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DCS Chair supports launch of GIRI Insurance Guide

"Is the 'global' insurance sector ready to embrace the 'digital transformation' paradigm shift?"

_ Dr. Bola Abisogun OBE

"Construction errors cost the UK construction industry billions of pounds every single year. The Get it Right Initiative came out of discussions at the Institution of Civil Engineers Best Practice Panel and has been developed with the single aim of significantly reducing error in construction. The GIRI is currently led by a number of major construction companies and clients and has received welcome support from the CITB through their Growth and Innovation Fund.

Our first piece of work has been to undertake a thorough piece of research to identify both the most economically significant errors and their causes. The results of our research are set out in detail in the Get it Right Initiative Research Report (November 2015).

Key international studies suggest that the measured direct costs of avoidable errors are in the order of 5% of project value. This equates to approximately £5bn per annum across the sector in the UK and is higher than average profit levels across the industry (around 3%).

When unmeasured and indirect costs are included the situation gets much worse with estimates of total costs ranging between 10% and 25% of project cost or between £10-25bn per annum across the sector. We estimate that the annual spend due to error is around 7 times the total annual profit of the UK Construction Industry.

Our research identified that the top ten root causes of error were:........."

Inadequate planning Late design changes Poorly communicated design information Poor culture in relation to quality Poorly coordinated design information Inadequate attention paid in the design to construction Excessive commercial (financial and time) pressure

Poor interface management and design Ineffective communication between team members Inadequate supervisory skills.

Credit: GIRI via X

Credit: GIRI website

Credit: GIRI via X

Executive Summary "This report is in response to a requested for a proposal from GIRI for a desk-based study to help categorise digital engineering technologies and the barriers to their adoption. Digital engineering is the use of digital technologies to innovate a new engineering business model and provide new revenue streams and value-producing opportunities. This study is focused on how error reduction and productivity gains can result from the reduction of barriers to digital engineering. Digital Engineering is likely to mix and combine a range of technologies such as autonomous, semi-autonomous and manual operations with cloud, sensor, big data and 3D printing technologies to open unforeseen possibilities and create new engineering products, services and ecosystems. The inter- relationships are complex, so this study has tried to classify barriers according to five broad digital engineering phase categories:

  • Digital enabled design

  • Digital enabled procurement

  • Digital enabled manufacture / sub- assemblies

  • Digital construction / smart sites

  • Digital facilities management / digital twin

While there has been significant Government and industry investment in digital engineering innovation, there has been very limited emphasis on and to reduce potential failure, [and] there is a significant need to address the way that we invest in digital engineering."

Credit: GIRI - Barriers to Digital Adoption - via UCL


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