Three In Five Australian Construction Leaders Say Data Analysis Helps Reduce Project Defects

Rhea-AI Summary

Procore Technologies (NYSE: PCOR) released new research indicating that over half (53%) of Australian construction leaders find it challenging to monitor quality assurance without integrated data management tools. This marks an increase from 2020. The survey of 153 leaders highlights a growing recognition of data's role in enhancing project quality and compliance. Despite three-quarters of respondents using some software, reliance on paper records remains a concern, particularly in health and safety management. A push for improved data utilization is evident, with many identifying cost-saving potential through better data analytics.

Positive

• 53% of surveyed construction leaders acknowledge difficulty in monitoring quality assurance without integrated data systems.
• 76% of respondents utilize some form of software for data capture in construction.
• 61% believe data analysis is crucial for achieving quality assurance outcomes.
• 36% state improved compliance significantly benefits from data capture, increasing to 66% among larger companies.
• 27% of businesses see potential to reduce operational costs by at least 20% through better data utilization.

Negative

• 38% of respondents report data collection is managed by different departments, causing fragmentation.
• 21% manage quality and compliance on paper, despite acknowledging it as impractical.
• Only 11% of small businesses use specialized software for quality control, limiting effectiveness.

New research from Procore reveals barriers and benefits of leveraging data to improve quality and compliance in construction

SYDNEY--(BUSINESS WIRE)-- Procore Technologies, Inc., (NYSE: PCOR), a leading provider of construction management software, has released new industry research showing a growing appreciation for the role of data in reducing potential defects and improving project quality outcomes. More than half (53%) of Australian construction leaders surveyed agree it is difficult to effectively monitor quality assurance without an integrated data management platform, an increase of eight percent from 2020.

Software use is growing, while paper persists (Graphic: Business Wire)

This research release is the second from a survey of 153 construction leaders around Australia conducted by ACA Research, which investigated the state of data-driven quality and compliance in the industry. The findings show that, while all companies surveyed are working with data to an extent, there is often a lack of communication and collaboration between different stakeholders in the process, meaning the potential benefits may not be fully realised.

“Technology and data will play a central role as the Australian construction industry continues to transform and focus on uplifting building quality,” comments Tom Karemacher, Vice President, APAC at Procore. “With an increasingly complex network of stakeholders to report to, and an urgent need for data accuracy and ease of reporting, it’s crucial that companies understand and address the barriers to better data capture and analysis.”

Software use is growing, while paper persists

As the construction industry continues its accelerated adoption of digital solutions, three quarters of all respondents surveyed (76%) are using some form of software to capture data across their business. However, some respondents continue to rely on paper-based records.

• Of all onsite processes, respondents were most likely to use paper to manage Health and Safety (24%)
• One in five respondents manage Quality and Compliance on paper (21%) despite 56% agreeing that paper-based Quality Assurance (QA) processes are impractical and increase the risk of re-work.
• Most respondents (58%) use standard office software for quality control inspections and certifications, and a further 23% of respondents use specialist software for these processes.

The increased use of specialist software for quality control and compliance is encouraging, however there is a widening gap between smaller and larger companies. Nearly half of the larger businesses (100+ employees) surveyed use specialist software for these processes (49%), while just 11% of small businesses (<10 employees) say the same. In all, 12% of respondents admitted they don’t have a digital system for compliance records.

Business barriers to data capture

Parts of the industry are still lagging in digital transformation, and inconsistent digital data capture across business processes and sizes could be the result of various factors.

The most common challenge is that different teams often manage their affairs separately within an organisation, meaning there is no central, up-to-date repository for documentation across the business.

Survey respondents identified the collection of data by subdivisions as the biggest barrier to accessing data, with 38% saying compliance data is collected or handled by different parts of the business.

Benefits of data analysis for QA processes

There are clear benefits of using data analysis for QA processes. Larger businesses stand out for their recognition of the drawbacks from paper-based QA processes (66%), and the value of data analytics when it comes to achieving the desired QA outcomes (77%).

• 53% of respondents agree it is difficult to effectively monitor QA without an integrated data management platform (up from 45% in 2020)
• 61% of respondents agree data analysis delivers insights that are crucial to QA outcomes
• 60% say defects are less likely to occur in sites where data analysis guides processes
• Improved compliance was identified as the second most common area benefiting a great deal from data capture and analysis (36%), rising to be the greatest area of benefit for 66% of Large companies.

The case for data-driven construction

Data is a tool that can allow processes to run faster and more efficiently, with a greater level of scrutiny. Construction leaders almost universally recognise the potential for more consistent and standardised data to benefit their business, but larger companies are most aware of the breadth of these potential benefits. Overall, data appreciation has grown since 2020, with 38% of respondents saying data capture and analysis improves efficiency and productivity a great deal, up from 34% last year.

All respondents recognise operational cost savings as a clear advantage in using data to drive decision-making, and many feel there is the potential to record further savings through more effective data usage. More than a quarter of companies (27%) believe they could reduce their operational costs by a fifth or more if they fully utilised all available data to drive decision making and better outcomes. Awareness has grown since 2020, when just 15% understood the potential to realise cost savings of a fifth or more.

“As Procore continues to track technology adoption in the construction industry, it is encouraging to see a growing appreciation for the value of data-driven business insights to improve project and business outcomes. The next step is to ensure all Australian construction companies have access to project information, data insights and benchmarks at their fingertips, reducing complexity and allowing quality and compliance needs to be easily met,” Karemacher concludes.

To learn about the most common mistakes that lead to rework and key strategies to improve construction quality, download Your Guide to Zero Defects here: https://www.procore.com/en-au/ebooks/meet-the-guide-thats-redefining-quality

About Procore

Procore is a leading provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore’s platform. Our platform connects every project stakeholder to solutions we've built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore’s App Marketplace has a multitude of partner solutions that integrate seamlessly with our platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at Procore.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908005171/en/

India Bednall / Evie Smith

Espresso Communications for Procore

procore@espressocomms.com.au

Source: Procore Technologies, Inc.

FAQ

What did Procore's latest research reveal about data in Australian construction?

Procore's research found that 53% of Australian construction leaders struggle with quality assurance without integrated data management tools.

How many construction leaders were surveyed in Procore's research?

Procore surveyed 153 construction leaders across Australia.

What percentage of Australian construction leaders use software for data capture?

76% of the construction leaders surveyed indicated they use some form of software for data capture.

What challenges do construction leaders face regarding data usage, according to Procore's research?

A major challenge identified is that 38% of respondents state compliance data is handled by different parts of the business.

How has the understanding of data's benefits evolved since 2020 in the construction industry?

Understanding of data's benefits has grown, with 27% of companies now believing they could reduce operational costs by 20% or more by fully utilizing data.