In today’s business world, we meet our needs with technology. We email contracts to business partners and sign them online. We order parts, equipment, supplies, and uniforms from vendor websites. We meet remotely.
For better or for worse, that’s how things get done.
Yet, ask many working in the facility management space and they’ll tell you the real estate sector has simply not kept pace with digital service adoption. The industry is lagging others in terms of technology use – walking while others run. It doesn’t have to be this way.
There is plenty of room for modernization in the real estate sector and there are plenty of benefits to be enjoyed if we only embrace the opportunity.
Facilities Management: The Next Tech Frontier?
At times, the term “bricks and mortar” is often used in the pejorative to contrast a dated approach with fresh and modern version. But the construction industry is not solely responsible for being slow to incorporate digital solutions. The tech industry hasn’t historically been all that interested in creating solutions for the building sector either. That tide is turning.
A recent KPMG Canada1 study of 275 construction companies indicates that the adoption or property management technologies (commonly known as “PropTech”) may be necessary for the industry right to address the current skilled labour shortage. Some organizations are ahead of the curve. Properties such as the Edge, which is considered the greenest building in the world, uses digital technology to enhance the occupant experience and automate building control systems, are taking full advantage of PropTech in innovative ways. Perhaps the real estate sector is the next frontier for innovation.
|
“The most obvious benefit is efficiency. Another specific benefit is that with information technology comes more robust data that can be critical for demonstrating value for spend and effective stewardship of tax dollars.” |
Unlocking the Potential of Working Digitally
Increasing the adoption of technology goes far beyond building controls and advanced construction materials, – it is also a way of working. Concepts such as “teams of teams,” delivering products with Agile methodologies, and user-centric design, may seem foreign in real estate unless you specialize in interior design. This hesitation is understandable because tech ethos isn’t always appropriate for facilities management. Case in point: ”Fail early and often” is a common tech sector mantra. That’s a fine attitude for building an app, but it doesn’t apply when designing a load-bearing structure or building a water supply system.
However, we’re seeing that working digitally delivers exceptional products and services and appeals to the team-based preferences of a creative and innovative workforce. PropTech and working “digitally” also means modernizing how corporate real estate is delivered. Consumers and building occupants also expect to have access to services and information from facilities managers just as they would for services they use in daily life.
Data-Driven Decision-making
A key benefit of adopting digital services into existing facility management functions is the ability to incorporate advanced data practices so that organizations can make better and quicker decisions. Enabled by intuitive technology platforms, economic data such as local construction costs, and portfolio data such as facility condition and building performance can be used to improve many aspects of the value stream. Two examples are innovative contracting methods to expedite project commencement and capital investment planning systems. Combining sophisticated data practice and user-guided decision algorithms allows facility management, finance, and procurement teams to deliver on their mandates.
|
“Managing smaller projects like roofing, office renovations, and mechanical/electrical work presents formidable management challenges for us. The additional complexities of inflation and staffing compound the situation. However, amidst these obstacles, the JOC program offered valuable support, enabling us to navigate these challenges and fulfill our mandate with enhanced speed and efficiency.” |
From Theory to Practice
For those intrigued by the prospect of digitizing facility management and enhancing procurement processes, let us introduce you to Job Order Contracting (JOC). JOC is an innovative concept that streamlines the delivery of facility upgrades, maintenance work and construction project management by as much as 25%, according to a report by NIGP2. At the heart of a Gordian’s Job Order Contracting program is a Construction Task Catalog (CTC), a book of construction task costs researched and verified for the local market by data engineers and construction experts.
This data empowers organizations to budget accurately and creates positive long-term partnerships with contractors as it ensures fair pricing for all sides. Further, Gordian JOC programs are managed on a secure, cloud-based software program that expedites and fosters stakeholder collaboration and communication, eases the reporting burden and provides users everything they need to lead a modern, best-in-class program. Learn more about the services and solutions Gordian offers to revolutionize your approach to facility management and procurement.
Job Order Contracting (JOC) reduces this time significantly. 91% of survey respondents told researchers that the JOC project delivery method takes fewer than 12 weeks – that’s less than traditional project delivery. Further, nearly 70% of respondents reported that the JOC process takes fewer than nine weeks.
The author is affiliated with Gordian as Business Development Director for Canada.
1: https://www.cca-acc.com/con-tech-can-help-canada/
2: https://www.gordian.com/resources/job-order-contracting-alternative-project-delivery-method/
