The Engineering, Procurement, and Construction – EPC sector – has long been characterized by its complex, large-scale projects and traditionally site-centric operations. Despite the advancements in digital technologies, the industry has been relatively slow in adopting new innovations compared to sectors like IT and finance. However, the landscape is rapidly changing, driven by the growing need for efficiency, transparency, and resilience in project execution. Varghese Daniel, Founder and CEO of WRENCH Solutions, is a pioneer in digital project management solutions for the EPC industry. With a deep understanding of the sector’s unique challenges, Daniel has been instrumental in integrating cutting-edge technologies such as AI, cloud computing, and predictive analytics to streamline project execution and mitigate risks. Under his leadership, WRENCH Solutions has enabled companies to transition from traditional, paper-based workflows to intelligent, data-driven decision-making frameworks.
Also read: From Siloed Processes to Seamless Projects – Varghese Daniel, Wrench Solutions
In this exclusive conversation with Tech Achieve Media (TAM), Varghese Daniel discusses the evolving role of technology in the EPC sector, the impact of AI on project execution, and how digital collaboration is reshaping stakeholder communication. He also shares insights into how predictive analytics and Building Information Management (BIM) are enhancing project efficiency and ensuring timely delivery.
TAM: How prevalent would you say is the use of technology in the EPC sector?
Varghese Daniel: The engineering, procurement, and construction (EPC) industry has traditionally been highly site-centric, with most work happening on-site. As a result, technology adoption remained low for a long time. However, the COVID-19 pandemic became a major catalyst for change. With the shift to hybrid work models, professionals were required to stay in offices as much as possible and visit sites only when absolutely necessary.
This shift accelerated the adoption of digital technology in the EPC industry at an unprecedented pace. Historically, remote work was never an option in this sector, unlike in IT, because EPC projects require multiple stakeholders to collaborate in person. Many critical discussions and problem-solving sessions happened face-to-face, making remote collaboration seem impractical.
Before COVID, I spent half the month traveling for business, flying 15 days a month. But after the pandemic hit, I didn’t travel for 36 months, and surprisingly, everyone was comfortable seeing me online. The way we do business has transformed. Previously, having a physical office was essential to establishing credibility—clients wanted to meet in person before engaging in business. Now, thanks to digital collaboration, we’ve expanded into 40 countries, often working with partners we’ve never met in person, communicating solely through emails.
Another game-changer has been the rise of cloud computing and the SaaS (Software as a Service) model. Initially, companies were hesitant to store their data online due to security concerns. But today, even the banking sector—where security is paramount—has fully embraced the cloud. If we trust the cloud with our money, why not with construction data?
Ultimately, the combination of cloud technology, SaaS adoption, and the digital collaboration driven by COVID has revolutionized the EPC industry. This transformation has led to a significant shift in how technology is integrated into EPC projects, making operations more efficient, scalable, and future-ready.
TAM: How is AI redefining project execution in the EPC industry, particularly in ensuring that delays are minimized in mega projects? Are there any industry-wide success stories or benchmarks that illustrate its transformative impact?
Varghese Daniel: The greatest thing about AI is its rapid adoption. When the internet first emerged, it took time for people to start using it. In contrast, when ChatGPT was introduced, almost everyone began using it immediately. It’s hard to find someone who hasn’t tried ChatGPT. People quickly realized that they could ask a question and receive an answer instantly. This direct experience with AI sparked a widespread realization: “If AI can do this, why can’t I use it in my industry?”
This led organizations and CEOs to mandate AI adoption across various sectors. Every department, technology leader, and business unit started exploring how AI could enhance their work. However, AI comes with challenges. Unlike the internet, which already contains vast amounts of structured information, many industries—such as construction—are document- and email-centric. This means that essential data isn’t readily available for AI to analyze and generate insights.
Much of the knowledge in industries like construction resides in the minds of experienced professionals, buried in documents, emails, and designs. Without structured data, AI cannot effectively provide solutions. The first step, therefore, was to digitize project information. This ensured that data was not only organized but also interconnected, allowing AI to process it meaningfully. Poor-quality or incomplete data would only lead to inaccurate outputs or AI hallucinations.
We then asked: Why do projects get delayed?
- Lack of Real-Time Data: Projects follow a schedule, but unexpected delays occur. By the time these delays are identified and corrective action is taken, significant setbacks may already have occurred. Moreover, project managers often rely on verbal updates rather than real-time digital data. When asked about project progress, someone might say, “50% is done,” but without precise digital tracking, that number lacks real meaning.
- The Importance of Accurate Information: Just like in cricket, where the current run rate is crucial for determining the required run rate, accurate real-time project data is essential. Without it, teams cannot make informed decisions or adjust their strategies effectively.
- AI for Predictive Insights: Once accurate real-time data is available, AI can analyze trends and provide forecasts. For example, AI can predict potential delays based on current progress and suggest actions to mitigate them. However, AI can only be effective if a system is in place to collect and integrate this data.
Beyond scheduling issues, other factors also contribute to delays. Some approvals from clients may take longer than expected, or necessary data might not be received on time. No matter how well a project is planned, unforeseen challenges arise. To address this, we implemented a watchtower system to monitor critical project elements.
For instance, in oil and gas or renewable energy projects, we know that delays in land acquisition or approvals can significantly impact schedules. AI can predict potential disruptions based on past patterns and current progress. If an issue arises, AI can immediately alert project managers, allowing them to take preventive action before the delay escalates.
Additionally, external factors such as climate change, geopolitical events, and economic shifts can create unpredictability. Using Natural Language Processing (NLP), AI can analyze these risks and predict their potential impact on a project. For example, if a critical material shipment is delayed, AI can assess how it will affect the project timeline and suggest corrective measures.
Ultimately, the key to successful project delivery lies in predictability and proactive decision-making. AI plays a crucial role in this by providing insights, identifying trends, and offering data-driven recommendations. By integrating AI into our project monitoring system, we’ve created a watchtower that continuously observes, alerts, and helps teams take timely action. This ensures that projects stay on track and disruptions are minimized.
TAM: Collaboration between diverse stakeholders is critical in mega projects. How is the industry using digital solutions and AI to enhance transparency, improve communication, and align all parties toward timely project delivery?
Varghese Daniel: One of the major developments over the past few years has been the adoption of Building Information Management (BIM). BIM provides a centralized platform for all stakeholders, ensuring that everyone is on the same page. Instead of receiving a static drawing that may be difficult to visualize, stakeholders can view a 3D model, making collaboration and understanding much easier.
The first step is to establish a common data environment where all project-related information is accessible and consistent. The second step is implementing a real-time dashboard that displays the actual project status. Today, instead of relying on static Excel reports, stakeholders can view the current status of a project online.
By using BIM, stakeholders can visualize the project—whether it’s a building, an apartment complex, a refinery, or a metro system—in its 3D form. As work progresses, updates are reflected directly in the model, comparing planned versus actual progress. If there is a delay, it is clearly highlighted, allowing even a non-technical person to understand the situation without having to sift through complex reports. This transparency ensures that everyone is aligned and working collaboratively to bring the project back on track.
Modern dashboards, powered by tools like Power BI, not only provide real-time project status but also offer insights into the reasons behind delays. This has driven widespread adoption of BIM in project-based industries.
While 3D modeling has been prevalent in the process and petrochemical industries for decades due to their complexity, its adoption in the building and infrastructure sectors is more recent. Today, BIM extends beyond 3D modeling to 4D, incorporating real-time updates so stakeholders can see exactly what was planned versus what has been executed. This seamless digital collaboration is now accessible on mobile devices, allowing real-time project monitoring from anywhere. With cloud-based storage and processing, project data is easily accessible and efficiently managed.
Instead of printing and distributing physical drawings, all information is now available online. Users can review models, perform walkthroughs, and access the same design data—from designers to end-users—ensuring consistency. This is what is referred to as a common data environment (CDE).
A great example of BIM’s success is the Rapid Rail project (NCRTC) between Meerut and Delhi. The entire design was created in 3D, and all project information was exchanged digitally. As a result, the project was completed three months ahead of schedule because all stakeholders had real-time access to accurate data. There was no room for miscommunication, delays due to paperwork, or inefficiencies caused by outdated information.
This project stands as a testament to the power of BIM and digital monitoring. As providers of the common data environment for this initiative, we worked closely with NCRTC to ensure its success.
TAM: Predictive analytics has been a game-changer for identifying risks before they escalate. How is the EPC industry adopting these tools to enhance decision-making, and what are the limitations in their current application?
Varghese Daniel: At the end of the day, success comes down to intent and execution. In the past, when a company or any other major corporation set up a plant, the typical approach was to award a lump-sum contract to a contractor. The expectation was that the contractor would complete the project within a specified timeframe and budget. The owner simply pushed the contractor to deliver.
However, those days are gone. Today, if the contractor fails, the owner fails as well. Cost overruns, project delays, and legal disputes lead to arbitration, wasting valuable time and resources. No one wants to be caught in that cycle anymore.
Now, the trend has shifted. Owners want greater control and visibility over the contract. Instead of simply handing off the project, they actively monitor and collaborate with contractors to ensure that deliverables meet expectations in terms of scope, quality, and timeline. Owners want to be involved at every stage, ensuring that the contract is executed efficiently.
To bridge any gaps in expertise, owners often bring in a Project Management Consultant (PMC) or other advisors to augment their team. Ultimately, the owner has to operate the asset once the project is completed—whether it’s a factory, a high-rise building, or an infrastructure project—so they need full transparency throughout the process. Gone are the days of simply paying a contractor and waiting for the final outcome, only to be dissatisfied later. Disputes and delays are no longer acceptable.
With the rise of collaboration platforms, we are seeing more owners adopting digital systems that require contractors to work within structured frameworks. This shift ensures seamless communication between owners and EPC (Engineering, Procurement, and Construction) contractors, fostering a partnership-driven approach rather than an adversarial one.
The mindset has also changed from reactive to proactive. Owners no longer wait until problems arise—they aim to predict and mitigate risks early. For example, if a shipment delay threatens the timeline, owners now evaluate alternative solutions collaboratively. Instead of blaming the contractor, they may decide to pay extra to airlift the materials and keep the project on track. Without real-time collaboration, such decisions would be delayed, leading to cascading project failures.
Moreover, AI is playing a crucial role in predictive decision-making. Rather than relying solely on human judgment, AI can analyze patterns and identify risks before they become critical issues. AI-driven insights can suggest corrective actions based on past experiences, building an organizational knowledge base that improves with every project.
With this shift, owners are no longer passive observers—they are actively driving projects in partnership with contractors. This collaborative approach reduces project failures, eliminates unnecessary arbitration, and ensures smoother execution. The key enabler of this transformation is digitalization, allowing projects to be managed with greater transparency, efficiency, and foresight.
TAM: Given the diverse scale and complexity of projects in the EPC industry, how is the industry standardizing AI-driven solutions to ensure they are scalable and adaptable to projects of varying sizes and scopes?
Varghese Daniel: The challenge in any project is breaking it down into different phases of construction.
When you look at a house being built, you only see the physical progress—how much has been constructed. You don’t usually think about whether the drawings are ready, the materials have arrived, or the labor is in place. However, managing these elements efficiently is crucial for project success.
A concept gaining global traction, particularly in the U.S. and Europe, is Advanced Work Packaging (AWP). This approach structures construction projects in a more organized and efficient manner.
How Does Advanced Work Packaging Work?
Instead of managing an entire project as one large entity, AWP breaks it down into smaller, manageable pieces called Construction Work Packages (CWPs).
- Breaking Down the Project
- The entire construction is divided into smaller packages, such as substructure, superstructure, boundary walls, or interior work.
- Each package follows a logical sequence—for example, the foundation must be completed before structural work can begin.
- Aligning Resources with Construction Needs
- For each package, you identify the necessary drawings, materials, labor, and equipment.
- If any element is delayed (e.g., material is unavailable), you reallocate resources to another part of the project instead of halting progress.
- Real-Time Adjustments & Forecasting
- By focusing on individual construction packages, teams can monitor delays and their impact more effectively.
- If a crisis arises, work can be reprioritized, ensuring that productivity continues without unnecessary downtime.
The Key Benefits of AWP
- Simplifies project management by breaking down complexity into smaller, manageable tasks.
- Improves efficiency by ensuring that people and equipment are always engaged, reducing idle time.
- Enhances productivity by making sure “people don’t wait for work, and work doesn’t wait for people.”
- Allows proactive decision-making so that delays don’t cascade into larger project failures.
The Role of BIM in AWP
Building Information Modeling (BIM) is not just about creating digital models or walkthroughs—it plays a vital role in planning and sequencing work.
- BIM helps visualize which tasks can run in parallel (e.g., constructing multiple blocks simultaneously).
- It allows teams to sequence work packages effectively, ensuring a smooth construction flow.
By integrating AWP with BIM, construction projects become more predictable, efficient, and well-coordinated. This modern approach transforms project management by ensuring that every aspect of construction is planned, tracked, and executed in an optimal way.
