadlines are extended, and budgets are stretched.
And on the next project we swap out stakeholders and do it all again.
Somehow, despite the chaos, buildings rise, roads are paved, and cities expand.
All of this depends on one thing: information moving between people, systems, and organizations. It’s messy, clearly imperfect, but remarkably (somehow) it works.
The Fragile Flow of Information
But here’s the truth: this system is incredibly fragile.
Imagine a major project where a simple miscommunication—like using outdated plans—leads to millions in rework and months of delays. These breakdowns happen all too often, revealing just how delicate the information flow truly is.
Poorly informed decisions. Outdated information. An imbalance of knowledge in a zero-sum game. Risks and costs hidden until it's too late.
Rework, delays, inefficiencies and costs overruns - bad data can derail an entire project; and take good construction companies out of business.
The fact that projects are completed despite the fragility of information speaks volumes about the resilience and "can do" attitude of the industry.
This fragile flow of information remains the industry’s Achilles' heel. The issue is that most see the industry's challenge as a "technology adoption" problem.
It isn't an "adoption problem", it's unexpected consequences.
The Paradox of Technology in Construction
The construction industry has tried to solve this problem with technology. Software, automation, and digital tools should (and can) make things easier—streamlining business processes, providing access to information, and improving communication.
But here’s the paradox.
Technology enters the picture. And things seem to get worse.
The initial promise of technology often clashes with the real challenges companies face during implementation. Instead of instant improvements, many firms experience difficulties: software incompatibilities, a lack of user adoption, and unforeseen disruptions to existing workflows.
Information that once flowed organically between people now faces digital bottlenecks. Data gets trapped in systems that don’t communicate with each other. The human element—the ability to make judgment calls and adapt on the fly—gets lost in software.
This paradox—where technology both helps and hinders—creates a unique challenge. Instead of streamlining the information chain, technology often fractures it.
Manual data entry to keep systems running, insights are buried, and confusion increases. It’s no wonder that so many companies feel stuck, spending more time managing the technology than using it to make better decisions.
But here’s the kicker: some companies are finding ways to make technology work for them.
Unlocking the Potential of ConTech
These companies have uncovered the real purpose of technology: to empower and streamline the flow of information, not disrupt it.
The unlock is the realization that it isn't about having the most advanced tools—it’s about how seamlessly technology improves information flow and serves the people who need it.
It’s not the tools themselves that matter most; it’s how they’re configured, integrated, and leveraged to enhance collaboration and decision-making. The focus is on using technology as an enabler—not a barrier—to effective communication.
This is how technology can truly work for construction.
A Cautionary Note: The Divide Between the “Haves” and “Have-Nots”
But as with any evolution, this success has created a divide in the industry.
On one side, you have the "haves"—companies that are making technology work for them. On the other, you have the "have-nots"—companies still struggling with fragmented systems and broken communication channels.
This divide is creating a new dilemma: how do you work with firms that aren’t evolving? The consequences of this gap are significant—collaboration becomes strained, project timelines suffer, and the risk of costly errors increases.
When some stakeholders are left behind, it affects the entire project's ability to succeed, creating friction that ultimately impacts everyone involved. In a project where collaboration is key, what happens when some stakeholders are still bogged down by outdated practices?
Construction Information as a "Specialty Trade"
To move forward, construction companies need to think strategically about their information flows. Companies must invest in better information flow to enhance cost efficiency, improve collaboration, gain operational insights, and boost business performance.
We call this 'specialty trade' a data team—much like a mechanical or electrical contractor, a data team brings specialized expertise that is critical to project success. Just as you rely on skilled trades to handle complex systems, a data team ensures that your information flows seamlessly, driving efficiency and better outcomes.
We believe that the future of construction doesn’t rest solely on technology. It rests on how effectively companies manage the invisible yet essential force that drives every project: information.
Your data strategy (or lack thereof) will dictate and propel your construction company's future.
Is it time to get started on your company's data strategy?
Which of the following challenges resonates most with your experience using construction technology?Choose the most relevant |