International Union of Operating Engineers, 25,000BCE
Not long ago, I posted a feature on AI-centric project delivery eventually supplanting traditional HI means and methods project of general requirements and general conditions, with semi-automated AI engines, assisted by human interfaces (HI). Blockchain project delivery will be the infrastructure of AI-centric construction management. This disruption will be mainstreamed into peer industries long before it hits the construction management landscape, but sooner than one might think.
The construction industry stands much to gain with Blockchain project delivery disruption. For example, a typical project may rely on any number of servers, such as the architect’s wonky ftp site, wear files slip in and out, or a spottily maintained Procore platform, these in addition to terabytes of PTP emails. It’s no wonder project administration is always fragmented. In Blockchain, all of this data would be centralized, authenticated, and secure.
Without getting into technical detail, Blockchain technology pertains to a relatively new (2008) way that people exchange digital information over the Internet. Bitcoin is the best known example. Instead of multiple servers and routers, each ‘block’ communicates directly with other blocks in the Blockchain, without the need for a middle man. For example, I could wire each reader $10 directly, without the need for a bank or whoever else is in that loop.
The financial and credit industry already use Blockchain, and others are following suit. IBM, Linux, ARUP, Autodesk, Siemens, Skanska all have stakes in the adoption of Blockchain into their markets.
Each block, contains encrypted data of every ‘transaction’ you ever made on it. The information is added to a publicly stored blockchain. This information cannot ever be changed or removed, because it would fail validation checks with other parties. In this way is the data incorruptible, reliably valid, and impossible to replicate. For those reasons, Blockchain offers infallible security platforms that will have no limitations.
Document accountability and authenticity are the building industry’s weak suits. Blockchain project delivery would negate the onset of confusion about the authenticity of data, and obviate the endless paper trails and email threads that exponentially magnify even the most simple of transactions. If we subtract all the time wasted in contract administration, projects would suddenly appear to be more productive.
Construction management project delivery will by and large be replaced with Blockchain transactions. Typical construction management transactions that would be affected and improved might be:
Design issues, sketches, shop-drawings, permits, inspections, contract and subcontract execution, progress payments, applications for payment, insurance certificates, project controls, estimating and budgeting, LEED, change orders, procurement, waivers, CPM scheduling, submittals, reviews, approvals, resubmittals, RFIs, design issues (SKs) … the list is limitless. Every uploaded document (transaction) would exist in one single location, or block. Once a document is uploaded, the HI part is done, as the document is now permanently in the Blockchain.
In Blockchain project delivery, HI (human interface) workload will be reduced to as little as 10-15% of the output of today – which facilitates no better than 15-20% productivity in the field. If Blockchain takes over 80-85% of administrative project delivery, it would free-up HI resources (people) to do the physical and mundane things machines can’t do, and enhance performance overall to as much as 85-100%.
All of this disruption can be thought of in simple comparison: it takes HI anywhere from 20 to 1,000,000,000,000 – times as long as AI and Blockchain to process paperwork. One of the handicaps to the HI productivity is the extra efforts they exert in making mistakes, repeating efforts – i.e., time they waste in collecting and transmitting information. This shows up in bottom line excess overhead.
‘Most educational institutions hawking Construction Management degrees are teaching the past, not the future. That’s because even under their tutelage, we continue to see negative production rates. Why not then – Certificate in CMF, or ‘Construction Management ‘History’?’
Already, Upfolio features over 2,500 assets, or applications that use Blockchain technology for everything from banking and data storage, to gaming, finance, banking, anonymity, and enterprise. In other words, by the time Blockchain hits the building industry, it will have already permeated all other industries, and mainstreamed into our national cybers infrastructure.
‘No longer such a thing as ‘clerical’ work – except in the clergy.
‘The integration of AI-centric and Blockchain project delivery will eventually create a largely self-reliant construction management engine that will exponentially eclipse current means and methods, and obviate the need for tens of thousands of administrative building practitioners.
Upfolio
Cutting the Fat of Construction Management Obesity
In Blockchain project delivery, administrative (non hands-on) responsibilities will be simplified and considerably reduced* depending on respective job descriptions – the rest will be absorbed altogether by Blockchain (obsoleta). They will also be done with virtually 0-1% error, as opposed to the minimum of 10% that most humans make. In construction, I expect it is much higher.
For example, if principal’s administrative on-task time is reduced to 5 or 10% of his total workload, than the natural thing to do is to either add back the 90-95% in additional workload, or consolidate or outphase principal’s role, for poor production rates. It will not stand for public executives to make the same compensation as full-time for only 5-10% of the effort. Private sector principals can engage blockchain at their discretion.
Principals (5-10%) – focus on non operational makes them more effective
Bookkeeper (15%) – virtually automated, data input only
Controller (5-10%) – focus exclusively on banking and finances
Construction Manager (5-10%) – pass-thru, only needed to provide personnel
Sr. Project Manager (25-50%) – depending on PM and super, may not be missed
Project Executive (5-10%) – non-essential
Procurement (5-10%) – virtually automated
Project Manager (admin) (25-50%) – data entry
Project Manager (site) (50%-75) – freed up from paperwork to do more
Superintendent (20%) – freed up from paperwork to do more
Estimator (5-10%) – virtually automated
Scheduler (5-10%)
Architect (5-10%) –virtually automated
Engineers (5-10%) –virtually automated
IT Manager (5-10%) – virtually automated
*revised output in %. All started with 100%
Upfolio
If we take the subset of those with under 15%, we begin to see which roles will be either consolidated, or outphased altogether (expendable). That’s right – those are the jobs that will be replaced in the future. With AI handling most of the drafting loads, there will no longer be enough work for all the architects. Why not take up the hammer – you just might get a blister on your thumb?
‘The bugger, feckless, way contractors manage their information is painful to watch, when we know Blockchain would eliminate this clusterf#!$ phenomenon.
Personnel (people) within an organization will (should be allowed to) be able to take on more challenging roles, in lieu of hours of repetitive rude-mechanical chores that reduce morale, and stagnate growth. If you or your organization is truly not interested in developing and cultivating it’s personnel, Blockchain project delivery is not for you, and neither is the future of the industry.
The problem with present day educational institutions hawking worthless Construction Management degrees is that they try to teach to current means and methods, the greater part of which haven’t changed in fifty-years. In other words, they are teaching ‘CM history,’ when they should be teaching the future – which is AI and Blockchain technology. Younger, and others hoping to join the industry should rethink a construction management degree as an entrance to the industry, and think forward into AI and Blockchain as the future, not Mr. Slate.
For a good primer on Blockchain, follow link …
Eve wonder what Bitcoin is?
