The Realities of Construction Business

construction business

We’re common-sense people in a down-to-earth industry. Nothing is more “real” than working with your hands. But instead of using hands-on building tools, we need to embrace hands-on building device technology. The realities of your construction business are going to be driven by AR and VR.

AR and VR in Construction Business Projects

AR is augmented reality and VR is virtual reality. These terms are used with other types of realities, and here are the differences:

  • AR – Augmented reality uses the camera on your smartphone to add digital elements to a live view.
  • MR – Mixed reality combines AR and VR.
  • VR – Virtual reality takes you out of the physical world and into a simulated environment where you can ride a dragon or swim with sharks.
  • XR – Extended reality covers all the technologies that provide information, real-world or virtual.

These technologies will never take the place of solid architectural designs and quality workmanship. But their value-added can make a huge difference in how we operate.

Real-World Uses: AR and VR

Here are 3 examples of using AR and VR to transform difficult-to-imagine construction business designs and visions.

  1. Communication – Construction business poor communication is cited too often as the cause of project failures. “But miscommunication can launch a project into a tailspin,” says Unity Technologies. With about $177.5 billion spent every year fixing construction mistakes, any opportunity for improvement is welcome.
    A meeting can use AR and VR to take everyone to the site. Everyone can see and understand how what you’re explaining will be realized in real life. Project team members can collaborate to solve potential problems they see rather than imagine. One meeting attendee said, “Watching team members tweak the design and take notes on it in real-time was incredible.”
  2. Designs – When a design company hit a “wall” trying to explain how its skyscraper could enhance – not ruin – a skyline view, the company used AR. They created a prototype using 3D modeling and geolocating. They took the client on virtual walks to show how the building would look when completed.
  3. Training – Finding talent is challenging enough. Training and retaining workers is a whole different ballgame. AR and VR can give onboarding workers real-jobsite experiences in a safe, controlled environment. They can learn about construction business hazards and how to manage risk.

We share technology every week with construction businesses throughout the U.S. and globally. Call 800.925.6085 (International/435.586.1205) or contact Construction Monitor. Our goal is to increase your business. What’s your goal?

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*Construction Monitor does not endorse nor recommend any software brand (except ours) for construction technology applications.

Construction Business Project Delays and Responsibility

construction business projects

If you’ve bid on and won a project, it’s assumed you understand the risks, including delayed delivery of materials and equipment. As the pandemic proved, you can’t always factor delay risks into a bid. But you can’t bid without some guarantee that you can deliver the project on time and within budget. Contract-wise, you’ve assumed responsibility.

The Devil’s in the (Contract Details) For Construction Business Projects

A 2020 report on worldwide Construction Claims states the global average value of a construction delay dispute to be a staggering US$30.7 million… The report also indicates that the average dispute took 15 months to reconcile.Plan Academy

Types of delays affecting your contract:

  • Concurrent delays – Two or more parties involved
  • Critical delays – Impact project delivery date
  • Excusable delays – Outside of the contractor’s control
    • Compensable excusable delays – Caused by the owner or the owner’s team. The contractor may receive more time and financial compensation.
    • Noncompensible excusable delays – Beyond anyone’s control (Force majeure)
  • Non-critical delays – Little to no impact
  • Non-excusable delays – Occurred as a result of something the contractor should have been able to control

Most contracts state the contractor has an amount of time to report a delay. This time should be used to mitigate the delay; seek alternative materials or suppliers. Construction business contractors are legally required to try to mitigate every delay.

Quinn Murphy, an attorney with Sandberg Phoenix in St. Louis, said anyone claiming delays due to the pandemic, “….particularly those who entered into a contract after it became widespread in March 2020, will have to prove that the delay was directly related to the pandemic.”

If you signed a contract for the construction business after the pandemic was firmly in place, you may have a hard time claiming delays due to COVID-19. “They’re going to have a really hard time alleging the pandemic is an excuse,” Murphy concluded.

Need-to-Know Information

Never sign a contract for a large project without legal support. But you can’t bid on and win contracts if you don’t know your demographics. Contact Construction Monitor with questions about business leads for your company.