How digital tools and AI can transform project outcomes in construction

Digital tools and artificial intelligence (AI) are revolutionising the construction industry. With the value of global construction work forecast to grow from US $9.7 trillion in 2022 to US $13.9 trillion by 2037, the pressure is on to deliver projects more quickly, efficiently and safely. This challenge is compounded by the need to address climate change and the transition to net zero. These goals will be unachievable unless the industry galvanises to prioritise digital transformation as a vital part of project delivery.

To get a better grasp on the current landscape, we surveyed our office leads to inform Gleeds’ Global Digital Construction Outlook 2024. The vast majority (90%) expect their local market to increase investment in digital tools and AI over the next two years

In this series, we’ll explore opportunities to augment project delivery through the adoption of innovative and emerging technologies. First, we’re going to look at the benefits of using a digital PMO service for all project data and reporting.

What is a digital PMO?

A project management office (PMO) is an organisational structure that supports the effective delivery of projects, programmes or portfolios. It enhances communication and collaboration, resource allocation and efficiency, while improving processes and simplifying compliance.

Building upon the traditional PMO, a digital PMO leverages technologies such as AI, cloud computing and data analytics to further enhance governance, standardisation and facilitation of project management processes, and ultimately outcomes.

One of the solutions at its core is a project portfolio management platform that connects systems and data across different business functions and tools, and integrates all that information within a single environment. This centralisation has particular benefits for organisations that are managing extensive estates or multiple projects.

A clear, unified view of performance

The high level of visibility provided by a common data platform enables efficient end-to-end monitoring of construction projects, with continuous oversight of progress on all activities from initiation to completion. Solutions will typically include features for document management, resource management, time tracking and risk management, among many others.

Manual data collection, processing and reporting – often involving the use of cumbersome spreadsheets – is replaced with automation. This reduces errors and miscommunication and creates an audit trail that promotes transparency and consistency.

Higher value work

There are also operational benefits to be reaped from eliminating disjointed ways of working. Improved information management and standardised processes streamline coordination between project teams and stakeholders. At the same time, project managers are liberated from mundane, labour-intensive tasks to focus on the more strategic elements of their roles.

Data-driven decisions

Most project and portfolio management platforms will capture knowledge from multiple sources and present it in a consolidated form, in real time, via a dashboard. This creates a ‘single source of truth’ which is immediately accessible across all teams, leading to faster and more accurate decision-making.

Embedded advanced data analytics will push the ability to be responsive even further, making it easier to understand how project performance is impacting the company’s overarching strategic objectives, and to predict opportunities, trends, and risks.

One of our clients in the Education sector has improved governance oversight and decision-making across its estates and facilities PMO, through implementing Gleeds’ Orchestrate solution. It manages a complex portfolio of over 300 projects annually, serving more than 37,000 students and 4,000 staff. Orchestrate has enabled the team to move away from its “expansive spreadsheet data” to a greater strategic understanding of information and performance against priorities.

Don’t leave value on the table

Traditional PMOs increasingly fall short in supporting today’s complex, time-pressured construction projects. It’s a fact that silos persist in most businesses, within project data, teams, plans, and goals. This disconnection has a direct impact on efficiency and profitability.

Emerging technologies have great potential to reduce the time, effort and cost involved in project management – but we need to remember they are enablers, not a panacea. Digital PMO solutions such as Orchestrate help to integrate best practice into project teams’ daily activities, ensuring adopted technologies are used properly and consistently, and that their benefits are fully realised.

Orchestrate creates alignment by connecting data across different business and programme functions, and all the different tools the organisation uses. Designed to meet the unique requirements of the construction industry, it processes, analyses and integrates information from multiple sources, and visualises it within a centralised dashboard. Clients who have used this platform report up to 60% faster collection, structuring and reporting of portfolio data and a 30% improvement in the accuracy of budget reporting across portfolios.

Learn more about Orchestrate and how it can support with better project delivery.