Lan has been involved in a number of construction and property development projects, and has always been concerned by the industry’s negative impact on the environment. So when she was introduced to Ehab, she wanted to know more…
That’s because Ehab is on a mission to empower the construction industry with solutions that provide a positive role in helping transition our world to a net zero economy. This is of course a huge opportunity, but if the industry can’t digitise then this transition could happen too slowly.
Ehab builds products which digitise the industry and help it rise to the great challenges of this century.
For a number of years, the EHAB founders have been doing technical research on the construction sector. With the support of various grants, a number of prototypes have been built.
Working with industry experts on an Innovate UK grant has led the team to focus on Weather Related Risks in the sector. Due to the increasing impacts of the climate crisis on weather patterns, this solution is vital to the continuing success of construction operations globally.
The solution is made possible by smart contracts. Smart contracts are legally compliant code that are run in a distributed ledger system (often referred to as DLT). This simply means that mul- tiple computers are simultaneously running the software.
In this case, the client and the contractor are running the smart contract, and the information being shared and monitored is weather data.
The solution helps reduce admin and removes a layer of delays which can often last weeks creat- ing significant uncertainty. This smart contract tool helps to remove that uncertainty as decisions are instant and all data is shared, giving both parties visibility.
However, the Ehab team isn’t stopping there.
The system has been built in a modular and expandable way, and the team is already working with other partners to develop tools that will allow the entire pot of weather associated risk to be hosted in a smart contract.
This would allow client and contractor to more eﬀectively share in the upside of the weather.
They are, for example, in talks with major insurers who could seek to underwrite the downsides of weather delay through a Parametric Insurance add-on to the smart contract. This could see the total weather risk of a project, or portfolio, capped. This may be an increasingly attractive proposi-tion as more of the downsides of the climate crisis are realised by the industry.
When coupling this smart contract capability with Ehab’s enhanced planning tools and augment-ed site technology, it provides a holistic method for measuring, managing and mitigating weather risk.
Those contractors adopting these tools first can expect distinct advantages when bidding, through better managed risk and more accurate tender prices. Clients can see considerable up- side in time and cost by deploying these tools even earlier in the planning process.