With its towering structures and ambitious projects, the construction industry has the human thirst for progress and innovation. However, beneath the skyscrapers lies a landscape fraught with challenges that demand innovative solutions.
Bhavik Savaliya, an authority in construction, steps forward with a keen eye to decipher and tackle these multifaceted challenges. From supply chain intricacies, resistance to advanced technologies, and the persistent labor shortage, Savaliya's insights spotlight each and provide innovative solutions to address these concerns and move the construction industry forward.
A Glimpse into the Challenges within the Construction Landscape
1. Supply Chain Challenges and Procurement
In this industry, the lead time is indispensable in dictating project timelines and overall efficiency. Lead time is the temporal span between ordering an item and its actual delivery on site, including preparation of the shop drawings and approval processes. According to Savaliya, the COVID-19 pandemic had resulted in lead time extensions caused by disruptions in global supply chains, logistical challenges, and workforce limitations. What was once a predictable process became complex, with many things that must be considered.
"The lead time for the emergency generators has worsened in the past three years. From 18-20 weeks in 2021, it has risen to 80 weeks, which has put contractors and end users in a difficult situation as they cannot close their contracts," Savaliya adds. "The same goes with electric switchgear, lab casework, and Air Handling units. All have been affected by longer turnaround times and delayed project completion dates."
The construction cost expert also highlights the importance of early identification of high-lead-time items to solve this major issue. According to him, the strategic release of procurement packages with the project's inception empowers stakeholders to reclaim control of schedules and avert potential litigations.
Furthermore, Savaliya also mentions the critical role that Contract Lifecycle Management (CLM) tools play in key clauses in construction procurement. According to Savaliya, CLM tools are designed to streamline and optimize the entire contract management process, from initial creation to final execution and evaluation.
Understanding its value, Savaliya has also created his CLM platform tailored for construction projects. He explains that in this CLM platform, parties have a detailed outline of timelines and deliverables to avoid errors and miscommunications and amplify efficiency and smoother approval processes. This platform also includes four key features currently scattered: template repository, workflow management, negotiations, and E-signatures. By seamlessly incorporating these four key features in a single CLM platform, Savailya addresses some of the most common pain points in the construction industry, leading to more efficient project management and ultimately saving time and money for all parties involved.
"When a CLM was successfully implemented, a significant reduction was found in liquidated damages on a construction contract. It also allows firms to generate intricate contract packages involving multiple sources and subcontractors. It employs intelligent tags to swiftly populate initial drafts, which can be submitted for approval," he says.
2. Left Behind by Technological Advancement
Despite the allure of operational enhancement and streamlined processes, a noticeable resistance exists towards adopting emerging technologies in the construction industry. According to Savaliya, the need to allocate resources hinders the industry's progress even when the benefits are evident.
In this struggle, Savaliya's expertise has created a cost-benefit analysis program that can determine and monetize the benefits of implementing new estimating software. As he applied this program in his current role, he enhanced his company's estimating process and produced high-level operational efficiency and cost savings.
"It's an approach that extends beyond mere theory; it's a pragmatic strategy rooted in tangible outcomes," he adds.
Savaliya's adeptness in enhancing productivity within preconstruction demonstrates the alignment of innovation and industry wisdom. This harmony offers construction companies a calculated roadmap and encourages them to embrace emerging technologies.
He mentions, "This program will give construction firms an overview of why technology isn't a mere expenditure but an investment in a more efficient and competitive future."
3. Labor Shortage
The aftershocks of the 2008 Great Recession and the disruptions stemming from the COVID-19 pandemic have precipitated a decrease in skilled laborers. A recent Associated Builders and Contractors report shows that construction workers aged 25 to 54 have declined 8% over the last decade.
Savaliya's remedy to this challenge is implementing company-wide training programs to address immediate skill gaps and achieve long-term solutions. He recommends meticulously crafting training manuals for various skilled positions and periodic skill evaluations to approach the situation sustainably and proactively.
Investing in new technologies and collaborating with educational institutions to establish apprenticeship programs will also help build a new generation of skilled construction professionals.
A Visionary Force for the Construction Industry
The construction industry's challenges are complex, making the role of construction cost experts like Savaliya vital. His years of professional experience in commercial construction provide strategies that not only diagnose the root causes of challenges but also provide tangible solutions that solve the issue spot on.
The expert's profound understanding of construction intricacies and a keen eye for emerging trends position him as an architect of change. His solutions, such as the customized CLM platform for contractors, Cost-Benefit Analysis for construction tech, 3D model-based estimating tools, value engineering, and construction cost database management, not only alleviate present concerns but also provide a resilient foundation for the challenges that may arise in the future.
Savaliya's insights remind construction professionals that growth, innovation, and transformation opportunities are all a part of the obstacles. With his guidance, the construction industry can overcome issues and emerge more resilient and better equipped to face the future.
