The benefits of construction digital twins, such as improved planning and design, streamlined collaboration, and effective risk management, are transforming how projects are executed. Photo via Getty Images

The construction industry is no stranger to embracing technological advancements, and one of the latest breakthroughs is the advent of construction digital twin technology.

Blending the virtual and physical worlds, construction digital twins offer immense potential for enhancing efficiency, reducing costs, and improving decision-making in construction projects.

It is a fascinating and ever-changing world of technology in construction digital twin technology and the following information explores its key components, benefits, and real-world applications in the construction sector.

What is a construction digital twin?

A construction digital twin is a virtual replica of a physical asset, process, or system that integrates real-time data from various sources to provide a holistic and dynamic representation. It encompasses a portion of the entire lifecycle of the project, potentially starting from planning and design into construction, commissioning, and data collection for ongoing maintenance.

The key components of a construction digital twin include the physical asset, sensors, data acquisition systems, connectivity infrastructure, cloud platforms, and advanced analytics. Various tools or platforms can be used at different stages of a project.

Skanska, a construction and development company, has created an internal hybrid approach combining a digital twin model with a custom analytics dashboard. The process allows for tracking production control during construction. What is used is a less-is-more approach to manual data entry into models and link to automated external data sources, which are combined and analyzed together in a separate dashboard. These color-coded models are combined with external data for schedule, cost, and man hour data for predictive analysis and production rates.

Improved planning and design

Digital twins allow design and construction professionals to simulate and optimize designs with a virtual model of the building before physically implementing them. This capability enables early detection and resolution of design flaws, reducing rework and costly delays. Adjacent building and city data can inform early design decisions. By leveraging the existing data from a digital twin, renovation projects can streamline processes, reduce risks, improve efficiency, and make informed design decisions, ultimately resulting in more successful and cost-effective renovations.

Enhanced construction processes

A construction digital twin allows stakeholders to visualize and simulate the project, analyze potential issues, optimize workflows, and make informed decisions. Key data sources include: installation, schedule, man hours, and cost. Additional real-time data from sensors embedded in physical assets can be fed into construction digital twins, enabling real-time monitoring and analysis. Project teams can enhance collaboration, improve efficiency, maintain schedule, reduce costs, and minimize risks throughout the construction process.

Effective risk management

Digital twins enable construction companies to simulate and analyze potential risks, such as structural weaknesses and environmental or safety hazards. Builders and their clients are at an advantage since they can address these risks in the virtual environment and significantly reduce the occurrence of accidents and associated liabilities.

Streamlined collaboration

Construction digital twins act as a shared platform for all stakeholders involved in a construction project, including architects, engineers, contractors, and facility managers. This flow of information fosters seamless collaboration, improves communication, and results in better decision-making through a data-driven environment. Solutions vary per stage and parties involved.

Real-world applications

Construction digital twin technology is already finding practical application in the construction industry, including locally at 1550 on The Green, Skanska’s state-of-the art, sustainable office building bringing the outdoors in.

Smart building construction

By creating a digital twin of a smart building, companies can optimize energy efficiency, HVAC systems, and space. The real-time monitoring of energy consumption and occupancy patterns combined with as-built BIM and systems data allows for predictive maintenance. Automations and AI assisted controls are also on the horizon.

Bringing it all together

Construction digital twin technology is poised to revolutionize the construction industry. By merging the virtual and physical realms, it enables construction professionals to make more informed decisions, enhance efficiency, and minimize risks.

The benefits of construction digital twins, such as improved planning and design, streamlined collaboration, and effective risk management, are transforming how projects are executed. As this technology continues to evolve, there are bound to be greater advancements in construction practices, ultimately leading to safer, smarter, and more sustainable built environments. Key data points and use cases vary per phase and stakeholder, and digital twins are a great asset throughout the project lifecycle.

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Edwin Bailey is senior preconstruction technologist at Skanska, a leading multi-national project development and construction group, in Houston.

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Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”