Technology driving big changes in construction industry

No matter what industry, businesses that are quick to adapt with new technologies are driving efficiency, accuracy and profitability, and gaining a competitive edge. The construction industry is no different.

In a recent sigma study, the Swiss Re Institute has found several interesting insights on technological innovations that will have both, a positive and negative impact on the construction industry.

Benefits of the technological innovations
The technological innovations have quite a few benefits, such as:
• More control over the monitoring and management of engineering related risks
• An increase in accuracy and productivity in the case of robotics.
• Higher efficiency in project coordination’s.
• In the past, creating and sharing design information in real time was a bit of a challenge for construction companies. Now, with the ever-advancing technology, project managers are abled sharing of digital sketches, and receive feedback in real time. This way, the daily operations of construction companies are improving significantly.
• The amount of technology-led construction start-ups have also been on the rise which is opening doors for digital opportunities in the industry.

As suggested by the sigma report, the combination of various technologies could one day lead to unmanned civil engineering and construction sites as soon as 2050. We could expect to see robots using dynamic new materials to build structures, with the use of drones to continuously monitor the site to identify and solve problems as they arise.

Concerns of the technological innovations
Where the technological innovation has helped advance the construction industry, there are concerns that could impact the environment.

It has been said that the opportunities for cybercrime will increase due to the use of remotely accessible systems such as autonomous vehicles, project management software and BIM (Building Information Modelling). The integrated robotics that will be assisting in the building and monitoring of worksites rely on data sharing and IoT technologies which may be vulnerable without anyone knowing.

In the event of an accident, the potential scale of damage may increase drastically as the construction and engineering industry begin to adopt high-end computer and electronic equipment.

As global industries become progressively interconnected, there is a higher chance that losses from the financial-related /non-damage risks will accumulate. This will have an impact on the insurance industry. As “the expansion in scope of insurance to include more financial-related/non-damage risks may mean that even though the frequency of losses may be permanently lower going forward, the severity of claims might remain significant”.

The sigma report also highlights that engineering insurance will play an important role in supporting economic activity. Suggesting that several large infrastructure and construction projects may require certain policies for them to be given the go ahead. For example, operators of industrial machinery would be constrained if they were not able to protect themselves against losses.

Ensure you are covered for the unforeseen circumstances
Whether it is because of the regulatory changes, technological advances or the influx of new project delivery methods, contractors need tailored insurance coverage and specialized resources to meet unique construction project requirements.

If you are a general contractor, specialty trade contractor or joint verdure owner/developer, Bonded Insurance can cover your wide-ranging needs. For an expert advice on the best insurance options available to you to cover your business and your team, contact Bonded NZ.

We look forward to hearing from you!