Raising the Standards of the Construction Sector

André Mylocopos is currently an Executive Director for Major Projects Alternate Delivery Models at CIMA+, a Canadian consulting engineering firm based in Canada. He is an experienced senior civil structural and construction engineer with more than thirty-four years of experience and who has a proven record of leadership, innovation and collaboration on large-scale infrastructure construction projects.

What are your recent initiatives to help clients in terms of cost reduction and challenges impacting the industry lately?

Collaborative project delivery methods like integrated project delivery (IPD) and alliancing are gaining traction, helping to mitigate risks and optimize outcomes. However, challenges persist, including labor shortages that are driving up costs and delaying projects, alongside rising expenses due to regulations, environmental concerns, and complex contracts. Managing these challenges while embracing technological advancements and innovative project delivery approaches remains paramount.

“The surge in construction costs is attributed to various factors, including labor shortages stemming from an aging workforce and insufficient recruitment incentives. The labour shortages have raised wages, leading to higher labour costs, and caused costly project delays. Complex operations, constantly evolving stringent regulations, and supply chain inflation, disruptions, and shortages further contribute to rising costs and contractor risk-aversion.”  

What are the factors that have caused the increase in construction costs in the recent past, and how do you envision the future of the industry?

The rapid increase in construction costs in much of the western world is pushing innovation and change to avoid stifling economic growth. Looking ahead, the construction industry will prioritize sustainability through cutting-edge technology such as AI-robotics, 3D printing, off-site construction, and collaborative project delivery models that reduce risk for the contractor. Potential experimental initiatives in the construction industry involve leveraging AI-powered tools and robotics to enhance productivity and jobsite safety. Addressing workforce shortages through tripartite government-construction industry-labor organization program initiatives to increase recruitment for vocational training, and embracing diverse and innovative labor sources, will help drive resilience and growth of the construction industry in the face of rapid change.

As a leader, what practices, technologies, and strategies do you think heads of businesses should take notice of?

Business leaders must remain abreast of changing industry practices and technological advancements by actively participating in forums, conventions, and ongoing training, whether self-taught or through specialized firms. 

Collaborative software platforms abound that offer companies the possibility to increase white-collar productivity substantially without increasing labor, with only moderate IT expenditures.  

As construction technology, quantum computing and AI evolves, consideration of future applications and trends that may revolutionize the industry must be included and analyzed in future corporate strategies to allow the firm to remain competitive. Adaptation to these advancements, whether incremental or market-changing, will differentiate leading companies and their ability to access the best talent, manage risk, enhance internal and project-execution efficiency, and generate profits where their competitors cannot.

The changing regulatory environment for impact assessments related to a range of environmental concerns (of which there are many), social license, sustainability, community involvement and other requirements—these are all affecting acceptability, permitting and overall project start-up delays.   Perhaps AI-driven expert-systems that can perform mundane and laborious research tasks, like collating information and automating quality control in document management, may be a partial solution to organizing information to streamline processes that will address this.

What advice would you give today’s construction industry leaders and professionals?

Prioritize industry-specific knowledge acquisition but also broad-based knowledge of related or associated industries, using proactive engagement to navigate rapid technological advancements and change effectively. As well, all of this does not occur in a vacuum, so global trends from politics and investing to manufacturing, software, energy, transportation, and cutting-edge science must be contemplated and analyzed, because an informed firm is a successful and competitive firm.

Continuous learning and adaptation are imperative for existence in a landscape where large corporations and niche players both thrive, emphasizing the necessity for awareness and agility to be able to leverage technology and capitalize on fleeting opportunities.

Many companies have added Chief Technology Officers and Chief Information Officers as a company’s capacity to take advantage of the opportunities created by technology is critical to surviving industry and global change. Collaboration both internally and with other players is essential to stay up to date on industry trends and challenges and ensure that information is being received where it’s needed in a timely manner.  Silos and fiefdoms threaten corporate bottom lines, and ultimately whether the company will still be there a few years down the road. This begs the question any board or CEO should be pondering—do we have the correct strategy, structure and people for today and the future?