After a tumultuous 2020, Building Contractors are using the downtime caused by the Coronavirus to review their business models. The most obvious question is how to use technology, notably Artificial Intelligence, to increase productivity? However, more radically questions are being explored, like for example, the feasibility of moving from “building” to “providing a service”?
In an effort to secure stable and vigorous cashflows, many companies have begun to delve into the “Asset Lifecyle Service Providers” model, which incorporates, not just constructing the building and handing over the keys, but ongoing facilities management services, through-life services and maintenance.
This has come about as customers have become increasingly interested in buying “outcomes” rather than “bricks and mortar” assets. At the end of the day a hospital is more focused on providing “care” to its patients than managing a building.
An advantage of the model is that Building Contractors will be more inclined to give attention to asset quality and ease of maintenance.
If, as predicted, the Building Contractors begin to move away from a “two-contract model”, (one for building and one for service), towards one which comprises the entire “lifecycle” of the assets, the internal operations, processes and priorities will change. New skills will have to be developed so as to be “best in class” in new concepts, including field service scheduling and optimization, service-level agreements and customer engagement.
Watch this space…!!!
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