The Construction Industry’s Digital Transformation

October 2, 2019
Screenshot-at-Aug-21-11-11-36

The Budget released last week mentioned promoting the digitalization of the engineering supervision system to improve the level and efficiency of public works project supervision. Industry insiders admitted that some had attempted to digitize engineering data in the past, but the results were abandoned due to differences in supervision effectiveness compared to industry practices. With the increasingly widespread application of Building Information Modeling (BIM), some technology companies have seized the opportunity to design supervision systems for the engineering sector, expecting their business to double in the coming year, leading to increased competition within the industry. However, some industry insiders pointed out that the procedures for supervising building construction are complex, and frontline personnel may not be proficient in using them, suggesting that the new system will be difficult to fully implement in the short term.

(Reporters Li Zhuoying and Lin Ziqing)

The new Budget mentions that the Development Bureau will establish a dedicated task force to promote the digitalization of the engineering supervision system, encouraging site supervisors and contractors to utilize innovative technologies to improve the level and efficiency of public works project supervision. In fact, the concept of digitalizing the engineering supervision system is not new; some industry insiders attempted to digitize engineering data in the past, but unfortunately, these efforts were unsuccessful.

Early Trials Prove Ineffective and Unpopular

A project director of a large-scale engineering project, who wished to remain anonymous, frankly admitted that the construction industry actively discussed digital supervision more than a decade ago. This included uploading construction photos online so that other professional trades could observe the progress in real time and reduce errors. However, the enthusiasm was short-lived, and the “new technology” was quickly abandoned by the industry. “Owners, consultants, or contractors found that the actual benefits were not as expected after piloting a project, and it also brought inconvenience.”

The project director stated that all stakeholders could potentially “pass the buck,” such as owners delaying decisions, or consultants or contractors needing to revisit document expiration dates. If the supervision process became digital, all three parties would have to handle administrative work meticulously, without allowing for arbitrary revisions. “Even we, as senior supervisors, felt it was not beneficial to ourselves, so few in the industry adopted it.” However, he believes that with the increasingly widespread application of BIM technology and the digitization of many documents, there is a greater opportunity for the application of digital supervision, and the industry’s attitude is now expected to gradually change.

Inquiries Triple Following Construction Scandals

Recent scandals involving several large-scale construction projects have led the industry to place greater emphasis on project oversight. Chung Chiu Technology Co., Ltd., which has adopted the “Novade” digital oversight platform for the construction industry and provides support services such as data processing, project management, and computing systems, has seen a threefold increase in inquiries from contractors in the past three months. “It’s clear that after several major scandals, more companies are paying attention to oversight issues,” said Cheung Siu-ko, CEO of Chung Chiu Technology. He believes that presenting construction data in 3D on mobile platforms, rather than paper-based methods, will facilitate technical management of construction projects.

Cheung continued, saying that following the government’s promotion of BIM technology, the Construction Industry Innovation and Technology Fund launched at the end of last year has also become an incentive for industry players to adopt digital oversight systems. “Previously, only large projects implemented digitalization. Now, many inquiries are coming from second- and third-tier construction companies. They want to know how to apply the technology and how to apply for the fund for training or to purchase software and hardware.” To capitalize on this huge business opportunity, his company has been actively collaborating with software and hardware companies, and will announce a partnership with a major hardware company in three months.

Yonyou Software provides project management tools for the construction industry. Zhang Yizhen, a senior consultant at the company, said that their software makes it easy for contractors to report project progress to various engineering personnel, and also allows owners to take photos on-site to record construction problems. “When owners inspect the site, if they find that a screw is loose or damaged, they can record it on the uploaded engineering drawings, or record the coordinates of the construction point where the problem occurred by locating it, and notify the relevant personnel to follow up. The system will also issue warnings to remind all parties to pay attention to the problem.”

Organizing Seminar to Share IT Experiences

Zhang Yizhen believes that her project management tools effectively reduce communication costs for site personnel. “Previously, supervisors might have to make dozens to a hundred phone calls daily, constantly notifying clients and contractors to handle issues. Now, these can be handled procedurally, and everyone can be notified with a single click, improving the transparency of communication among all parties.” She continued, saying that her company will organize a seminar on IT in the construction industry in June, inviting Singaporean builders who have used her products to share their experiences, hoping to increase the Hong Kong industry’s confidence in new technologies.

The tech industry is optimistic about the business opportunities of digital monitoring systems, but there are still many challenges. Li Guoxing, president of the Hong Kong Institute of Architects, pointed out that the industry’s use of digital technology to monitor projects is still in its initial stages, such as using drones to monitor construction in remote locations. He Juye, former president of the Hong Kong Institute of Surveyors, also stated that the industry has only switched from email to applications for real-time communication, and there is still a significant gap between the technology and the ability to predict project processes and construction problems.

To reduce human error in construction, the government mandated last year that public works projects exceeding HK$30 million must adopt BIM technology. He Juye said that although the industry has adopted BIM technology in recent years, it is mainly used to optimize design and rarely used to assist in project supervision. “There are not many customized software programs in the industry, so it is difficult to popularize it.”

Using BIM for Recording Doesn’t Achieve Supervision

Wu Xinhua, Chairman of the Hong Kong Construction Professional Subcontractors Association, also noted that less than 10% of the industry uses advanced project supervision systems. To his knowledge, only a few construction companies have invested in developing such systems and require frontline staff to use tablets to record site safety and quality conditions. Quantity surveyor Mr. Wang (pseudonym) believes that the industry has not yet fully adopted BIM technology. Relying solely on existing technology and data management is insufficient for project supervision. “BIM technology can record architectural design, construction procedures, and material quantities, helping to identify design problems during construction, but its development to the level of supervision will still take time.”

Building construction involves a wide range of areas, and the supervision process is quite complex. Ho Kwai-yip frankly admits that even if it is technically feasible, frontline personnel may not be proficient in using the new system, making its full implementation difficult in the short term. “With the current frontline staff and their knowledge level, training is necessary to learn how to operate the new system.” Cheung Siu-ko hopes his business will increase two to three times this year, but he also points out that the number of people in the industry familiar with BIM is already quite limited, let alone those skilled in digitalizing the construction industry, which limits development. “I estimate our services cannot keep up with demand.”

The full article was published in the Sing Tao Daily: http://www.stheadline.com/inews-content.php?cat=a&nid=46609

Posted by
Yonyou
Share Post

What's new on Yonyou

Choose Yonyou to Start the Efficient Growth

Upcoming Event

AI Production Seminar

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros.
2026-09-23 15:00
- 2026-09-23 17:00

Cross-Border Compliance • Smart Operations — Empowering HK Enterprises to Enter Mainland China

Discover how Yonyou integrates Data and Al into ERP to power intelligent operations, with live demos and expert networking.
2026-09-24 14:00
- 2026-09-24 17:30