Of Miscalculations and Megalomania
Instead of 80 million euros, the Elbphilharmonie concert hall in Hamburg ended up costing almost 900 million. And the Berlin-Schönefeld airport? Instead of 5 years of construction time, the collapsed airport took 14 years to open. Only the Deutsche Bahn can manage such a delay.
But well, with a current delay of probably 7 years and a real cost explosion, the Stuttgart 21 rail project is also in the top ranking of the most problematic large-scale construction projects in Germany. But Germany is not only the land of poets and thinkers, but also of engineers.
What has gone wrong in recent years? Are we no longer capable of building large-scale projects, or why do construction times and costs regularly explode? In this blog post, we will take a closer look at the status quo in the German construction industry – stay tuned! It's going to be exciting.
What is the state of the German construction industry?
If we want to know what is moving our industry the most right now, where is the best place to look? In a trade magazine? Or directly to the websites of the industry's biggest players? The answer is much simpler: as in every area of our lives, it's worth taking a look at social media.
LinkedIn, in particular, is a veritable treasure trove of exciting construction industry trends and news. During our research, we came across some exciting posts about large-scale construction projects in Germany. Some of them make you wonder: have we forgotten how to build? Good question: have we? Let's take a look back over the past few years.
The German large-scale construction projects have already attracted international attention. But as in any industry, the negative tends to dominate the headlines. This has not necessarily improved our image in the international construction industry.
Just recently, an announcement gave new impetus to the discussion. The controversial Stuttgart 21 project will be delayed for another year. But the excitement in the German media quickly subsided. After all, we've seen this before.
Nevertheless, we ask ourselves: why does it happen so often here? After all, the once good reputation of the German construction industry is at stake. Why is it that we simply cannot manage to complete large-scale projects on time and within budget?
Why do Germany's big construction projects cause such problems?
Ultimately, the question of why Germany's major construction projects are causing such problems is not easy to answer. There are a number of factors at play. Let's take a closer look at the most important ones.
Politics and Construction
In fact, we see the main problem in the way we build. The construction and planning of such large-scale projects is often in the hands of the public sector. We mentioned this in our article on the Berlin airport: Politics and construction do not mix.
The rule is: Cobbler, stick to your last! We have so many experts in our country, especially in the construction sector. But the public perception of construction projects is often distorted by media and politics.
Politicians decide on construction times and the necessary costs, although they usually don't know what really matters: this simply can't work. When news of necessary delays or budget adjustments leaks out, the outcry in the media about delays or cost explosions is always bigger and louder than the professional explanations from experts in the construction industry itself. This is where the proverbial construction hare is caught.
Against Each Other Instead of with Each Other
Many different companies work together on a project. They plan together what will happen when and how. With the help of digital plans and regular agreements between the experts at the "round table"—wait, something is wrong here.
We must be lost in a daydream. The reality is quite different. Different companies are working on their own construction plans in different areas. Design and construction are not clearly separated, but rather fragmented. Often even in parallel towards the end.
Different companies often work each for themselves side by side or, in the worst case, at cross purposes. Agreement between them is rare, and tensions arise regularly.
Architects change the design of the facade during the construction phase. It looks nicer, but it also creates problems. The company building the facade has to change its plans.
New calculations, new plans. Parts already ordered are cancelled and re-ordered. Supply shafts have to be relocated, which means that the sanitary areas can only be built on the opposite side: How do we do it now with the electrics? Incredible stress for everyone!
Plans are revised, adapted and optimized for the new solution. Overtime and bad moods create a tense atmosphere among the trades. Changes take time. And time is money. Contracts are extended and investors are put off by significant additional costs. Plan changes during the construction phase are always a big problem.
Often, spontaneous and late requests for changes do not even come from the trades involved. Instead, they come from outside the industry, such as the public or politicians. It is not uncommon for these disputes to go all the way to the high courts and result in months of costly construction stoppages. Too many cooks spoil the broth. Especially when the noisy half is actually a long retired stockbroker and not a cook.
Cheapest Wins Contract
When government agencies award contracts, low cost is often more important than quality and references. Good construction companies, especially those with international project experience, are expensive.
So you save money by not necessarily opting for high quality. After all, construction is construction—right? Actually, this is another big mistake. The lack of quality usually means that rework and rescheduling are always necessary.
And as we have already learned: Time is money in construction. It's better to plan properly once than to have to change companies twice because something doesn't fit or a roof keeps collapsing due to structural flaws.
Construction Devil in (Often Unnecessary) Details
When Germany plans a large-scale construction project, it has to be impressive, downright brilliant! After all, you want to look good in front of your own people, investors, and international competitors.
For example, they came up with the idea of using a technique that had never been used on this scale before to design the supports for the Stuttgart 21 train station: So-called iron weavers from Turkey were to provide a unique, futuristic design. They worked for months on each of the goblet supports that would one day support the curved roof. For each goblet, 22,000 individually measured iron rods had to be woven.
And the concrete they used? This special white concrete had never been used before. During the planning, they weren't even sure if the design could be realized in this way.
Of course, you want to gain prestige and international attention with something like this. But the reaction abroad is different: the duration and cost of the large-scale construction projects elicit more pity than admiration. Even if the results are truly impressive – once they are finished.
Problems with Long Construction Time
Problems arise when a construction project takes a long time. One of these is the constant change in regulations and laws. In the case of Stuttgart 21, for example, stricter requirements for escape routes and environmental protection caused considerable delays.
Planning had to be redone on many levels. Several kilometers of escape tunnels were suddenly no longer wide enough because wheelchair users had not been taken into account sufficiently.
But even outside the law, a constant companion of the construction industry lurks in the shadows of the building shell: technological progress. We have seen this, for example, in the case of the technology at Berlin's unfinished airport. The completion was delayed so long that the computer technology and screens were already outdated and had to be replaced.
Another issue over which you have little control during construction and planning is problems caused by the loss of participating companies, for example due to bankruptcy. Economic fluctuations (raw material prices, energy prices, rising labor costs) also lead to necessary adjustments in budget and construction time.
What's more, the priorities of large-scale construction projects change regularly in the public hands. For example, the election of a new mayor or a shift in the power of the leading political parties. Partisanship can be very stressful, especially for the construction industry with a large-scale project underway.
Revision Committee for Construction of Large-Scale Projects
New Ray of Hope
In recent years, however, there has been a new beacon of hope called the "Reform Committee for Construction of Large-Scale Projects" (Reformkommission Bau von Großprojekten). In 2015, new guidelines for the construction of large-scale projects were adopted. These are recommendations for greater efficiency, timely opening and transparent costs.
Here are the key points:
- Coordination and consultation of the various contractors as a team
- Clear processes and responsibilities
- Completing design first, then building
- Awarding contracts for the best possible value, not the lowest cost
- Binding, external economic efficiency study
- Use of digital methods for collaboration (BIM)
- Realistic risk management
- Out-of-court dispute resolution (saves time, nerves and money)
- Transparency and regular monitoring by independent experts
Sounds good! But we have to realize that now, almost 10 years later, the requirements are still the same. We have not really made any progress. So what needs to change in the construction industry to make large-scale construction projects more efficient in the future?
Measures for More Efficiency in Large-Scale Construction Projects
What we need in the construction industry in general, not just for large-scale projects, is clearly more digitalization. Working with digital plans and tools is much easier and more manageable. In general, it would be more than desirable for the parties involved to work together rather than against each other.
And although we have a lot of experience with large-scale projects, we shouldn't always rely on the tried and tested. It is worth taking an interested look at current international trends in the industry, such as the rethinking of sustainability. This will also improve the international image of Germany.
Uniform guidelines are very important, especially in Germany. At the moment, the individual federal states have different standards in many areas, for example, the minimum width of an escape window, that is, a possible escape route in the event of danger.
At 0.60 x 1.00 m, Bavaria is probably stuck in the Middle Ages when it comes to the size of people. But it doesn't want to adapt, because: We've always done it that way. And that's exactly what needs to change.
The individual trades also need to be better coordinated. A responsible general contractor who takes over and monitors the coordination is exactly the right measure for this.
Finally, we need to focus more on the planning of large-scale projects and, most importantly, complete this planning before construction starts. Thanks to innovative structural analysis software, such as Dlubal's structural analysis programs, this is much easier today than it was 20 years ago.
The last measure is probably one of the most important: let the experts do their job! External influences from outside the industry should be eliminated or mitigated as much as possible. After all, we have more than enough people in the construction industry who know exactly what they are doing, even without the help of politicians and the public.
What has happened in recent years?
In fact, the construction industry is no longer standing still, but is increasingly on the move. Even if it is a bit sluggish. We learn from the mistakes and problems we keep encountering.
For example, we are finally seeing positive trends in standardization. Even if it will take some time and occasionally lead to big discussions. Usable software and digital tools are also on the rise. More and more companies are using them and finding that they are already making project planning much easier.
Social networks is making it easier to connect each other and understand the views of other trades. Industry-wide projects like our Dlubal podcast are designed to help us work better together instead of against each other.
From architects to structural engineers, plumbers and electricians to fasteners, we can get along so much better when we understand each other.
Why is progress in the construction industry so important?
There are a lot of preconceptions about the construction industry. That's true of any industry. However, many of them are very true. For example, digitization in construction is slow and the infamous phrase "We've always done it this way" is still part of the vocabulary of many companies in the industry.
Even those who finally want to see change face obstacles. Although politicians promised a clear direction for the construction industry some time ago, the actual implementation has been a long time coming.
In addition to the rather conservative attitude within the construction industry, there are the negative headlines in the press and politics. As mentioned earlier, negative headlines tend to have a wider reach.
But the industry is also being held back economically. Rising costs, especially for construction materials, and the ever-present labor shortage are creating a growing sense of uncertainty.
What can we do?
Actual help from above seems to be a long way off. So we have to take action ourselves. Encouraging active collaboration between trades on joint projects is a good step in the right direction.
The best way is to lead by example and inspire others. Social networks can be used as a mouthpiece. And to be more specific: Let's talk more about BIM! Digitization, cross-software collaboration, and education about all the other benefits of digital interfaces make our work so much easier.
Let's advocate for transparent, professional information to the public about planning, construction progress, and even internal issues within the industry. After all, people outside our industry will only accept what they can understand.
Together, we are laying the groundwork for a revolution in the construction industry from within. In fact, it has already started: And Dlubal Software is part of it! Let's restore the good reputation of our construction site. Together, not against each other.
When we plan and build together, side by side, we create not only major construction projects on time and within budget. But also buildings that make a good impression: in the industry itself and in the public eye.