How to Leverage Data in Utility Construction Projects

Article

Construction in the utilities sector is undergoing significant disruption in the post-COVID era. Despite the expansion of business opportunities in utility construction, profits are on a continual decline due to inflation rates and other constraints within the supply chain

Source: Deloitte Construction Data Survey (2023)

According to the Deloitte Construction Data Survey of 2023, findings from Autodesk’s survey of over 1,275 construction executives reveal that more than half of businesses perceive a notable increase in the costs of raw materials (52% of businesses) and labor (37% of businesses), leading to erosion in their profits. The cost to complete capital construction projects has surged by 15% to 25%, and in some cases, even more.

In such challenging times, leveraging data will undoubtedly be pivotal for realizing profit growth and thriving in a competitive environment.

Adopting data collection, analysis, and informed decision-making offers numerous benefits to businesses. Among these benefits, the most common is the reduction in project costs (cited by 33% of businesses according to the Deloitte Construction Data Survey 2023).

Source: Deloitte Construction Data Survey (2023)

Working with gas & electric utility clients and underground utility construction contractors, we’ve observed the following common benefits of data utilization:

Cost saving
Tracking and measuring KPIs (Safety, Operational, and Financial)
Streamlining business processes
Informed decision-making
Driving innovation

Despite the potential advantages, a survey by Autodesk indicates that while construction companies collect 13 different types of data, only 30% of them effectively collect, analyze, and make decisions based on this data. It’s striking that 35% to 45% of companies either don’t collect data or collect it without subsequent analysis.

Commonly captured data in the utility construction project includes,

Financial data (budget, actuals, and forecast)
Project progress data (WIP and % complete)
Labor hours and production rates (MH/Unit & $/Unit)
Safety & incident data
Change orders & RFI

Source: Deloitte Construction Data Survey (2023)

However, many businesses encounter barriers to implement data-driven insights into their processes. Over 90% of construction businesses face at least one of the following challenges:

1) Obtaining skilled resources: (identified as a barrier by 25% of businesses according to according to the Deloitte Construction Data Survey 2023) This presents a significant challenge, particularly in a market where such resources are already scarce. Recruiting individuals with both construction expertise and data analytics skills can prove challenging. Nonetheless, addressing this obstacle is addressable through the establishment of in-house data teams and investment in comprehensive training programs.

2) Data quality and security: This is the most common challenge we have seen across the sector including utility companies and general contractors, regardless of their size or scale. It’s not uncommon for data analysts to spend an average of 60%-70% of their time on data cleaning and data organization. To tackle this issue, creating centralized data teams and implementing standardized processes and procedures can be effective solutions.

3) Budget Constraints: Inadequate investment in appropriate tools and technology, particularly among smaller contractors, is a prevalent issue. This challenge can be mitigated by prioritizing investments in data infrastructure. Encouragingly, there has been a notable shift in the mindset of business executives who are increasingly recognizing the benefits of data and allocating resources to suitable data infrastructure projects.

4) Lack of Strategy: A lack of strategic direction and leadership buy-in poses a significant hurdle. Even with access to data and infrastructure, achieving meaningful results remains elusive without a clear roadmap and strategy. Addressing this challenge entails identifying priorities and objectives with defined timelines, ensuring alignment with organizational goals.

To become a data-driven organization, businesses can take several steps:

Foster an in-house data culture and develop relevant skills.
Establish an organization-wide data strategy.
Centralize data teams and implement standardized processes.
Build motivation for change.
Identify and pursue quick wins.

At Clarisight Consulting, we are focused on helping our clients harness the power of their data to make informed decisions and data driven insights.

Our analytics practices enable our clients to stay at the forefront of construction technology advancement leading to efficiency gains and competitive advantage.

Please reach out to us at info@clarisight.com to explore how can we collaborate and transform challenges into opportunities and take your business to new heights.

Disclaimer: Please note that the data presented in this article is sourced from the Deloitte Autodesk – State of Data Capabilities in Construction (2023) report, available at the following link:

Deloitte Autodesk Global Construction Survey
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