The construction industry is undergoing a fundamental shift in how projects are managed, documented, and delivered. A research report released in February 2022 by Trimble and Dodge Construction Network, titled Connected Construction, the Owner’s Perspective, reveals that project owners have become the primary drivers of digital construction workflows. These are automated and integrated construction business processes that replace paper-based or manual tasks. The study surveyed not only owners but also 236 general contractors and 232 trade contractors, making it one of the most comprehensive looks at how digital transformation is reshaping the industry from the top down. For contractors looking to stay competitive, understanding how Advanced Construction Technology and Automation Equipment Robotics Drones and digital systems are being deployed across the project lifecycle is becoming essential. The message is clear: owners are digitizing, and they are taking their contractor partners with them by mandate.
The Owner-Led Digital Transformation
Historically, contractors were often the ones pushing for digital workflows with owners, primarily to speed up application for payment and change order approvals. According to Greg Blackman, President of e-Builder and General Manager at Trimble, the tide has now turned. “The big thing is that owners are doing it and they are leading it,” Blackman said. “Owners were being driven to it—they are driving it now, and they are doing a lot to reinforce it among their generals and subcontractors.”
How Many Owners Are Using Digital Workflows?
The study found that 85 percent of owners are currently implementing digital transformation initiatives, moving these efforts from internal operations to external processes involving their project partners. Among the owners surveyed, 80 percent reported using digital workflows not just internally but externally with their project teams, including contractors and designers.
The Mandate Effect on Contractors
Of the 80 percent of owners using digital workflows externally, 69 percent reported that they specify contractors use digital documentation practices very frequently or frequently. This means that for a majority of construction firms, digital capability is no longer optional—it is becoming a condition of doing business. Blackman noted, “The big thing is for contractors to be ready to start engaging and working through digital means.”
The data on the extent of digital workflow adoption reveals a mixed picture:
| Percentage of Project Data Using Digital Workflows | Percentage of Owners |
|---|---|
| Less than 50% | 52% |
| 50% to 74% | 16% |
| 75% or more | 12% |
While adoption is still partial for many owners, the direction of travel is unmistakable. Furthermore, only 12 percent of owners using digital workflows with external teams reported being very satisfied with the resulting level of connectedness. This suggests that owners will be demanding even greater transparency and deeper visibility into contractor activities, work in place, project risk, and other dynamics in the near future. Understanding the Key Facts About Construction Project Life Cycle Phases can help contractors align their processes with owner expectations at every stage.
Root Cause Analysis: Why Digital Traceability Matters
One of the most compelling benefits of inter-company digital workflows, according to the study, is the ability to trace errors and delays back to their root cause. This transparency benefits both owners and contractors. Project issues at any stage, once clearly attributed, can help identify who is truly at fault and exonerate those who are not.
The Transparency Dividend
The study found that digital workflows make an owner six times as likely to be able to track errors and delays to their source. This is good news for diligent contractors who may otherwise be blamed for problems outside their control—such as a nebulous design document, faulty workmanship by a different party, or a sluggish materials supply chain.
Most Affected Construction Activities
The study ranked construction activities by how frequently owners were negatively impacted by process issues. The two activities tied for the highest frequency at an index of 44 out of 100 were:
- Budgetary and Approval/Change processes
- Project Closeout
However, when measuring the impact of errors and delays caused by process issues, a different picture emerged. The two highest-scoring activities, tied at 77 out of 100, were:
- RFIs (Requests for Information)
- Budget Approval/Change processes
Budget approvals and changes emerge as perhaps the most significant source of pain, since they rank high in both frequency and disruption. Contractors who digitize change order applications and field communication can speed up budget changes and approvals while clearly documenting what has been done. This aligns with broader Essential Insights On 40 Construction Tools List With practical applications for building construction management.
Where Contractors Stand Today
The study confirms that contractors are actively adopting certain systems. Procore alone has approximately 3,994 customers, estimated at 5 percent market share, suggesting the total addressable market is around 80,000 companies running similar software. Donna Laquidara-Carr, Research Director at Dodge Data and Analytics, noted, “Contractors do seem to get that they need to have data that is not just current, not just accurate, but is comparable and able to be used in different circumstances. It is just the challenge of getting to that point.”
Blackman added that the focus must be on where data is handed off between parties, not just on contractors’ internal processes. “It is about how you collaborate and interact, eliminate duplicate entry and ensure there is clear transparency. You still own your data and can do things with it as you did in the past. But it needs to be shareable outside the organization.”
The General Contractor in the Middle
The study highlighted an interesting dynamic: general contractors and construction managers sit in a challenging position within the digital workflow ecosystem. Owners reported that the most frequent communication breakdowns occurred with general contractors, yet GCs were also the most likely partners to use digital workflows externally.
Why Breakdowns Happen
“When you look at where the breaks occur, it is where there is less connection in digital collaboration,” Blackman explained. “I think the owner, while they are a layer removed, still winds up dealing with the impact of that lack of communication.” Laquidara-Carr added, “They also report that they have more breakdowns with GCs than designers. The telling point is how critical that connection is between owner and GC.”
Digital Adoption by Contractor Type
This does not mean subcontractors or specialty trade contractors are better at digital workflows than general contractors. Rather, the complexity of the GC’s coordination role—managing multiple trades, schedules, and information streams—makes them a natural friction point. As digital workflows become more embedded, the ability to manage inter-company data flows will become a competitive differentiator for GCs. Learning how Key Facts About How Commercial Construction Differs From residential work can inform the specific digital approaches needed for different project types.
Steps Contractors Can Take to Prepare
For contractors at any level, the message from the study is one of proactive preparation rather than reactive compliance. The following steps can help firms position themselves for the owner-led digital shift:
- Assess current digital maturity – Evaluate which internal processes are still paper-based or manual and identify priority areas for automation.
- Digitize internal workflows first – As Blackman noted, contractors need to “take advantage of digital workflows inside their organization” before they can collaborate externally. This includes digitizing drawings, handling design review components digitally, and adopting digital field reporting tools.
- Focus on interoperability – Ensure that the systems you adopt can share data with the platforms owners and GCs are using. Proprietary, siloed systems will become a liability.
- Invest in training – Technology adoption fails without skilled people. Invest in training for field and office staff to use digital tools effectively.
- Build digital requirements into bids – When bidding on work, demonstrate your digital capabilities. Blackman called this “a big differentiator in terms of earning the business.”
Defining Connected Construction and Digital Workflows
To help contractors and owners align on terminology, the Trimble-Dodge study provided clear definitions for key concepts that underpin the digital transformation of construction. Understanding these definitions is essential for evaluating where your firm stands and where it needs to go.
Key Terminology from the Study
- Digital Workflow – An automated or integrated construction business process that uses one or more software tools to improve formerly paper-based or manual tasks.
- Internal Workflow – A construction business process within just your organization, such as data transfer between the estimating and project management departments of a general contractor.
- External or Multi-company Workflow – A construction business process between at least two distinct organizations that serve different roles on a construction project, such as an owner, GC, subcontractor, and designer sharing RFI data digitally.
- Connectivity – The interaction or process workflow between two distinct internal departments or external multi-company workflows.
- Connected Construction – An overall approach to construction projects that involves frequent use of both internal and external multi-company digital workflows.
What This Means for the Future
The study makes one thing clear: the construction industry is moving toward a fully connected model where data flows seamlessly between all project participants. Owners are leading this shift because they see the direct benefits in project outcomes—fewer delays, lower costs, and greater accountability. Contractors who embrace this change and invest in digital capabilities will find themselves better positioned to win work, reduce risk, and deliver projects more efficiently.
At a Glance: The Owner Perspective
| Metric | Finding |
|---|---|
| Owners implementing digital transformation | 85% |
| Owners using digital workflows externally | 80% |
| Owners requiring contractors to use digital documentation | 69% |
| Owners very satisfied with connectedness | 12% |
| Likelihood of tracing errors with digital workflows | 6x more likely |
| Highest impact process pain points (tied) | RFIs and Budget Changes at 77/100 |
| Most frequent process pain points (tied) | Budget Changes and Closeout at 44/100 |
The data from the Trimble-Dodge study represents a watershed moment for construction. Owners are no longer passive participants in the digital conversation—they are setting the agenda. Contractors at every level should take note and prepare for a future where digital capability is a baseline requirement, not a competitive advantage.