The future is notoriously difficult to predict, but if there's one thing we can say with a reasonable amount of certainty: we will see a lot more automation and AI-powered technologies. Whether you're working in medicine, manufacturing, finance, or retail, you can expect smarter, more efficient processes driven by these innovations.
AI and automation will also permeate just about every facet of construction, and one area that will see significant benefits from these technologies is estimating. AI and automation are a powerful combination that can help teams calculate costs, capture the right quantities, and ultimately help estimating teams create winning bids.
So what can you expect for AI and automation advancements in estimating? Today, we explore the evolution of construction estimating.
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Before delving deeper into automation and AI in construction cost estimating, let's level-set and define them. While they often go hand-in-hand, these technologies are distinct in that automation enhances efficiency by handling routine tasks, while AI brings intelligence to the process by learning from data and aiding decision-making.
AI in construction estimating involves using algorithms to analyze data, predict project costs, and optimize resource allocation. Artificial intelligence learns from historical data and improves accuracy over time, enabling more informed decision-making and better project outcomes.
For example, AI can predict potential cost overruns by analyzing patterns in past projects and current market conditions. Some solutions also use AI-powered symbol detection to automatically identify and count specific elements in plans, ensuring more accurate quantity takeoffs.
Automation in construction estimating refers to the use of technologies (some of which are powered by AI) to streamline repetitive tasks. Teams can put things like data entry and cost calculations on autopilot, reducing human error and speeding up processes. More importantly, automation frees up the estimator's time to focus on more strategic aspects of the project.
Estimating teams are increasingly using AI and automation to make their lives easier. For instance, traditional processes that once involved manual calculations, 2D drawings, and spreadsheets are now being replaced with digital tools that streamline and enhance accuracy.
Takeoffs have also come a long way. Rather than relying solely on 2D drawings and manually measuring quantities, digital workflows can now automate 3D takeoff workflows.
Rather than manually analyzing plans, drawings, and specs, estimators can quickly create quantity takeoffs using 3D models with automation capabilities. AI takes this one step further by detecting symbols through machine learning, enabling estimators to save time and reduce errors when conducting count construction takeoffs.
When leveraged properly, AI and automation can transform and accelerate traditional estimating processes. Let's explore some of the top benefits.
Estimating can be time-intensive, especially if you're doing it manually. Research from Deloitte Access Economics, commissioned by Autodesk found that those in preconstruction roles spend an average of 13.4 hours per week researching and analyzing data. Imagine having to assess all the construction project costs by sifting through hundreds of pages of plans and specifications. Even when you use tools like calculators and spreadsheets, the process can still be slow and prone to errors.
Automation can supercharge the estimation process when integrated with BIM for takeoffs. That's because it allows for automatic extraction of quantities directly from 3D models, which reduces the time and effort required for manual measurements. What's more, AI capabilities like symbol detection can assist in getting accurate counts for items in takeoffs on 2D sheets.
Manually assessing and calculating costs is not only time-consuming, but it can also be error-prone. Take spreadsheets for instance. It’s estimated that 88% of all spreadsheets have 1% or more errors in their formulas – yikes.
Automation and AI capabilities significantly improve both the speed and accuracy of manual tasks. For instance, certain AI can be leveraged to automatically detect discrepancies in quantity data to help you come up with more precise estimates.
Automation can expedite data analysis by quickly processing drawings and models for accurate quantities. On the horizon, this will be especially useful when dealing with historical project data where advanced tools can analyze trends and patterns to improve pricing accuracy so your estimates better reflect real-world costs and conditions.
With automation and AI integrated into estimating workflows, estimators can focus on more value-added tasks rather than manual work. This shift allows for better decision-making, such as identifying scope gaps and verifying market pricing. All these things lead to more informed and strategic project planning.
So far, we discussed the role and benefits of automation in estimating. Now, let's look at firms putting these technologies to work.
DPR Construction leverages construction estimating software to streamline its processes. By integrating 2D and 3D workflows, DPR's estimators can efficiently quantify project scopes and reduce the manual effort involved in traditional takeoffs.
The firm uses Autodesk Construction Cloud to facilitate real-time collaboration across preconstruction and self-perform teams, so data is seamlessly shared, and teams can organize project documents. The use of standardized formulas and automated document management has also resulted in significant time savings, enabling DPR to deliver more accurate estimates and add value to their clients.
Windover Construction streamlined its estimating process by automating the quantification process. By leveraging both 2D and 3D takeoffs, the team has eliminated gaps in traditional estimating methods, ensuring accurate data capture and reducing the risk of missed quantities.
Integrating BIM data into Autodesk Takeoff cut estimating time by up to 30% and quantity takeoff time by more than 50%. Plus, Windover's laser scanning and BIM allow for precise modeling of existing structures, ensuring that new equipment and design elements are incorporated into renovation projects.
Carroll Estimating uses construction software to generate quantities faster and produce competitive tenders. Tasks like identifying and quantifying door types, which used to take hours, can be done in minutes.
This efficiency lets Carroll Estimating focus on value-adding activities, such as enhancing collaboration with partners and verifying detailed quantities for bids.
The team is also alerted to drawing changes in real-time, so they can adjust quickly. This digital transformation has expanded the team's capacity to handle more complex projects and reinforced the firm's competitive edge.
AI and automation innovations can be game-changing for construction firms but also come with challenges. The implementation process is often complex, and it takes more than just flipping a switch to fully integrate these technologies into your current estimating workflows.
A common challenge is adoption. People are naturally resistant to change, and if they're used to more traditional methods (even if they're inefficient), they may be hesitant to try automation and AI-powered tools, particularly as these technologies will fundamentally change how they work.
Comprehensive training and ongoing support are essential to help teams adapt and fully utilize the new tools.
There's also the matter of cost. Implementing new systems can be expensive, so organizations must weigh the upfront investment against the long-term benefits.
While it can be difficult to justify the cost of new technology right off the bat, a phased implementation and ROI analysis can help ensure the technology pays for itself over time.
On the flip side, people can fully embrace AI and automation—a reason to celebrate. However, if teams become overly reliant on these technologies, they may overlook functions that require human intuition and experience. At the end of the day, estimators are trained and skilled professionals unreplaceable by any new technology.
That’s why it’s essential to balance automation and human oversight. Always keep in mind that technology should be used as a tool to enhance—not replace—human expertise. Regular audits can help keep this balance in check.
What's next for AI and automation? The short answer is the future is bright for firms that effectively adopt these technologies.
Data analysis capabilities will continue to advance. As AI estimating technology matures, it will enable more accurate cost predictions by analyzing various factors, from material price changes and labor rates to weather and other external environmental conditions. This will help teams produce more precise and adaptable estimates.
AI and automation will also enhance construction firms' sustainability efforts.
We can see this in action in tools like the Embodied Carbon in Construction Calculator (EC3), which uses data from Environmental Product Declarations (EPDs) to assess and present embodied carbon impacts. Estimating teams can use this tool to select materials with the lowest carbon impact, helping to minimize their projects' environmental footprint.
AI and automation are transforming construction estimating. Firms that implement these technologies benefit from streamlined processes, lower costs, and the ability to stay competitive in a rapidly evolving industry.
As the tools continue to advance, it's crucial to stay informed on trends and tools that can further improve your estimating processes.
Autodesk Takeoff and ProEst are two examples of digital tools that can automate tasks like quantity takeoffs, cost calculations, and data analysis. Explore these tools and see how they can help you level up your estimation workflows.
Want to learn how you can further advance your use of AI in your construction workflows? Watch our latest webinar on-demand, Construction Innovation: Harnessing AI for Future Success.