Empowering owners How to deliver projects on time and to budget

Read on to discover:

Strategies to address the key challenges faced by construction project owners

How to drive down costs and improve project execution

Benefits of a holistic approach to project delivery

How to reduce costly errors and rework with a centralised data system

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An owner-enabled ecosystem is essential to delivering modern large-scale construction projects on time and to budget

The Middle East is home to some of the most ambitious construction projects in the world. Visionary project owners – both private and state- affiliated – are creating landmarks of unprecedented scale and complexity. These icons – from Dubai’s Burj Khalifa to Neom’s The Line in Saudi Arabia – represent multibillion-dollar investments.

They require armies of on-the-ground labour controlled by numerous local and remote suppliers and service providers, who are also responsible for vast quantities of materials, complex machinery and technologies.

The data challenge With so many moving parts come vast amounts of data. From design and quantity surveying, through procurement and quality control, to environmental impact assessment, human resources, accounting, and beyond, the volume of data required to plan a giga project is immense, and the construction process generates a substantial amount of additional information and records produced by everyone involved.

Traditionally, this data has been distributed among multiple stakeholders. Architects generate initial plans, surveyors and contractors handle the bulk of procurement, financing specialists oversee budgets and construction firms deal with manpower issues.

The inefficiencies of this model are amplified by a project’s scale and development timeline. A failure to consolidate and share data can therefore lead to costly mistakes and spiralling timescales as all too often at project completion, owners take delivery of their property over budget, past the deadline and with an incomplete picture of how it has been built. The asset might even have deviated from the original design or intended operation.

Taking control Project owners experience the consequences of this failure and are in the best position to prevent it. This requires them to take control of all the data associated with and generated by their project and establish an enabled and cooperative ecosystem.

A well-structured, owner-enabled ecosystem ensures that all parties involved are working from the same, accurate data and plans. During the design and build stage, it makes possible an in-depth oversight of

progress. Potential problems and clashes can be spotted before they arise and tackled promptly and efficiently when they do. Owners can ensure that regulations, codes and technical standards are adhered to, and that all stakeholders work within the same frames of reference.

A single source of truth Crucially, by owning the ‘single source of truth’, project owners ensure that no vital data is lost. They can hit the ground running upon project completion, with full visibility of everything required for their next phase of operations and maintenance.

The argument for an owner-enabled ecosystem is compelling, and this paper will show not only what problems it can solve, but also how to implement it. You will discover tangible and actionable advice for taking control of your project’s data. Through real-life scenarios, you will gain insights into how other giga project developers have navigated this task, addressed challenges along the way, and benefitted from their efforts.

Take full control

“ When project owners are engaged, they ensure the alignment of the project goals with the overarching vision and necessary resources. Early owner involvement throughout the project lifecycle has proved critical for achieving an optimised balance of efficiency, cost- effectiveness and timely completion.”

Mohammed Abdelrahman Director, Building Information Modelling Red Sea Global

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An owner-enabled ecosystem

Common challenges faced by project owners

The scale and complexity of construction in the region is unprecedented, growing 30% from $1.65tn of projects planned or underway at the start of 2014 to $2.15tn at the beginning of 2024, according to MEED Projects.

The stakes are therefore higher than ever before, timelines are more ambitious and stakeholder coordination is becoming increasingly complex as the scale and scope of projects expand.

For large-scale developments, these challenges can lead to substantial financial losses and delays that can be felt across the project lifecycle.

To tackle these issues effectively, owners must take ownership of not only the physical aspects of their projects, but also the data and information flow between stakeholder organisations – these include architects, structural engineers, contractors, subcontractors and operators.

Adopting an owner-enabled ecosystem approach can facilitate this by providing a collaborative and transparent environment that brings together asset owners and all stakeholders from the initial stage of the project cycle. By doing this, owners can improve communication, innovate and, above all, reduce risk.

Project expenditures exceed budgets Inaccurate cost estimates during planning, unforeseen changes in scope and overly optimistic scheduling often result in higher costs. Additionally, material price fluctuations, unpredictable site conditions and inefficient coordination between teams can contribute to budget overruns.

Delays in project delivery Issues arise from different stakeholders working with different plans or sources of information. This can lead to errors that are only discovered on the job site, which in turn leads to rework, extra costs and delays. Planning, logistics or resource management issues can also extend project timelines.

Quality control Maintaining a consistently high standard of construction quality can be tough. Challenges can arise not only with single contractors but also when contractors working to different quality standards are on the same project.

In both circumstances, potential issues include discrepancies between specified and actual materials used, workmanship problems, lack of communication between stakeholders, or insufficient oversight. These issues can increase the risk of structural problems, safety hazards and additional costs to rectify defects.

Environmental and sustainability requirements Sustainable construction regulations increasingly demand low-carbon buildings and infrastructure. For example, the Dubai Building Code aims to achieve two

key objectives: reducing the environmental impact of building designs and encouraging the sustainable development of buildings. Other regulations and guidelines come from organisations such as the UAE’s Green Buildings Council and legislation like the Saudi Green Building Code.

The construction industry has a duty not only to design and build structures that generate lower operational carbon emissions, but also to reduce material waste and embodied carbon during the project delivery phase. This means designing projects from the outset with sustainability in mind and adopting techniques to deliver projects more efficiently and with less environmental impact.

A 2022 study by McKinsey analysed more than 500 construction projects globally, each with a total project value of at least $100m. It found that on average, projects cost 79% more than initial budget estimates and took 52% longer than their initial time-frame predictions.

Poor cost and schedule estimates have major consequences

Source: McKinsey

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Data silos and distributed teams make it harder for partners to work together Decision-making and data sharing are hampered when information is spread across different stakeholder systems.

Each stakeholder, from the architect to the engineer to the many subcontractors, has specific responsibilities and liabilities. To streamline their tasks and mitigate risk, each partner in a project may want to produce their own plans rather than rely on those of others. While this might benefit an individual stakeholder in the short term, it creates considerable room for error on an overall, project-wide scale where there can be as many different plans as there are stakeholders.

Isolated plans and associated data silos act as impediments to communication between teams and can have huge knock-on effects across a project’s life cycle. Plus, if details are not transferred to final handover plans and documentation, they are effectively lost forever and unavailable to aid in future operations and maintenance.

In addition, managing siloed teams restricts seamless workflows and unified progress monitoring. Any hindrance to open communication can snowball into delays, costs, code infringements, safety hazards and more.

Fragmented workflows result in inefficiencies that impede progress and increase the risk of delays The importance of streamlined workflows cannot be overstated. They are vital for sustaining project momentum, ensuring effective coordination and managing resources optimally.

Any disruption can slow down a project immediately and produce ripple effects down the line. Delays in handover from one stakeholder to another can create ill will and potentially even litigation between the

Why are project owners facing these challenges?

Without a centralised hub for data, the various stakeholders involved in a project operate from different scripts. The project owner is the only stakeholder with the power to make sure that all project data is centralised and accessible to all stakeholders regardless of the software they use – one single source of truth – and that a robust collaboration system is in place.

When these principles are followed, other problems often resolve themselves. However, throughout the process, owners should be aware of the causes of and potential solutions to several related challenges.

parties involved as energies become focused on a blame game rather than a resolution of the delay.

Low project visibility results in prolonged resolutions Visibility of all aspects of a project – including costs, complications and revisions – is vital for providing oversight and identifying issues early.

Limited access to information from other stakeholders and suppliers makes it harder to spot problems, leading to longer resolution times, delays and scope creep.

An outdated ecosystem is among the primary sources of challenges confronting owners

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Late adoption of technology leads to missed opportunities to enhance operational efficiency A reluctance among both owners and stakeholders to fully embrace technologies that could modernise operations and yield better outcomes can result in inefficient collaboration, delays, increased costs and a decline in competitiveness.

When multiple stakeholders are involved, whole- project solutions will only become fully effective at the speed of the slowest adoptee, if technologies are not mandated by the project owner. Delay in adoption impedes efforts to streamline workflows, bolster project management capabilities and leverage innovative tools.

Handover gaps present challenges for project continuity The project handover stage on completion is critical. Because of the substantial costs sunk into modern giga projects, the faster and smoother this process is, the quicker a project owner can start earning back their investment. At this stage, the operator

Key technologies for supporting an owner-enabled ecosystem

Software solutions can help manage data within the owner-enabled ecosystem. They can also help leverage that data to ensure project execution is more effective and efficient. The right technology can help owners plan and monitor the design and construction of projects, providing oversight and better communication among stakeholders.

Information gathered, stored and sorted from the initial concept stages of a project to its construction can further be used to ensure smooth operations and maintenance over the project’s life cycle, and even beyond – as-built plans can be essential at the end of a project’s life for safe and efficient decommissioning and disassembly.

Some technologies will feature more in certain projects than others, so it is sensible to consider which are needed from the start, and to make sure that the owner mandates platforms and standards that can allow other technologies and software to be integrated smoothly and efficiently at a later stage. Integrating the following technologies into a holistic workflow can help owners not only streamline workflows, but also break down silos, promote standardised processes and ensure project visibility.

An owner-led, integrated ecosystem centralises data and dismantles communication barriers. This enables stakeholders to perform with greater precision and predictability. Consequently, such an ecosystem drives enhanced coordination, reduces rework and minimises waste. This translates to a direct increase in operational efficiency, cost savings and a compressed timeline — ultimately leading to the fulfilment of the desired outcomes of the project owners and satisfaction of all parties involved.

Technology is the enabler, but owners must take charge

Mohammed Abdelrahman Director, Building Information Modelling Red Sea Global

takes on not only the physical asset but also the plans, specifications and other information required to run and maintain it.

However, much of the data generated during the design and build phase is not part of a standard project handover. This makes it much more difficult for the facilities team when it comes to operations and maintenance, if they do not have specific information on all the elements of the project.

For example, components or materials may have been substituted mid-project and the substitution not recorded, or designs may have been adapted ‘on the fly’ and not reported to all parties.

If there is a single source of truth – a common data environment (CDE) – during the design and construction phase that the owner controls, then all that data is part of the handover. Otherwise, it remains with its original owners, effectively lost to those who will now need it the most. Any issues or hold-ups in knowledge transfer can cause misunderstandings, mistakes and disruptions to operations.

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BIM Building information modelling (BIM) is the foundation of digital workflows and central to unifying project data. It is the holistic process of creating and managing information for a built asset, enabling the creation of a virtual 3D model of a building containing rich metadata on all physical and functional characteristics. It allows better design coordination and clash detection, reducing costly rework.

GIS Geographic information systems (GIS) capture and analyse spatial location data about sites and infrastructure. When integrated with digital project delivery methods, the technology can help with planning, surveying, procurement and mapping of existing structures.

Digital twins Digital twins allow project owners to create dynamic virtual replicas of physical assets or processes. They enable simulation and testing before actual implementation, optimising project planning and reducing data gaps at handover. Once a building is operational, the digital twin enables real- time monitoring and predictive maintenance for optimised performance, energy efficiency and lower maintenance costs.

BIM in action: How the Roshn Group has benefitted

• Enhanced design coordination: By detecting and resolving clashes in the virtual world, BIM minimises on-site errors and rework, leading to significant cost savings and better adherence to development timelines.

• Streamlined construction workflows: BIM helps Roshn to model simulated construction processes and manage costs more effectively, ensuring a smoother development delivery.

• Improved communication and collaboration: BIM data is stored in a common data environment (CDE). Ensuring a central repository of information promotes clear communication and cooperation among various development stakeholders.

• 85% reduction in change management time by minimising errors (source: Roshn)

• 15% decrease in design-related rework through quality assurance (source: Roshn)

• 10-15% reduction in project costs with efficient planning and resource utilisation (source: Roshn)

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Project management software and CDE Project management software and digital documentation leverage a common data environment (CDE) to enable better coordination, communication and collaboration among project teams. A CDE is a central, cloud-based hub housing all the information related to a project and its BIM workflow.

This eliminates overlaps and clashes. Without a CDE, more than 95% of project data can go unused, but a single source of truth means that all data about a project is easily locatable and usable by all parties. It leads to faster project completion, reduced rework and improved overall efficiency.

Cloud-based project management platforms and digital collaboration tools enable real-time information sharing and structured workflows, reducing delays and miscommunication. This leads to better decision-making and improved project coordination.

Artificial intelligence Integrating automation and artificial intelligence (AI) into projects can streamline repetitive tasks, enhance efficiency and reduce the risk of human error. Project owners are exploring AI solutions for project scheduling, risk assessment and resource allocation tasks.

However, AI is only as useful as the data it has to work with. Without structured data, it is dumb. Proper management of the data created and shared across teams throughout the project life cycle is therefore essential. Cleanly managed and structured data can help AI provide meaningful insights into the project for owners, and to make predictions for future projects as well.

AR and VR Augmented reality (AR) and virtual reality (VR) are both forms of extended reality (XR), a group of immersive technologies that help users visualise and interact with project designs virtually and enhance collaboration. VR helps stakeholders explore a project in an immersive environment, while AR overlays digital information onto the real-world construction site, aiding in design validation, clash detection and on-site decision-making.

IoT Internet of things (IoT) sensors can be connected with BIM data in the operational phases of a project to aid reporting and performance optimisation. This allows for better visualisation of a project’s progress

Significant investment is planned for BIM technology globally

Source: GlobalData BIM usage survey of over 150 organisations involved in construction projects, including contractors, surveyors, civil engineers and architects

Proportion of survey respondents that have already invested in BIM and plan further in- vestments in the next two years

Proportion of survey respondents that expect to use BIM on more than half of their projects in the next five years

54%

62%

and status and can provide benefits such as advanced insights into the complex relationships between many aspects of operations. IoT sensors can monitor energy usage and environmental conditions, enabling better resource management. The technology can also be used to monitor the location, quality and quantity of equipment and supplies, as well as to monitor operations of the built asset.

https://www.autodesk.com/blogs/construction/construction-common-data-environment/ https://construction.globaldata.com/Analysis/details/building-information-modeling-bim-usage---global-survey-2023

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“In today’s construction landscape, the concept of isolated phases is outdated. The Roshn Group has embraced and mandated the use of advanced technologies including BIM and GIS, transforming the way we approach real estate developments. These technologies are instrumental throughout the development stages from the masterplaning phase to customer handover. They ensure coordination among stakeholders and visibility of all aspects to the project owners.

GIS acts as the eye in the sky for Roshn, providing a comprehensive view that is crucial for masterplanning. With many partners involved, it helps specialists and the project owner analyse land suitability, zoning regulations and environmental considerations, ensuring that each masterplan is not only aesthetically pleasing but also functional and sustainable. This technology helps envision future communities, with every aspect of infrastructure and amenities strategically placed to meet the inhabitants’ needs.

BIM serves as the foundation for the virtual development of the masterplan. Roshn adopts a ‘digitally built first’ approach for its developments, ensuring that buildings and infrastructure are harmonised by utilising a CDE through Autodesk Construction Cloud. This platform hosts BIM models developed using Autodesk Revit and Civil 3D, facilitating seamless information integration among various stakeholders. By adhering to ISO 19650 standards for information exchange, Roshn reduces potential site issues, ensuring smooth delivery.

Singing from the same sheet In this world of complex real estate development, data interoperability acts as the conductor, orchestrating the harmonious collaboration of architects, engineers, contractors and all stakeholders involved.

As an ISO 19650 BIM Kitemark certified organisation, Roshn champions the use of international standards

Saudi Arabia-based real estate giga project developer Roshn, backed by the Public Investment Fund, is building communities that will eventually cover more than 200 million square metres, with a remit to help boost home ownership among Saudis to 70% by 2030. The national real estate company is using advanced construction solutions such as BIM and a common data environment (CDE) to optimise resource usage, enhance efficiency and quality in construction, and ensure delivery. Among its developments are Sedra in Riyadh, which will cover 20 million square metres and contain more than 30,000 homes, and Alarous in Jeddah, which will include 18,000 homes across a 4 million square-metre footprint. Roshn’s Associate Director of GIS, Selim Edde, and Associate Director of BIM, Amr Saad, explain how technology has empowered the developer to redefine the way it approaches the lifecycle of it’s developments from conception to  realisation.

The Roshn Group INDUSTRY INSIGHT

and collaborative platforms, ensuring that everyone involved is singing from the same sheet of digital music. This approach fosters a transparent ecosystem where decision-making is informed, communication is clear and development outcomes are optimal.

From the initial stages, Roshn engages its stakholders with virtual reality models of its developments. The stringent data standards enforced on all consultants and contractors (we are still faced with resistance from our supply chain, but this is slowly decreasing) will enable us to build fully integrated digital twins for our communities, from design to operations.

One of the key strengths of this approach is the enhancement of team collaboration. Democratising BIM models across various ROSHN functions, including development, sales, marketing and commercial, enables these teams to explore developments virtually. This allows them to extract accurate measurements that reflect the final designs, while also providing early feedback, ultimately enhancing the quality of the real estate products.

The further integration of business intelligence tools allows us to harness a wealth of data. This yields more precise information for efficiently managing development costs and timelines. One of the first areas where our practices have made a profound impact is in improving stakeholder engagement. The technologies we use have opened new avenues for communication and collaboration, providing stakeholders with a clearer vision and understanding of the developments. This enhanced engagement is crucial for gaining trust and ensuring success.

Another significant achievement is utilising BIM models in construction activities by integrating both time and cost aspects—known as 4D and 5D BIM. This integration expedites the construction process, and allows for advanced planning, progress reporting, enhances safety and ensures a smooth digital handover of the asset, ultimately integrating it into Roshn’s digital twin.”

Leveraging technology to improve project visibility

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Red Sea Global INDUSTRY INSIGHT

“At Red Sea Global, our early involvement was essential throughout the project life cycle for achieving an optimised blend of efficiency, cost- effectiveness and timely delivery.

Collaboration is at the heart of BIM, involving related stakeholders such as designers, contractors, operators and sometimes even end-users. Designers benefit by crafting structures that are precise, eliminating clashes virtually before ground is ever broken.

Contractors, on the other hand, use BIM to stay informed about design changes, ensuring they have the right materials and labour allocation to streamline their efforts. However, the path to embracing BIM and digital tools often comes with challenges. A core roadblock is the resistance to change – a typical human reaction, especially from stakeholders comfortable with traditional methods.

There is also the initial cost investment in software, training and potential disruptions during the implementation phase. To overcome such challenges, stakeholders undertake steps such as continuous education, proof-of-concept projects and phased integration strategies to minimise disruption.

Organisational support structures, including designated BIM managers and digital innovation teams, are formed to provide ongoing support, guidance and oversight. These teams are responsible for establishing protocols, best practices and enforcing standards and policies that harmonise efforts across differing disciplines and project phases.

This sustains an ecosystem where data is centralised, communication barriers are dismantled and stakeholders are enabled to perform with higher precision and predictability. Consequently, such an ecosystem drives enhanced coordination, reduces rework and minimises waste, which translates to a direct increase in operational efficiency, cost savings and a compressed timeline.”

Red Sea Global (RSG) is setting a benchmark for responsible development as the Saudi giga project owner delivers its long-term pipeline of construction work on Saudi Arabia’s Red Sea coast and beyond. Its projects include three luxury and sustainable tourism destinations. RSG opened the first resort of The Red Sea destination in 2023. Three of its resorts as well as the Red Sea International Airport are now operational.

RSG is only five years into its journey working on some of the largest tourism projects in Saudi Arabia, but its management has learned much in that time. RSG’s BIM Director Mohammed Abdelrahman offers the following advice to project owners wanting to learn from the strategies that have enabled the developer to rethink its data ecosystem and leverage digital solutions and technology for smoother project delivery.

RSG’s real-life lessons • Clear communication and collaboration among

all stakeholders is important, as is investment in training the supply chain, internally and externally.

• Standardising processes and workflows and establishing clear guidelines and protocols for managing BIM data ensures consistency across projects. We have learned the need for robust data management strategies to handle the large volume of information generated through BIM, including data sharing, version control and integration with other systems.

• Effective change management strategies and engaging stakeholders early in the BIM implementation process can ensure that their specific requirements and expectations are considered and incorporated into the workflows. This should be followed up with continuous training.

• Implementing international BIM standards promotes global collaboration and optimises project efficiencies. Adherence to these standards is industry best practice and ensures seamless integration with other partners and platforms.

• We have learned to insist on data-driven decision-making through analytics and business intelligence tools for evidence-based decisions and risk assessment.

• We have explored automation and artificial intelligence solutions to streamline tasks, improve productivity and prioritise cybersecurity measures to safeguard project data and infrastructure.

Taking ownership to improve project control

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Key takeaways Only the project owner can mandate that everybody work from the same data and use BIM standards. This goes way beyond adding files to a shared drive – it means centralising the underlying data in a repository that is accessible to all. Establishing this single-source common data environment can overcome many challenges by enabling teams to function as one cohesive unit.

There may be a reluctance among some stakeholders to adopt a shared source of reference, plans and data. As well as exercising both their authority and soft skills to ensure buy-in, project owners can help enable the ecosystem through training and workshops. These will not only ensure all parties are familiar with the software and systems common throughout the project, but also that they understand and appreciate the benefits to themselves and to the project as a whole.

Recommended action

• Take ownership. The project owner is in a unique position to mandate how all stakeholders operate using a single source of data. Building the project ecosystem around a CDE that ensures comprehensive visibility empowers owners to monitor progress and spending closely. Identifying issues early and implementing timely solutions helps avoid budget and time overages in the long run.

• Ensure access to all project data in a centralised location. A single source of truth prevents errors and misunderstandings and facilitates smooth collaboration among teams.

• Implement clear documentation and approval standards. This helps provide an efficient and transparent framework for managing projects.

• Carefully plan for handover from the start of the project. This ensures a smooth handover when the build is complete and makes sure owners and operators have what they need for ongoing success after project completion.

Why adopt an owner-enabled ecosystem approach?

Take active project control for better and more predictable outcomes

Make informed decisions based on big-picture visibility

Identify and address potential risks across the project

Reduce delays and avoid cost overruns

Streamline processes and resource optimisation to boost overall efficiency

Prevent disruptions and enhance project resilience

Take control and drive your projects to success. Get in touch today to speak with an expert.

R E Q U E S T A C O N S U L T A T I O N

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