The construction industry is suffering from tech lag

With the UK’s renewed vigour for national infrastructure and technology to fuel economic growth, the construction industry has the opportunity to reverse this trend.

First, let’s unpack the problem. Why are delays so prevalent? Our research shows capital projects are routinely stifled by increased project scrutiny, material and equipment availability issues, regulatory complexities, inadequate front-end planning, and surging costs.

The skills shortage is also particularly acute. More experienced engineers are retiring than joining the workforce, and at the same time, tech skills are becoming important but hard to recruit and retain.

While other industries have embraced digitisation, construction has curiously lagged. In manufacturing, smart factories and robotics have increased productivity and reduced costs. In retail, e-commerce has revolutionised the way we shop. But in construction, the same methods – relying on manual measurements and outdated communication channels – are still the norm. Too much of the industry remains paper-based with 47 per cent of infrastructure and capital project performance data collected in paper forms or spreadsheets.

The reasons for this tech lag are multifaceted. For starters, the construction industry is notoriously fragmented, with a long chain of suppliers and contractors, each with their own set of tools and processes. This fragmentation makes it difficult to implement standardised digital solutions. Moreover, change, especially in an industry where safety and compliance are paramount, can be seen as a risk and not an opportunity.

There are areas of promise. More modern approaches to project delivery, which encourage collaboration from the start, have been shown to reduce cost variance by around 10 per cent, compared to more traditional delivery methods. There is also more industry take-up of building information modeling (BIM), which allows stakeholders to collaborate on a single digital platform and generate a digital twin of an asset under construction. Virtual reality and augmented reality technologies are also helping to ‘bring stakeholders into the site’ to improve safety or simulate scenarios to improve training.

This isn’t just about adopting new technology – it’s about fundamentally changing the way projects are planned, executed, and managed. Strategic planning can help prioritise high-risk and high-value factors, involve the supply chain early, and bring in technology to enhance decision-making and risk management.

Crucially, the shift to a more digital way of working will require a change in mindset. This means fostering an environment where workers feel empowered to suggest improvements and see ‘failure’ as a learning opportunity, not a setback.

The opportunities are profound. The Scottish Government has pledged £2.6bn for public transport, including enhancements to ports, and data centres are being built across the UK. But practices rooted in the past are not going to help deliver the infrastructure being built today.

With better collaboration on digital technology, and confident decision-making fuelled by data, the construction sector can dig up its own foundations and help lead the country to economic growth.

Huda As’ad is Accenture’s Capital Projects lead in the UK. Accenture recently acquired Glasgow-based capital projects consultancy Soben