Fady Kobersy On The Fundamental Change In The Regional Construction Industry Through Digitisation | |
Staff Writer |
Digital transformation and sustainability are at the top of the list in the construction industry. What makes this partnership so important, is that both are future oriented. Digitalisation plays a significant role in reimagining construction.
In this exclusive with Thirty to Net Zero, Fady Kobersy, Head of Sales & Customer Success at RIB CCS chats about helping construction executives and organisations to transform projects for optimum performance, upstream control, and ROI. He stands at the intersection of sustainable construction and digitalisation and through careful detailing Fady Kobersy shares how he is striving to keep his clients ahead of the game in the sustainable fray.
Q: How has technology enabled the Construction industry over the past few years and how has RIB CCS changed the dynamics of this industry?
A: The construction industry is notorious for being one of the least digitally transformed industries worldwide. Although it is the single largest industry vertical in the world, it lags behind other industries in average productivity growth, only having grown by about 1% in the last decade. Approximately 80% of all construction projects run over time and/or budget, resulting in high levels of customer dissatisfaction.
Traditionally, information on construction sites has been managed and communicated verbally and via paper-based systems. A common challenge with this approach is miscommunication between on-site and office personnel which, in turn, leads to delays, lost time and money, and decreased morale.
The introduction of Computer-Aided Design (CAD), Building Information Modeling (BIM), supply chain integration, and mobile computing has set the stage for the modernisation of the sector and digital tools are becoming a staple of the industry. What is missing, however, is the seamless and meaningful integration of these technologies.
Companies that are succeeding in this area have embraced innovative software, which has helped them with the identification, quantification, and streamlining of work tasks, resulting in saved time, money, and effort. Digital tools support a host of functions and when they are successfully integrated, users can improve project planning, establish accurate timelines and budgets, and track work in real-time. In addition, contractors can use the data accumulated on digital platforms to improve communication, efficiencies, productivity, and safety, thereby promoting growth, improving profitability, and enabling sustainability.
RIB CCS’ role in the industry, which commenced more than 40 years ago, is to leverage the latest digital technologies with a view to empowering its construction clients to run their businesses better – making them more collaborative, transparent, efficient and sustainable.
But we are now at an interesting stage within the built environment with fit-for-purpose digital solutions that allow the journey to be fast-tracked. And that’s where RIB CCS comes in. It’s our mission to drive the digital transformation of the industry so that it can prosper for many generations to come.
We live this mission when we engage with our customers. It’s not just a sales process, but a partnership that lasts for many years, decades even. We become our customer’s trusted advisors and we show them not only how to use our software, but how to embed industry best practices into their organizations. We do this by hiring industry professionals who truly understand our customers’ challenges and address them via purpose-built solutions.
Q: When it comes to drawing up estimates Candy provides an interactive link between the bill of quantity (BOQ), estimate, and program in one project management solution. Tell us more about the process.
A: I was always fascinated by how Candy predated the BIM concept where it combined Data from drawings with the estimate, time, and cost all in one solution. Candy is a complete project control tool with multiple features that are built around the main core or the Bill of Quantity.
While being aligned to the client issued BOQ, importing this data to Candy unlocks a process for multiple departments allowing them to contribute and collaborate collectively and subsequentially during different phases of the project.
While measurements are taken through the Quantity take-off tool by Quantity Surveyors, results are directly linked to the same BOQ estimators are evaluating and pricing. Following the first principles of estimating with detailed drilled levels of resources can lead you to the smallest level of detail for each item on site.
In parallel to the cost estimate factor, a one-solution process provides BOQ information within the planning module to draft quick schedules all the way to detailed activities that output a full schedule like all other planning tools in the market. Besides being a versatile planning tool for site, this easy-to-use yet powerful Critical Path Scheduling system can link activities directly with bill items.
A ‘many to many’ links capabilities between bill items and schedule activities essentially building your cash flow analysis baseline. Not only can the money be extracted from the bill, but the resources behind the pricing of the bill items can also be spread over time. This makes it possible to accurately forecast resources required on a project, and as resources are grouped into Cost codes and accounting Ledger codes, money can be gathered in and fed through to the Cost & Allowable forecasting system mentioned above.
The time-money data from Candy produces the typical earned-value S Curves. This is not only from a pre-tender process; but also extends to post-tender where operational teams have immediate use of budgeted BOQ and start capturing progress on site, which can be daily, weekly, or monthly.
The project budget generates the procurement shopping list where our web-based ERP BuildSmart continues the costing side of the project through procurement, payroll, stores, and accounting.
Site progress on both Schedule and BOQ valuations feeds the Cost & Allowable in order to bring together the allowances to date to compare against actual costs to date. Allowances to completion can also be calculated in Candy and are compared to the forecast costs to completion, yielding the Cost at Completion and thereby closing the cycle.
The Cost & Allowable report is fundamental in assessing the project's current situation - what went right and what went wrong and understanding the impact on the remainder of the project - while also considering value engineering, ‘what if’ scenarios, and project variations. It allows the team to maintain clear visibility of the project completion situation, from day one till handover.
All the data, calculations, assumptions, and lessons learned from one project can be easily shared and applied to future projects through libraries and masters’ projects.
Q: Can traditional structures be more sustainable with technology?
A: While many engineering and construction companies have made sustainability plans and commitments, few have taken concrete steps to realize their sustainability goals. That’s because a lack of visibility presents a major issue when it comes to monitoring sustainable practices in their own processes, as well as those of their subcontractors and supply chains.
Technology plays an important role in empowering the entire value chain – owners, consultants, General Contractors, subs, and suppliers – to make the right choices and understand their impact. Enhanced situational awareness comes from visibility, and visibility comes from the suite of ConTech tools the AEC industry brings into its planning, building, and collaboration processes.
Here are the first steps that AEC companies need to take to embed sustainability into their company strategies:
Q: Please tell us about the top 3 or 5 projects that you are particularly proud of.
A: While our software solutions have supported various projects around the world, we are particularly proud of the high-end projects our clients have been involved in the UAE and MENA Region, including the Burj al Arab and the Museum of the Future in Dubai, Yas Waterworld in Abu Dhabi, the Qatar stadiums and infrastructure for the 2022 FIFA World Cup and the Kingdom Tower in Riyadh and many others.
Q: What are the key opportunities in the MENA region for techno-enabled solutions?
A: The MENA region understands the importance of technology-enabled solutions and the role they play in economic growth and gaining a competitive advantage. Notably, about 50% of cities expected to become smart by 2025 will be in emerging markets and the Middle East.
The area is well positioned to harness its appetite for digital solutions to create viable smart cities that will, in turn, enhance the quality of services offered to their urban populations, reduce costs and resource consumption and allow for more effective engagement with citizens.
We see it has started in Dubai, UAE where it has set an example for other countries in the region and globally. Saudi Arabia, also in line with its vision, has a major share in many techno-based projects such as NEOM and Red Sea Projects. The same goes for other GCC counties like Egypt, Kuwait, and Bahrain
Q: What are the key reasons that software implementations fail?
A: Poor Change Management: Software implementation can be incredibly complex and difficult to orchestrate. To be successful requires a dedicated and skilled team to manage the process.
Unforeseen costs: Typically, this occurs when selecting software that requires a lot of bespoke development. This is because it is difficult to ascertain the total cost upfront. In addition, companies may want to continue to add features and make changes during the implementation process. There may also be delays and errors that occur during development. All these factors can lead to budget overruns and unforeseen expenses. Therefore, it is better to select a partner that has an industry-specific focus with a robust solution that is fit for purpose and ready to deploy.
Failure to plan: Lack of adequate and competent resources. Successful implementation requires a high level of planning and precision.
Unrealistic expectations: It is vital to select software that meets industry requirements and standards. Organisations need to do their homework during the purchasing process and select a software partner that addresses their key issues and requirements, to ensure they are met. Having realistic expectations of what the software can and can’t do before embarking on the implementation is a critical success factor.
Q: How important is it to have timely analytics for Project Management Solutions?
A: Being able to access analytics in a timely way is all about predictability. By making decisions in a virtual environment before implementation, project managers can ensure projects don’t run over time and budget and reduce the amount of rework.
Business Intelligence (BI) construction technology allows contractors to find, understand and document data. These tools assist the decision-making process, helping contractors to meet the ever-rising demands of the construction industry.
Construction projects make use of a lot of data from many different sources throughout the construction process. By applying BI tools, contractors can make the flow of data more manageable. The aim of this is to take all the information and turn it into something structured and actionable. BI reports and analytics tools take existing data and present it in a way that guides the decisions more clearly. This data consists of insights from past and present performance.
Here are some of the main advantages of using these solutions:
Access To Reliable Information
BI reports and analytics offer real-time data insights to help users to understand information more easily. Instead of sifting their way through huge amounts of data from different sources, BI reports provide a clearer source of reliable information when it’s needed.
Reduced Costs
BI tools make data collection and reporting far easier. It also allows more meaningful insights to be drawn from the data resulting in a better ROI. By making smarter use of data, construction projects can avoid poor decision-making that results in added costs.
Improved Decision Making
Instead of just looking at data as numbers, BI reports and analytics reveal data as it relates to the project. These tools make data easier to understand, which allows contractors to make smart data-driven decisions. Ultimately, this leads to greater project and business success.
Enhanced Insights Across The Project
A single BI tool can synchronize and coordinate various sources of data across an entire project. This data provides advanced insights for a better overall understanding of how the project is performing. As a result, it makes it easier to hit KPIs and achieve sustained success throughout the project.
Predict future events
Importantly, BI and analytics tools help in the anticipation of future events. While nothing can ever be certain, BI reports and analytics use predictive analysis techniques to understand what future scenarios will look like. Instead of just making guesses based on past performance, BI reports and analytics use advanced algorithms to help determine the possible outcome of certain actions more accurately.
How do you see the Future of AI and Mixed Reality in Construction play out in a big way a decade from today?
AI and mixed reality are already playing a significant role in the construction industry. Their usage will become more prevalent in the next decade, especially as they help boost productivity and profitability.
Previously, 3D models and physical plans helped with envisioning what structures would look like. Now, with mixed reality, interested parties can see and experience a structure, and even adjust it in real-time.
In addition, workers on site can get support from their colleagues elsewhere in the world using VR glasses or apps on their mobile devices.
Please tell us about your journey in the field. Do also tell us about a passion outside of work that you are particularly interested in.
I am a Civil Engineer graduate with a Master's in Project Management. I have worn the hard hat and been on site in both Lebanon and Saudi Arabia, where I gained most of my experience. Through my work, I realized that projects are not only constructed on-site with equipment and labour, but the digital side of planning, budgeting, and costing data plays an enormous role, and that’s where I became passionate about cost control. While researching systems to enhance the estimating and project control of the company I was working for in Saudi Arabia, I came across Candy, which we implemented along with BuildSmart, the Cost Management and Enterprise Accounting system. I am very tech-oriented, which is critical for our business, and am obsessed with keeping myself up to date on new developments in our field.
I am recently married and as much as I have invested in my career, my family brings a happy balance to my life, especially with a baby on the way.
When not working, I enjoy outdoor activities, like hiking, and scuba diving as well as being an avid music lover. In addition to the guitar, my latest passion is the saxophone, which I started playing during the covid lockdown.