Prof Senem Seyis, Professor of Architecture, Built Environment and Construction Engineering at the Özyeğin University in Istanbul recently gave a presentation on the digitalisation of the construction industry at the my2cents Blockchain Developer Conference in Istanbul. His presentation covered exciting technologies such as blockchain and IoT and how they will benefit the construction industry in the coming decades.

Seyis began her talk by comparing the state of the digitalisation of the construction industry to that of other industries. She highlighted that due to the construction industry’s conventional structure and labour-intensive nature, this is happening much more slowly compared to other sectors.

However, she noted that the digitalisation process in the construction industry has accelerated in recent years due to various reasons, such as increased technological capabilities, the needs of the next generation of workers, supportive policies and legal frameworks, and increased market demands for integrated processes and real-time data sharing among project team members.

Current inefficiencies in construction

Seyis highlighted several inefficiencies that can be tackled by new technologies in the coming years. Construction projects are often fragmented and prone to errors, requiring strong collaboration among multidisciplinary project team members. Inefficiencies in coordination, materials, and labour can consume up to 30% of construction costs, largely due to added activities such as defects, overproduction, and waiting, she said.

These activities are considered wasteful, as they do not add value and consume resources. The construction industry is one of the least digitalised industries, resulting in a high amount of waste.

Seyis pointed to the technologies that are currently being applied in the construction industry or that are at least under consideration. These include blockchain, the Internet of Things, cloud computing, wireless transport networks, radio frequency identification, building information modelling (BIM), artificial intelligence, drones, virtual reality, augmented reality, and mixed reality.

Using blockchain to advance construction

One of the most significant advantages of blockchain in construction is its ability to provide a tamper-proof and decentralised record of all project transactions. This includes everything from procurement and payments to material tracking and project management. By using a blockchain ledger, all parties involved in a construction project can have real-time access to a shared and immutable record of all transactions, which can help prevent disputes, reduce fraud, and increase trust between stakeholders.

Another significant application of blockchain in construction is in the area of supply chain management. The construction industry has traditionally struggled with issues such as material theft, counterfeiting, and delivery delays, which can result in significant project delays and cost overruns. However, by using blockchain, it becomes possible to create a transparent and secure supply chain, where every transaction is recorded and tracked in real time. This can help prevent the use of counterfeit materials, ensure timely delivery, and streamline the procurement process.

Blockchain can also be used to improve the management of construction contracts. Contracts are essential to any construction project, but they can often be complex and difficult to manage. With blockchain, it becomes possible to automate many of the processes involved in contract management, including the creation, execution, and enforcement of contracts. Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, can be used to automate contract performance, ensure compliance, and reduce the need for intermediaries.

Building Information Modelling via blockchain

Building Information Modelling (BIM) is a 3D representation of the building process that links intelligent objects and provides a collaborative and integrated working environment for multidisciplinary project team members. The process refers to the act of creating a building information model, and the system refers to the business structures of work and communication that improve quality and efficiency.

BIM uses dimensions to describe the type of information and the way it is presented, including 3D for modelling, 4D for scheduling, 5D for cost analysis, 6D for sustainability analysis, and 7D for facility management. Currently, health and safety are considered the eighth dimension of BIM.

The Common Data Environment (CDE) is described by the International Organisation for Standardisation as an agreed source of information for a project or asset, used for collecting, managing, and disseminating information through a managed process. It is a single source of information for sharing, managing, and collaborating with project team members, enabling efficient and effective delivery of real information in construction projects.

CDEs are cloud-based shared workspaces that include models, documents, and information in a collaborative and centralised environment, streamlining processes and linking building information throughout the lifecycle of the project. It facilitates strong collaboration between stakeholders and is crucial for collecting real-time data from construction sites using radio frequency identification tags and wireless sensor networks, allowing for traceability and monitoring of objects.

IoT in construction

IoT (Internet of Things) is defined as the network of physical objects, embedded sensors, software, and other technologies that connect and exchange data devices and systems.

IoT is used in the construction industry for monitoring various aspects such as weather, energy consumption, indoor air quality, garbage disposal bins, structural conditions, concrete curing location and conditions of materials, machinery on site, and location of workers on site. Real-time data collected through IoT is processed using artificial intelligence to generate meaningful insights and reports.

Challenges in the application of emerging technologies

At the end of the presentation, Seyis addressed the challenges that make the application of these technologies difficult and how these can be addressed. Digitalisation in the construction process may face obstacles such as management reluctance to change, lack of qualified personnel, lack of a dedicated digital transformation team, low awareness and understanding of the process, concerns about data security, outdated methods, and insufficient standards.

Overcoming these obstacles can be achieved through efficient data management, investing in employee training on information technology, adopting a holistic approach to the transformation process, promoting collaboration, seeking support from consultants, and increasing awareness about digital transformation.