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How Specialty Subcontractors Can Use AI to Improve Bidding, Material Takeoffs, and Scheduling

Dec. 4, 2024
Let's explore how subcontractors can leverage AI tools to address specific problems to improve outcomes for their businesses.

In the construction industry, where margins average just 5% and competition is fierce, specialty subcontractors such as plumbing, hydronic, and mechanical systems professionals face unique challenges during the preconstruction phase. Tasks like bidding, material takeoffs, and project scheduling are critical to success but often rely on manual processes that are prone to inefficiency and errors. For subcontractors looking to save time, cut costs, and improve accuracy, artificial intelligence (AI) offers practical, actionable solutions.

This article explores how subcontractors can leverage AI tools to address specific problems, with a focus on real-world applications that improve outcomes for their businesses.

AI in Preconstruction

Preconstruction is a pivotal phase where subcontractors can secure profitability or risk losses. Yet traditional workflows are resource-intensive and frequently lead to missteps. According to industry studies, 80% of construction projects face cost overruns or delays, often stemming from errors made during bidding or scheduling. AI tools are designed to mitigate these issues, offering faster, data-driven solutions.

Bidding Accuracy: Pricing projects competitively while accounting for fluctuating material costs, labor rates, and schedule constraints is one of the most challenging aspects of preconstruction. AI tools analyze historical project data, real-time supplier pricing trends, and even regional labor markets to generate accurate cost estimates. A study by McKinsey found that AI-enabled bidding tools can reduce the time spent on estimation by up to 50%, allowing subcontractors to submit more bids without sacrificing precision.

Material Takeoffs: Manual takeoffs are not only time-consuming but can also lead to costly mistakes. Studies estimate that material overruns due to inaccurate takeoffs account for 5-10% of total project costs. AI-enabled tools automate the process by scanning blueprints or BIM models to calculate exact quantities for materials like pipes, valves, and ductwork. This ensures subcontractors order only what is needed, minimizing waste and avoiding shortages.

Scheduling Optimization: Project schedules are complex, with subcontractors juggling multiple sites and coordinating with general contractors, suppliers, and other trades. AI tools can predict potential delays with up to 90% accuracy, dynamically adjust timelines, and recommend optimal task sequences. This reduces downtime and improves resource allocation, saving subcontractors both time and money.

Case Study: Plumbing Subcontractor Improves Takeoffs with AI

A plumbing subcontractor working on a 250-unit apartment complex faced tight deadlines and complex material requirements. Traditionally, creating a material takeoff would have required a senior estimator to spend three full days manually reviewing blueprints, with the potential for missed items or double counts.

By implementing an AI-enabled takeoff tool, the subcontractor completed the task in under 8 hours. The software identified and quantified all required components, including 12,500 linear feet of piping and 800 fixtures, while cross-referencing specifications to flag inconsistencies. As a result:

  • Material waste was reduced by 15%, saving approximately $25,000 on the project.

  • The subcontractor avoided costly delays by resolving discrepancies before placing orders.

  • The estimation team saved 24 hours of labor, allowing them to focus on securing new bids.

This single project demonstrated a clear ROI for the AI tool, paying for itself within months.

Getting Started with AI

For subcontractors new to AI, the key is starting small and focusing on areas where these tools can deliver immediate, tangible value.

1. Identify Specific Problems

Begin by assessing which preconstruction tasks create the biggest bottlenecks in your workflow. For many subcontractors, material takeoffs and bidding are prime candidates. For example, if a typical takeoff takes 24-30 hours of manual work, an AI tool that reduces this time to under 10 hours can have an immediate impact.

2. Choose the Right Tools

Selecting the right AI tool is crucial. Look for solutions that integrate seamlessly with your existing systems, such as BIM platforms or project management software. Many AI tools offer trial periods, so you can test their capabilities before making a commitment. Contractors using AI-enabled bidding software report a 20% improvement in bid win rates, demonstrating the competitive edge these tools provide.

3. Train Your Team

Introducing AI tools requires a clear investment in training. Estimators, schedulers, and project managers need to understand how to input data, interpret results, and make adjustments for project-specific requirements. Training ensures the team can fully leverage the tool’s capabilities, maximizing its ROI.

4. Measure Results

Tracking the performance of AI tools is essential. Metrics such as reduced estimation time, improved bid win rates, and fewer material shortages help quantify the value AI brings to your business. For instance, contractors using AI for scheduling often see a 10-15% increase in productivity, thanks to better coordination and fewer delays.

Future Opportunities

As AI tools continue to evolve, the opportunities for specialty subcontractors will only grow. In the near future, real-time AI collaboration tools may sync material takeoffs directly with supplier inventories, automating orders as project requirements change. Additionally, AI could analyze data across multiple projects to identify patterns and recommend process improvements, leading to even greater efficiency.

Subcontractors adopting AI now position themselves to take advantage of these innovations. By automating repetitive tasks, reducing errors, and providing actionable insights, AI tools allow contractors to focus on delivering quality work and growing their businesses.

Conclusion

AI-enabled tools are revolutionizing the preconstruction phase for specialty subcontractors, offering practical solutions to improve bidding accuracy, material takeoffs, and scheduling. With tangible benefits like faster workflows, reduced waste, and improved project coordination, AI represents an opportunity for contractors to work smarter, not harder.

For plumbing, hydronic, and mechanical system subcontractors, the time to embrace AI is now. By starting with a single application—whether it’s an AI-driven takeoff tool or a scheduling optimizer—you can experience immediate results and build confidence in the technology. As the industry becomes increasingly competitive, subcontractors who integrate AI into their workflows will gain a clear edge, setting themselves apart as leaders in efficiency and innovation.

Omar Zhandarbekuly is an innovator at the forefront of construction technology, focusing on improving how projects are planned, managed, and delivered. With a career spanning over a decade, Omar has spearheaded the development of more than 7 million square feet of high-profile projects around the globe. He has collaborated with globally renowned firms such as SOM, Werner Sobek, and AS+GG, earning recognition for his expertise in complex, large-scale developments.

About the Author

Omar Zhandarbekuly

Omar Zhandarbekuly is an innovator at the forefront of construction technology, focusing on improving how projects are planned, managed, and delivered. With a career spanning over a decade, Omar has spearheaded the development of more than seven million square feet of high-profile projects around the globe. He has collaborated with globally renowned firms such as SOM, Werner Sobek, and AS+GG, earning recognition for his expertise in complex, large-scale developments.

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