The world of technology is rapidly evolving and the construction industry is starting to catch up. With these technological advances, it can be difficult to know which technologies are right for your business and how to properly use them. Using technology to improve efficiency in construction will save you time, resources and put an end to various persistent problems. Two ways to start this process include implementing green tech in your projects and utilizing smart contracts.
According to Construction World, “green technology in the construction industry involves producing new buildings that incorporate one or more aspects of environmentally friendly solutions.” This can be the utilization of green materials, adopting smart appliances and other smart home technologies, using a cloud based system to coordinate through the building process rather than using physical paper.
There are several benefits to using green technology in building, including reducing your company’s environmental impact, a reduction in expenses, job creation and tax incentives. Not only does green technology reduce your own company’s environmental impact, but it will reduce the environmental impact of what you are building. While initial expenses may be higher than what you’re currently spending, long-term that will go down and you will see a reduction in those expenses, which means more money in your pocket. The green technology industry is growing, meaning there are jobs being created and your own company may create a position to assist with this, which helps the industry remain stable. Lastly, governments worldwide are offering incentives for reducing the carbon footprint of its country. World leaders know that if we want our planet to survive, we have to stop abusing it. So they offer incentives for utilizing green technology as well as creating buildings with reduced environmental impacts
Smart contracts could fall under the umbrella of green technology, however, they also offer additional benefits. Smart contracts can be set up to work like a Google doc, which means that all parties who have access can edit the document in real-time and see the changes in real-time. There’s no sending documents back and forth for revisions because someone needs a word changed for legal reasons, or having to re-adjust when numbers don’t match. All of those adjustments can take place in real-time, which makes the process more streamlined and efficient. It also makes the process transparent for all parties. Everyone knows what is happening as it happens and there are no surprises for either party.
Smart contracts also eliminate the need for a third-party moderator, cutting an expenditure. Allerin.com uses this example, “Delays in construction projects cause disputes in negotiations that can cost construction businesses heavily. Construction companies can leverage smart contracts to overcome the delayed project barrier. Smart contracts are digital protocols uploaded on the blockchain network intended to self-execute and self-enforce contractual clauses mentioned in the agreement. Clients can create smart contracts with construction managers to penalize delayed projects. For instance, they can agree upon a deadline with construction managers. If the project is not completed, then the final payable amount will reduce according to agreed-upon clauses.” Blockchain is the foundation for smart contracts, and it is apparent that this will become an integral part of construction technology going forward.
According to the Harvard Business Review, “Blockchain is the first native digital medium for value, just like the internet was the first native digital medium for information.”
If you’re not already using green tech and smart contracts as part of your business plan and building projects, it is time to use them both. Both pieces of technology will not only streamline your business and make it more efficient, but it will also cut costs, which in turn increases revenue, leading to larger profits.