I was recently invited to speak at the 2020 Advancing Preconstruction Conference, which due to COVID, was converted to a digital conference. A great example of how the adoption of new methods and technologies has been accelerated and further proof of an old maxim - Necessity is the mother of invention.
It was a great opportunity to address the growing realization that preconstruction is continuing to prove to be the most critical phase in the successful development of projects of all types and sizes. Amidst the numerous challenges facing our industry, the approach to preconstruction represents a pivotal opportunity to grow in revenue, profitability, certainty of outcome, competitive differentiation and technology-driven efficiency.
The 3 Big Ideas motivating making preconstruction the priority in your organization are:
- Opportunity vs. Capacity - The projected population growth of 25% in the coming decades is creating demand for an increase on all-things-built coupled with the overdue multi-trillion dollar replacement of our nation's infrastructure. This is all happening at the same time as the industry's declining headcount and experience, that has been trending for over 15 years or more, is creating a talent capacity deficit.
- Key Differentiator - All stakeholders in the development of a project recognize the need for a smarter way to design, budget and plan projects with a greater level of collaboration and certainty of outcome. Preconstruction has been done the same way for decades with little advancement. Owners of projects are justifiably dissatisfied with the preconstruction process and the results. This is a huge opportunity to differentiate your firm against your competition with a superior service while at the same time setting the table for success for yourself.
- Enhanced Margin Opportunity - A more robust and advanced approach to preconstruction provides a multi-pronged path to enhancing your margins and the ROI for all stakeholders. An expanded service offering planned into the project, a higher quality assessment of the design, cost and construction plan and active risk-mitigation strategies established in preconstruction coupled with a data and technology driven platform on which all preconstruction efforts are conducted is guaranteed to add margin opportunities, mitigate losses and reduce overall risks, thereby providing a net increase to your bottom line.
The common denominator to solving resource deficits and enhancing an organization's growth and competitiveness depends on a commitment to accelerate the digital transformation and adoption of technology. Recent findings suggest this digital transformation has been accelerated by as much as 5 years due to COVID across all industries and institutions. There is certainly plenty of justification for doubling down on technology and preconstruction; those who have the vision will reap the rewards, those who move too slowly and cautiously will find themselves too far behind to ever catch up.
To see both the video and content of Steve Dell'Orto's response in more detail to Why Evolving Industry Challenges Demand Preconstruction be Reoriented to the Forefront of Your Firm's Priorities as part of the 2020 Advancing Preconstruction Conference by Hanson Wade the link is included as part of this blog.
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If you have any questions about ConCntric please feel free to reach out to Steve Dell'Orto on LinkedIn via: https://www.linkedin.com/in/stevedellorto