RFID in Construction and Infrastructure: Asset Management, Material Control, and Safety

The construction industry and infrastructure management are among the most complex sectors in terms of logistics, inventory accounting, and on-site safety. RFID technologies offer an efficient solution for **automating inventory, controlling access, managing tools, and tracking high-value assets** across large construction sites.

Author: RFID UKRAINE Experts

Last Updated: November 25, 2025

📋Key Challenges in the Construction Industry

Low inventory accuracy on construction sites leads to significant financial and time losses. The main pain points are:

**Tool and Equipment Loss (Shrinkage):** Annual losses of hand and power tools can reach 10–15% of the total asset value.
**Inventory Complexity:** Manual counting takes hours, distracting skilled labor from core tasks.
**Safety & Compliance Issues:** The critical need to control the use of certified equipment and **Personal Protective Equipment (PPE)**.
**Inefficient Material Control:** Difficulty in tracking the receipt, usage, and storage of bulky materials (pipes, beams, cables).

📋RFID Technologies and Standards for Construction Sites

The construction industry uses specialized RFID solutions capable of operating in harsh environments (dust, dirt, metal, temperature fluctuations). Both UHF and HF/NFC tags are employed.

➡️Specialized RFID Tags

**On-Metal Tags:** Durable tags (Impinj, Alien Technology) for tracking metallic tools and heavy equipment.
**Ruggedized Tags:** Sealed tags for concrete, cables, and pipes, resistant to moisture and chemicals.
**HF/NFC (13.56 MHz):** Used for **PPE control** and certification verification (close-range check).

Standards: Tracking construction assets is typically based on **EPC Class 1 Gen2** standards and specialized ISO standards such as **ISO/IEC 18000-6C**.

📋Operational Benefits and Safety Compliance

**Tool Accountability:** Inventory count of a tool depot takes **mere minutes** using handheld readers (Zebra, Honeywell).
**Check-out/Check-in Control:** Automatic logging of tool issuance to a specific employee, increasing accountability and reducing losses by **20–30%**.
**Material Traceability:** Accurate location tracking of bulky materials (e.g., pipes, steel) across large sites.
**Safety:** Using RFID badges to control access to restricted areas and automatically verify the presence of mandatory PPE at checkpoints.

📋Financial Efficiency and ROI Calculation

The primary ROI driver in construction is the reduction of capital losses (theft and loss of expensive equipment) and the optimization of labor costs associated with searching and inventorying. The average payback period is **18–24 months**.

Metric	RFID Impact	Financial Outcome
Asset Loss (Shrinkage)	↓ 20% to 30%	Direct savings on new equipment procurement
Labor Cost for Inventory	↓ 90% Time	Reduced OPEX and increased productivity
Downtime due to Searching	Eliminated	Project deadline compliance and penalty avoidance

📋International Case Studies: Construction Success

Major international conglomerates actively use RFID to control complex and large-scale projects:

**Skanska (Sweden/EU):** Implementing RFID systems for tracking modular building components. This ensured precise assembly and quality control on site.
**Bechtel (USA):** Using specialized RFID tags on pipelines and large components for automated accounting during transportation and storage at ports and warehouses.
**Japanese Construction Firms:** Active use of RFID badges for time and attendance control, access, and automated certification checks for employees entering hazardous areas.
**Arup (EU):** Implementation of RFID systems to monitor the movement of high-value measuring and calibration equipment, minimizing idle time.

➡️Integration with BIM/ERP

The most effective solutions integrate RFID data on asset location and status (tool/material) directly into the Building Information Modeling (BIM) models or ERP systems (e.g., SAP), ensuring end-to-end project control.

📋Frequently Asked Questions about RFID in Construction

➡️What types of tags are used for metallic tools?

Specialized **on-metal UHF RFID tags** (e.g., from Impinj) with a high protection rating (IP68) are used to compensate for the metal's interference with the radio signal.

➡️Can RFID help with Safety and Compliance regulations?

Yes. RFID tags on PPE (helmets, vests) allow for automatic verification that a worker is in full gear, or that a tool has passed its last inspection/calibration, preventing the use of faulty equipment.

➡️Is a license required for using UHF RFID on a construction site in the EU?

The EU uses the 865–868 MHz band, which is generally license-free but requires adherence to the power emission regulations set by ETSI.

📋Sources and References (E-E-A-T)

Ask a Question