Update Construction Sites with Construction DX! How to Achieve Workstyle Reform and Cost Reduction

Challenges at Construction Sites and the Need for Workstyle Reform

The construction industry is now at a major turning point. Severe labor shortages and an aging workforce have reduced the number of people employed in construction to about 70% of its peak (6.85 million in 1997 to 4.77 million in 2024). With few young people entering the field, skill transfer on site has become difficult. In addition, long working hours remain a major issue. From 2024, overtime work limits apply to the construction industry as well, making the correction of working hours through workstyle reform an urgent task. In fact, annual working hours in construction exceed the all-industry average by more than 200 hours, and annual working days are several weeks more than other industries. This places a heavy burden on site staff, making improvements in work–life balance necessary. Moreover, low productivity has been pointed out. Labor productivity in construction is said to be about half that of other industries, with inefficient tasks and duplicated work becoming chronic. In addition, from a safety management perspective, traditional methods that rely on experience and intuition cannot sufficiently reduce the risk of occupational accidents.

Against this backdrop, it is essential for construction sites to review conventional practices and pursue initiatives that simultaneously achieve workstyle reform and productivity improvement. One focus is “Construction DX.” The Ministry of Land, Infrastructure, Transport and Tourism is promoting the “i-Construction 2.0” strategy aimed at improving construction productivity and realizing sustainable workstyle reform, and transformative reforms of sites through Construction DX are urgently needed across both the public and private sectors.

What Is Construction DX?

“Construction DX (Digital Transformation)” refers to initiatives that introduce digital technologies into construction work to revolutionize processes and achieve greater efficiency and sophistication. Specifically, it transforms workflows across surveying, design, construction management, safety management, and administrative tasks by utilizing ICT (information and communication technology), IoT, AI, cloud services, and more. DX is not just the partial adoption of IT tools; its characteristic is changing the speed of information linkage and decision-making between sites and offices.

By promoting Construction DX, tasks that once relied on paper and manual labor can be digitized and automated, enabling real-time information sharing and data-driven decision making. For example, progress management that used to depend on the site supervisor’s experience and intuition can be visualized through sensors and data analysis, and drawings and documents can be digitized so needed information is immediately accessible. Construction DX updates every corner of the site with digital power, producing the various effects described in the next chapter and contributing to both workstyle reform and cost reduction.

Effects and Benefits of Introducing Construction DX

Introducing Construction DX brings many benefits to companies and sites. The main effects are summarized as follows.

• Improved productivity and operational efficiency: Faster information sharing and task automation reduce unnecessary steps and rework, leading to shorter construction periods. Limited personnel can manage multiple sites efficiently, and per-person output is expected to increase.

• Cost reduction: Efficiency improvements and fewer mistakes help compress unnecessary labor costs and extra construction expenses. For example, if DX reduces duplicated tasks, labor costs for those tasks can be cut, and shorter construction periods reduce indirect costs. Cost cuts from labor savings are not just expense reductions; by reinvesting freed resources into new technology adoption and human resource development, they can contribute to sustainable growth.

• Workstyle reform (correction of long working hours): Digitization and automation of tasks advance labor savings. This shortens work that previously required manpower and long hours, enabling reduced overtime and promotion of a five-day workweek. DX-adopting companies have reported effects such as “substantial reductions in monthly overtime for site staff” and “fewer holiday workdays and more time off.” Improved workplace conditions also aid workforce retention and recruitment, helping to alleviate labor shortages.

• Improved safety: Assigning dangerous tasks to remotely operated machines or sensors and using AI for risk detection can reduce the risk of occupational accidents. There are increasing cases in which drones and robots replace high-place or heavy labor previously done by people. Additionally, analyzing past accident data with AI to promote hazard prediction allows safety measures to be implemented based on scientific evidence rather than individual intuition. DX is effective at raising the baseline of safety management.

• Skill transfer and quality improvement: By digitizing veteran knowledge and sharing it, previously person-dependent techniques become visible. Electronic manuals and checklists, and 3D simulation of construction procedures, make it easier for less experienced workers to maintain a certain quality level. As a result, variability in work quality decreases and overall quality improves.

Thus, Construction DX is a powerful means to reconcile productivity improvement with workstyle reform. The next chapter looks at the specific technology areas where DX is being applied.

Main Areas and Technologies Used in Construction DX

Although Construction DX covers a wide range of initiatives, this section explains the main technology areas that are particularly effective on site.

DX for Surveying (drones, 3D measurement, etc.)

Surveying, which once required many personnel and long hours, has been dramatically transformed by DX. A representative example is drone surveying. By analyzing aerial photos to create 3D terrain data, large-area surveys can be completed in a short time. Drones can also safely acquire data from steep slopes and hazardous areas that people cannot access. In one dam project, using drones shortened surveying days to less than one-fifth of the traditional duration. The use of 3D laser scanners for 3D measurement has also spread. For example, in bridge reinforcement work, laser measurement of existing structures produced a high-precision 3D model that enabled meticulous construction planning and greatly reduced surveying effort (in one company’s case by 98%). Recently, point cloud surveying by smartphone-mounted LiDAR such as on iPhones has emerged, significantly lowering the barrier to surveying on site. Surveying DX enables accurate as-built understanding in a short period with few personnel, laying the foundation for safe and efficient construction.

DX for Scheduling and Progress Management (visualization of sites)

DX is also being applied to construction progress and schedule management. Traditionally, progress was managed with paper schedules and verbal reports, but the move to visualize these with digital tools is progressing. For example, systems that use webcams and IoT sensors installed on site allow real-time monitoring of construction and sharing with headquarters and clients. This enables immediate confirmation of progress across multiple remote sites and early action when problems arise. Additionally, systems that share schedules via construction management apps and notify everyone immediately via the cloud when changes occur are becoming common. This prevents problems like “work stopped because the site wasn’t informed” or “work proceeding based on an outdated schedule.” More advanced examples use BIM and digital twin technologies to visualize as-built conditions and progress on 3D models. By reproducing the entire construction site in a virtual space and constantly comparing current progress with the plan, delays and errors can be detected early and corrective action taken. Digitizing scheduling and progress management through DX markedly improves the precision of running sites according to plan, reducing idle time and rework and contributing to cost reduction.

Digitization of Drawings and Document Management (paperless)

Managing drawings and documents is an important task at construction sites, but paper-based operations have limitations. DX can drastically streamline drawing and document management. For example, storing drawings as PDFs or CAD data in the cloud so that all stakeholders can view and edit the latest drawings on tablets or PCs is increasingly common. This eliminates confusion such as “I brought paper drawings to the site but they were unusable due to design changes” or “I don’t know which version is the latest.” In one site, using a drawing management app to centralize drawing data and construction photos drastically reduced the need to go back and forth between the site and the office to replace paper drawings. Approvals can also be completed in the cloud, eliminating inefficient practices like returning to headquarters solely to obtain stamps for approvals or reports. Paperless workflows reduce time spent searching for documents and allow access to necessary information from anywhere, speeding up decision making. There is also a case of a small business that digitized over 80% of their paper materials and conducted communications via chat, reducing exchange time by 90%—demonstrating that significant effects can be achieved using familiar cloud services without developing specialized systems. Digitizing drawing and document management is a field that directly contributes to smoother information sharing and reduced administrative time.

DX for Safety Management (IoT, AI, remote technologies)

DX has a huge impact on safety management as well. Construction sites always carry risks of accidents, but digital technologies are being used to prevent them and improve the safety of working environments. For example, distributing wearable sensors to site workers enables real-time monitoring of worker location and vital data. This can instantly detect and alert for entry into restricted areas or heatstroke risk. Systems with AI-equipped cameras on heavy equipment and vehicles can automatically issue warnings when a person enters an operator’s blind spot. Moreover, AI-based hazard prediction systems that analyze past accident cases have been developed. In some sites, entering the work plan prompts AI to automatically suggest potential hazards and countermeasures and share risks with less experienced workers using easy-to-understand illustrations. AI standardizes and advances safety instructions that once relied on veterans’ intuition, raising the overall safety awareness on site.

DX also contributes to safety through remote technologies. Replacing dangerous tasks with robots or remote operations is one example. In tunnel face work, there are cases where explosive loading and concrete spraying were unmanned and made remote-controlled. Operators view high-definition camera footage in a safe control room and manipulate robot arms so workers do not need to enter hazardous zones. As a result, they eliminated the accident risks associated with explosive loading and greatly shortened work time (in one case by 45%). Safety management DX thus enables environments that do not expose people to danger and allows high-level hazard prediction through data use, contributing to both safety and productivity.

Cloud Sharing and Remote Collaboration

An indispensable foundation for Construction DX is cloud technology. Centralizing information on the cloud so that sites and stakeholders can access data anytime, anywhere dramatically improves operational efficiency. For example, photos and progress updates taken on site uploaded to the cloud can be shared and reviewed by the office immediately. Instructions and reports can be exchanged in real time via the cloud, making communication speed vastly superior to the days of relying on phone calls or faxes. Eliminating the barrier between site and office, cloud sharing has become increasingly important especially since the COVID-19 pandemic increased the need for remote work.

Storing drawings, documents, photos, and inspection records in the cloud enables simultaneous viewing and editing across multiple locations, eliminating delays in decision making. For instance, sharing the construction plan on the cloud and allowing clients and subcontractors to comment and revise simultaneously can remove the need for in-person meetings. Data accumulated in the cloud is also useful for future big data analysis. By extracting common issues from multiple sites’ results or having AI propose optimal construction plans, cloud-based data utilization creates the next stage of DX. Sharing systems externally via the cloud also ensures uninterrupted data flow between prime contractors and subcontractors, contributing to industry-wide productivity improvement. More small and medium-sized companies are starting information sharing using free or low-cost cloud services, and the cloud is an approachable first step toward DX.

Lessons from Successful Construction DX Cases

Below are some examples of companies that have actually implemented Construction DX. From major general contractors to small and medium-sized enterprises, numerous reports show successful workstyle reform and cost reduction through DX.

• Improved safety and efficiency through remote construction (major general contractor): In a tunnel project by a major construction company, remote operation and autonomous systems for heavy machinery were introduced so workers do not have to enter dangerous tunnel faces. As a result, they brought disaster risk close to zero while reducing the time required for explosive loading and excavation to about half. This is a prime example of achieving both safety and shorter schedules.

• Advanced safety management using AI (mid-to-large contractor): Another company introduced an AI-based hazard prediction system on site. Trained on past accident data, the AI automatically suggests risks and countermeasures in daily work plans, realizing scientific safety management that does not rely on veterans’ intuition. This drastically reduced overlooked near-miss incidents and improved the quality of safety training.

• Labor-saving surveying with 3D scanners (mid-sized construction company): A mid-sized company used a 3D laser scanner for bridge repair work. The scanner automatically measured as-built dimensions that were previously done manually and created an accurate 3D model. As a result, they reduced required surveying manpower by about 98%, and measurement accuracy dramatically improved. The high-precision model reduced rework in planning, leading to time and cost savings.

• Small-scale DX using cloud and smartphones (small construction company): A regional construction firm succeeded in operational reform by using general cloud services without developing a bespoke system. They digitized attendance management and internal applications with Google Forms and eliminated paper forms. Materials were shared on Google Drive and communications moved to internal chat. They reduced paper materials by over 80%, and approval times for proposals dropped from a month to a few days. Real-time information sharing between site and office led to significant efficiency gains and reduced overtime. This is a good example that site DX is possible with familiar tools, offering hints for DX promotion suited to a company’s scale.

What these cases have in common is leveraging digital technologies to achieve both efficiency and safety at the site. The scale and methods of DX implementation vary by company, but successful companies all focused on their specific issues, chose appropriate technologies, and steadily delivered results. As new technologies and services continue to appear, it is important to keep up with the latest information and promote DX that fits your company.

Steps and Key Points for Introducing Construction DX

How should you proceed to practice Construction DX? Below are basic steps and key points for DX implementation.

• Identify company issues and set goals: First, clarify the problems faced by your company and sites. Is the priority correcting long working hours, reducing human error, or resolving high costs? Identify priority issues. Then set specific DX implementation goals such as “establish a five-day workweek” or “reduce construction management costs by X%.” Clear objectives make it easier to determine appropriate measures.

• Management commitment and building a promotion structure: Management support and understanding are essential for DX promotion. Senior management should lead and establish DX promotion staff or a project team. Create a cross-functional promotion structure that spans site and headquarters to demonstrate a company-wide commitment to DX. Also prepare mechanisms to gather site feedback and reflect site staff opinions in technology selection and operating rules to ensure smooth on-site adoption.

• Small start (pilot implementation and verification): Instead of transforming all operations at once, start small with areas likely to show results. For example, pilot a cloud daily report on a single site or use drone surveying on a few projects. Small-scale introduction minimizes site impact and allows verification of effects and issues. Measure results quantitatively; if effects are confirmed, expand to other projects or company-wide.

• On-site adoption and human resource development: DX tools are meaningless if site personnel do not use them. Provide careful explanations and training to site staff so they understand how to operate digital devices and the benefits. Offer one-on-one support for veteran employees unfamiliar with IT. Develop site-based DX promoters and spread the feeling of “this is useful” and “my work became easier” to promote on-site adoption. Sharing success stories internally also boosts motivation and builds momentum for DX.

• Verify effects and continuously improve: DX does not end with implementation. Always verify effects numerically after introduction and evaluate progress against initial goals. Monitor KPIs such as “how many hours of overtime were reduced,” “how much time was saved in processes,” and “how many mistakes decreased.” If expected effects are not achieved, analyze root causes and review tool usage or operating structures. Even when good results appear, continue looking for further improvement. Proactively test new technologies and keep iterating to continuously develop DX.

Following these steps and advancing gradually will help embed DX without major troubles. It is also effective to use subsidies and support offered by government or industry organizations and to seek help from specialist consultants or vendors. Don’t try to do everything alone—leverage external resources as you promote DX.

Benefits for Management and On-Site Workers

Construction DX brings advantages company-wide, but the perspectives differ slightly between management and site employees. The main benefits for each are summarized below.

Benefits for Management

• Cost reduction and revenue improvement: As noted earlier, DX improves operational efficiency and realizes cost reductions through lower labor costs and shorter schedules. Reducing wasteful spending not only improves profit margins but also allows reinvestment of freed funds into growth, strengthening mid- to long-term profitability.

• Addressing labor shortages: Automation and labor savings can enable sites to operate with fewer people, making it easier to cope with serious labor shortages. The ability to accept and complete many projects with limited staff is a competitive advantage. Moreover, being a company engaged in DX tends to attract more young applicants and improve employee retention, stabilizing the future talent base.

• Compliance and corporate image improvement: Correcting long working hours and strengthening safety measures provide assurance from a compliance perspective. Reducing the risk of business suspension due to labor law violations or industrial accidents is a major benefit for management. Also, achieving a better working environment through DX enhances reputation among clients and society, improving corporate image.

• Advanced quality and risk management: Using BIM and data analysis enables quantitative management of construction quality and risks, increasing predictability of projects. This reduces liability and claim risks from quality defects or schedule delays and optimizes projects overall to increase customer satisfaction—an important management advantage. Data-driven management decision making also improves the precision of strategic planning.

Benefits for On-Site Employees

• Reduced workload and improved workstyle: Replacing complex manual tasks and heavy labor with machines and software significantly reduces physical and mental burdens on site staff. For example, creating reports on a tablet eliminates the need to return to the office and work overtime; drone surveying obviates dangerous high-place work. Reduced overtime and increased days off improve employees’ work–life balance.

• Safer and more comfortable work environment: Reduced risk in dangerous tasks and enhanced occupational health and safety are invaluable for site workers. DX can create situations where “you don’t have to go to dangerous places” and “there are fewer near-miss situations,” allowing workers to perform their jobs with peace of mind. Sites with ensured safety and up-to-date digital equipment are also more comfortable, helping dispel the traditional 3K image (tough, dirty, dangerous).

• Skill development and career advancement: Using DX tools enables site workers to acquire new skills. Learning to operate drones, analyze data, and operate ICT-enabled machinery equips them with skills relevant to the digital age and helps individual career growth. Opportunities to grow from “simply a manual worker” to “a skilled worker who also handles data” stimulate employees’ sense of achievement and contribute to job satisfaction.

• Improved communication: Cloud and chat tools smooth communication between site and office, reducing stress from miscommunication. Timely access to necessary information reduces anxiety and waiting times, allowing workers to focus on site tasks. Sharing photos and drawings during discussions reduces misunderstandings and makes coordination with subcontractors and other departments easier. Reduced communication burden also lessens the mental load on site staff.

As shown, Construction DX brings substantial benefits both from a management viewpoint and from the perspective of on-site workers. DX is indispensable to the future of construction not only to increase company profits but also to improve workers’ environments and create attractive workplaces.

Conclusion: Update Sites with Construction DX to Achieve Sustainable Reform

The seemingly conflicting goals of workstyle reform and cost reduction can now be reconciled through the promotion of Construction DX. By skillfully adopting digital technologies, companies can improve productivity and reduce costs while creating workplaces that reduce employee burden. This strengthens corporate competitiveness and provides major advantages for talent acquisition and business continuity.

However, DX only delivers maximum effect when it is actually used on site. To practice on-site DX, it is important to adopt tools that are easy for anyone to use and have features that meet site needs. One solution to pay attention to is LRTK. LRTK is a DX solution developed for construction sites that enables a range of functions on a smartphone—from simple surveying to point cloud data acquisition, AR display, and cloud sharing of site data. For example, in buried pipe work, scanning underground pipes with an iPhone and LRTK before backfilling allows later excavation to be done safely while visually checking the underground pipes in AR. Being able to perform such advanced site management without complex post-processing or specialized equipment is very attractive. Point clouds and survey data obtained with LRTK are instantly saved and shared in the cloud, enabling real-time information sharing between site and office and supporting speedy decision making. Designed for intuitive operation and ease of use, LRTK is approachable even for site staff unfamiliar with IT.

By leveraging advanced tools like these while advancing your own on-site DX, you can make headway on problems that were previously difficult to solve. Updating sites with Construction DX is an investment in a future where workstyle reform and cost reduction are reconciled and both companies and employees can sustainably pursue growth and well-being. If your company has not yet started, why not begin small where you can? Transform construction sites with digital power and gain resilient site capabilities and flexible workstyles fit for the times.