Monday, February 25, 2008

The acceptance of the Internet as an information exchange medium in the construction industry

It is a well known fact that, when compared to other industries, the construction Industry is slow to change. For example, computers have been around for many years and are proven to be efficient tools for better management. Knowing this, a survey done in 1994 by the Construction Association of Nova Scotia showed that there were still approximately 10% of contractors that still did not own a computer. Is this an indication of how the Internet will be accepted by the Construction Industry?

To answer this question, a detailed literature review was done in several journals, news articles, and research papers in order to show the past and present trends of the Internet in the Construction Industry. These trends were then used as a tool to project the trends for the future. The articles relating the construction Industry with the Internet were found and documented based on the selection of key topics discussed in each article. The key topics are networking, software implications and areas for improvement.



Networking

The general idea behind networking is to allow multiple users to have access to the same system of files needed to perform a job. It eliminates relocation and retraining costs because it allows for different people to work on a project as a team no matter what their location. " This technology offers more than speed. Networks can remove the traditional delineation between design and construction. Engineers, constructors and owners will begin to think about projects as an information sharing process so that things get done right the first time." (Wright and Setzer, 1993, pg. 30)

Connectivity was the initial buzz word in the industry and in early 1994 the first construction organizations began popping up on the Internet. There was a big drive to get connected and go on-line by creating organization web sites. It then soon became apparent that the Internet was the place to be for finding construction information. Web sites specifically tailored to the construction industry are now available. Each site has its own specific orientation, some are directories, some are bulletin boards, some are dedicated to providing information and some are more commercially oriented.

Intranets are also becoming prevalent in organizations which allow only their employees access. Some firms have web sites for the outside world and Intranets for their employees. The Internet threatens the usual top down hierarchy of a firm and promotes teamwork. "It's a different world and it's clear that the power of teams of people is considerably more potent that the power of individuals or little wedges and slices of enterprises"(ENR, 1996a, pg.66) Although it is important to foster teamwork among the employees of an individual firm, it is also very important to promote teamwork within a project. Project specific web sites are now being developed for this reason. A project specific web site can provide information such as schedule updates, progress photos and reports, current weather, change orders, drawings, specifications and the list goes on. They will also allow for the exchange of information by uploading and downloading, on-line communication by e-mail or forums and video conferencing for meetings. "There is perhaps no industry better suited to take advantage of the Internet than construction. It is by nature a remotely-operated business where hundreds of companies may come together to construct a project."(ENR, 1996b, pg. c-4)

Software Implications

The two main points discussed in this section are software integration and new software. Integration is not a new topic in the industry and it is clearly known that it is needed in order to improve information exchange. Having one package which will provide all the different aspects of project management for example, such as scheduling, estimating, budgeting, cost control and quality management to mention just a few and for all the participants in a project to have access to this package is the goal of integration.

"The PC's ability to move CAD files to remote machines is just a starting point. Electronic mail, video-conferencing, three dimensional simulations, video movie creation and playback, and integrated databases for scheduling, estimating and financial applications are just a few of the features either already running on design and construction networks or on the way."(Wright and Setzer, 1993, pg. 27) New software which attempts to integrate different aspects of the industry is continually being developed and researched.

Main Areas for Improvements

When it first became apparent that the Internet could be useful for the Construction Industry, many firms went on line in order to gain a competitive advantage over there neighbors. These firms created web sites to market and promote there company. As stated by Schriener (1995), "the Internet still is the Great Unknown to many people and organizations. But more construction firms are exploring possibilities beyond the easily achievable passive online brochure. They want to be ready for customers and new technology that will expand the capabilities of the Internet for marketing, job recruiting and customer service."

Not only is the Internet useful for marketing but it can also improve communication and project management. The lack of communication and information fragmentation are two key problems within the construction industry. The method of information exchange between individuals or groups within a firm or with external agencies is a vary important aspect of business. It has been clearly shown that, with better communication, a project will run smoother with fewer problems, misunderstandings, addendums, claims, litigation and more. This ultimately leads to an earlier completion date and lower costs.

The use of networking promotes teamwork, information sharing and ultimately improved communication. As stated by Wright and Setzer (1993) "construction firms that have been using networks as they've developed tout the advantages: improved communication, better project and financial management, and reduced travel and training costs

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