Exploring Successful Business Models in the Global Construction Industry and Lessons for Iran

Over the past decade, the construction industry has witnessed profound changes in its business models. Digital transformation, supply chain crises, environmental pressures, and shifting demand patterns have pushed leading global companies to move from traditional contract- and contractor-based models toward collaborative, technological, and data-driven structures. In this context, analyzing successful global patterns can provide valuable insights for the future of the construction industry in Iran.

1. Transition from “Project-Centric” to “Platform Model”

One of the emerging trends is the rise of construction platforms. Companies such as Skanska, Bouygues Construction, and Lendlease use models where design, procurement, construction, and maintenance are integrated into a single digital ecosystem.

This model, leveraging BIM, artificial intelligence, and real-time data, has led to a 20% reduction in costs and a 30% increase in workforce productivity (according to the McKinsey Global Construction Outlook 2025). In fact, value is shifting from the physical execution of the project to the “ownership of data and processes.”

2. Redefined PPP and BOT Models

Public-Private Partnership (PPP) and Build-Operate-Transfer (BOT) models have been redefined in recent years in many countries. Southeast Asian and Middle Eastern countries, especially Saudi Arabia and the UAE, have been able to execute massive infrastructure projects more quickly and with less financial risk by combining public and private investment in more flexible models.

These models are designed around the concept of “Value Sharing” so that each player benefits according to their share of risk and return. Such a structure could serve as a model for infrastructure development in Iran, especially in energy, transportation, and urban development projects.

3. Circular Construction Economy and Sustainable Building Models

In Europe, a new approach known as the Circular Construction Economy has emerged, where recycling materials, designing for disassembly, and reusing resources have become integral to companies’ business models.

For example, BAM Construct UK, by using recyclable materials and contracts based on environmental performance, has reduced waste by 75% while increasing its operational profit. According to the World Green Building Council (2024), companies that base their business models on sustainability have experienced higher investment growth than the industry average over the past five years.

4. Data-Driven Models and Predictive Decision-Making

In developed countries, data has become the most valuable asset in the construction industry. Companies such as Turner Construction and Laing O'Rourke use risk prediction algorithms, time, and cost for decision-making in projects.

These companies leverage accumulated project experience to build smart learning models, starting each new project not from scratch but based on the knowledge from previous projects. This approach has resulted in a 25% reduction in time deviations and a 40% increase in the accuracy of financial estimates.

Lessons for Iran

Despite its long history and considerable engineering capacity, Iran's construction industry has faced structural challenges in recent decades, including economic fluctuations, financial instability in projects, and a gap between domestic technology and global standards. However, analyzing successful global models can provide practical pathways for redefining the role of Iranian players in this industry. Three key areas in this regard are:

1. Transition from Contracting to Development

In many domestic companies, the organizational structure and management mindset are still centered around the concept of contracting, i.e., implementing the client's agenda with a focus on cost and time. However, in successful global models, companies have transcended this role and have become ecosystem developers in the construction sector.

A developer is not just the project executor but also the designer of the financial model, operator, and even the custodian of the end-user experience. This shift in Iran would require two fundamental transformations:

• A change in contract structures from purely EPC (Engineering, Procurement, and Construction) to EPCF or DBFO models (Design, Build, Finance, and Operate).

• The cultivation of internal research and development units that can play an active role in project decision-making.

The result of this shift would be the creation of companies that operate not on the periphery of the value chain but at its center.

2. Integration of Technology and Finance

Globally, the boundary between engineering and project economics is blurring. Projects that utilize digital technologies such as BIM, IoT, and AI are not only technically advanced but are also more attractive from the perspective of investment, risk control, and financial transparency.

In Iran, this convergence could be achieved at two levels:

• At the project level, by using data-driven platforms to predict costs, scheduling, and risks.

• At the investment level, by employing new financing models such as crowdfunding for projects or project-specific funds that directly connect investors to the data flow and decision-making process.

Such integration would lead to increased trust from both domestic and international investors and create a more transparent financial market for construction projects.

3. Focusing on Project Lifecycle Value

One of the fundamental differences between Iran's construction industry and leading countries is the approach to the “end of the project.” In many domestic projects, quality is defined at the time of handover, not throughout the operational life of the building.

However, in global models, the concept of Life Cycle Value has become the central criterion for decision-making. This means that every design decision, material choice, or system selection is evaluated based on its impact on cost and performance throughout the building’s life.

For Iran, focusing on lifecycle value would mean a change in pricing methods, contract structures, and even the bidding system. Instead of competing on the lowest price, competition should focus on the highest durability and efficiency.

In this context, tools like 7D BIM (Building Information Modeling for maintenance and energy performance management) can form the basis for more accurate assessments and long-term decision-making.

Conclusion

Successful global models in the construction industry demonstrate that the future of this sector lies in “business innovation,” not just technology or capital. Countries and companies that can redesign their models around data, collaboration, and sustainability will be the leaders of the next generation in the construction industry.