Construction World July 2020

for recovery and for the commercial entitlement they will need to establish as a result of the crisis,” he adds. +H SRLQWV WR D QHZ LQGXVWU\ JXLGH LQWURGXFHG E\ WKH 8. government’s Construction Leadership Council COVID-19 Task Force, which offers practical advice to help contractors avoid expensive and long-running disputes over the effects of the pandemic on projects. “Some respondents indicated they would be submitting contractual notices to their clients and subcontractors to protect themselves, especially in respect of releasing themselves from retention payments. Also, with force majeure coming into play, many respondents will be submitting extension of time and cost claims. Extension of time is probably most critical to ensure they don’t hit time-barring later on in the contract,” notes Skudder. :KHQ LW FRPHV WR IXWXUH SURRͤQJ WKHLU EXVLQHVVHV UHVSRQGHQWV are looking to ways to innovate or do things differently. “One of the respondents is focusing on offering non-core services such as plumbing and electrical work, while another has reassessed the company’s existing business model, which was solely based on its ability to deliver a physical service, and adopting a more product- based e-commerce model.” In addition, respondents have not stopped tendering for work. “There are still tenders out there and companies are actively trying to build their pipelines for post-COVID-19. This is positive, because the LQGXVWU\ H[SHFWV WR ZLWQHVV D VLJQLͤFDQW UDPS XS RI DFWLYLW\ LQ WKH construction industry in coming months. “The construction industry is an important driver of general economic activity and one way to absorb thousands of unemployed people quite easily. Government really needs to accelerate infrastructure development especially in the energy sector where renewable energy can rapidly come on stream and absorb labour. It also has a trickle-down effect for the manufacturing sector in terms of increased demand for construction materials” notes Skudder. How is the industry embracing technology? Skudder says one of the major insights to emerge from the survey is that there are no boundaries with technology. “While the construction industry has been notoriously slow to adopt technology, the pandemic has compelled it to embrace digitisation to facilitate remote operations.” 7KLV LV DOLJQHG ZLWK D UHSRUW E\ 0F.LQVH\ &RPSDQ\ ZKLFK QRWHV that – globally – the industry is shifting to remote ways of working. It cites the example of designers and engineers relying even more

heavily on digital collaboration tools such as building-information modelling (BIM) and engineers and contractors are using 4D and 5D simulation to re-plan projects and optimise schedules. Respondents in the survey indicated that the pandemic has made them more aware of the role technology has to play – during the crisis, but also into the future. Much of the technology being used relates to communication and collaboration, such as Microsoft teams and Zoom for managing meetings. Skudder says this heightened awareness has prompted CCS to accelerate investigating the viability of introducing one of RIB Software’s collaboration products to the South African market. “There is now a higher propensity for construction industry players to invest in technology for their teams and we expect communication and collaboration platforms to become the norm. “There are still several constraints in the industry and I think these are around a lack of knowledge and awareness and – to some extent a mindset – that they are construction companies, so they have to be on-site. But, even on-site, processes can be digitally enabled.” What technology should the construction industry be investing in? Firstly, the industry should be investigating cloud-based solutions. ̸:KHQ \RX DUH ORFNHG RXW RI \RXU RͦFH DQG \RX FDQ̵W JHW WR \RXU server, it’s problematic to maintain it. Cloud based solutions are hosted by somebody else and can be accessed 24/7, no matter where you are,” says Skudder. Secondly, construction companies need to create a common data environment (CDE), where all the company’s data is in a central repository and can be accessed whenever it is needed. 6NXGGHU VD\V FRQVWUXFWLRQ FRPSDQLHV WKDW KDYH GLJLWDO ͤQDQFLDO management, payroll and estimating solutions in place should be exploring how to make the best out of these investments. “Those who haven’t digitised enough downstream on site should be looking for site-based solutions that allow people to continue working and DFFHVVLQJ GDWD RQ VLWH UDWKHU WKDQ UHO\LQJ RQ ͤOHV LQ DQ RͦFH ̹ He concludes by reiterating that the construction industry will be critical to the country’s post-pandemic recovery. “By effectively XVLQJ WKH IRUFHG SDQGHPLF GRZQWLPH WR UHͥHFW RQ WKHLU EXVLQHVV models and operating processes and ramp up their digital responses, construction companies and related businesses can emerge from the crisis stronger and more resilient.” ƒ “The building sector is primarily funded by private sector clients, who are expected to cut back on investments due to the anticipated economic decline as a result of the COVID-19 pandemic."

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CONSTRUCTION WORLD JULY 2020