About The Report

In April 2018, PlanGrid partnered In this report, we define construction-

with FMI to survey nearly 600 specific technology and/or software
construction leaders from around as products built explicitly for
the world to discover: engineering and construction firms for
field collaboration, reporting, project
• What activities require the management, estimating, safety and
most time during their week more. Survey respondents were
and the costs associated with
asked not to consider their experience
each activity.
with email clients (e.g., Microsoft
• The causes of poor data and
Outlook), CRM software (e.g.,
communication on projects and
the costs to the industry. Salesforce, Microsoft Dynamics), ERP
systems (e.g., Oracle, Vista) or other
• The top reasons for investing in
similar platforms.
construction-specific technology
and what factors influence
decision making.
• If the deployment and usage
of technology align with how
technology investment decisions
are made.

2
Table of Contents

4 Survey Demographics

6 Executive Summary

10 Chapter 1: Where Construction Teams Spend and Lose Time

18 Chapter 2: Poor Data and Communication are a Burden on the

Construction Industry

25 Chapter 3: The Industry is Prioritizing Tech Investments for the Field

32 Chapter 4: Purchasing Mobile Devices is Not Enough

39 Conclusion
Survey Demographics

Participants in the study included General

Contractor
599 construction industry leaders.
This sample was composed of 500
respondents from the United States 49%
and 99 from Australia, New Zealand,
United Kingdom and Canada. Of
those surveyed, 49% work for general
contractor firms, 36% came from
specialty trades and 15% were owners.
Over 300 respondents came from
the commercial sector and the other Specialty
Contractor
respondents represent industrial and
manufacturing, heavy civil, healthcare,
power (oil and gas, and energy), 36%
education and government.

Owner/
Developer

15%

599 Total participants

500United States
+ 99 Australia
New Zealand
United Kingdom
Canada

4
Survey Demographics

Position/Title
Project Manager/
Senior Project Manager 156
C-level 132
Field
Supervision 128
Director/Vice President 97
Preconstruction
Manager 34
Estimator/Senior
Estimator 33
VDC Manager 19

Industry/Sector
Commercial 336
Industrial/
Manufacturing 89
Heavy Civil 71
Healthcare 31
Power 27
Education 25
Government 20

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 5
 Executive Summary

The US will spend

$177.5 Billion
in labor costs on non-optimal activities in 2018.

Where is Time Being Wasted?

Construction
professionals spend Only

35
of time on
%
non-optimal activities.
65 %
of their time is spent
on optimal activities.

14+ lost per person each week that Opportunity to maximize time
Hours could be spent on priority activities. spent on optimal activities.

5.5
Hours/week
4.7
Hours/week
3.9
Hours/week
11.2
Hours/week
8.2
Hours/week
7
Hours/week
Looking for project Conflict Dealing with Project execution Communicating/ Organizing the
data/information resolution mistakes and and coordination interacting with jobsite
rework project stakeholders

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 6
 An Average Breakdown
of Time Waste Per Role

Directors/Vice Project Preconstruction Field VDC

C-level Estimators
Presidents Managers Managers Supervisors Managers

Total Weekly Hours Wasted

14.05 13.52 13.39 13.71 15.84 12.15 14.42

Annual Cost Impact

$125,286.10 $70,260.26 $49,247.33 $49,228.54 $48,835.32 $33,051.09 $33,702.72

The Connection Between Rework,

Bad Data and Communication
On average,

52 % of all rework globally is

caused by poor data
and miscommunication.

$65 Billion
total US construction spending will
go towards rework by year end.

$31.3 Billion
of rework in the US will be caused by poor
data and miscommunication in 2018.

7
How Construction Can Improve
Data and Communication

Top 3 reasons for investing in field technology

1
58% 2
57% 3
56%
Better access to project Improving project Improving accuracy of
data/information productivity project data/information

Other considerations include...

46% 36% 29% 28%

Estimated return Comparing Responding to a specific Receiving feedback
on investment/ expected outcomes challenge/competitive from potential users
financial impact with stated strategy disadvantage

Using the Technology We Buy

75 % of general contractors and

subcontractors provide mobile devices
to project managers and field supervisors.

BUT ONLY

18 % consistently use apps on a

mobile device to access project
data and collaborate.

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 8
The Construction
Technology Disconnect

Considering Field Needs

vs Listening to Field Needs

52 %
said the needs of field
staff is a top consideration
28 %
receive feedback from
potential users of new
for investing in technology. technology before buying.

Reasons Why Technology Fails

36 %
Poor fit with
current processes
and procedures
22 %
Difficult
to use

25 %
Low
adoption
22 %
Inadequate
training
22 %
Does not integrate
well with existing
software and
technology

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 9
Chapter 1 - Where Construction Teams Spend and Lose Time

Time spent on non-optimal activities will cost the US

construction industry $177.5 Billion in 2018 alone.

Construction professionals are • Project execution and coordination

spending a considerable amount The direction, regulation and
of time on activities that take supervision of a project from
early development to completion.
away from actual building on their
project sites. Finding strategic ways • Interacting with external stakeholders
Effectively managing relationships
to optimize their time is a critical
with other key stakeholders including
step in reducing waste and staying contractors, owners and designers
competitive in today’s market. while gathering their feedback
and direction on a project.
Where does time actually go for • Organizing people and the jobsite
construction industry professionals? Six Coordination of resources (labor
categories of construction activities and materials) for successful
were used to define the work related to project delivery.
project delivery: • Looking for project data
Gathering project information
such as revised drawings, material
cut sheets and other relevant
data at the jobsite.
• Conflict resolution
Managing disagreements
between the general contractors,
owners and subcontractors
responsible for the delivery of a
construction project.
• Dealing with mistakes and rework
Managing the mistakes on a
project that result in rework,
assessing the associated
costs and determining why
the errors happened.

11
Chapter 1 - Where Construction Teams Spend and Lose Time

Each respondent estimated the time When asked how their time is spent,
spent on these six activities, grouped respondents indicated spending
into the following categories: 11.2 hours on optimal activities
including project execution and
Optimal Activities coordination. They’re also spending
8.2 hours communicating with project
• Project execution stakeholders and 7 hours organizing
and coordination the job site and people.

Acceptable Activities Time spent on non-optimal activities

included 5.5 hours looking for project
• Interacting with data, 4.7 hours on conflict resolution
external stakeholders and 3.9 hours dealing with mistakes
• Organizing people and and rework. This adds up to 14.1
the jobsite hours spent on tasks that take
construction professionals away
Non-Optimal Activities from optimal activities.

• Looking for project data

• Conflict resolution
• Dealing with mistakes
and rework

On average how many hours per week do you spend on the following activities?

Optimal Activities

Project execution
and coordination
11.2 27.7%
Hours

Acceptable Activities

Communicating/interacting
with project stakeholders
8.2 20.3%
Hours
Optimizing the job
site and people
7 17.4%
Hours

Non-Optimal Activities

35 %
Looking for project
data/information
5.5 13.4%
Hours

Conflict resolution 4.7 11.6%

Hours
of working hours
Dealing with
mistakes/rework 3.9 9.6% are spent on non-
optimal activities
Hours

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 12
Chapter 1 - Where Construction Teams Spend and Lose Time

With 40.5 total hours spent across project data and handling conflict
all activities per week, each team resolution will cost the US industry an
member is spending 13.4% of their estimated $177.5 billion in labor costs.
time looking for project data, 11.6% on
conflict resolution and 9.6% of their Using known forecasting data for
time dealing with mistakes and rework. global construction spend, the
This means construction teams are worldwide cost of non-optimal labor
spending an average of 35% of their activities can be predicted. Assuming
work hours on non-optimal activities a $10.5 trillion spend, the waste
each week. amounts to $1.4 trillion globally.
While waste can never be entirely
In 2018, time spent on non-optimal eliminated, the cost highlights the
activities such as dealing with global opportunity available to those
mistakes and rework, looking for who focus on efficiency and process at
every stage of construction.

“I would not be surprised if as much as half of the rework

we experience is because of poor communication. There’s
a lot of moving parts. It only takes one person to miss
something or not tell someone what they did or where
they put something to cause a problem.”

-Senior Project Manager

Commercial Construction Manager/General Contractor

2018 Construction Cost of Non-optimal

Spending Forecast (USD) Labor Activities* (USD)

United
States
$1,304 Billion $177 Billion

Australia/
New Zealand $284 Billion $38 Billion

United
Kingdom $353 Billion $48 Billion

*Cost of non-optimal labor activities = (2018 construction spending forecast) x (39% [percentage of
completed contracts attributed to labor]) x (35% [percentage of total activities that are non-optimal])

13
Chapter 1 - Where Construction Teams Spend and Lose Time

The cost of non-optimal

activities by position

Taking the number of hours

respondents indicated they spend on
non-optimal activities and matching
it with FMI’s salary data shows the
following annual impact on key roles:

Yearly Base* Weekly Hours Annual Impact

C-level $356,801.85 14.05 $125,286.10

Directors/
Vice Presidents
$207,857.79 13.52 $70,260.26

Project
Managers $147,105.48 13.39 $49,247.33

Preconstruction
Managers
$143,671.29 13.71 $49,228.54

Field
Supervisors
$123,353.16 15.84 $48,835.32

Estimators $108,796.60 12.15 $33,051.09

VDC
Managers $93,482.00 14.42 $33,702.72
* Source: FMI

14
Chapter 1 - Where Construction Teams Spend and Lose Time

The cost to you and

your organization

Most contractors employ multiple

employees in each of these positions.
To estimate an actual business cost
to a mid-market firm, we assume
two C-level, five directors/vice
presidents, ten project managers, five
preconstruction managers, fifteen field
supervisors, ten estimators, and one
2 C-level
VDC manager. An organization of this
size has the opportunity to address
$2,437,232 in annual waste from time
spent on non-optimal activities.

5 Directors/Vice Presidents

10 Project Managers

5 Preconstruction Managers

$2,437,232
per firm wasted annually from time
spent on non-optimal activities

15 Field Supervisors

10 Estimators

1 VDC Manager

15
Chapter 1 - Where Construction Teams Spend and Lose Time

Where teams are spending

more time than expected

Respondents were asked where demands of projects requiring that

they typically spend more time than they spend time on these activities.
expected and gave a fairly even Communicating/interacting with
distribution in their answers. project stakeholders was the top
selection (19%) for requiring more
Non-optimal activities made up 45% time than expected. This suggests that
of responses, suggesting that while while important, communication on
respondents may see these activities projects is inefficient and should be a
as not preferable, they anticipate the target for improvement.

45 % of respondents spend more time than

expected on non-optimal activities

In which of the following areas do you most frequently spend more time than expected?

Communicating/interacting
with project stakeholders 19.4%
Project execution
and coordination 17.9%
Conflict resolution Non-optimal 16.2%
Dealing with
mistakes/rework Non-optimal 15.2%
15.2%
Organizing the job
site and people

Looking for project

data/information Non-optimal 14%
Other 2.2%

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 16
Chapter 1 - Where Construction Teams Spend and Lose Time

What’s causing the extra time waste?

The most common single selection for While many of the non-optimal
spending more time than expected activities that occur on a project
on a task was poor communication site cannot be eliminated altogether,
among project stakeholders (23% analyzing and improving the amount
of respondents). Regardless of the of time required is an essential goal
activity, when more time is spent than in order for construction teams to
expected, the majority of respondents be competitive and profitable in
suggest it was due to inaccurate today’s market.
project data or difficulty accessing the
information they need.

Why do you spend more time than expected on this task?

23 % Poor communication
among project
stakeholders

21%
Lack of responsiveness
of data/information
delivery

19 % Confidence in the

13%
Inability to accuracy of the available
collaborate data/information
effectively

7% Other

17 % Difficult gathering
needed data/
information

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 17
 Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

48% of all rework in the US is caused

by poor data and miscommunication

Effective communication and The survey found that in the US,

the ability to access accurate rework directly caused by inaccurate,
project data is critical at every inaccessible and incompatible project
stage of construction. Poor data data accounts for 48% of the total
and communication often causes quantity of rework. Applied to the US
rework and can have long-term industry at large, this cost is more than
cost implications for owners and $31.3 billion annually.
developers. FMI forecasts that
construction spending will reach Globally, an average of 52% of rework
$1.3 trillion in the US in 2018. With was caused by poor project data
rework estimated at 5% of overall and communication, representing a
construction costs, this suggests that worldwide cost of $280 billion in 2018.
$65 billion of construction spending
will be on rework for the year.

52 % ($280 Billion)
of rework caused by poor project
data and communication globally

Forecasted Cost of Rework 2018 Cost of Rework Caused by Poor

(5% of total construction spend*) Data and Communication

United
States $65.2 Billion $31.3 Billion

Australia/
New Zealand $14.2 Billion $8.4 Billion

United
Kingdom $17.6 Billion $10.8 Billion
*FMI completed contracts data

19
Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

Breaking down the causes

and costs of rework

To further break down the $31.3 When viewing each item as

billion that is wasted on rework individual contributors to rework,
in the US–when asked what they poor communication represents an
attribute rework to on their projects, annual cost of $17 billion to the US
22% of respondents pointed to poor construction industry and poor project
project data and 26% cited poor data represents $14.3 billion. The
communication among stakeholders. remaining 52% of rework could be
caused by a number of other factors
including design changes or issues,
faulty or delayed materials, unforeseen
conditions and more.

$31.3 Billion
OR

48 % ofcaused
all rework in the US is
by poor data and
miscommunication

22%
poor project data
26%
poor communication

$14.3 Billion $17 Billion

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 20
Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

The causes of miscommunication

When asked about the cause of Top cause of poor communication

poor communication among among project stakeholders
project stakeholders, the top choice

30.9
was unresponsiveness to questions/
requests (30.9% of respondents),
followed by the inability of project
stakeholders to collaborate effectively
% chose unresponsiveness
(23.5% of respondents). to questions/requests

23.5% chose inability of project

stakeholders to collaborate
effectively

What is the primary cause of poor communication among project stakeholders? Select one.

184
Unresponsiveness to
questions/requests

140
Inability of project stakeholders
to collaborate effectively

No common platform for all project

stakeholders to communicate and
share project data 136
Project stakeholders spread
out across different places 122
Other
13

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 21
Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

The causes of poor project data and information

When asked what the primary cause Top cause of poor project
of poor project data and information data and information
was, 34.4% chose erroneous or

34.4
incorrect project data–meaning it
was outdated or otherwise faulty,
while 23.8% cited difficulty accessing
needed project data.
% chose erroneous or
incorrect project data
When construction firms are forming
their technology deployment strategy,

23.8%
a top priority should be choosing tools
that enable teams to more easily
communicate and access accurate
project data. chose difficulty accessing
needed project data

What is the primary cause of poor project data and information?

Erroneous or incorrect
project data/information 205
Difficulty accessing needed
project data/information 142
Inability of project
stakeholders to easily share
project data/information 134
88
Project stakeholders
withholding project
data/information

Other
26

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 22
Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

Improved data could strengthen relationships

between contractors and owners/developers

71 %
To understand the challenges owners
have, they were asked how capturing
and retaining more data during design,
construction and closeout would of owners indicate that capturing
and retaining more data during
impact their projects over their full design, construction, and closeout will
lifespan. With 71% of owners indicating reduce or significantly reduce lifecycle
that it will reduce lifecycle operation operations costs.
costs, it’s clear they feel strongly about
this issue.

Providing construction teams with

better access to project information
and the ability to capture data from
the field more accurately not only has
short-term benefits, but will also benefit
the contractor/owner relationship and
reduce long-term costs.

Capturing and retaining more lifecycle data/information

during design, construction, and closeout would:

Significantly reduce
lifecycle operations costs 21
Reduce lifecycle
operations costs 48
Have no impact on lifecycle
operations costs 20
Increase lifecycle
operations costs 8

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 23
Chapter 2 - Poor Data and Communication are a Burden on the Construction Industry

Improved data could strengthen relationships

between contractors and owners/developers

Many types of data can be captured construction. A basic as-built is

on a project, however, owners’ top contractually mandated, but viewing
choices to reduce long-term facilities the comprehensiveness of the turnover
costs included as-built data for phase as a differentiator can help
general information sharing and firms stand out from the crowd.
contractor or vendor operational
performance data. Owners are increasing their use of
technology throughout the operational
This clearly shows that post- phase of the facility and are coming
construction, the most value that to rely on the seamless transition of all
you can add for owners is to provide construction data into their facilities
them with complete, accurate as- and operations teams. Contractors
builts and data that shows the quality able to anticipate this need by
and quantity of work done during providing this data have a large
advantage over firms that do not.

As an owner/developer, please rank the following categories of construction data based

on their value in helping reduce costs for long term facilities operations.

More Valuable
Internal access to as-built data for general
1 information sharing between departments

2 Contractor or vendor operational performance

3 Building equipment data for asset management

Building systems sequence of operations (backup

4 power generation, chiller systems, boiler systems, etc.)

Portable (mobile) facility data for

5 preventative maintenance and repairs

Historical construction data (change

6 orders, schedules, daily reports, etc.)

Facility emergency preparedness

7 data (valve locations, O&M manuals)
Less Valuable

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 24
Chapter 3 - The industry is prioritizing tech investments for the field

While the industry understands the problem,

many may not be making the right choices

Over the last decade, there has been

a dramatic increase in available
technology for the construction
industry. While many aspects of the
jobsite may look the same, everything
is becoming smarter. From GPS-
connected heavy machinery and
drone imaging to the adoption of
new generations of business-ready
mobile devices, the technology on
site is radically different. In times of
radical change, it can be challenging
to prioritize areas of investment and
understand how to measure the ROI.
This research focuses specifically on
the role of mobile technology in this
change by cataloging the motivations
for investment and understanding the
observed impact.

26
Chapter 3 - The industry is prioritizing tech investments for the field

Top reasons for investment

The reasons that participants gave

for investing in construction-specific
technology directly reflect the “I will say it’s gotten better
challenges with project data integrity
and accessibility that the industry is than it used to be, but it could
experiencing. In addition to the goal of still be better. A lot of time
improving project productivity (57% of
respondents), the two biggest reasons could be saved if I could just
for investing were to gain better access
to project data (58% of respondents)
get the information I needed
and to improve the accuracy of project from my laptop instead of
data (56% of respondents).
asking someone back in the
The alignment of these top
motivations with the previously
office for it and having to wait
identified challenges is promising. an hour or even a day for them
Beyond the top three, the responses
show alignment around the need to get back to me.”
to boost productivity, with only 7%
indicating that they don’t rely on -Superintendent
industry-specific technology to build. Commercial Construction Manager/General
Contractor

Accuracy and access

to project data are top
reasons for tech investment
58 % of respondents
wanted better access
to project data

56% of respondents wanted

to improve the accuracy
of project data

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 27
Chapter 3 - The industry is prioritizing tech investments for the field

Top reasons for investment

For what reasons have you or your company used construction-specific

technology or software? Select all that apply.

Gain better access to project

data/information 58%
Improve project
productivity 57%
56%
Improve the accuracy of
project data/information

Reduce project costs

43%
41%
Reduce time to make
project decisions

36%
Introduce mobile project
collaboration

Eliminate project
redundancies 32%
Augment manual
project tasks 21%
Our company does not
use construction-specific
technology or software 7%
Other
2%

28
Chapter 3 - The industry is prioritizing tech investments for the field

Important considerations when

investing in construction tech

To further understand why teams are technology helps advanced firms

choosing construction technology, stand out from the competition by
respondents were asked to pick their offering better outcomes and visibility
top two reasons for investment. Two to owners. To provide this improved
responses were clear leaders: cost/ service, firms must build an integrated
ROI was selected 248 times and ease tool chain where information is
of implementation/use received 247 reliable and project status is always
selections. Again, we see alignment visible. Data entered in one system
around what the industry needs from needs to be automatically shared with
construction technology: Improvement other critical systems. In addition to
in the predictability and quality of providing greater efficiency within the
project delivery through tools that are team, there is less opportunity for error
easy to use by all stakeholders. and long-term data loss.

Minimizing recurrent challenges It was slightly surprising to see the

received 170 selections, gaining a firm’s ability to attract and retain
competitive advantage received talent as the lowest-ranked value
160 selections and integration with on the list. While the labor shortage
other technologies received 132 remains a key consideration in
selections. This forms a second tier other aspects of the business, it
with significant value. These three does not seem to outweigh the
selections suggest a new urgency higher order value proposition of
in technology as a differentiator: the other considerations.

Top considerations
when investing in
41.4 % of respondents chose
Cost/ROI

construction technology

41.2% of respondents chose ease

of implementation/use

29
Chapter 3 - The industry is prioritizing tech investments for the field

Important considerations when

investing in construction tech

What is most important to you or your company when considering

investment in construction-specific technology or softare? Select the top two.

Cost/return
on investment 248
Ease of
implementation/use 247

170
Minimizing recurrent
challenges or problems

Gaining a
competitive advantage 160
Applicability/integration
with other technologies 132
Matching client
expectations 107
Breadth of application
across the company 80
Ability to attract/
retain talent 45

Other 9

30
Chapter 3 - The industry is prioritizing tech investments for the field

Factors influencing construction

technology investment

The people making decisions about a pilot where the end users in the field
technology recognize that equipping are given an opportunity to evaluate
field and office teams with the right the technology for themselves.
tools is a priority, but they are not
yet including them in the decision Managing adoption of technology
making process. While the top choice through an intentional series of
of considerations for technology pilot phases minimizes the upfront
investment was the needs of the field commitment to any particular vendor
staff with 52% of respondents, only while preserving the flexibility to adapt
28% considered receiving feedback and change when new information
from potential users of new technology is presented. It also transforms the
before investing in it. role of the end user from a passive
recipient of a corporate mandate to
This suggests that firms are not an active participant in the decision
fully piloting new technology before making process. Because all of the
adoption. Understanding the needs stakeholders have had a chance
of teams on paper is different than to provide input, they will be more
responding to data gathered through committed to the program’s success.

When investing in construction-specific technology or software,

what is involved in the decision? Select all that apply.

Needs of the field staff 312

Needs of the office staff
301
Integration with existing technology
282
Estimated return on
investment/financial impact 277
215
Comparing expected outcomes with
our stated strategy

Responding to a specific challenge/

competitive disadvantage 174
Receiving feedback from potential
users 169
Other 21

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 31
Chapter 4 - Purchasing Mobile Devices is Not Enough

Only 18% of companies consistently use construction

apps on mobile devices to access data and collaborate

It’s not just what devices you

deploy; it’s how you use them.
75% of general contractors and “Construction is a project
specialty trade contractors provide management business, which
mobile devices to their project
managers and field supervisors. means good communication
However, only 18% of companies
consistently use apps on mobile
is critical. There are so many
devices to access project data and technologies available on
collaborate with project stakeholders.
the market, that I think it’s
Less than one-fifth of companies
consistently use their devices to
malpractice not to be utilizing
collaborate effectively–despite the for this purpose.”
fact that over half of participants
indicated that their reason for using
-Chief Operating Officer
construction-specific technology was
Nonresidential Construction Manager/
to gain better access to project data. General Contractor
This suggests a significant disconnect
occurring between when the decision
to purchase technology is made
and the eventual deployment and
adoption of those tools.

75 %
of general contractors and specialty
trade contractors provide mobile
18 %
of companies consistently use
apps on mobile devices to access
devices to their project managers project data and collaborate with
and field supervisors. project stakeholders.

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 33
Chapter 4 - Purchasing Mobile Devices is Not Enough

Teams that are using mobile operational phase of the asset’s life
devices less than 80% of the time because potentially critical decisions
for collaboration and data access and changes can be lost.
are not using them effectively. Their
need for project information and Almost half of the responses indicate
communication tools is not lower than usage between 40% and 80% of
that of other groups, so this implies the time, which is encouraging. This
they are relying on other tools for suggests an understanding of the
collaboration instead of fully utilizing importance of these devices but an
their mobile devices. inconsistent adoption within the team.
Clearly defining process and standards
While it may seem extreme to will help these organizations grow into
assert that usage lower than 80% is consistent users of technology.
not acceptable, anything below that
mark indicates teams are working More than one-third of responses
from data sources that are unreliable indicate little to no usage for these
and rapidly deprecated. It also means critical workflows. The challenge
decisions are disconnected from the to these organizations is more
official project archive. This results fundamental and will likely involve a
in a long-term disadvantage for the strategic re-examination of current
priorities and technology investments.

How frequently does your company use apps on mobile devices to access
project data and information and collaborate with stakeholders (i.e. for
more than just making/receiving emails, phone calls, and text messages?

24% 22%
21%
18% Usage lower than 80%
indicates that teams are

15% working from data sources

that are unreliable and
rapidly deprecated.

<20% 20% to 40% 40% to 60% 60% to 80% >80%

Inconsistent app usage

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 34
Chapter 4 - Purchasing Mobile Devices is Not Enough

Expectations with construction tech

are often met, but should they be?

In their own words, respondents’ communication and sharing project

experience with construction-specific data. Construction teams
technology or software has met or are purchasing these tools to solve
exceeded expectations. While there the challenges they are experiencing
are instances of failed technology in the field, but only one-fifth are
deployment, a greater number of properly leveraging them. It is
people are finding success. Nearly possible that the feedback loop
four times the number of respondents is not complete, meaning the
had an experience with technology decision-makers for technology
that exceeded expectations (39% of are getting an incomplete picture
respondents) versus those that had of how solutions are being adopted
failed efforts (11% of respondents). by the users in the field. Even if this
user feedback is being taken into
There is a clear disconnect between consideration, it seems safe to
the satisfaction respondents have suggest that expectations are being
with construction technology and the set too low for the evaluation of
actual utilization of mobile devices for construction technology.

What has been your experience with construction-specific

technology or software compared to expectations overall?

14%
Significantly exceeded
expectations significantly exceeded

25%
Somewhat exceeded
expectations

Met expectations
50%
10%
Somewhat failed
expectations

Significantly failed
expectations 1% significantly failed

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 35
Chapter 4 - Purchasing Mobile Devices is Not Enough

There’s great potential in

construction tech to be realized

Almost half (45% of respondents) Project Management and Estimating

believe they have broadly or fully are the most consistently adopted
deployed construction-specific technologies, but Field Supervision
technology or software across their and Financial Management are
organizations. However, this may equally essential to project delivery.
be overstated. Of the eight ways Technology specifically aimed at
that respondents could select as improving the connectedness of field
examples of utilizing construction- teams is a relatively new category
specific technology or software, more within the overall construction space
than 69% selected four or fewer and the adoption gap suggests that
examples, while 52% selected three there is progress to be made in fully
or less. Respondents indicate having realizing that potential.
successful technology deployments–
but with so few categories of
utilization selected, the numbers just
don’t add up.

Which of the following teams or business units within your company currently
utilizes construction-specific technology or software? Select all that apply.

Project management
426
Estimating 353
Field supervision 307
Financial management
223
Client relationship
management 149
Business development/
marketing 132
Risk management
112 Other responses
Other 34 Safety
Design
BIM/VDC

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 36
Chapter 4 - Purchasing Mobile Devices is Not Enough

Why construction technology

expectations are not met

The most frequently cited reasons for Reasons for technology

missed expectations for construction- expectations not being met
specific technology or software

36
was poor fit with their existing work
processes and procedures (36% of
respondents), low adoption (25% of
respondents) and not integrating with
% Voted poor fit with their
existing technology and software existing work processes
(22% of respondents). There is a clear and procedures
relationship between inadequate

25%
training (22% of respondents) and
the tools being difficult to use (19%
of respondents). This ties directly
into poor implementation and rollout Voted low adoption
strategy (17% of respondents).

When your expectations of construction-specific technology

or software were not met, what was the underlying reason?

Poor fit with our work

processes and procedures 36%
Low adoption
25%
Did not integrate well with
existing technology and software 22%
Inadequate training
22%
Difficult to use
19%
Poor implementation/
roll out strategy 17%
Error prone/unreliable 14%
Other 11%

Construction Disconnected - Rethinking the management of project data and mobile collaboration to reduce costs and improve schedules 37
Chapter 4 - Purchasing Mobile Devices is Not Enough

Why construction technology

expectations are not met

In the usage spectrum of construction upon rollout. It also seems that

specific software, users that showed teams are not providing the proper
moderate use were most disappointed level of training to their users, further
by poor fit with existing work processes decreasing adoption levels and
and procedures. Respondents who missing user expectations.
exhibited maximum use were most
disappointed by inadequate Teams are adopting mobile
training and error-prone software. technology, but many are not
Respondents who showed minimal implementing the right strategy for a
use were most disappointed by poor successful deployment. It is important
fit and low adoption. to understand the specific workflows
and needs of the team while reviewing
Organizations are not receiving input potential solutions with real input
from their end users in the decision from the end user. This will help in the
making process, leading to poor selection of a solution that is easy to
fit and low adoption of technology use, achieves high levels of adoption
and delivers impact.
Construction Disconnected

The construction industry has Construction teams are now

reached a turning point. Firms are feeling a sense of urgency to fully
recognizing the need to enable better embrace technology to help drive
communication and access to project productivity. With 35% of time spent
information for their entire team. on non-optimal activities like conflict
However, many are off to a rocky resolution, dealing with rework and
start in this transition and the looking for project data–the costs are
opportunity remains for firms to quickly stacking up. The most striking
optimize how to invest in and example of this unnecessary spending
approach technology deployment. is the cost of rework caused by poor
data and communication, which will
Industry leaders need to better be $280 billion worldwide in 2018.
strategize the rollout of mobile devices
alongside best in class solutions that The industry is thinking about
are proven to support the workflow technology for the right reasons.
needs of their teams in the field. With Top firms are providing funding for
strategic deployment, you increase technology research to find the most
the chance of achieving the high effective ways to help their teams
levels of technology adoption needed build well. While waste on the
in the field and office. Objectively construction site will never be fully
implementing and evaluating a pilot eliminated, there is great hope for
program will allow teams to make the a dramatic increase in construction
right choices for mobile device and productivity on the horizon.
technology rollout.

Today, very few decision makers

are including potential users in the
decision making process before
making technology investments.
Teams need to employ a methodical
approach to the rollout of
construction technology by including
all stakeholders; otherwise, adoption
levels will continue to be low.
Leaders also need to focus on
refining their relationship with the
tools they’ve already deployed,
choosing the correct next steps in
integrating new technology and
further reducing waste.
PlanGrid is the first construction productivity software that allows contractors
and owners in commercial, heavy civil and other industries to collaborate,
collect and share project information from any desktop or mobile device
through the entire project lifecycle. PlanGrid increases project efficiency by
streamlining document management, providing construction teams with easy
access to all project information from any device and enabling seamless
collaboration within teams.

PlanGrid is used on more than one million projects across commercial, heavy
civil and other industries in 90 countries. Headquartered in San Francisco and
founded in 2011, PlanGrid has $69 million in funding from Sequoia Capital,
Tenaya Capital and other top venture capital firms.

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For over 65 years, FMI has been the leading management consulting and
investment banking firm dedicated exclusively to engineering and construction,
infrastructure and the built environment.

FMI serves all sectors of the industry as a trusted advisor. More than six decades
of context, connections and insights lead to transformational outcomes for clients
and the industry.

FMI helps you build your foundation for tomorrow and optimize your business for
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Authors Eric Thomas Peter Schott

Content Marketing Manager Senior Product Marketing Manager
PlanGrid PlanGrid

Jay Bowman Jay Snyder Natalie Spare

Principal Technology Practice Leader Data Consultant
FMI FMI FMI

Designer Lynn-Kai Chao

Senior Graphic Designer
PlanGrid