Driving Digital Transformation in Construction: Insights from the RICS Digitalisation in Construction Report 2024

The construction industry stands at a crossroads. While sectors like manufacturing and finance have rapidly adopted digital tools, construction has historically been slower to embrace change. The latest RICS Digitalisation in Construction Report 2024 offers key insights into the sector’s evolving relationship with technology, and the message is clear: digital transformation is no longer a luxury but a necessity.

For construction professionals, this report offers both encouragement and a wake-up call. While digital adoption is increasing, significant barriers remain. Those who act now will gain a competitive edge, while those who delay risk falling behind.

Key Findings from the RICS Report

The RICS Digitalisation in Construction Report 2024 highlights that while some progress has been made, the construction industry remains slow to fully embrace digital transformation. Some key findings include:

• Only 12% of respondents use digital tools across all their projects, a figure that has remained stagnant over the past few years.
• Meanwhile, 25% of respondents reported using digital tools across some of their projects, and 20% said they use them for most of their projects.
• That means the percentage of firms not using digital tools at all is increasing, rising from 40% in 2021 to 42% in 2022, and 43% in 2023.
• This is despite 53% of respondents agreeing that digitalising processes across 6 key functions would likely result in an improvement in performance.

With these statistics in mind, it’s clear that while some firms are making progress, many are still struggling to break free from outdated processes.

So, what’s holding them back?

Overcoming Barriers to Digital Adoption

The RICS report outlines three major barriers preventing firms from fully embracing digital transformation: high implementation costs, lack of stakeholder demand, and skills gaps. Still, while these of course pose problems for those looking to digitalise, there are solutions which look to actively combat those to make the transition smoother. We’ll break down some of these barriers, and put forward potential solutions to keep them from impacting your progress.

Barrier 1: High Implementation Costs

One of the biggest reasons firms resist digital transformation is the perceived cost. New software solutions often come with high upfront investment and complex integration requirements.

How to overcome it:

• Consider scalable and flexible contract management systems that provide immediate benefits without requiring extensive customisation or high upfront costs.
• Explore cloud-based solutions that eliminate the need for expensive hardware and allow for seamless collaboration between teams.
• Focus on systems that integrate with existing workflows to reduce disruption and ease the transition to digital processes.

Barrier 2: Lack of Stakeholder Demand

Another challenge is resistance to change. Some contractors, clients, and project teams still rely on manual processes, seeing digital tools as unnecessary or disruptive. However, this mindset is shifting. As more clients demand transparency, efficiency, and compliance, firms that fail to modernise risk being left behind.

How to overcome it:

• Encourage a culture of collaboration by implementing digital contract management tools that provide real-time access to key documents and workflows for all stakeholders.
• Automate workflows and notifications to ensure deadlines are met, improving efficiency and reducing delays.
• Maintain a clear audit trail to enhance accountability and minimise disputes, demonstrating the benefits of digitalisation to hesitant stakeholders.

Barrier 3: Skills Gaps and Digital Literacy

Many construction professionals lack the training needed to confidently use digital tools, creating another roadblock to adoption. The RICS report highlights this as a key concern, with many firms citing lack of digital expertise as a reason for avoiding new technology.

How to overcome it:

• Invest in industry-specific training platforms that provide construction professionals with the skills they need to adopt digital tools effectively.
• Offer flexible, on-demand learning opportunities so teams can upskill at their own pace without disrupting projects.
• Seek accredited training programmes that align with industry standards to ensure compliance and demonstrate competency to clients.

The Time to Act Is Now

The construction industry is on the brink of transformation, but many firms are still lagging behind. As the RICS Digitalisation in Construction Report 2024 makes clear, digital adoption is not just about improving efficiency, it’s about staying competitive in an industry that is rapidly evolving. With the BI Toolkit, we’re making it easier than ever for construction teams to digitise contract management, increase collaboration, and upskill their workforce without the typical barriers to adoption.

Discover how FastDraft and Academy can accelerate your digital transformation today.

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