Kuala Lumpur, 13 July 2019 – The construction industry is one of the oldest trades in the world and it continues to shape our daily lives in more than one way. Despite being one of the most highly needed industries in the world, however, the construction industry remains tied to old practices which causes it to experience low productivity and high inefficiencies.
According to McKinsey Global Institute’s digitization index, the construction industry is one of the least digitized industries in the world due to underinvestment in digitization, innovation and capital.
According to Speedbrick Solution, one of the many problems is that contractors often face disorganization in contracts and claims management that lead to payment issue as well as disputes and litigation.
By the time they realize that they need to seek payment, too much time would have elapsed for them to take legal action that resulting in abandonment of the project.
In Malaysia, about 90% of construction projects experience non-payment, under-payment or late payment due to the mis-management of contracts and claims.
The other problem frequently faced by the Malaysian construction industry is inefficient supply chain management. Currently, most contractors use Excel spreadsheets for material spending management- a highly manual and inaccurate process.
Recognizing this and with the rise in expensive mega projects as well as the dawn of the Fourth Industrial revolution (IR4.0), the construction industry needs to rethink old practices and embrace new technology to match the speed and efficiency of an increasingly digitized world. On that note, Speedbrick Solutions advises industry players to embrace digitization in order to achieve peak productivity.