With a heritage spanning seven decades and footprint across seven countries, the BCD Group with expertise in construction, engineering, funding and consultancy is committed to building a better, more sustainable world for future generations. Vivek Joshi, Chief Strategy Officer, BCD Group, discusses the company’s projects, barriers to the usage of green steel and green cement, the role of software in project monitoring, etc, in conversation with R SRINIVASAN. Excerpts: What is the difference in projects in Tier 2-3 cities and in Mumbai? The major differences are: Market dynamics: The focus in Tier 2 and 3 cities is on capturing the burgeoning demand in residential and commercial sectors, driven by urban migration and economic growth. Projects are often designed with cost-efficiency in mind to appeal to the price-sensitive segments of the population, sometimes emphasising functional over luxury developments. Meanwhile, the economic powerhouse of Mumbai demands a diverse portfolio, ranging from high-end residential complexes to Grade A+ commercial spaces. The clientele in Mumbai is more receptive to premium pricing, setting a higher benchmark for project conceptualisation and execution. Regulatory environment: The regulatory landscape in Tier 2-3 cities is less cumbersome, offering flexibility but requiring diligent navigation of the local governing laws. This scenario presents both an opportunity for smoother project initiation and a challenge in maintaining consistent quality and safety standards. In Mumbai, navigating the regulatory maze is a complex task, entailing stringent adherence to environmental norms, building codes and safety regulations. The exhaustive and costly approval process, though challenging, ensures projects align with the high standards of compliance. Resource availability: The scarcity of high-quality materials and skilled labour in Tier 2 and Tier 3 cities poses a challenge, necessitating innovative approaches to sourcing and training. This constraint often leads to a greater reliance on locally available resources, dictating unique project designs and outcomes. On the other hand, despite the high cost of resources, Mumbai offers abundant access to premium materials and skilled professionals. The challenge here lies in managing the elevated costs without compromising on the project's value proposition. Infrastructure and logistics: In Tier 2-3 cities, projects may face infrastructural bottlenecks, from inadequate transportation networks to limited local services, impacting timelines and operational efficiency. In Mumbai, while the city's developed and continuously developing infrastructure supports project execution, logistical hurdles such as limited space pose unique challenges, requiring creative solutions for material transportation and site management. What is the role of AI in reducing the time and cost of projects? AI has been a great enabler as far as predictive analysis is concerned. Managing a real-estate or construction project involves a lot of risks and AI plays an important part in identifying and mitigating those risks, making the project workflow efficient. By using machine learning models, it is now possible to leverage historical project data to predict project outcomes, identify risk factors and optimise resource allocation, facilitating mitigation strategies for potential inefficiencies. This indicates how the industry is proactively adopting an emerging technology like AI to create real value for end consumers. How did the company overcome challenges in the sourcing of raw materials for projects? The challenges faced were: Supply chain disruptions: Faced with delays in material delivery due to events like the pandemic, BCD diversified its supply sources, including both local and national vendors, and maintained material reserves. It also adopted supply chain management to enhance the tracking and forecasting of material deliveries. Fluctuating material costs: With volatile prices for key materials like steel and cement impacting budgets, the company engaged in longer-term contracts to lock in prices and utilised financial hedging strategies to manage cost fluctuations. Quality assurance: To ensure consistent quality from diverse suppliers, BCD implemented a robust quality control process, including supplier prequalification and third-party inspections, to guarantee material standards. Regulatory compliance: For adherence to complex regulations for material import and use, a dedicated compliance team was established to monitor regulatory changes, ensuring all materials complied with environmental and safety standards. Sustainability concerns: To meet increasing demands for environment-friendly construction practices, the company prioritised sourcing from suppliers practicing sustainable manufacturing, significantly increased its use of recycled and low-carbon materials, and advocated for sustainable policy changes within the industry. With these solutions, BCD addressed its sourcing challenges. What are the barriers to usage of green steel and green cement? The barriers include: Cost: Green alternatives often come at a premium due to higher production costs and limited supply chains, making them less competitive compared to traditional materials. Availability: Limited production capacity and distribution networks for green materials can lead to difficulties in sourcing them for large-scale projects. Performance concerns: Scepticism regarding the performance and long-term durability of green materials compared to conventional options may deter their use. Regulatory hurdles: The absence of supportive regulations and standards specifically incentivising the use of green materials can slow adoption rates. Knowledge gap: A lack of awareness and technical knowledge about the benefits and application of green materials among stakeholders can hinder their acceptance and integration into projects. Addressing these barriers requires concerted efforts from industry, government, and knowledge centres to enhance the competitiveness, availability and acceptance of green steel and green cement in the construction sector.