Technology is the key to addressing many challenges faced by the construction industry in the region, but a change in mindset is essential, says Mohammad Khader Al Shouli, Managing Director and Head of Contracting Finance at Mashreq Bank.**
With Expo 2020 approaching, the UAE’s construction industry is projected to grow between 6% and 10% in 2020. However, achieving this growth is not without hurdles, particularly the pressing need to meet shorter deadlines and manage cost overruns. A KPMG survey of construction executives in the UAE highlighted that the most significant opportunity to overcome these challenges lies in integrating new technologies into traditional construction practices.
The UAE’s construction companies need to strategically plan their long-term investments to transition towards a technology-driven landscape. The region’s construction industry must lead in quality, productivity, and safety. With over $820 billion-worth of major projects planned in the UAE, there is much at stake. Additionally, there is increased scrutiny on the value of public sector spending, making it essential that every dirham spent delivers value. This scrutiny is evident in the region’s project sector, where late deliveries and higher-than-expected costs are draining substantial funds.
The core issue lies in the industry’s culture, where clients aim to complete projects as quickly and cheaply as possible. Tenders are often awarded to the lowest bidder with little consideration for the long-term value of the project. This approach undermines sustainability and is detrimental in the long run. A change in mindset is necessary.
There is hope, however. Technology now permeates every aspect of our lives and is crucial for transforming the construction sector by changing how projects are delivered. Project teams across the country are taking bold steps towards digitalizing construction planning and delivery.
Technologies like drones, virtual reality, 3D printing, and generative design are enabling a reimagining of the construction sector. However, this requires a stronger focus on quality from project clients. They must understand that adopting best practices in the UAE’s construction sector necessitates investment. Although the upfront capital investment may be higher, it can significantly improve quality and reduce operation and maintenance costs throughout a project’s lifecycle. Most importantly, this digital transformation will drive much-needed efficiency and transparency in the sector.
For example, increased use of offsite manufacturing, prefabrication, modularization, and onsite assembly in the UAE can substantially reduce construction time. Drones can be used for surveying work, significantly reducing planning costs. There are also opportunities to use technology for site monitoring and inspection, which will further reduce labor costs.
Additive manufacturing and 3D printing can create efficiencies on site. For instance, 3D-printed molds can replace expensive formwork, reducing costs. Additional efficiencies can be achieved by printing fit-out components and spare parts, embracing a long-term sustainability approach in the construction sector.
These technologies require a workforce trained to maximize these innovations. This can be achieved through initiatives like permanent or long-term visas for professionals based on their experience rather than just their academic qualifications. To retain talent, there is a need for graduate recruitment programs. Although the challenge of losing younger talent to more lucrative professions exists, it can be addressed through industry collaboration.
There is also a case for establishing professional development bodies for technical workers and a unified accreditation committee for built environment professionals. These bodies would work closely with renowned international civil engineering entities to drive innovation and bring global best practices to the sector.
While hurdles remain, the right regulations are crucial for accelerating the adoption of new technology, thus revitalizing the construction sector. Emerging technologies like robotics and artificial intelligence will play a key role in the industry’s future. It is critical to have regulations that allow companies to legally test these technologies on site, spurring innovation.
Additionally, common standards and requirements for technology and data are needed to harmonize processes across all sectors and authorities. A set of clearly defined rules for everyone to follow will enhance transparency, which is much needed in the industry.
While the digital transformation of the construction industry is still in progress, it requires a greater push from all industry parts, particularly from project owners and construction clients, to make innovations the norm. This is the only way the construction sector can navigate the stagnancy of a shaky global economy and create a robust future for the industry and the country.
