Search

How can we help?

Icon

Building connections: the Internet of Things and construction

There is a lot of talk about the “Internet of Things”, or IoT. But what does that actually mean – and what does that mean for the construction industry?

The Internet of Things is the term used to describe the networks of objects and systems with embedded sensors, software and network connectivity that allow those objects to collect data and share it. The purpose of all of these sensors is to improve efficiency, productivity, and the user experience – reducing delays and costs along the way.

During the construction process:

  • sensors in machinery can monitor its maintenance requirements, reducing delays from equipment failures, and maximising the output: investment ratio by minimising downtime;
  • intelligent tools with sensors can check tightened fasteners against torque specs;
  • when the Leadenhall Building was built using extensive off-site manufacturing, RFID data tags were attached to components to track them through manufacture, delivery and installation; and
  • wearable tech, e.g. smart watches, can be worn by workers to log construction hours, potentially reducing the risk of accidents due to fatigue and also speeding up the payment application process.

Buildings can be made into smart buildings by installing IoT devices and sensors to operate throughout its lifetime. IoT devices can monitor operating conditions, usage, and the physical state of the building. Sensors can monitor and build predictive models of e.g.:

  • energy usage
  • temperature trends
  • movement of people

The data can be used both to improve future projects and to assess and improve the performance of the building and the experience of the building’s inhabitants.

With the data from the IoT, facilities can be managed proactively, rather than reactively. Smart products can self-analyse data and decide when a system needs servicing, so the facilities managers’ role becomes more executive. For examples, the system may flag when a service is required, but the facilities manager decides when to implement that recommendations, after consultation with the building’s users. The Internet of Things may provide Artificial Intelligence, but the facilities manager has to provide the emotional intelligence.

The facilities management role is often outsourced, which can lead to individuals working alone and in unfamiliar locations.  Lone worker technology, including GPS, RFID and satellite devices, messaging, and alarm systems can help FM companies keep track of their workers and ensure their safety.

There are, however, very real challenges in implementing and engaging with the Internet of Things, whether in a smart building or otherwise:

  • The design of a building is carried out long before it is built and enters into use, so the designers need to consider future-proofing their design, to ensure the technology can be upgraded as needed with minimal disruption to the building and its inhabitants. Factoring this into the design will cost more – as will designing a smart building in the first case – but there is also a reduction in future operating and maintenance costs. In the ratio between construction cost, whole-life FM cost and whole-life occupier value at 1:3:30, per Richard Saxon and the Constructing Excellence report “Be Valuable”, the design portion is about 0.1 of original Capex.  Underinvesting in design is a false economy when it is the principal means of optimising value throughout the lifecycle of a building.
  • Where smart products in the IoT have their own proprietary systems, we need to consider how those systems can interact, and once they do, there are management, data and control issues between both the vendors of the different products, and the product owners, who may be unwilling to agree to their data being uploaded, even though that would improve the analysis carried out by the system for all its users.
  • Relatedly, who has the right to use and access the information generated by smart products, and how do vendors charge for that? For most clients, whatever the industry, data is key and of significant value. There are a number of possible models:
  • Pay per use – the product and data are provided under a service agreement, not a contract for purchase. The vendor charges for the product based on use and the manufacturer/service provider gets access to the data generated. Within this arrangement, the service agreement often provides that the data belongs to the user, even though it can be accessed by the service provider, and the service provider has to return the data at the end of the agreement.
  • Data market – if you purchase a product the data it generates is yours, and you can sell that data on (whether to manufacturer, supplier or third parties).
  • Open data – when it’s in the public interest (e.g. for driverless cars) for device owners, manufacturers and public agencies all to have access to data, albeit with different use conditions.
  • The other point that is always of huge concern is the backing up of the data, the security of that data and the responsibility for loss. Most contracts try to exclude loss of data as a recoverable head of loss, but that is often challenged where the product in question has, as one of its major offerings, the collation and use of data.

 

The Internet of Things is the term used to describe the networks of objects and systems with embedded sensors, software and network connectivity that allow those objects to collect data and share it.

It’s almost easier to describe what the Internet of Things can’t be used for than what it can – but as with all things, the underlying issues have to be considered carefully, particularly when there are multiple parties involved.

 

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 15 September 2025
  • Immigration

Sharp rise in Sponsor Licence Revocations – What employers need to know

The Home Office has reported a record number of sponsor licence revocations over the past year, as part of its intensified efforts to crack down on abuse of the UK’s immigration system.

art
  • 10 September 2025
  • Commercial Real Estate

Trouble at the Table: The Challenges Facing the UK Hospitality Sector in the run up to Christmas 2025

The UK hospitality sector, long celebrated for its vibrancy and resilience, is facing a perfect storm of economic, operational, and structural challenges in 2025.

art
  • 09 September 2025
  • Commercial Real Estate

Le bail commercial anglais: quelques points essentiels à considérer

Typiquement, les baux commerciaux en Angleterre sont de court terme, d’une durée de 5 ou 10 ans, avec un loyer de marché et des ajustements du loyer périodiques en fonction de l’inflation ou d’autres facteurs. 

art
  • 09 September 2025
  • Corporate and M&A

The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability

The failure to prevent fraud offence is a new corporate offence which has come into force on 1 September 2025.

art
  • 08 September 2025
  • Employment

Can employers still make changes to contracts after the Employment Rights Bill?

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment Rights Bill because their ability to fairly dismiss employees who do not agree contractual changes is being restricted. 

art
  • 05 September 2025
  • Privacy and Data Protection

When Ignoring a DSAR Becomes a Criminal Offence

On 3 September 2025, Mr Jason Blake appeared at Beverley Magistrates Court and was fined for failing to respond to a data subject access request (DSAR).