Constructing Change: Six Data Strategies To Boost Your NOI, ROI And ESG Scores
Constructing Change: Six Data Strategies To Boost Your NOI, ROI And ESG Scores
The handover between construction and operations remains an industry-wide ‘Achilles heel’, with poor data management costing firms an estimated $1.84 trillion annually as a knock-on impact of uninformed decision-making. The progressive digitization of the sector has highlighted opportunities to address data transfer inefficiencies. Yet only 24% of organizations have a dedicated data team overseeing data handling – let alone transfer – during capital projects (according to our upcoming Global Building Capital Project Managers Survey 2024). This lack of strong data governance presents major challenges for facilities management (FM). Clearly, an overhaul of industry practices is essential.
Following best practices for data transfer between construction and operations, as outlined in Best Practices: Six Top Strategies For Seamless Construction-To-Operations Data Transfer, can help alleviate financial and regulatory pressures while also driving positive ESG outcomes. With average construction margins hovering between 1.5% and 2% – and continuing to narrow – avoidable costs from poor data management require urgent attention. Consistent access to accurate construction data from the start of the operational phase is critical to prevent costly delays to the building’s opening and expedites profitability for the building owner and developer. Witness the nine-year delay to the opening of Berlin-Brandenburg Airport, where timeline overruns caused the original €2.5 billion budget to skyrocket to €7.3 billion as a result of increased construction labour and material costs, design flaws and non-compliance penalties.
Big wins for building owners in operations and future projects
Centralized platforms that consolidate data on building systems and asset performance into a common data environment (CDE) enable predictive maintenance, informed investment decisions and reduced operational costs. In line with increasing demand, vendors are developing specialized solutions to streamline the handover process, such as Thinkproject’s Built Asset Lifecycle Platform and Bluebee Technologies’ Smart O&M suite. However, digitization is still emerging, with only 40% of firms currently using software to aid data transfer between construction and operations in capital projects.
With the building and construction industry responsible for 37% of global CO2 emissions, according to the UNEP, there is rising pressure to improve the operational sustainability of buildings. Poor data from inefficient handovers jeopardizes heavy investments made to achieve ‘platinum’ or ‘six star’ sustainability ratings and green building certifications. By centralizing construction data, firms can unlock a plethora of benefits including enhanced transparency into a building’s environmental footprint, streamlined ESG reporting, predictive analytics, verified supply chain sustainability and reduced risk of non-compliance penalties. When teams adhere to best practices, this simplifies navigating the complexities of evolving ESG regulations, such as Australia’s forthcoming mandatory climate reporting in 2025 and the EU’s proposed compulsory disclosure of lifecycle emissions potential for new buildings.
The legal imperative continues to grow
Beyond cost savings, increased NOI (net operating income) and ESG gains, a data-centric approach also safeguards building owners and developers against legal liability and reputational damage. As regulatory obligations tighten, such as ISO 19650 (The Golden Thread), the UK’s Building Safety Act and Hong Kong’s mandated use of BIM for capital projects, the scope for liability has widened. Adopting best practices is crucial to mitigate risks and avoid legal scrutiny in the wake of safety incidents like the recent residential block fire in Dagenham, London and the collapse of Florida’s Champlain Towers.
To optimize your firm’s data management strategy and unlock the above benefits, get up to date on the best practices for construction-to-operations data transfer by exploring our report Verdantix Best Practices: Six Top Strategies For Seamless Construction-To-Operations Data Transfer.