Fix Construction’s Disparate Data Problem with Interoperability

To eliminate data silos, improve project outcomes, and drive industry-wide collaboration, the construction sector must embrace interoperable technologies and scalable collaboration frameworks.

Inconsistent or siloed data can seriously hinder progress in the construction industry, leading to poor project prioritization, misaligned scope definitions, and inaccurate budgeting. A 2021 study revealed that in 2020 alone, bad data was responsible for an estimated $1.8 trillion in global losses and 14% of avoidable rework—costing approximately $88 billion.

The Problem

  • Data Silos: Systems are fragmented; data is stored in isolated platforms with limited accessibility.
  • Data Quality: Manual input, human error, and outdated technology compromise data integrity.
  • Data Sprawl: Proliferation of disconnected tools and systems without centralized oversight causes inefficiencies.
  • Privacy and Security: Construction data includes sensitive information—project plans, financials, and personal data—that must be protected.

The Solution: Interoperability and Collaboration

What’s the path forward? The answer lies in interoperability. Construction projects involve diverse teams, tools, and workflows—requiring seamless communication and coordination.

Unfortunately, many construction technology providers contribute to the problem by creating proprietary systems that don't integrate. Stakeholders on the same build often use incompatible platforms, leading to communication breakdowns and project delays.

For instance, when one worker updates a document in one software tool, that update may not reflect in another system used by a different stakeholder. The result: misalignment, inefficiency, and lost productivity.

Principles of Effective Collaboration

According to Dr. Jane Wei (UC Berkeley & Stanford GSB) and Dr. Nora Silver (UC Berkeley), there are four essential principles of collaboration:

  • Focus on mission before organization
  • Manage through trust, not control
  • Promote others, not yourself
  • Build constellations, not stars

When applied to construction, these principles guide a more unified, efficient, and productive industry approach. By prioritizing interoperability, stakeholders can work better together and break down operational barriers.

Actionable Ways to Collaborate Better

  • Focus on Mission / Promote Others: Develop project management platforms that integrate with other tools, allowing real-time collaboration, document sharing, and unified communication across all project levels.
  • Create Constellations: Build purpose-driven teams and offer role-specific training. Encourage a culture of curiosity—questions should be welcomed to solve issues early and avoid rework.
  • Manage Through Trust: Appoint credible leaders to champion collaboration and guide the adoption of new interoperable technologies. Trust fosters buy-in across teams.

The Path Forward

We have the tools—and the opportunity—to fix this. Every construction tech provider should adopt a mindset of collaboration-first development. Interoperability isn’t optional—it’s the backbone of growth.

Creating connected systems helps reduce costs, minimize waste, and improve jobsite performance. As interoperability becomes the norm, it boosts profitability across the board—benefiting contractors, owners, and developers alike.

Ultimately, focusing on interoperability will not only enhance customer success but also lead to long-term business growth for software providers themselves.

Explore ITech360hub for the latest insights in AI, IoT, cybersecurity, construction tech, and other innovations shaping the future of the AEC industry.