SINGAPORE (Sept 30): In almost every construction project, there are close to 5,000 defects and quality control issues each day, from simple electrical circuit trips and plumbing defects to complications with ceiling height clearances. Typically, one unfortunate manager is in charge of solving the problems before the next day arrives.
This situation came as a shock to software engineer Adinda Savitri when fellow undergraduates at her computer science course at the National University of Singapore told her about their experience on construction sites — problems which, in her mind, could be easily rectified by technology.
She had spent the first few years of her working life designing software solutions for technology companies and was accustomed to a culture of tech-driven agility. She had previously started a technology consulting business, Verso, that helps construction, manufacturing and pharma companies adopt new digital solutions. The construction sector is the complete opposite of the clients she used to have — it has to battle runaway costs and labour shortage and is resistant to new technology.
Undeterred, the 27-year-old engineer wants to rewire the construction sector through digital platforms and artificial intelligence (AI), which she believes could make life easier for construction managers while improving safety at construction sites.
Earlier this year, Savitri met 32-year-old Caleb Tutty through the Entrepreneur First talent incubation programme. Tutty specialises in global analytics and data platforms and has undertaken projects for The Coca-Cola Co, Oreo and DreamWorks. The pair hit it off immediately and founded Nucon — a portmanteau word combining new and construction — which uses software to improve quality control on construction sites. They quickly won contracts to test the Nucon AI engine in five developments in Singapore, Kuala Lumpur and Shanghai, or a total of 10 pilot programmes. Savitri says this translates into about six million sq ft in gross floor area and about $6 billion in total value. The company wants to scale quickly by courting customers in the industry with annual revenue of more than $100 million.
Refining quality management
Essentially, Nucon collects and records the data from the processes and operations at each construction site. This includes historical and real-time data. Nucon’s software and proprietary diagnostic tools will analyse the data and recommend quality control measures to the construction company.
According to Tutty, work for Nucon begins right from the day its staff first set foot on the client’s grounds. They gather a huge volume of operational data and reports, with the entire process taking anywhere from two to four weeks. Savitri says the team takes special care to ensure that the digital tools are user-friendly so that the client company’s higher management level officers can use them.
But the process is far from straightforward. Many construction companies still rely on pen and paper to record their work. The data and historical records are also made in various formats. This makes digitising the data and diagnostic work difficult.
“We’ve worked with companies that could turn around [with data] in less than a day, while other companies took about four weeks. It all boils down to how digitised a company is,” says Savitri. “A structured way of recording data is crucial. Some companies have project delivery teams equipped with tools such as Oracle and Autodesk, but a significant proportion of quality management teams still rely on spreadsheets, which we want to change.”
Meanwhile, the construction industry is plagued by cutthroat competition, as well as manpower issues. Observers are not expecting the industry to recover to its heyday during the 2006-to-2008 period. Total construction demand grew 46% to $16.8 billion in 2006 from the year before. The Building and Construction Authority (BCA) is projecting steady construction demand in terms of contracts awarded of $27 billion to $34 billion a year from 2019 to 2021. Construction tender prices in 2Q2019 fell 0.4% q-o-q.
The bleak outlook has driven the sector to consolidate and tighten spending. This may deter some companies from spending on new technology. Tutty and Savitri will have to prove their case and build a track record quickly if they want to convince the embattled industry to use their software. Nucon is still in the process of validating its digital tools to spot all the quality control issues at a construction site.
However, the co-founders of Nucon remain optimistic about the future of the industry, as they have seen a fair mix of digitally savvy and traditional firms approach them for their services. Tutty notes that about 50% of the construction companies that have approached them have fairly digitised methods of operation and data gathering. Savitri adds that when business takes off, the company will be operating on a monthly subscription basis.
Singapore a good place for start-ups
What initially attracted the duo to set up shop in Singapore was the city state’s receptiveness towards start-ups — especially in terms of government initiatives and incentives to encourage the growth of new companies.
Savitri and Tutty recall how the process of starting a company in Singapore was essentially seamless, with a small overhead charge and generous government incentives such as early start-up grants. They received a proof-of-concept grant from Enterprise Singapore when Nucon was started, which helped them roll out their solution to local construction companies such as Kimly Construction with zero financial risk on their end. The company is also set to raise capital. It has received pre-seed investment from Entrepreneur First, which will be used to bolster its engineering team.
Looking ahead, the pair expects to continue leveraging government grants in 4Q when they will take their product to market. The Productivity Government Grant allows them to claim up to $30,000 to purchase pre-approved productivity solutions. They also work with BCA to persuade more construction firms to go digital. The start-up has plans to expand to countries such as Australia, the UK and the US.
