The construction industry in general – and subcontracting in particular – is undergoing a significant transformation driven by Artificial Intelligence (AI). According to a McKinsey article, AI can boost productivity in the construction sector by up to 15% and reduce costs by approximately 5% (McKinsey & Company). Given the industry’s high stakes and complexities, it’s clear that adopting AI is essential for subcontractors to stay competitive. In a report published years after this first article, McKinsey further emphasized this point, revealing that 76% of construction executives believe AI will be critical to their future success.
As subcontractors, you face unique challenges: tight margins, project delays, safety risks, and material management complexities. Embracing AI can help address these pain points, streamline operations and position your business at the forefront of innovation.
Here’s how AI can help you address some common problems you may face as a subcontractor.
Cost management and financial planning
Small margins can be the difference between making a profit or taking a loss on a project. AI can help by analyzing large amounts of historical financial data and material costs to give you accurate estimates and financial forecasts. But it doesn’t stop there—AI can also monitor project expenses in real-time, alerting you to any budget variations so you can take swift action. This protects your profits and improves decision-making, helping you use resources more efficiently and negotiate better deals with suppliers and clients.
Predictive project scheduling
Did you know that AI’s predictive capability can reduce project delays by up to 30%? According to research by Vergo Finance Software, AI can accurately forecast project timelines and identify potential bottlenecks so that you can anticipate and mitigate delays. That way, you have a higher chance of completing projects on time and avoiding costly overruns. AI-driven planning also optimizes how you allocate your resources by evaluating elements like labor availability, equipment usage, and material delivery schedules.
Better safety monitoring
Safety is essential for subcontractors. You already know that even minor oversights can lead to severe accidents and costly delays. AI-powered drones and sensors are revolutionizing job site safety by providing real-time monitoring and hazard detection. Implementing AI-driven safety solutions can reduce workplace injuries by identifying potential safety hazards that might be overlooked during manual inspections, such as structural weaknesses, equipment malfunctions, and unsafe worker behaviors. AI-powered sensors around job sites can also monitor environmental conditions, machinery status, and worker locations in real-time to detect everything from gas leaks and excessive noise levels to temperature extremes.
Advanced materials management
AI is so powerful that it can analyze your project requirements, historical data, and real-time factors like weather conditions and supply chain dynamics to accurately predict material needs. The benefit to you? Precise inventory management and a streamlined reordering system. Further, AI can integrate with suppliers’ systems to ensure deliveries at the time that works best for you and negotiate better pricing based on predictive analytics.
More effective service delivery
It is necessary—correction: critical—for subcontractors to have good relationships with general contractors, clients, and suppliers. AI revamps customer engagement through more advanced tools like chatbots powered by AI, which provide instant feedback and effectively handle routine inquiries all day long. This technology enables you to give updates and address issues without needing a dedicated support team working 24 hours a day.
Streamlined equipment maintenance
Unexpected breakdowns can cause significant, sometimes business breaking, delays and cost overruns. AI enables proactive maintenance schedules customized to the specific needs and usage patterns of each piece of equipment. AI continuously learns and adapts to new data too, so those maintenance schedules evolve and improve over time.
Faster, more accurate contract review
One of the biggest administrative burdens for subcontractors is reviewing complex contracts. AI can make that much faster and more cost-effective. AI technology can quickly pinpoint critical clauses, discrepancies, and legal implications that might affect your business in the future. From unfavorable terms to non-compliance with regulations, AI-driven contract review helps subcontractors make informed decisions and avoid legal battles.
AI is here to help you.
Embedding AI into your business can change every aspect of your operation, from simplifying contract reviews to optimizing project planning and material management. It’s time to embrace solutions driven by artificial intelligence to keep your business not just abreast of the others but ahead.
Streamlining the way your business operates may seem overwhelming. On the contract review front, Superlegal can help you get from proposed to signed, sealed and delivered faster.