Project simulation for project organization design and technology introduction decision-making

Abstract

The construction sector is of high importance for the global economy, representing around 6% of its GDP. However, while the average productivity has risen significantly over the last 20 years, the construction sector has failed to follow this trend. Based on the observation of other industry sectors, digitization is argued to be one of the main drivers for the increase of productivity, yet the construction sector has been slow in introducing innovations. One reason identified for the aversion to new technologies is the difficulty of estimating their benefits in the decision-making process. The purpose of this thesis is to investigate the potential of project organization simulations to support decision-making processes concerning the organizational design and the introduction of new technologies on construction sites based on a case study.
The introduction of a generic new communication technology in the execution phase of a construction project was simulated to assess its consequences on the project performance. For the case study, a reduction of 4% in the total work volume was predicted, mainly due to a decrease in the amount of hidden work (rework, coordination work, etc.). This highlights the potential of digitization. However, it was determined that for accurate and beneficial results of project organization simulations, the main contractor must be included in the planning phase, which usually requires the use of integrated project delivery methods.
The case study shows that project organization simulation could potentially provide a helpful tool for decision-makers to estimate the impact of different types of new technologies on a construction site. This could help shifting from a speculation-based decision-making process – which often leads to risk-averse behavior concerning the introduction of new technologies – to fact-based decision-making. A major benefit thereof might be the acceleration of the digitization and hence an increase of the productivity in the construction sector.