3 ways IoT Solutions Reduce Cost Overruns in Construction

Recent studies have found that over the course of the last 70 years, over 80% of all completed construction projects across 20 countries experienced cost overrun. The average overrun made up 28% of the total project budget.  

According to a McKinsey, construction productivity has steadily declined in some markets since the 1990s. Larger projects take almost 20% longer to finish and some run over 80% of the budget. This is even before factoring in the significant rise in material costs due to pandemic-related supply chain issues.  

For example, prices for Gympsum, a key material used for walls and ceilings, rose by 20% in 2022 and it doesn’t stop there. Exterior paint price has increased 14.5%, ready-mix concrete by nearly 9%, steel reinforcing bars by 11%, and softwood lumber by 13%. This means that efficiency with material quantities is now more important than ever.  

The company that can nail the estimate process and keep a project running on budget will have an enormous advantage. It will also save the industry nearly USD$1.7 trillion annually. 

What can companies do to improve performance and shore up their bottom line?  

61% reported internet of Things solutions and processes (IoT) streamlined processes, reduce waste, increased safety, and ultimately saved companies money and time.  

The following are just 3 ways of how ZARIOT and TokenMe’s cellular IoT solutions can positively impact the construction industry. 

1. Effective decision making 

Data captured on the job site like equipment location, fluid temperatures, air quality, loads or other operational parameters, will provide less downtime. Everyone involved benefits from 24/7, real-time progress reporting. It allows companies to make continuous improvements and execute more promptly. Stakeholders can constantly gauge where the project is at and make any adjustments to keep the project on track, increasing productivity and controlling usage costs.  

Cellular powered IoT-enabled solutions are a cost-effective option due to the stability of cellular technology. This means each device features a long-life cycle, meaning it can be re-deployed and connected for future projects all over the world. Roll out can also be easily scaled and retrofitted with existing hardware, letting users get started quickly for even the smallest companies and the shortest-term projects.  

2. Enhance worker safety 

Frequently, many job sites enforce strict rules on phone usage to prevent distractions, resulting in mishaps. In the U.S., 1 in 5 deaths amongst all workers is in the construction industry. The United States Department of Labor estimated that construction companies save USD$4-6 for every dollar invested in a safety program.

TokenMe uses smart token to gather time, location, and movement data, sent to anchors mounted strategically around the site. Action can be taken if parameters are close to being exceeded to prevent accidents before they happen.

Our solutions are also fully compliant with global data and privacy regulations (I.e. GDPR, California Privacy Rights Act) and can be shared securely with the ZARIOT SIMs as root of trust to deliver end-to-end encryptions. This also means that any data collected is also completely protected against cyberattacks and breaches.   

3. Optimize site management 

On-site workers report spending almost 2 full days per week looking for project data and managing work flows rather than doing actual construction work. Almost half of all re-work is due to poor project coordination amongst stakeholders and the lack of proper information. With sensors and trackers, studies have shown that productivity of its engineering function is improved by 20–25% by pairing the right teams and modifying their work flows to minimize waste and improve efficiency.  

TokenMe anchors forward all jobsite information to a proprietary cloud database. Data is processed by an AI engine that presents it on a dashboard in easy-to-read formats. This gives stakeholders a better understanding of all tasks and activities for further optimization and streamlining. ZARIOT’s extensive coverage and seamless roaming, also enables remote monitoring and continuous data transmission, even in the most remote areas.

To fully optimize your projects and become one of the 10-15% of contractors who keep within budget, schedule a meeting to connect with one of our experts today.