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Dive brief:
- Global consulting McKinsey has partnered with ALICE Technologies to offer artificial intelligence-powered generative programming software to contractors across the infrastructure and construction spectrum, according to an announcement Tuesday. Terms of the partnership were not disclosed.
- The two companies have already introduced the optimization technology to more than 35 customers in infrastructure, data center, energy and manufacturing, according to the announcement, achieving schedule acceleration of up to 20%.
- “Generative programming creates a step change in capital project performance,” Erikhans Kok, senior partner and leader of McKinsey’s capital excellence practice, said in the press release. “When integrated within the right operating model and supported by strong project controls, it can help organizations make faster, more informed decisions.”
Diving knowledge:
Kok told Construction Dive that a combination of often-cited issues, including labor shortages, stagnant productivity and supply chain hurdles—driving demand for streamlined services in major capital projects.
“If you put all of these factors together, like my simple thesis is that I think we’re going to need better and smarter ways of doing capital projects,” Kok said.
The offering can analyze BIM models and Oracle P6 schedules to generate millions of possible execution paths, while identifying the most efficient options, according to the announcement. By treating labor, equipment, materials, space and sequence as adjustable variables, builders can stress test alternatives, understand the effects of a given decision and make decisions between cost, speed and risk, the companies said.
Mark Pitcher, a partner in McKinsey’s Capital Excellence practice, told Construction Dive that a McKinsey team will build models in ALICE’s software to perform schedule analysis.
“We use these models to conduct deep schedule analysis to identify opportunities to improve the project plan,” Pitcher said. “In parallel, we are putting the operating model in place and building the capabilities of our customer teams that will sustain this new approach for the long term.”
René Morkos, CEO and founder of ALICE Technologies, said technology is rapidly changing the approach to programming in large construction.
“Generative programming is reshaping the way complex capital projects are planned and delivered,” said René Morkos, CEO and founder of ALICE Technologies. “Together with McKinsey, we’re helping organizations integrate this capability into broader transformation efforts and drive sustained impact at enterprise scale.”
Customers have used the product to get results and deliver streamlined products, the companies say. San Antonio-based Zachry Construction, a client of Menlo Park, Calif.-based ALICE Technologies, used technology to analyze schedules and reduced the deadline for a highway project by 28 days.
Meanwhile, a McKinsey data center client reduced a project’s construction schedule by 40%, according to the announcement.
“At the moment we use it in all sectors, and also internationally,” said Kok.
The combination in the technological field has been a trend in construction. Contractors looking for ways to speed up their construction processes and reduce waste have it entered into collaborations with contech companies in search of solutions.
Beyond partnerships, companies have also combined, particularly in the contech space. Unconditional of the industry Trimble signs deal to acquire Document Crunch on April 2, while Autodesk completed the acquisition of Rhumbix on March 31.
