Australian Construction Businesses Enjoy Higher Trust Levels Than Global Peers, With Million-Dollar Benefits

03 September 2020

Research shows highest trust organisations can gain up to $6 million and save more than $1 million per year 

Australian construction firms outperform their global peers when it comes to trust, according to The High Cost of Poor Trust report from FMI and Autodesk Construction Solutions. Trust between colleagues and different businesses is critical to the construction industry because of how much each stakeholder relies on the performance of others. The higher level of trust within Australian construction businesses is directly associated with better project outcomes and improved financial performance.

Globally, organisations with the highest levels of trust experience lower voluntary staff turnover, worth savings of up to $1,136,355 a year in replacing employees. High trust firms also miss fewer deadlines, gaining up to $6 million a year, and have higher levels of repeat business, potentially driving gross margins between 2 and 7 percent higher.

When asked to rank the amount of trust within their organisation, construction professionals in Australia report the highest level (38 percent), outstripping the global average of 36 percent. Employees at the most trusted firms are twice as likely to go above and beyond what’s expected of them (49 percent compared to 24 percent), giving Australian businesses a productivity edge.

Construction businesses in Australia share a number of strengths that drive high levels of trust – offering learnings for firms in other countries. Organisations are particularly successful when it comes to:

“It’s fantastic to see Australian construction businesses empowering employees,” said Tomy Praveen, Managing Director of APAC, Autodesk Construction Solutions “Creating a transparent and candid working environment helps employees know what’s expected of them – and concentrate on getting work done. This leads to real benefits for productivity and the bottom line. Digital construction solutions can play a key role in improving collaboration and fostering trust, by providing a single source of truth for projects and enabling fast, simple communication between teams, the site and the office.” 

However, while individuals feel trusted by their firms, there may be room for improvement when it comes to collaboration between teams and with other project stakeholders. Globally, a quarter of the highest trust construction businesses also report the highest levels of collaboration (24 percent). In Australian firms, this falls to 20 percent. Worldwide, more collaborative firms are almost half as likely to hear about problems on a project too late (18 percent compared to 11 percent), so improving collaboration could drive further benefits for the Australian construction industry.

This has been experienced by Australia-based TOGA, which specialises in residential and hotel developments. While working on a development in a CBD, the company implemented technology to help team members collaborate and share information more easily. “It allows both our office staff and site team to be working off the same documents, using the latest versions,” said Simon Kassis, Project Engineer, TOGA. “This single source of truth minimises uncertainty, supporting trust throughout the business.”

Globally, successful information-sharing is associated with the highest levels of trust in construction businesses: two-thirds of the most-trusted organisations have a single source of truth for sharing information (66 percent). Technology can play a key role in building the trust that’s crucial to business performance, by improving transparency, enhancing communication and providing evidence of success.

Read the full report, The High Cost of Poor Trust: https://go.construction.autodesk.com/fmi-report/  

 

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Source:  Autodesk Construction Cloud - www.construction.autodesk.com

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External Links: 

https://go.construction.autodesk.com/fmi-report/  

https://www.autodesk.com/solutions/architecture-engineering-construction/construction

https://www.youtube.com/watch?v=N0pWrL2qQ_w&t=9s 

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