ICT Construction Machinery Introduction Guide: Thorough Explanation of Cost-Effectiveness and Selection Points

ICT construction machinery (ICT-enabled construction equipment) often raises questions among many business owners and site managers such as “Is the high cost worth it?” and “Which model should we choose?” This guide explains the cost-effectiveness of introducing ICT construction machinery using data, and then details the selection points to choose the ICT machines best suited to your company. Resolve concerns about initial investments and model selection, and use this to support your company’s capital investment decisions.

What is ICT construction machinery? ICT construction changing construction sites with the latest technology

ICT construction machinery refers to construction equipment equipped with information and communication technology (ICT) that utilizes GPS and sensors to provide advanced construction support. By leveraging 3D design data and satellite positioning (GNSS), machines assist operations automatically or semi-automatically. Specifically, functions known as machine guidance (MG) and machine control (MC) support operator actions while controlling blades and buckets to match design elevations and slopes. Earthwork and grading work that traditionally relied on operator skill can be carried out efficiently with high precision using ICT construction machinery.

The spread of ICT construction machinery has accelerated recently as part of the Ministry of Land, Infrastructure, Transport and Tourism’s *i-Construction* initiative. Facing severe labor shortages and an aging workforce, the construction industry urgently needs productivity improvements and labor savings. ICT construction machinery symbolizes the DX (digital transformation) of construction sites, and together with 3D survey data and AI utilization, it is attracting attention as a key to realizing next-generation smart construction.

Cost-effectiveness of introducing ICT construction machinery: Is the high initial cost worth it?

The introduction cost of ICT construction machinery is typically about 1.5 to 2 times that of conventional equipment, so the initial cost is indeed high. Because they are equipped with the latest GPS devices, sensors, and dedicated software, purchase prices and system implementation costs tend to be higher. There are also running costs such as maintenance and software updates. Therefore, it is natural to worry, “Will the benefits justify the cost?” However, in conclusion, ICT construction machinery is a worthwhile investment in the long term. Below, we examine the reasons from a cost-effectiveness perspective using data and concrete examples.

According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism, it has been confirmed that introducing ICT construction results in dramatic improvements in work efficiency. For example, 2019 data reported that total work hours were reduced by about 30% in earthworks and paving and about 20% in river dredging compared to traditional methods. On actual sites that introduced ICT construction machinery, there were cases such as “a 150-day schedule shortened by 20 days” and “a 5-month schedule shortened to 4 months, with fuel efficiency improved by 30%.” Shortening schedules through efficiency directly reduces labor costs and machine operation hours, leading to improved cost performance.

Now let’s organize the concrete benefits that ICT construction machinery brings.

• Productivity improvement through schedule shortening: Automatic control based on 3D data reduces rework and waiting times, increasing work speed. Works such as earth formation and grading that previously took many days proceed more efficiently, enabling significant overall schedule reductions. Shorter schedules allow more projects to be accepted in the same period, increasing revenue, and also reduce long-term temporary facility and utility costs.

• Reduction of labor and indirect costs: By utilizing ICT construction machinery, the traditionally required setting out (installation of batter boards) and surveying supervision personnel become unnecessary. There is also less need for workers to guide machines closely, so on-site staffing can be reduced. Not only labor costs but also site management costs and expenses for guards and temporary site offices—site management and common temporary facility expenses—can be compressed. Additionally, because work can proceed without relying on highly skilled operators, ICT machinery helps address labor shortages.

• Improved construction accuracy and reduced rework: ICT construction machinery performs excavation, embankment, and finishing according to design data, so as-built accuracy improves dramatically. Compared with work relying on intuition and experience, variability decreases and desired finishes can be achieved. As a result, rework due to over-excavation or insufficient embankment is greatly reduced, preventing material waste. Stable quality also helps secure client trust and can lead to expanded future orders.

• Improved safety: Reducing setting out tasks and on-machine personnel contributes to lower risk of contact accidents. Avoiding situations where surveyors constantly work near machines raises site safety levels. Reducing operator burden also lowers fatigue and human error, bringing benefits for accident prevention and health management. Improved safety results in cost savings from reduced industrial accident risks and increases employee peace of mind.

• Competitive edge and future potential: Being a company proactive in ICT construction enhances external competitiveness. Governments and municipalities are promoting ICT-utilized projects, and companies with experience and equipment are increasingly favored in bidding. Holding ICT construction machinery can lead to higher evaluation scores or incentives (special additional payments) in construction costs. Moreover, mastering ICT machinery and accumulating in-house know-how becomes added value and can lead to future business opportunities. There are cases where sales approximately doubled after introduction, so it can be a high-return offensive investment.

As described above, although the initial cost of introducing ICT construction machinery is large, the cost reduction effects from efficiency improvements and revenue expansion are extremely high. With government support there are also preferential measures in cost estimation (such as increased unit prices for ICT construction and expense adjustments), making it easier to secure profits. It is truly a policy that should be seen not as a “cost” but as an investment in the future. If you consider long-term cost-effectiveness rather than short-term expenditures, introducing ICT construction machinery is a viable choice.

Selection points for ICT construction machinery: Determine the best models and introduction methods for your company

Even within ICT construction machinery, there are various types and specifications depending on construction content and manufacturer. To maximize introduction effects, it is important to correctly select machines that meet your company’s needs and prepare thoroughly. Below are the main checkpoints to keep in mind when choosing ICT construction machinery.

• Choose a model suited to the types of work you handle Select ICT construction machinery that matches the types of work your company primarily performs. There are many ICT-enabled models such as hydraulic excavators (backhoes), bulldozers, graders, and compaction rollers. Each excels at different tasks, so it is crucial to choose equipment that fits your site’s construction content. For example, if excavation and slope finishing are common, consider ICT hydraulic excavators; for grading and subbase work, consider ICT bulldozers or graders; for compaction, consider ICT vibratory rollers. Choosing the wrong type may result in insufficient benefits, so determine “which ICT machine is optimal for our work types.”

• Consider timing of introduction and financial planning Because ICT construction machinery is expensive, carefully consider the timing of introduction and funding plans. The construction industry is promoting ICT construction, and support such as subsidies and grants and low-interest financing for small and medium-sized contractors is being developed. For example, public support programs such as the “Monozukuri Subsidy” can be used to purchase the latest ICT construction machinery. Monitor support measures provided by national and local governments and actively use any applicable programs. Also, to recover investment by operating the introduced machines at full capacity, securing sufficient workload is important. Evaluate your order backlog and site schedule, and introduce machines when utilization can be kept high. In some cases, complete training before the busy season so machines can be used as ready resources during peak periods.

• Confirm the manufacturer’s support system ICT construction machinery is a high-tech product. To ensure sufficient benefits after introduction, the manufacturer’s or dealer’s support system is an important checkpoint. Specifically, confirm the presence of operation training and technical support, 3D data creation assistance, rapid response for failures, and software update provision. Many equipment manufacturers hold operation workshops for ICT machinery and dispatch dedicated instructors to support on-site personnel training. Some manufacturers provide training centers for adopters, offering an environment for hands-on training with actual machines. Choosing a manufacturer with robust support allows even first-time users to proceed with confidence. If support is weak, you may not fully utilize the machine’s functions, so thoroughly check the after-sales support services of prospective suppliers.

• Prepare in advance and organize internal systems for introduction To utilize ICT construction machinery effectively, certain preparations must be made before full operation. Tasks such as creating 3D survey and design data, installing reference points for construction surveys, preparing base station GNSS that links with ICT machinery, and conducting pre-construction accuracy verification tests involve different procedures from conventional construction. If your company lacks the knowledge or resources, decide whether to outsource or internalize these tasks. Recently, there has been an increase in surveying companies and consultants that provide drone surveying and 3D data creation, so outsourcing options are plentiful. In the early stages of introduction, it can be effective to borrow the expertise of specialists while gradually developing in-house technicians and moving toward internalization. In practice, some companies started ICT construction with the help of the prime contractor or rental company for surveying and data preparation, gained experience, and later completed data creation in-house. Choose an achievable system according to your company’s scale and technical capacity.

• Operator training and cultural change on site Finally, a personnel-related point. When introducing new technology, the operator’s understanding and proficiency—those who actually handle the machines on site—is indispensable. Experienced machine operators often resist ICT machinery, thinking “I can do it faster with my own skill” or “I don’t trust new machines.” In such cases, carefully explain the benefits of ICT machinery and provide opportunities for hands-on demos and training. When operators experience that “it’s easier to use than expected” or “this makes work less strenuous,” even veterans tend to appreciate the value. In fact, there are cases where initially hesitant veteran operators changed their evaluation to “once accustomed it’s easy to use and accuracy improves.” For less experienced staff, ICT machinery is also supportive: automatic control enables high-precision construction even with unskilled operation, contributing to early upskilling of young workers. As a result, an environment where everyone can perform construction to a consistent quality is created, helping solve labor shortages and skill transfer issues. Provide sufficient operation training and promote a culture of acceptance for new technologies across the site during introduction.

By considering the above points and selecting ICT construction machinery and introduction methods suitable for your company, you should be able to make a sound investment decision. Because it is an expensive purchase, planning comprehensively from model selection to preparation and training is the shortcut to success.

Conclusion: Investing in the future with ICT construction machinery — start with what you can do

Introducing ICT construction machinery is a major step toward improving productivity and reducing labor on construction sites. Although the high initial cost may be daunting, as discussed in this article, the cost-effectiveness is sufficiently high and it is an investment that yields substantial long-term returns. Schedule shortening, cost reduction, safety improvement, and enhanced competitiveness are among the multifaceted benefits that can outweigh introduction costs. Appropriate model selection, thorough preparation, and training enable you to maximize these effects. Please use this guide as a reference to consider ICT construction machinery introduction according to your company’s situation.

That said, if “purchasing expensive ICT heavy equipment outright is too big a hurdle,” it is also effective to start by incorporating ICT technologies within your means. For example, using simple surveying with LRTK as a tool to streamline site surveying is one option. LRTK is a system that combines a smartphone with a small GNSS receiver to achieve centimeter-class high-precision positioning (cm level accuracy (half-inch accuracy)), enabling anyone to easily perform on-site surveying and measurement. Tasks that traditionally required two people can be completed by one person, and complex terrain data can be acquired in a short time. For instance, as-built checks at earthworks sites or locating buried objects can be measured and digitized by your own staff whenever needed with LRTK, reducing machine waiting time and preventing work stoppage. Introducing such simple surveying tools is a relatively low-cost first step toward site digitalization and provides an opportunity for staff to become familiar with ICT utilization.

Adopting the latest technology entails uncertainty, but building confidence and know-how through small successes leads to steady progress. While using easy solutions like LRTK, steadily promote ICTization of construction sites at your company’s pace. To realize smart construction that fully leverages ICT construction machinery in the future, consider taking one step at a time starting with what you can do now. I hope this article serves as a helpful resource for strengthening your site capabilities and sustainable development.