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The world in which we work is being reshaped by information and communications technologies. These technologies are changing the way business is being conducted at an ever increasing rate and are making possible services such as electronic mail, the internet and videoconferencing as the two technologies move closer together. Just a few years ago they were science fiction but now they are having a significant impact on the industry.

Information Technology and Business Process Re-engineering - quite a mouthful of modern jargon but also a partnership which is leading the way in the reorganisation of many major contractors. As the industry emerges out of recession, intense competition is driving the move to greater efficiency and it is information technology which is the tool for the job. 'IT is an extremely good catalyst,' says Cormac O'Reilly, Costain's development director. 'It is an enabler. It doesn't change our business - just the way in which we do it.'

With the pressures of competition and the need to make organisations leaner and more efficient, people are realising that IT is going to be the key to the future. And it is not just the financial side of the business, or the specialist areas, which are using IT. Personal computers are appearing everywhere. 'Last year in Costain we had 350 PCs in the head office,' said O'Reilly. 'This year it will be over 1,000.'

IT is not new to the construction industry but it is only recently that it has started to have a substantial impact on the business itself rather than just the financial controls. This is due to a number of factors.

The industry has always had a conservative approach to new ideas and new technologies and it has been slow to embrace IT in the same way. But with a fragmented industry such as construction, IT has been difficult to implement on a global basis. 'Previously we were automated but not integrated,' said Colin Darch, group IT manager for Balfour Beatty. This is now changing.

Cheaper hardware and components are having an impact on companies' networks. There is a trend away from mainframe systems to computer networks with PCs linked - not just within head offices, but also with those on site. New IT managers are being brought into contractors from other industries (process engineering seems to be a favourite) where the use of IT is more advanced and more enlightened.

There is also a new approach at board level where previously there was perhaps a fear of the technology through ignorance. IT spend in the past was done on the basis of 'if you throw enough money at it and it must bring benefits'. At the same time, too much software was developed in-house. Now senior managers and directors have been made more aware of what IT can do and where spending needs to be targeted.

'The view has changed from IT being a cost to being an investment,' said Colin Darch.

IT outsourcing is also growing rapidly with in-house departments shrinking and overheads decreasing. This means that more universal and user-friendly software is being used which, once the initial packages are learnt, is straightforward and simple to use. Training costs are therefore lower.

Training is being conducted differently. There is more emphasis on making employees aware of the possibilities and then letting the business needs of the individual drive the change to different technology.

As a result of these changes, many areas of the industry are becoming more familiar with IT and are more aware of the possibilities for the future and how it can help their business. The portability of the hardware is having a dramatic impact on site practices as is the combination of IT with communications technology. Through e-mail and modem links, the site office can now be considered simply as an extension of the head office and data can be transferred electronically.

This is just a side road on the information superhighway. Once seen as something of a joke, the information superhighway is beginning to open up access to an amazing variety and depth of information. The Internet itself is only just being explored by businesses, and various bodies within the construction industry are looking at the potential for contractors to have easy and open access to information.

One other development, which many people realise is going to be more significant and looks set to change the way the design and construction of buildings is carried out, is 3D modelling. '3D modelling will be as dramatic in its impact on design as word processing was to typing,' said Balfour's Darch. 'It will apply equally to small projects as to large ones.'

It is in these developments and the way IT is being embraced by contractors that the future of IT in our business lies. HOW IT IS CHANGING THE WAY WE DO BUSINESS