FMI Report: Going digital pays off
By Adam FreillConstruction
Research indicates significant upside from investment in effective and digitized preconstruction.
Effective preconstruction can make a big difference. According to the State of Global Preconstruction Report, sponsored by Procore Technologies, and authored, researched and published by FMI, organizations scoring above-average in preconstruction activities are 52 per cent more likely to report higher profitability than below-average organizations.
The report discusses the current environment for preconstruction and the characteristics of organizations that do it well, including what constitutes above-average preconstruction processes and the effects of efficient and digitized preconstruction.
Procore partnered with FMI, a consulting and investment banking firm dedicated to serving companies working within the built environment, to survey 979 construction industry stakeholders worldwide, including companies active in Canada. Participants were asked to describe the preconstruction practices in their organizations, tools and technologies, project experiences and outcomes.
Based on the survey, companies with above average preconstruction were linked to significantly higher client satisfaction, greater profits and fewer delays. The report also found that fewer than one-in-five are conducting above-average preconstruction, however, as based on five key factors outlined in the report.
In light of the findings, FMI recommends that companies:
- Review preconstruction processes;
- Start the preconstruction process early;
- Invest in dedicated preconstruction resources;
- Involve all project stakeholders; and
- Leverage technology to streamline the preconstruction process.
“The results from the State of Preconstruction survey are clear: investing in preconstruction can provide tangible returns on profit, schedule and client satisfaction,” said Tooey Courtemanche, founder, president and CEO of Procore. “Many of the most successful contractors around the world focus their efforts on preconstruction because ultimately, better planned projects drive better outcomes.
“Data shows that organizations are willing to invest in preconstruction, and construction is not slow to adopt technology but waiting for the right tech for their businesses. We’re proud to invest in Procore’s Preconstruction solution, which can help users manage designs, estimates, bids, and budgets across projects on one, integrated platform.”