Traditional challenges in construction claims management often involve manual processes and extensive paperwork. Such manual processes consume valuable time while increasing errors and data discrepancies, and contributing to communication gaps. To overcome these challenges, construction industry stakeholders can embrace digital solutions that streamline processes, enhance communication, and provide real-time visibility into project data. Thus, new technology can foster a more efficient and transparent construction claims management system. However, new technology can introduce new challenges as well as new responsibilities and resource requirements. It is important to take those factors into consideration when deciding whether a particular technology would be a beneficial addition to your construction claims management system.

Harnessing Technological Solutions

Solutions like cloud-based project management systems can facilitate real-time collaboration and ensure easy accessibility to project data for all stakeholders. They offer robust document management and version control features, reducing the reliance on manual methods while reducing the risk of errors.

Building Information Modeling (BIM) is an approach that provides further innovative solutions to streamline data capturing and enhance communication. Throughout the project lifecycle, from design to data exchange during and after construction, BIM provides a uniform platform that enables stakeholders to collaborate in real time. When capital projects involve multiple parties, each with their own record, BIM can become crucial, since project data visibility is essential to effective project completion. Mobile applications designed for on-site data collection can also be leveraged as practical solutions for data management and enhanced communication.

The construction sector has also been impacted by developments in machine learning (ML) and artificial intelligence (AI) technology. Both ML and AI have significantly improved project planning, tracking, and contract administration. These developments enable users to assess data in real time and forecast problems such as cost overruns, safety risks, and disagreements.

Smart contracts in construction are a set of protocols that automatically execute when certain agreed terms and conditions are fulfilled. For example, when a milestone is achieved, smart contracts can approve a payment for processing. Smart contracts in construction offer more impartial contract administration and monitoring, decreasing the need for contract administrators and the potential for human error.

Factors to Address in Technology Adoption

Although new technology can save resources and provide useful information, adopting new technology does require input of resources as well. When planning or deciding whether to adopt new technology, it is important to consider the new challenges, risks, and responsibilities that new technology can bring with it. Examples of such important factors to consider are described below.

1. Resistance to technology adoption

   Construction professionals may resist change, such as the adoption of new technology, so effective implementation strategies are crucial. Addressing concerns, communicating the benefits, and involving stakeholders in the decision-making process can foster a positive attitude towards technology adoption. Continued human involvement through systems management and team guidance is important for ensuring that new technologies align with unique project needs.

2. Need for training

   Comprehensive training programs should be implemented to equip construction professionals with the necessary skills to use new technologies effectively. Training sessions should cover the technical aspects while emphasizing the practical applications of these tools, including in construction claims management. Ongoing support and resources must be provided to ensure continuous learning and adaptation to evolving technologies.

3. Alignment with partners

   When multiple parties collaborate as partners, the ease of integrating technology across organizations becomes an important factor to consider. Encouraging partner adoption of the same tools can be a way to promote systematic management, communication, and transparency. Partner adoption of tools includes establishing clear communication channels, sharing best practices, and ensuring that all parties understand the benefits of the technology.

4. Continuous review and improvement

   The technology adoption process is not a one-time event but rather an ongoing journey. Regular evaluations are required to identify areas of improvement and ensure that the technology aligns with evolving needs. Feedback from users, with consequent adjustments made to enhance the efficiency and effectiveness of the construction claims management system, should be included.

5. Potential technology failure and cybersecurity risks

   Technology reliance leads to the importance of considering and addressing risks related to that technology failing or being accessed by unauthorized individuals. Furthermore, as new technologies often collect data, confidentiality and proper data storage is an aspect to pay attention to both in technology use and in disclosures to parties. When working with technology, users should be clear on the ownership and access to data, including allowed permissions for viewing and editing content. Continued assessment of cyber security safety needs to be included for risk prevention and protocol for mitigation in the event of a breach.

Conclusion

As technological progress advances, many solutions become available to increase efficiency of various tasks related to construction claims management. Technologies can help create thorough documentation in a timely manner, facilitate collaborative communication between different parties, and more. However, it is important to be mindful of and plan for the time and resource investments required when adopting new technology. Given how extensively technology can be integrated into construction projects, and how difficult it is to switch technologies once adopted, thorough planning in advance is key. Choosing the right technology and adopting it carefully can make a substantial difference in prevention and management of construction claims.