The Role of Technology in Revolutionizing Construction Practices

BIM Technology is revolutionizing the construction industry and building contractors are at the forefront of this transformation.

The construction industry is undergoing a digital transformation like never before. Building contractors are starting to use software applications to collect data and manage information. Construction market research data shows that 79% of building contractors used some type of software to manage data in 2023.

That's a big deal.

The days of paper blueprints and manual work processes are quickly fading. Software applications are being adopted that drive more streamlined work flows and better project outcomes. Firms that are adapting to this new reality are seeing opportunities. Those that are not are increasingly at risk.

• What does it mean to be a digital builder?

• What role does building information modeling play in construction?

• How is BIM software changing how building contractors work?

• Which emerging technologies have the potential to be game changers in construction?

• How can building contractors overcome obstacles to technology adoption?

Building contractors are transforming the construction industry

Construction technology is no longer an option. It is quickly becoming the new normal in the construction industry. The global construction technology market is on a fast track to growth. Analysts project it to expand from $7 billion in 2025 to $30 billion by 2035. That's a compound annual growth rate of 16.9% over the next decade.

That's not by accident. Building contractors are embracing new technologies because they are starting to solve real problems. Construction projects are getting more complex. Tighter deadlines and less room for error mean that old ways of working can no longer keep up.

Results are starting to speak for themselves. JD Residential's data is showing that building contractors are getting real value from new technology. The companies that are adopting new technology are seeing marked improvements in project delivery and client satisfaction.

Building Information Modeling (BIM) is a big deal

If there's one technology that stands above the rest right now, it is BIM. Building Information Modeling has become the foundational technology of modern construction practices. The global BIM market was valued at $8.06 billion in 2023 and is expected to reach $9.43 billion in 2024.

Why is BIM growing so rapidly? BIM is a complete reimagining of how building projects are planned and executed. The old days of 2D drawings that everyone interpreted differently is coming to an end. Contractors are instead creating detailed 3D models that are clear and easily understood by all stakeholders.

The results are real. One study found that augmented reality applied to BIM led to a 90% reduction in errors and a 30% increase in efficiency. Better accuracy and fewer mistakes mean lower project costs. Efficiency gains mean shorter project timelines.

BIM also facilitates greater collaboration between all parties involved. Stakeholders all have access to the same, up-to-date model that they can see as changes are made in real time.

Artificial intelligence (AI) is not a fad

Artificial intelligence has finally moved beyond buzzword status and into practical applications that are delivering value. AI is being used in a variety of different ways to help construction firms. The software can be applied to project data to predict potential project delays, optimize resource allocation and proactively spot safety hazards before they occur.

AI has a wide range of applications in the construction industry. Construction market research insights are showing that AI has the potential to mitigate risk, improve safety and remove repetitive, administrative tasks like processing invoices and matching them to purchase orders.

Automation is not far behind AI in construction applications. Robotics and automated equipment are now taking over repetitive, labor-intensive work on construction sites. Market data is showing that the global construction robot market will see 13.6% annual growth between 2021 and 2026.

Automation is not replacing skilled workers. Instead, it is freeing them up to do more with less time and effort required.

Drones, remote monitoring

Drones have gone from novelty to a must-have on construction sites. The global construction drone market size hit $5.1 billion in 2024 and is expected to grow to $5.49 billion in 2025.

What is making drones so valuable to construction firms? The devices provide a high-level view of an entire construction site in mere minutes. Using drones to provide real-time building materials measurement led to a 61% improvement in measurement accuracy. More accurate measurements mean less material waste and better cost control.

Safety is another big win for drones in construction. Contractors are flying drones with high-resolution cameras and other sensors instead of sending workers into dangerous or hard to access areas to conduct inspections.

Remote monitoring is not just about drones. IoT sensors are being installed all over construction sites to monitor equipment usage and other factors.

Cloud-based collaboration is a game changer

Construction projects always involve dozens, sometimes hundreds of stakeholders. Cloud-based software solutions are quickly becoming must-have tools for project teams.

Cloud platforms provide a central source of truth that all stakeholders can access from anywhere. Real time collaboration is now possible. Architects, engineers and contractors can work together seamlessly regardless of physical location.

Mobile access is also a game changer. Contractors are increasingly able to review specifications and mark up drawings on-site with mobile devices.

Obstacles to building technology adoption

The road to technology adoption is not always smooth. There are some real hurdles that building contractors must clear before technology can start delivering value.

Cost is the first barrier. Purchasing high-quality BIM software and all of the supporting infrastructure is not cheap.

Skill gaps are also a major obstacle. Workers who have been in the construction industry for decades are not likely to be digital natives. Firms need to invest in training and education for their existing workforces.

Finally, there is always going to be some level of resistance to change. Some contractors just don't see the value in technology and view these digital tools as a threat to well-established work processes.

Push through these obstacles and data shows that the early adopters will come out ahead.

How to make technology work for building contractors

Just buying software doesn't guarantee success. Contractors must have a clear strategy to be successful. Focus in on a couple of technologies instead of trying to do everything at once.

Training is key. Expecting a workforce to use software without proper training is a mistake.

Integration is also very important. Isolated software solutions that do not integrate well with each other do not solve problems.

Contractors also need to set clear metrics to help define what success looks like with new technology.

Summary

Technology is a game changer. It is helping building contractors do what they do better than ever before. A wide range of different digital tools are solving real problems in the construction industry.

Building contractors that embrace technology are getting real value. The gap between the haves and have-nots is only going to continue to widen.

Investment costs are high. The learning curve is real. But the potential payoff is there for firms who are willing to make the effort. Better project outcomes, happier clients and a more robust competitive edge are all waiting on the other side for firms willing to make the leap.

Contractors should start now in order to determine which technologies make the most sense for their specific operations. The future of construction is digital. But that future is already here.