Applying AI in the construction sector

The construction industry, long vital to economic development, faces numerous challenges that have driven the need for innovation. These problems range from inefficiency, safety concerns, and cost overruns to environmental impact and resource limitations. Climate change and its devastating impact on our built environment are the key issues that have led to the development and application of these transformative technologies in construction. In response, design and construction professionals, with the aid of artificial intelligence (AI) and advanced building materials, have produced groundbreaking solutions.

Slow project delivery. From design to execution, construction is a complex process involving numerous stakeholders, tight schedules, and a large amount of logistical coordination. Its projects are notorious for delays, budget overruns and inefficiency. Delays due to unforeseen problems, material shortages and human error are common, leading to cost escalations and missed deadlines.

AI has been a game-changer in addressing inefficiency. With predictive analytics, it can help the construction team foresee potential delays, enabling project managers to proactively resolve issues. AI-driven tools optimize schedules and resource allocation, improving overall project timelines. On the materials side, innovations like 3D printing have sped up construction processes, while self-healing materials reduce the need for costly repairs, ensuring the structure's durability over time.

A global labor shortage confronts the construction industry with many skilled workers aging out of the industry and a lack of younger workers entering the field. This shortage is exacerbated by construction work's physically demanding nature, which deters many potential workers. Moreover, labor costs continue to rise as demand outstrips supply.

AI-driven robotics and assistive technologies offer an efficient alternative to human labor, making their task easier, safer and more efficient. AI-equipped robots and drones can perform repetitive tasks like bricklaying, surveying and material transport, reducing the reliance on human workers. 3D printing allows for the rapid production of building components, optimizing the need for skilled manual labor while ensuring high precision and reduced errors. As a result, AI and automation help maintain productivity levels despite the shrinking labor force.

Safety concerns. The construction industry is one of the most dangerous sectors, with a high number of fatalities and injuries occurring on job sites. Accidents result from improper safety protocols, human error and hazardous working conditions, leading to legal liabilities and increased insurance costs.

Assistive and proper tools help improve safety by minimizing potential hazards before they result in accidents. AI-based systems can analyze real-time data from construction sites, such as worker movement patterns, weather conditions, and machinery malfunctions, to provide safety alerts and suggest corrective actions. AI-equipped drones can inspect hard-to-reach areas, reducing the need for workers to access dangerous zones. Advanced building materials like impact-resistant glass and self-healing concrete contribute to the buildings' structural integrity, minimizing the risk of damage during construction or after their completion.

Environmental impact. The construction industry is a major contributor to environmental degradation. The extraction of raw materials, high energy consumption, and waste generation are significant issues. Buildings consume a considerable amount of energy over their lifespans due to heating, cooling, and other operational demands, contributing to carbon emissions and environmental harm.

AI can help professionals design to optimize resource use, reduce waste, and ensure that projects are more energy-efficient. By leveraging AI algorithms, construction companies can do the same while lowering costs. Advanced building materials like smart glass, high-performance insulation and photovoltaic materials can reduce energy consumption in buildings, making them more sustainable. The use of recycled materials in construction, such as recycled steel and bio-based concrete, helps minimize the industry's carbon footprint.

Rising costs of construction materials. The rising costs of raw materials such as steel, wood, concrete and other natural material resources have made construction more expensive. They are driven by supply chain disruptions, geopolitical factors, inflation and resource scarcity. The increased prices of essential building materials result in higher project costs and make it harder for construction companies to remain competitive.

AI technology can help reduce material costs by optimizing the use of resources and minimizing waste. It can analyze data and suggest ways to cut down on material consumption while maintaining structural integrity. New materials like the development of 3D printing, self-healing concrete and other faux materials provide more cost-effective, long-lasting solutions. Ty help reduce the overall amount of maintenance, weight and repairs required during a building's lifespan, mitigating the impact of rising raw material prices.

Construction projects often have a lot of errors and suffer from quality issues due to poor workmanship, design flaws, and material defects. These issues can result in structural problems, costly repairs and delays. Ensuring consistent quality control across large-scale projects is a significant challenge.

AI tech can help detect errors early on in the construction process by analyzing data from sensors, construction logs and building models. By monitoring real-time progress, it can identify deviations from the planned design and suggest corrections, ensuring higher quality control. Advanced building materials like nanomaterials and high-performance concrete improve the structural integrity and durability of buildings, ensuring they meet higher standards and reducing the need for repairs.

Complexity in design and building customization. As architectural designs become more complex, traditional construction methods struggle to meet the demand for innovative and customized buildings. Designers often face limitations in terms of material properties, structural stability and aesthetic challenges in trying to push the boundaries of architectural creativity.

The AI-driven Building Information Modeling (BIM) allows for more advanced and accurate designs by automating repetitive tasks, optimizing spatial layouts, and ensuring regulatory compliance. It facilitates the use of complex materials like 3D-printed components and customized nanomaterials, which are flexible and can be tailored to meet a design's specific needs. This technological synergy allows for greater creativity in construction while maintaining structural integrity and cost-effectiveness.

Long-term performance

Building lifespan and maintenance challenges. Many construction projects face significant challenges related to the long-term performance and maintenance of buildings. Cracks, wear-and-tear, corrosion, and other forms of degradation can reduce the lifespan of structures, increasing maintenance costs and reducing building safety. Inefficient post-construction operations and maintenance can also be costly and time-consuming.

The development of self-healing materials and smart materials has been a breakthrough in addressing long-term building maintenance. Self-healing concrete automatically seals cracks as they form, reducing the need for frequent repairs. AI technology can monitor building conditions over time: by using sensors and data analysis to detect early signs of wear or failure, it allows for preventative maintenance and extends the lifespan of buildings. It also helps design professionals in creating resilient, sustainable green buildings.

The construction industry is grappling with several critical challenges, from inefficiency, labor shortages, environmental sustainability, to rising material costs. AI and Advanced Building Materials have emerged as vital solutions to these issues. AI is streamlining operations, improving project management and enhancing safety, while Advanced Building Materials are contributing to more sustainable, durable and energy-efficient construction practices. Their innovations are setting new standards for the construction industry.

Together, they are shaping a smarter, greener and more efficient construction industry by improving efficiency, reducing costs and enhancing safety. They are enabling the construction of more sustainable, durable and innovative structures — one that can meet the challenges of a rapidly urbanizing world.

As these technologies continue to evolve, they will play an increasingly important role in overcoming the many obstacles facing the construction industry, which then will be able to deliver better, more resilient and environmentally friendly infrastructure for future generations.

Source: Business World

Infrastructure delays may disrupt developers’ plans beyond Metro Manila

Further delays in mass transport projects may complicate property developers’ expansion plans outside the National Capital Region (NCR), as improved connectivity is a key factor in unlocking new growth areas, analysts said.

“One way to temper the lackluster demand in Metro Manila is to be more aggressive in expanding outside the capital region; developers are also hinging their expansion on these infrastructure projects,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said.

“These delays will likely stall the development strategies of developers outside Metro Manila,” he added.

Among the causes of delays in major mass transport projects are right-of-way (RoW) issues, budget constraints, and procurement and technical challenges.

“Infrastructure project delays may affect the credibility of the National Government in delivering economy-enhancing projects, which, in turn, could indirectly negate investor appetite for the Philippines,” Havitas Properties President and Chief Executive Officer Jonathan F. Caro said.

For instance, delays in the North–South Commuter Railway (NSCR) could affect key developments outside Metro Manila.

The Department of Transportation recently established a Flagship Project Management Office to accelerate the implementation of key mass transportation projects, including addressing RoW challenges.

Big-ticket projects under its monitoring include the NSCR, the Metro Manila Subway Project, the EDSA Busway Project, the EDSA Greenways Project, the Cebu Bus Rapid Transit, and the Davao Public Transport Modernization Project.

Both investor and buyer confidence rely on the timely delivery of public infrastructure projects, said Spike Alphonsus Ching, project director at PH1 World Developers.

“Delays or unmet expectations could erode confidence, particularly for developments meant to benefit from these projects. However, once these projects are completed, we expect a positive impact on the market, as enhanced connectivity unlocks new growth opportunities for both investors and property owners,” he said.

Delays in mass transport projects could also affect the development of luxury properties, which are primarily located outside the capital region.

“You can’t live there if you can’t get there,” Bill Barnett, executive director of Thailand-based hospitality consulting group C9 Hotelworks, said.

Mr. Barnett added that mass transportation infrastructure is necessary to further develop metropolitan areas in the countryside.

“For luxury real estate like branded residences, there is strong opportunity outside traditional areas like Makati, BGC (Bonifacio Global City), and the Bay Area, but the catalyst for change has to be a large-scale commitment to mass transport,” he also said.

Source: Business World

Building permit approvals continued to fall in January

Approved building permits continued to decline by record double digits in January, the Philippine Statistics Authority (PSA) reported.

The PSA, citing preliminary data, said building projects covered by the permits numbered 12,526 in January, contracting by 14.6% from 14,665 a year earlier.

This was the second straight month that construction starts fell. January’s decline was steeper than the revised 5% year-on year drop logged in December last year.

It was the largest decline to date since the PSA began tracking the indicator on a monthly basis in January 2024. Previously, approved building permits data were released on a quarterly basis.

Building projects in January covered a floor area of 3.72 million square meters (sq.m), up 29.5% from a year earlier.

Construction projects represented by the permits were valued at P48.58 billion in January, 26.1% higher from P38.52 billion a year earlier.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said that the decline in construction activity can be an indicator of a “waiting” behavior from developers as they expect rate cuts this year, which can help them save costs in financing these projects.

“I expect this behavior to change this year as rate cuts are seen underway and the price of construction materials has stabilized,” he said.

Last year, the Bangko Sentral ng Pilipinas (BSP) slashed benchmark rates by a total of 75 basis points (bps) since its easing cycle in August, bringing policy rate at 5.75%.

However, in February during its first policy meeting this year, the BSP kept its policy settings, surprising market expectations and at the same time signaled fewer rate cuts this year.

BSP Governor Eli M. Remolona told Bloomberg in a televised interview last March 19 that the central bank could still cut rates next month up to 75 bps if economic output weakens.

Headline inflation rose 2.9% in January, steady as December.

In February, inflation slowed to 2.1%, bringing the average inflation rate in the first two months to 2.5%, within the central bank’s 2-4% target.

Additionally, retail price growth in the National Capital Region (NCR) eased to 1.2% in January, its weakest pace in five months.

Construction materials retail price index (CMRPI) in January was slower than the 1.5% in December and 1.4% recorded in January 2024.

On the other hand, construction materials wholesale price index (CMWPI) also slowed to a record 0.1% that month, lower than the 0.2% in December and 1.5% a year earlier.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

The PSA noted that residential had the highest number of constructions at 7,671 or 61.2% of the total number of constructions during the month.

However, this segment dropped 14.1% year on year. Residential projects were valued at P20.94 billion higher than the P16.35 billion in January 2024.

Single homes accounted for 89.5% of the residential category with approved permits contracting by 11.3% to 6,863.

Permits for apartment buildings fell by 35% to 708, while permits for duplex or quadruplex homes also went down by 13% to 80.

Nonresidential projects, on the other hand, slipped 4.3% to 3,138 from 3,278 from January 2024.

These projects accounted 25.1% of the total and were valued at P24.16 billion, 40.4% higher from a year ago.

Approved commercial constructions which made up 72.9% of the nonresidential category dipped by 3.1% to 2,288 from 2,362 in January 2024.

Institutional permits were also down by 0.6% to 480 while industrial permits fell 13.1% to 193.

Meanwhile, approved agricultural projects went down by 7.6% to 109 from 118 a year earlier. Other nonresidential projects contracted by 26.9 to 68 year on year.

Alteration and repair permits fell by 17% to 977 and were valued at P2.49 billion.

On the other hand, approved permits for additions, construction that increases the height or area of an existing building, surged 24.8% to 463 from 371 in January 2024.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved building projects, accounting for 26.2% of the total, with 3,279 construction projects, followed by the Central Luzon (1,314 permits) and Ilocos Region (1,135 permits).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

Source: Business World