Assessment of the 2011–2015 Information Technology Development Plan in the Construction Sector

Promoting Leapfrog Development in the Construction Industry Through Informatization

An Interpretation of the Development Outline for Informatization in the Construction Industry, 2011-2015

Document/Information Development Outline Writing Team

Over the past thirty years of reform and opening up, China’s construction industry has experienced tremendous growth and has become an essential pillar of the national economy. Its influence on economic development continues to increase. However, as a traditional sector, the construction industry faces significant challenges in transformation and upgrading. Promoting informatization is crucial to changing the industry’s development model, boosting enterprise competitiveness, and integrating information resources effectively.

To maximize the benefits of informatization, we have compiled the “2011-2015 Informatization Development Outline for the Construction Industry” (referred to as the “11-15 Informatization Outline”). This document provides strategic planning and policy guidance, strengthens enterprise informatization, encourages IT adoption, and drives both technological and managerial innovation in the industry.

Background of the “11-15 Informatization Outline”

Developed countries have led the way in informatizing the construction industry and continue to progress rapidly. For example, industry leaders like Autodesk have shifted from releasing AutoCAD updates every two years to annual updates, constantly improving functionality. In recent years, major international companies have launched design and construction management software based on BIM (Building Information Modeling) technology, marking a new era for engineering software. More than 30 international software developers have the capability to create advanced applications in this field.

Many developed nations also emphasize the importance of informatization in construction. Japan, for instance, began its construction informatization strategy in 1995, planning for a 15-year roadmap. The United States, Nordic countries, Singapore, and others have similarly prioritized IT development and the adoption of emerging technologies, collectively advancing BIM in public projects.

Although China has undertaken massive infrastructure projects, overall informatization in the construction sector still lags behind international leaders. This gap directly impacts the competitiveness of China’s construction industry, a challenge that has become even more apparent since joining the WTO.

The objectives set out in the previous “National Plan for the Development of Informatization in the Construction Industry from 2003 to 2008” (the “03-08 Informatization Outline”) were largely achieved. Released by the Ministry of Construction in 2003, the plan set clear targets for infrastructure, enterprise informatization, and e-government, emphasizing IT-driven improvements in management, core competitiveness, and internationalization. It also guided the informatization of construction enterprises of various types and qualifications.

During the “Tenth Five-Year Plan” and “Eleventh Five-Year Plan” periods, major research projects—including “Digital Engineering for Urban Planning, Construction, Management, and Services” and “Research and Application of Key Technologies for Informatization in the Construction Industry”—focused on collaboration platforms (GIS, GPS, RS, BIM), e-commerce, digital cities, electronic tags, and smart residential communities, yielding significant achievements.

These initiatives have driven rapid advancements in enterprise informatization within the industry, resulting in a number of survey, design, and construction units achieving outstanding results. Some have even reached international advanced levels in informatization.

However, several challenges remain that hinder further development:

• Incomplete Information Organization Systems: Most construction companies lack dedicated IT management departments or CIOs. There is insufficient leadership and oversight of large-scale informatization projects, leading to weak organization, coordination, and implementation.
• Information Silos: Informatization has primarily taken place within individual enterprises. Collaboration with external partners is limited, and internal systems are often disconnected, resulting in “information islands” and inefficiency.
• Shortage of IT Talent: Compared to industries like telecommunications and manufacturing, the construction sector faces a severe shortage of IT professionals. Small and medium-sized enterprises (SMEs) are especially affected, with many lacking dedicated IT staff. This hampers IT implementation and talent retention.
• Insufficient Investment: Chinese enterprises invest significantly less in IT infrastructure—just 0.027% of annual revenue compared to 0.3% in advanced economies. This underinvestment results in weak infrastructure and limited support for IT applications. Many managers also lack awareness and initiative regarding informatization.
• Lack of Standards: Due to decentralized and demand-driven development, Chinese construction firms lack unified information management systems and standards, which hampers consistent progress and effective data sharing.
• Ineffective Evaluation Systems: There is no comprehensive methodology or evaluation system to assess the real benefits, costs, and risks of informatization investment, either at the enterprise or national level. Existing evaluation efforts are mostly tailored to large state-owned enterprises, not SMEs.
• Dependence on Foreign Software: The industry relies heavily on foreign basic and high-end software, such as AutoCAD and BIM platforms. Domestic software development has not yet produced competitive alternatives, resulting in high procurement costs and potential security risks.

For the preparation of the “11-15 Informatization Outline,” the research team surveyed dozens of domestic and international construction firms, gathering extensive first-hand data and analyzing hundreds of relevant studies. This included case studies from 31 design companies (22 with Class A qualifications) and 46 construction firms (10 with special qualifications, 27 with first-class qualifications).

Key Development Priorities for Construction Industry Informatization During the 12th Five-Year Plan

Drawing on the potential of information technology and international best practices, the “11-15 Informatization Outline” identifies five strategic priorities:

1. Enhance Core Business Systems: Focus on integration of design, project management, operations, electronic document management, materials, and procurement, building network-based collaborative platforms.
2. Establish Enterprise-Level Management Systems: Develop comprehensive management, knowledge management, intelligent portals, and decision support systems to enable integrated, collaborative, and shared enterprise operations.
3. Strengthen IT Infrastructure and Security: Build robust data centers and service systems to ensure secure, reliable, and resource-sharing information infrastructure.
4. Establish and Improve IT Standardization: Create standards for infrastructure, security, coding, data models, templates, and major application systems to support efficient development and application.
5. Accelerate Adoption of Specialized IT: Promote BIM, complex process simulation (CFD), plant lifecycle management (PLM), collaborative work, 3G wireless communication, visualization, parameterized model design, and content management to open up new areas of growth.

Major Differences Between the “11-15 Informatization Outline” and the “03-08 Informatization Outline”

While building on the achievements and approaches of the “03-08 Informatization Outline,” the new Outline adapts to current industry trends and national development goals. It now focuses on leveraging IT to further improve efficiency and management in design, construction, and operations. The goals and content are more specific, actionable, and practical for enterprises.

• Enterprise Informatization: The new Outline specifically includes “survey and design enterprises” as a distinct category, recognizing their unique informatization needs compared to other construction firms.
• Special Section on IT Applications: Addressing global trends, the Outline provides new guidance on BIM, electronic delivery and archiving, collaboration, mobile communications, 4D project management, high-performance computing, visualization, and virtual reality.
• IT Standards: The Outline introduces comprehensive standard systems for design, construction, acceptance, and IT performance evaluation.
• Support Measures: The Outline details support policies, enhancement of organizational structures, talent recruitment and training, capital investment, evaluation and certification systems, the role of industry associations, and standardization to address current industry challenges and future priorities.

Unlike the “03-08 Outline,” which included explicit e-government requirements, the “11-15 Outline” omits this section, as this topic is being addressed separately by the Ministry of Housing and Urban-Rural Development.

The “11-15 Informatization Outline”: Achievable Goals for Enterprises

From the beginning, the Outline was designed to be practical and attainable, focusing on the real-world conditions of most regions and enterprises. The aim is for companies to achieve these goals through dedicated investment and effort.

Given the different development levels of construction enterprises, the Outline proposes targeted development priorities:

• General Contracting Enterprises: Focus on optimizing business processes, integrating information resources, upgrading application systems (design integration, project management, operations), and building collaborative platforms. Emphasis is placed on two application levels (core business and enterprise management), one infrastructure platform, and eight application systems—including project management, document management, material management, comprehensive management, decision support, and knowledge management. (Details)
• Survey and Design Enterprises: Prioritize enhancing management systems, integrating information resources, building collaborative design systems based on BIM, and establishing enterprise data centers.
• Construction Enterprises: Focus on optimizing management processes, strengthening the integration of management information systems, building collaboration platforms, and implementing ERP systems. Large enterprises should establish network systems connecting subsidiaries and project sites, automate office operations, and improve project management. SMEs should focus on building appropriate network and management information systems.

Recommendations for Enterprise Informatization

Informatization is essential for the survival, growth, and international competitiveness of construction enterprises. Companies must understand the growing importance of IT in project execution and broaden their adoption of IT solutions. However, informatization brings both high rewards and high risks; poor investment decisions can be costly.

To succeed, enterprises should develop a comprehensive IT strategy covering four key aspects:

1. Internal Resource Integration and Accurate Positioning: While companies can learn from industry peers, every enterprise faces unique challenges. Before investing in IT, leadership should assess the organization’s business strategy, systems, technology, management, culture, human resources, and external environment, then define the scope, stages, and depth of IT adoption for future growth.
2. Set Overall and Staged Goals: Since informatization is a dynamic, long-term process, enterprises should set both overall goals (such as improving management and competitiveness) and concrete objectives (such as strengthening communication, customer management, and production efficiency). Achieving these in stages—like building internal networks, developing resources, and using e-commerce—will steadily advance informatization.
3. Determine Timing and Investment: Given the systemic nature of IT implementation—which includes changes to management concepts, processes, and resource integration—enterprises must carefully plan the timing and scale of investments. By analyzing both national and enterprise IT trends, they can prepare systematically and launch initiatives when conditions are optimal.
4. Evaluate IT Implementation: Since IT projects require significant investment and involve high risks, regular evaluation is vital. Assess gaps and redundancies, adjust strategies as necessary, and optimize the enterprise value chain to improve efficiency and create greater value.

By following these recommendations, construction enterprises can effectively implement informatization strategies, supporting sustainable development and enhancing competitiveness in the global market.

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