Ireland correspondent Carol Tallon spoke with PJ Rudden, chairman of construction innovation and digital adoption within the Department of Public Expenditure & Reform, about seven priority actions intended to drive productivity, sustainability and digital adoption
As Ireland embarks on an ambitious infrastructure programme worth €275.4bn under the National Development Plan, a recent report by KPMG revealed significant productivity gaps.
Let’s start with the context. Ireland’s construction productivity has historically lagged behind European peers. What did the research reveal?
When we measured the Irish construction industry’s productivity against European countries, we discovered it was quite poor and not nearly as advanced as countries where productivity is higher. In the Benelux countries and Nordic countries, for instance, productivity per hour was in the high €30s and €40s, while ours was about €25 per hour.
We weren’t benchmarking ourselves against our European peers previously. The main differentiation was that these countries have digital technologies that we haven’t yet fully mastered. They also utilise offsite construction extensively, which speeds things up considerably. These are characteristics we need to build into our new construction approach.
The KPMG report identified seven priority actions that needed implementation. Can you outline these for us?
Following the KPMG Economic Analysis of Productivity in the Irish Construction Sector report, seven critical priority actions were identified as essential for modernising the Irish construction industry and bringing it on par with more efficient sectors like electronics and manufacturing. These seven areas are:
- Establish construction research needs: Creating a foundation for evidence-based innovation.
- Identify funding sources for future innovation, particularly the circular economy in construction: Focusing on sustainability and waste reduction.
- Guide the development of Modern Methods of Construction (MMC): Promoting offsite and advanced construction techniques.
- Establish a Construction Technology Centre (CTC): Creating a national research centre of excellence.
- Establish a digital network under the Construction Professional Skillnet Ireland: Building digital skills across the workforce.
- Digitise the planning permission application system: Streamlining regulatory processes.
- Establish and fund a Build Digital Project (BDP): Driving BIM and digital adoption.
All these areas are interconnected, each feeding off the other in a systems approach to transformation.
The Construction Sector Group was established to address these challenges. How has this collaborative approach changed the dynamic between government and industry?
The Construction Sector Group represents a fundamental transformation. It’s 50% industry, 50% government, and we sit down every month to discuss problems, iron them out and implement solutions. Previously, this was not happening.
When the CSG is in the room, you get agreement. I have seen situations where the CSG was not in the room, and agreement was slow in coming. Government is certainly listening because they’re now at the table with industry, and industry is at the table with government. You could not find a better model that works.
Looking at the first priority action – research and construction haven’t traditionally been natural bedfellows. How is this changing?
The industry has not been carrying out research on construction and, previously, the third level sector was not working closely with industry; that’s where the problem lay.
But that’s been rectified now with the Construction Technology Centre at University of Galway – Construct Innovate. The team there is doing amazing work and closely knit with industry. 50% of their research is funded by industry, and the other 50% is funded by Enterprise Ireland. It is open source and shared, which is common to all the work we do – shared advances that produce reports making quite a difference in terms of productivity and sustainability across the industry.
Sustainability and the circular economy represent the second priority action. How is this being implemented in construction?
The circular economy does what it says on the tin. Waste is a major problem – 50% of our waste comes from construction. To improve this situation, waste needs to move from the linear economy into the circular economy. In carrying out projects, we are all now obliged to design out waste in the methodology.
“I’m not saying it’s not painful, but it gets done, and we need to get things done.”
This has to be part of the planning process and implemented by construction people on site. An increasing amount of construction is now carried out offsite, giving rise to Modern Methods of Construction. This should improve employment prospects for both males and females, and greatly increase the gender balance as we can carry out much of our construction within advanced facilities rather than on exposed sites.
Regarding gender equality – it’s improving but it needs to improve more because we need more people and more skills.
Modern Methods of Construction is the third priority action and seems to address multiple challenges simultaneously. How is Ireland supporting this transition practically?
Correct. With regard to offsite construction, one of the challenges is standards. The same standards have to apply on site as well, but there are stricter rules of construction within Modern Methods of Construction sites. They are working really hard, and productivity has greatly increased. It is all happening in one facility, almost, and it is led by research. We are implementing tried and tested technologies here.
What role does Mount Lucas play in this MMC transformation?
Mount Lucas, the National Construction Training Campus near Daingean in County Offaly, has become central to our MMC strategy. In July 2022, Minister Simon Harris announced Mount Lucas as the site for the National Modern Methods of Construction Demonstration Park. This facility supports the government’s Housing for All strategy and demonstrates the latest technologies and methods in construction.
The demonstration park showcases innovative ways to build homes that are both sustainable and affordable, inspiring the industry to embrace new building methods. It is an important resource for project owners, homebuilders, construction professionals and stakeholders interested in exploring these innovations.
Mount Lucas is also home to the National Apprenticeship in Scaffolding and runs the National Skilled Utilities Operator Traineeship, making it a genuine centre of excellence for skills development.
The digitisation of Ireland’s planning system – the sixth priority action – has been a major undertaking. Where do we stand?
It’s practically done. It has taken a little bit longer than we anticipated, but it’s effectively there. We started with a system where every local authority had their own way of doing things. Now they are all on the same portal. You can imagine, as projects get really large, the prospect of having to deliver four hard copies of paper to the planning office was totally ludicrous. By the end of the year, every local authority – all 31 of them – will be on the same platform through the E-planning project.
Recent planning reforms have introduced measures to reduce delays. How significant are these changes?
We need lots more of that kind of joined-up thinking. The planning system is becoming much fairer while creating the connections we need to expedite processes. The planning system has been quite torturous, going on for years, particularly when judicial reviews call planning decisions into question, causing major bottlenecks on major projects.
The government now has the Infrastructure Delivery Task Force, where relevant experts get together and deal with major projects one by one. It is full of people who are closest to those projects and in a better position to implement them.
The seventh priority action focuses on Build Digital and BIM adoption. Ireland has implemented a phased BIM mandate – how is this progressing?
The BIM mandate represents a crucial step in our digital transformation. We have a phased implementation approach that requires BIM on public works projects valued at €20m and above, with compliance to ISO 19650 standards.
The timeline is clear: design teams on projects valued at €20m or more must comply by June 2025, while contractors and the supply chain have until December 2025. By the end of 2027, all publicly procured projects will be required to comply with the BIM mandate, regardless of value.
This is about more than just digital tools – it’s about fundamentally changing how we design, construct and manage our built environment throughout the entire lifecycle of buildings and infrastructure.
The ICMS (International Cost Management Standard) is also now mandated on public projects. How does this complement the BIM initiative?
The ICMS is an international system for measuring work. There’s a very tried and tested saying that if you can’t measure something, you can’t manage it. The ICMS brings together all the various elements of a project and is a global system used by engineers, surveyors and architects to accelerate construction.
What we want to do is enhance project delivery, minimise risk and look for circular solutions. We want to ensure these future projects tick all the boxes we’ve been working on for years. When projects are really large, their delivery is critical and the benefits of that delivery are even more critical.
Looking at the broader picture, with €275.4bn allocated under the National Development Plan, how do we measure success in this transformation?
It is now a partnership arrangement. Industry is in the room when decisions are made, government is in the room, and previously that wasn’t happening. This transformation of this relationship between industry and policymakers has been set up under the Construction Sector Group.
Every meeting on a major project must have both parties in the room, and their ideas are shared. Every project has particular risks, but if those risks are shared, the solution emerges. I’m not saying it’s not painful, but it gets done, and we need to get things done. We’re sifting through those projects one by one under the National Development Plan.
What’s your message to industry about engaging with these initiatives?
Every project requires both government and industry working together, sharing ideas and risks. There are too many legal instruments being used to slow things up. We want to free them up and oil the wheels.
We realise the problems exist, but we want to address them together at the table and quicken the solutions. It is about honest acknowledgement of challenges while working collaboratively towards solutions. As they say, you can’t make omelettes without breaking eggs – there’s short-term pain for long-term delivery, and we can’t afford to be otherwise.
The transformation of Irish construction through the seven priority actions represents one of the most ambitious modernisation efforts undertaken by any sector.
From establishing research foundations and promoting sustainability to advancing modern construction methods through facilities like Mount Lucas, digitising planning systems and driving BIM adoption through mandated implementation, Ireland is positioning itself to break free from the boom-bust cycles that have historically characterised its construction industry.
The key to success, as PJ Rudden emphasises, lies in maintaining the collaborative approach that brings industry and government together to tackle challenges and implement solutions under the Construction Sector Group framework.
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