Self-sufficiency is a point of pride for many in the construction industry, but a smart business owner knows when to delegate work to external vendors. Maybe you’ve seen the laser scans, building information models (BIM) and site visualizations produced by your competitors, and you want to provide similar offerings, but you don’t have the internal resources and skills to add virtual design and construction (VDC) services to your company. Maybe your existing VDC staff is spread too thin to handle the current workload. Whatever the reason, outsourcing your advanced technology services to a third-party provider can offer a viable solution.
Here are five reasons to consider outsourcing:
- You want to test the waters.
Outsourcing VDC work can be a quick and economical way to gauge customer demand and your own firm’s capabilities and capacities before committing to bringing the work in-house.
“If you don’t have that type of expertise and skills because your company hasn’t invested in the technology at this point, and you’re not quite ready to implement and maintain those advanced technologies and workflows, partnering with somebody is an easy thing to do,” says Clair Vander Zwaag, director of reality capture solutions at NOAR Technologies. “This also allows you to quickly ramp up or scale up or down your technology operations.”
- Your budget isn’t ready yet.
The cost of purchasing digital construction technologies, such as robotic total stations and laser scanners, and then hiring and training personnel and licensing software, can quickly exceed five figures. Outsourcing your VDC services can buy you time to secure the financing, Vander Zwaag says.
“If you want to focus on your core competencies or keep your costs steady, work with somebody externally to do the work for you in the meantime,” he says.
Leasing instruments instead of buying equipment outright can also help to reduce your upfront costs.
- You’re managing your risk.
Risk and liability weigh heavily on the minds of construction professionals. Documenting building conditions, modeling buildings, and sharing and storing project data exposes you to risk.
When looking for a vendor to handle your digital construction needs, make sure you “understand their core competencies, which software and ecosystems they’re working with, and their ability to share data seamlessly with you and your client.”
—Clair Vander Zwaag, director of reality capture solutions at NOAR Technologies
“Some companies just don’t want to go there,” Vander Zwaag says. “They want to mitigate risks associated with technology failures, security breaches and other IT challenges.”
Make sure your service provider is licensed, insured and prepared to accept those risks.
- You want to stay ahead of the competition.
Maybe you already have in-house experts leading VDC efforts, but you want to push the technology — and your business — as far as possible. You envision spinning off your VDC capabilities into a separate, revenue-generating business unit that serves other building professionals. As you build up your internal resources, you might need to outsource work to other service providers to handle the demand and demonstrate proof of concept.
“I have a customer with 12 scanners working across the country on projects, but they keep on taking more business because of their experience and reputation,” Vander Zwaag says. “They’re a train that can’t stop, so they hired a technology partner to be at their side. They can’t hire fast enough to drive what they’re trying to achieve.”
- You’re too busy to handle every project, everywhere.
Your clients are pleased with the outcomes of advanced digital construction technology, and so your company wants to expand its use to every project. However, you’re not sure your busiest season justifies the investment in staff and equipment for every office location.
“By automating tasks and centralizing critical processes, you can focus on what truly drives your growth.”
—Clair Vander Zwaag, director of reality capture solutions at NOAR Technologies
“Your business will fluctuate, but you have to consider the ongoing costs of maintaining your VDC program, including salaries, hardware and software year-round,” Vander Zwaag says. “You can move or float some staff around, between those who are modeling and those in the field, depending on your business needs.”
But for those extremely busy times, hiring an experienced outside provider might be the more efficient use of your dollars, he advises.
How to find the right service provider
When looking for a vendor to outsource your digital construction needs, Vander Zwaag recommends prioritizing one that has experience in the office and in the field. And check that their workflows align with yours. “Have the initial conversation to understand their core competencies, which software and ecosystems they’re working with, and their ability to share data seamlessly with you and your client.”
Also ask about turnaround times, contingency plans for unexpected issues in the field, and of course, their fees. “You should expect quality deliverables,” Vander Zwaag advises. “Quality assurance should be built into the package itself.”
When should you insource instead?
As your team grows more familiar working with laser scans, point clouds and BIM models, you’ll probably start thinking, “We can do that in-house.”
Growing your capabilities in-house will pay off, Vander Zwaag predicts. “Many companies have been successful in starting an in-house VDC program that includes reality capture. These types of technologies are not going away. By automating tasks and centralizing critical processes, MEP contractors can focus on what truly drives their growth: innovation, client relationships and team development.”
Ready to explore your options? Get in touch with a Leica Geosystems building construction specialist to discuss your needs.