COVID is a perfect example of a crisis and one that is still disrupting the construction industry today. It has impacted organizations in multiple ways.

Kahua Infocenter

Teams managing capital programs were suddenly forced into isolation, and if their programs were not modernized, collaboration was difficult. It nearly brought many programs to a screeching halt as people tried to manage updates, approvals, change orders and signoffs.

Planning went out the window, too. Capital construction teams had to pivot, and different projects took priority dictated by new plans and regulations.

The truth is, COVID is not the first crisis the construction industry has faced, and it will not be the last. Owner organizations must set themselves up for success for the next event. But how can they prepare when they do not know what will happen?

There are three practices that should be constants in all capital programs organizations to arm teams for the next crisis that comes their way.

  1. Embrace Digital Processes:Moving from manual to digital processes is a crucial step toward modernization. Technology will:
    1. Create acentral sourceof truth for all past and current program data as well as programs in planning stages. Information will be transparent, and all details will be in one place. Data regarding the health of each project can be delivered to stakeholders.
    2. Enablecollaborationfor all members involved in the success of a program. Teams can communicate from anywhere in real time regarding budget management, scheduling, work orders, approvals and payments.
    3. Speed up time for approvals with automated workflows and clear “ball-in-court”问责制。
  2. Maintain Flexibility:With the world and the industry constantly changing, owner organizations must be ready to adjust. The need for an agile system is imperative because:
    1. 规定are constantly evolving and mandating how programs are run and delivered. Being able to shift, modify and add new processes, required documentation and approvals to a project is critical to keep things running with minimal disruption. This alleviates regulatory risk and the possibility of a project not being delivered.
    2. Technologyis constantly being improved, so organizations should be ready to evolve their operational processes. They must integrate old with new. If teams do not consistently innovate, they will find themselves working in disparate systems which can move them backwards. Innovative technology enables efficiency and insights into programs.
    3. Downsizing and acquisitionsplay a part in every industry. Organizations can avoid major disruptions if systems and processes are in place before the transition. The goal is to minimize any gaps in information and allow for the transfer to happen seamlessly with minimal risk.
  3. Demand Data Ownership:Organizations need to understand what data ownership is and the risk of not having it. The construction industry has experienced the sunsetting of legacy project management systems, and data ownership has become a concern. Owners of legacy systems, and even new platforms, must have access to their data. Too often owners are not able to obtain data from their systems, leaving them with no insight on performance and pricing of closed projects. In addition, defending against lawsuits will require detailed data. Without proper ownership of data, owners could open themselves up to large payouts. Owning capital construction data allows organizations to:
    1. Independentlyaccess all datafor programs - active and historical - without having to rely on vendors.
    2. Have the data in ameaningful format, not just a dump of every line of data ever entered in the system.

A crisis management plan is just as important as the risk mitigation plans built into each program. Even the best crisis management plan will never be foolproof. But the more owners set themselves up for success, the better chance a team can handle any issues that come along.

Crises will continue to influence the construction industry. Preparing for them is becoming less of a choice and more of a necessity. Organizations who do not prime for crises will find themselves falling behind while those who do will be prepared when the inevitable crisis comes their way.

By Kathleen Edwards