BUSINESS PROCESS MANAGEMENT OF CONSTRUCTION ENTERPRISES IN THE CONDITIONS OF DIGITALIZATION

Abstract

The construction industry plays a critical role in national economies by ensuring the development of infrastructure, housing, and industrial facilities. Despite its importance, it remains one of the least digitalized sectors due to the complexity of production processes, the large number of project participants, the geographical dispersion of construction sites, and conservative organizational cultures. Traditional approaches to business process management in construction are increasingly insufficient in the context of rising material costs, shortened project timelines, intensified competition, and higher client expectations. Digital transformation offers fundamentally new opportunities to optimize operational activities, increase transparency, and improve the quality of managerial decision-making. This study examines theoretical foundations and practical aspects of business process management in construction enterprises under digitalization. It highlights the critical role of reengineering as a prerequisite for effective digital transformation, contrasting “status-quo automation” with reengineering-driven approaches. Without prior optimization, the mere automation of existing processes consolidates inefficiencies, while structured reengineering enables process standardization, elimination of bottlenecks, and integration with digital technologies such as BIM, ERP, cloud platforms, IoT, and predictive analytics. These technologies facilitate real-time data integration, reduce manual data entry, minimize errors, and enhance decision-making accuracy. The article also explores the synergistic effects of integrating multiple digital tools. By combining BIM and ERP systems with IoT and machine learning algorithms, construction enterprises can reduce information asymmetry, proactively manage project risks, and transition from reactive to predictive management practices. Empirical evidence shows that integrated platforms produce nonlinear efficiency gains, significantly exceeding the sum of isolated technology applications. Moreover, the study addresses barriers to digital transformation, including technological fragmentation, organizational resistance, financial constraints, and insufficient institutional standards, proposing strategies to overcome them through open standards, digital skill development, centers of excellence, and supportive state policies. Finally, the analysis of the current state of digital transformation in Ukrainian construction enterprises reveals significant gaps compared to leading EU countries, particularly between large and small firms. Nevertheless, ongoing national recovery programs and international support create a unique opportunity for accelerated digitalization. Strategic priorities include mandatory BIM implementation in state-funded projects, the development of standardized digital repositories, and the establishment of a certified BIM management system. The findings underscore that a systemic, phased approach to business process reengineering and digital integration is essential for increasing operational efficiency, competitiveness, and long-term sustainability in the construction sector.