Digitilisation of the New Zealand Building Industry: Capturing the Benefits of Digital Technologies on the Design, Construction and Management of Buildings

Date
2020
Authors
Jones D
Amor R
Bellamy L
Abstract

Executive summary: The construction sector globally recognises that it has lagged behind other sectors in productivity improvements and the uptake of technology, and that there is a need for change. Major international studies show that productivity in this industry is near the bottom of all sectors, and technology supported change is not as prevalent as it is in other sectors. Digital technology offers enormous potential to increase value for money in terms of productivity and competitiveness. Leading companies across the world have demonstrated the benefits that can accrue from technology supported change. New Zealand companies can learn from these experiences and gain benefits across the phases of planning, design, construction, operation and demolition or recycling. Increased digitalisation of the building industry should not be seen as an end in its own right. However, the need to transform the building industry, as recognised by the recent government and industry Construction Accord, will rely heavily on digital technologies. While the benefits and value of a technological intervention are dependent upon many factors contributing to an individual project, it is clear from overseas experience that perseverance and embedding change will unlock the benefits.
To ensure that New Zealand’s building industry gains the maximum benefit from technological transformation we make the following recommendations for 2020-2025:

That the government commissions and commits to a digital transformation blueprint with a clear vision of the future of the building industry. That the technology sector is supported and developed through national showcases, case studies and grass-roots initiatives that allow transfer of knowledge within the sector. For example, a range of forums for individual technological innovations such as the successful BIM forums run in Christchurch, Wellington and Auckland. That companies and construction projects are supported to embed change into their processes to achieve the scale required to unlock technology supported improvements. That whole of industry approaches are developed to fix pain points currently impeding technology supported change. That the regulatory framework is adapted to incentivise investment decisions and new ways of contracting. That clients, including government agencies, are educated to mandate the use of best practice technologies and standards on their projects (e.g., requiring as-built BIM models for operations and asset management). That Central Government shows leadership through procurement rules that incentivise an all-of-government approach to the use of BIM. That a greater focus is placed upon training and skill development of the whole workforce for the digital future. This must encompass managers through to those on construction sites. That industry and government choose, or develop, data standards and standard approaches to technology deployment for the nation. That security and privacy become a standard consideration for all technological innovations.

Description
Foreword: Digital technologies have pervaded almost every area of our lives. Without necessarily understanding how they work, we enjoy the benefits of digital technologies in the cars we drive, home appliances, logistics, communications, business systems, and many other seen and unseen applications. Most sectors of industry are relentlessly driven to exploit technology to improve the functionality, performance and cost-effectiveness of their products and services. The consequences of not getting technology strategies right can be swift and devastating. Nokia is a good example of how quickly fortunes can turn. Their share of the global smartphone market fell from 50% to less than 5% over a period of six years, largely due to the decisions they made concerning digital technologies. This level of drive to exploit technologies to improve products and services is not so evident in the construction sector. As this paper points out, construction sits markedly lower in the rankings of all sectors when it comes to developing and using digital technologies, although some technologies such as BIM are starting to penetrate parts of the sector. Some commentators believe the slow uptake of digital technologies provides opportunities for disruptive innovation of the sector. While this may be true, there are many hurdles to digitising construction, which makes innovation in this area challenging. This paper is thoroughly recommended to the reader as it identifies the value potential and the opportunities and development and implementation challenges associated with existing and emerging digital building technologies, from the perspective of the New Zealand construction sector. The information in this paper should be useful to all construction-related organisations when they go through the process of developing their technology strategies. Information in this paper will also be used by the Building Innovation Partnership to support the uptake of digital building technologies by industry.
Citation
Jones D, Amor R, Bellamy L (2020). Digitilisation of the New Zealand Building Industry: Capturing the Benefits of Digital Technologies on the Design, Construction and Management of Buildings. Quake Centre. Christchurch, New Zealand. Quake Centre.
Keywords
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Fields of Research::33 - Built environment and design::3302 - Building::330201 - Automation and technology in building and construction
Fields of Research::33 - Built environment and design::3302 - Building::330206 - Building science, technologies and systems
Fields of Research::33 - Built environment and design::3302 - Building::330204 - Building information modelling and management
Fields of Research::33 - Built environment and design::3302 - Building::330203 - Building industry studies
Rights
All rights reserved unless otherwise stated