Realizing Digital Ambitions for the Built Environment: The Case for Integrated Delivery

Current approaches to procuring capabilities

1. Multi-disciplinary design with a Smart City Master Systems Integrator (MSI)

This model has evolved as the standard approach in recent years. It brings physical and digital design disciplines together under one contract, with an MSI leading smart solution design and deployment after the initial design stages. It helps align physical and digital design disciplines in early stages. However, traditional design frameworks and stages often don’t align well with digital design processes or level of detail, or provide sufficient flexibility for the MSI, creating misalignment and costly rework and delays later. 

2.  Procuring digital capabilities across multiple providers 

Here, digital capability is procured separately from the physical infrastructure contract, often split across three roles — digital vision setting, schematic design of digital systems and the hardware design — procured at the same time. While it allows access to the best expertise for each digital domain, progressing all three scopes of work at the same time can create significant coordination challenges. Separating the physical and digital infrastructure design also creates further risk of misalignment. Other common pitfalls include knowledge fragmentation, accountability gaps and timeline interdependencies – leading to rework and delays.

3.  Procuring full end-to-end digital capabilities from a single provider

This model consolidates end-to-end digital capability — from vision setting to deploying the end devices to testing and handover — and physical infrastructure design under one provider. It simplifies project management and embeds technology from day one, but scope uncertainty at the start of delivery creates a challenging commercial dynamic, which can lead to limited tender responses, inflated pricing and solutions that overpromise.

Bridging the capability gap

To progress from vision to practical implementation, projects need expertise that combines traditional infrastructure design and delivery with a strong grasp of innovative digital and data solutions and their practical application in the built environment. Without this cross-disciplinary approach, developers risk compromising ambition, taking on greater implementation risks and navigating costly change processes.

The right procurement approach depends on each project’s context, but four practical steps can help developers bridge this gap: 

1. Early industry engagement: Engage the market early in the procurement process to collaboratively shape strategies, mitigate risks and prepare the supply chain. Embed structured market engagement milestones within procurement timelines to reduce risk, increase vendor confidence and avoid inflated pricing or non-responses.
2. Strong internal coordination: Establish dedicated internal coordination and governance functions to oversee technical integration, supplier management and delivery across workstreams.
3. Realistic visioning: Set achievable digital goals aligned to the specific development and operational context and organizational capabilities. Build internal knowledge to guide suppliers effectively and maintain strategic direction throughout delivery.
4. Elevating digital expertise: Embed digital expertise in the project leadership team so technology is treated as a core project element and incorporated into all facets of planning and design from the start.

The path forward

As buildings and infrastructure evolve, the digital ecosystems supporting them are becoming increasingly complex and integral to design, performance and end-user experience. Aligning digital strategy with technical execution from the outset ensures digital ambitions are not only visionary but feasible.

Cross-disciplinary expertise bridges the gap between advisory, design and delivery, bringing together systems, technologies, software and hardware in a way that supports long-term performance, operational efficiency and unique user experiences. Developers who embrace this integrated approach stand to achieve enhanced asset performance, improved operational efficiency, stronger reputation for delivery excellence and ultimately, better financial returns.