Long Lasting Impact
VIJAY AGRAWAL highlights how construction organisations are adopting and building strong value systems in their organisations to deal with vendors, employees and labourers. Organisations that are built on values sustain for longer times. Such organisations have strong corporate governance structure. They follow fair dealing rules and take care of their employees and shareholders. Construction is a complex sector that requires dealing at various levels in the government. Many construction organisations have adopted and built strong value systems in their organisations. These value systems are being followed in dealing with vendors, employees, labourers, etc. Quality The topmost value system to be followed by a construction company is quality of work. Indian construction companies have started to the focus on quality construction by management. Today, they have adopted global quality standards while executing works. They are adopting digital technologies to monitor construction quality. These companies have formed internal independent groups that monitor the quality of work executed. This has helped construction companies deliver high quality of work done. Many companies are using latest technologies such as drones to monitor construction quality. Project timelinesThe timely delivery of work is the second topmost priority in the construction sector. We have witnessed abnormal delays in execution of projects in the past. Construction companies are now focusing on timely delivery of projects by using latest construction equipment. They are also using software such as Trimble, MS Projects, among others, to monitor work progress. The in-house planning department has become an important division. Many companies are also using 3D software to assess construction sites, project execution plans, equipment planning, material procurement planning, etc. This helps in better planning and execution of projects. And so, several companies are delivering projects before time and earning early completion bonus from authorities. Thus, by timely delivery of projects, these companies are building an important value system internally.Employee and labour welfareMany construction companies provide good housing and food facilities at their construction sites. This helps motivate the employees and labour force, in turn increasing productivity. Many companies are following incentive systems for employee retention. Companies are also focusing on upskilling and reskilling of employees, which help increase productivity. Financial disciplineMany construction companies such as KNR Constructions, PNC Infratech, GR Infrastructure, KCC Buildcon, HG Infra, to name a few, are focusing on financial discipline. In contraction, in the past, many other companies have not followed financial discipline and are struggling today. The new-age companies are making timely payment to vendors and getting timely payment from authorities. NHAI has followed a financial discipline in payment to contractors. It is known that NHAI nowadays makes payment within a few days from the submission of bills by following proper process. NHAI has also adopted latest technologies to monitor the progress of projects, which helps them release payments in time. NHAI has also made it mandatory for drone recordings in many categories of projects.In conclusion Evidently, building value will create a suitable organisation structure, which will take the organisation to the next level, for longer time. Such organisations will not be dependent on promoters and will in itself create a suitable and sustainable path for itself.About the author: Vijay Agrawal, Executive Director, Equirus Capital, heads its Infrastructure and Real Estate Practice. He has more than 25 years of professional experience and is associated with various professional and industrial organisations for knowledge sharing and sector development.