The construction industry is moving to the cloud. Shifting the majority of construction operations to the cloud may have been inevitable, but the onset of the pandemic has accelerated the pace of cloud adoption in the construction industry.

Building in the cloud: Construction shifts to cloud-based software

Prior to the pandemic, 85% of construction contractors used or planned to use cloud-based software solutions. In a post-pandemic world, where cloud awareness and adoption across all industries has skyrocketed, that number is sure to have increased. Field-focused tools, like jobsite management software, stand to gain the most benefit from the evolution to a cloud-centric construction industry. 

Cloud-enabled tools allow real-time updates and communication between the back office and construction sites. There is a large difference between intent and reality, however, and that gulf is what construction companies will have to address to remain competitive and nimble enough to deal with a rapidly changing business environment.

Construction clouds gather

With different team members siloed and unable to communicate in person, comprehensive cloud-based construction management software have facilitated crucial conversations about site developments. 

Poor communication channels and substandard data management practices have plagued the construction industry for years, leading to redoing work and searching for information. 35% of construction professionals’ time is spent on non-productive tasks like looking for information and redoing work. Cloud-based construction management solutions have the potential to eliminate a lot of inefficiencies and wasted productivity by acting as an easily accessible single source of truth. 

Of the 297 construction project management reviews that answered our method of deployment question, 66% of them said they deployed in the cloud. I expect that number to increase as cloud-based solutions enter the rarified air of near-ubiquity in the industry. 

Here are some snippets of G2 reviews that highlight the benefits of cloud-based construction project management software. 

Keys to success 

For construction companies debating moving from legacy systems to a cloud offering, there are a few factors to consider:

Interoperability 

More construction software vendors are offering comprehensive cloud-based solutions that handle everything from prequalification and takeoff to jobsite management and cost management. Point solutions still have their place throughout the industry, particularly for more niche subsections of the industry, like HVAC, with its unique requirements. But the way forward for most vendors appears to be making their solutions nimble enough to either cover the full spectrum of construction management needs, or integrate with other solutions that complement their features. Regardless of whether a company chooses to implement a point solution or a comprehensive system, interoperability with existing systems is vital to ensuring the success of a new tool. 

Proper implementation and training

Sourcing, selecting, and implementing fancy new cloud-based solutions that promise to supercharge your construction business means nothing if no one uses the solutions. Decision-makers may have high hopes for comprehensive solutions with high degrees of interoperability, but to reap the rewards of a judicious selection process, you must implement a well-built training program designed to spur high rates of user adoption. 

Mobility 

Cloud-based systems may be the catalyst for improving back office and on-site productivity and efficiency, but that potential improvement needs to be wrapped up and delivered in an intuitive mobile application package. Ease of use is vital to catalyzing adoption, particularly for construction professionals working on site, and well-designed mobile applications are the key to facilitating that ease of use.

The future of construction technology 

I expect a continued expansion of the larger vendors’ construction management functionality, particularly around AR/VR site management tools, as construction professionals recognize and leverage the benefits of cloud-based systems. Modular, plug-and-play style solutions will be the standard, with smaller businesses using just a couple of modules and larger ones making use of the full slate of capabilities on offer. 

The few major players in the space will push the boundaries of the construction industry’s technology. We’ve seen it already with AI-related acquisitions geared towards empowering construction professionals with insights buried in the troves of project-related data housed in their cloud solutions. 

As the space develops, we’ll see major players acquire specialized technology and IP that would be prohibitively expensive and difficult to build out internally, and leverage their own product teams to integrate the technologies, as well as continue to build out additional modules to expand their functionality. Vendors will build out the construction cloud as their clients build on the ground.