{"id":25686,"date":"2024-05-04T02:07:18","date_gmt":"2024-05-04T09:07:18","guid":{"rendered":"https:\/\/essential.construction\/news\/cutting-through-paralysis-by-analysis-strategies-for-managing-the-rising-tide-of-construction-data\/"},"modified":"2024-05-04T02:07:21","modified_gmt":"2024-05-04T09:07:21","slug":"cutting-through-paralysis-by-analysis-strategies-for-managing-the-rising-tide-of-construction-data","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/cutting-through-paralysis-by-analysis-strategies-for-managing-the-rising-tide-of-construction-data\/","title":{"rendered":"Cutting Through \u2018Paralysis by Analysis\u2019: Strategies for Managing the Rising Tide of Construction Data"},"content":{"rendered":"

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Construction firms juggle dozens or
\neven hundreds of projects simultaneously. For c-suite decision-makers, that can
\ntranslate into a near-permanent state of triage\u2014scrambling to put out
\nproject-specific fires related to schedules, costs, quality and safety.<\/p>\n

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It\u2019s a dynamic that must end if
\ncontractors, especially self-performers, are to take full advantage of the tech
\nand data revolutions in construction.<\/p>\n

When you\u2019re in \u201ctriage mode,\u201d after
\nall, you have little time to think about how integrating the likes of
\nartificial intelligence, robotics, large-scale 3D printing or modular
\nconstruction could benefit your organization. In fact, when multiple projects
\nare plagued by major challenges, even maximizing your existing data analytics
\ntools can seem like a job for another day.<\/p>\n

Fortunately, you can escape from triage
\nmode by setting warning-alert thresholds on your Key Performance Indicators.
\nThe goal of this approach, which is part of exception-based reporting <\/strong>in construction data analytics, is to
\ncall attention to problems before<\/em> it\u2019s too late.<\/p>\n

How Construction Projects Spiral Out of Control<\/h2>\n

If triage mode is the norm at many construction firms, one factor is largely to blame: the tight relationship between schedules, costs, quality and safety. Deterioration in any one of these four areas has a strong tendency to affect the rest.\u00a0\u00a0<\/p>\n

Let\u2019s say your
\ncompany is hired to build a new public high school. Having assured the county
\nthat the building will be ready for occupancy by the start of classes on Sept.
\n1, you realize too late in the game that the project is worryingly behind schedule.
\nWhile the students may be thrilled by an unplanned extension of their summer
\nbreak, your firm cannot afford the PR nightmare or possible liquidated damages
\nof opening the school two months late.<\/p>\n

The potential for a self-reinforcing,
\nnegative spiral here is easy to understand: With the deadline looming, your
\nproject manager, superintendent and foreman pressure the crews to get the job
\ndone, pronto. Under-the-gun workers then start making mistakes that erode job
\nquality and trigger further delays. As a result, profit declines, and safety
\ndeteriorates.<\/p>\n

\"construction<\/figure>\n

Exception-Based Reporting in Construction<\/h2>\n

Now that tech is becoming so integral\u2014data-generation starts before the groundbreaking and continues straight through to the final delivery\u2014every project is an ocean of information unto itself. Realistically, high-level decision-makers responsible for, say, 200 jobs cannot track all of the metrics associated with each project simultaneously. To avoid \u201cparalysis by analysis,\u201d they need to be selective with their limited time and attention. Exception-based reporting cuts through trivial data and puts the most relevant information right in their hands. However, this does not have to be a passive approach in which management receives alerts only after<\/em> projects are woefully over budget or behind schedule.<\/p>\n

On the contrary, it\u2019s possible to use
\nanalytics so that you receive early<\/em> warnings about deteriorating metrics. This in turn gives you more time to put
\nprojects back on track.<\/p>\n

For example, using modern analytics,
\nyou could set up an alert that is triggered whenever a job starts to edge
\ntoward running over budget, as opposed to actually crossing that line. \u201cPhase I
\nof the Peoria hospital is now within 10 percent of our estimated cost for where
\nwe should be at this stage,\u201d the CFO tells the CEO. \u201cTo avoid cost overruns, we
\nneed to take a closer look at what\u2019s going on with this project.\u201d<\/p>\n

These days, contractors rely on various
\napps that yield all kinds of information. Cloud-based platforms with mobile
\ncapabilities allow them to flow those data streams into an analytics engine to
\nyield new insights. However, while collecting data is easier than ever,
\ncontractors should feel no pressure to use all of it right away. Some data is
\njust good to have. Maybe it will make a critical difference in litigation years
\ndown the road or provide an analytical benchmark on another job.<\/p>\n

Getting Creative with Construction Metrics<\/h2>\n

Escaping from triage mode promises to free up time and resources for higher-order data analytics over the long term. However, novel approaches to analytics can benefit contractors day-to-day as well. Anomalies of all kinds\u2014even, in certain circumstances, the anomalous absence<\/em> of problems\u2014can suggest a need for closer scrutiny.<\/p>\n

Take requests for information (RFIs).
\nIt\u2019s fair to say that RFIs will come into play at just about every construction
\nsite: Planning to install a toilet, the subcontractor finds a kitchen where the
\nbathroom should be; puzzled, she submits at RFI. Since too many RFIs could
\nsignal a broader problem, it makes sense for contractors to use data from
\ncomparable jobs in the past to set reasonable thresholds for this metric.<\/p>\n

However, if a project has too few<\/em> RFIs this could suggest that crews
\naren\u2019t asking the quality-related questions that result from paying close
\nattention to detail. Figuratively speaking, it would be like installing a
\ntoilet in a kitchen, no questions asked.<\/p>\n

Moving forward, contractors will
\ncontinue to see data volumes rise as drones, interior scanning, digital twins,
\nsafety-related wearables and other tools become standard. That may seem
\nintimidating, but there\u2019s no need to feel overwhelmed. By zeroing in on
\nactionable KPI thresholds, you can put triage mode in the rearview mirror and
\ntake full advantage of one of your greatest strategic assets\u2014your data.<\/p>\n

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