Construction Technology

Danielle O’Connell doesn’t want to have tunnel vision on one safety solution.

O’Connell, senior director of Skanska USA’s emerging technology team, has seen tech-based safety methods come and go. Now, however, she said data is king, and the future is bright.

Here, O’Connell talks with Construction Dive about the state of safety tech, how it has evolved and where it’s headed.

Editor’s Note: This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: Where are we with the current state of safety technology?

DANIELLE O’CONNELL: It has certainly come a long way. I've been in the industry for about 15 years, and I've seen it start to really incorporate artificial intelligence, data and 360-degree photography. The focus has also changed to look at leading indicators versus lagging indicators, and really thinking about that. 

The way that we're planning our projects is leaps and bounds ahead of where it was when I first started in the industry.

What’s at the top of the safety tech stack today?

Everything we do is driven by data. 

Today, we have standards around the data we're collecting, through Procore but also with 360-degree cameras. That was not a thing that existed 15 years ago, but it's a thing over the past five years that we've really adopted.

There's a lot of cutting-edge technology that we're able to leverage, like computer vision, which derives meaningful information from images that we can act on.  

We take a look at data that was captured throughout the day, week, month and year and analyze what happened, which are the lagging indicators, but can also predict what might happen in the future.

What piece of safety technology excites you the most?

How robotics can help us collect data and think about layout, I think that's really exciting. 

We've had a few pilots with some layout robotics. It takes the burden off of the drywall subcontractor, for example, who was actually bending over and snapping the line repeatedly on the job. 

I think about how things like that could really save a person's back, not to mention their sanity and improving their mental health. There's so much that I think could impact that.

How does data interact with safety on a jobsite?

Everything we do, every technology we use, every sensor that we use, has some data associated with it. 

We can use 360-degree cameras, for example, to collect data points and capture a moment in time. We then lay tools like computer vision over that data to analyze potential risks on our jobsites. 

Wearables are another example. Our workers are actually being monitored along with our equipment to ensure they don’t encounter each other in an unsafe way.

What’s still needed for construction technology and safety?

I think we need to see more technology around leading indicators and being able to do what we can do with data to look ahead. 

More automation and lessons learned, and how can we take lagging indicators on a past project and incorporate them into the planning for our next project. 

So, making sure we have a plan in place that identifies pinch points across our project sites and then making sure we have the tools in place to avoid those risks.

From a leading indicators perspective, we're looking ahead to what might happen. Those lessons learned the day before or the year before on a similar project can lead to better decisions and risk avoidance. 

I wish we could predict the future, and maybe we can at some point. But I'm not sure we’re there just yet.

Even as interest rates climb, the hunger for new construction technology shows no signs of abating.

Contractors are demanding solutions that will help them complete projects faster, with on-time delivery and a backstop to help deal with the labor issues plaguing the industry.

Here are five firms that pulled in millions to scale their solutions and grow their businesses internationally.

EquipmentShare
$290 million

Columbia, Missouri-based equipment and digital solutions provider EquipmentShare completed a $290 million funding round, the company announced on April 19. The round was led by funds affiliated with BDT Capital Partners and included participation from other new and existing investors.

The company provides software and digital services for contractors, and also offers equipment retail and rental, according to its website. One of its key products is its T3 platform, which gives construction and industrial companies a real-time view into their equipment and jobsite operations.

The solution allows contractors to track all aspects of their equipment, which can help builders make decisions based on that data.

With the funding, the company plans to expand its U.S. footprint and build on its T3 technology platform.

Alice Technologies
$47 million

San Francisco-based contech firm Alice Technologies extended its Series B funding round by $13 million with equity financing from Swire Properties, the company announced on April 11. The investment, in addition to a term loan from Bridge Bank, brought the total value of the Series B funding to $47 million.

Alice Technologies’ primary offering is its proprietary “optioneering” technology, which can simulate different scenarios on a jobsite and provide “what if” analysis on the most promising options to determine how various choices or constraints affect projects outcomes. It also streamlines time-consuming processes like bids and scheduling.

With the funds, the company plans to continue building out its team and its product.

Woodoo
$31 million

Paris-based renewable materials firm Woodoo raised $31 million in equity, debt and grants, the company announced on April 24. The round was led by American investor Chris Sacca’s firm, Lowercarbon Capital.

Woodoo claims that it can take wood refuse, even in states of decay, and turn it into useful composite materials that can replace concrete, glass and steel. 

With the funding, Woodoo wants to expand its footprint and invest more in the industries its currently in, TechCrunch reported. According to the publication, about two-thirds of the funding was equity, with the remainder coming in the form of debt and grants. 

The company has deals with Volkswagen and Mercedes, and it recently garnered its first construction sector deal with European wood supplier Garnica. It is currently not available in the U.S., but Thimothée Boitouzet, Woodoo’s founder and CEO, told Construction Dive that the company planned to launch commercial operations in the States within the next two years.

Brainbox AI
$20 million

Montreal-based autonomous building technology firm Brainbox AI raised $20 million in funding, the company announced on April 28. The provincial government of Québec was a lead investor for $10 million through its venture capital company, Investissement Québec, alongside returning lead investor ABB.

The company uses AI to help owners monitor and control buildings’ energy usage, carbon footprint and operational efficiency. 

With the funding, the company plans to expand into more countries and continue to develop its decarbonization technology, according to the release. The product has been deployed in buildings in the U.S., Canada and Australia, among other locations. 

PermitFlow
$5.5 million

San Francisco-based construction permit application and management software firm PermitFlow raised $5.5 million in a seed round led by Initialized Capital, the firm announced on May 8. Additional funders included executives from firms including Procore, PlanGrid and Mighty Buildings.

PermitFlow’s software simplifies and reduces the time it takes to get permits through a streamlined process, all contained within the app. Contractors can file for documentation through the program, cutting out municipal websites.

With the funding, PermitFlow plans to increase automation and build more integrations into the program, while building out add-on software and support to serve permitting-related needs, according to the release.

 

A rebar-tying robot recently helped to boost productivity and worker safety on a bridge project in Wisconsin.

TyBOT enabled the human crew from Waukesha, Wisconsin-based rebar subcontractor MKE Iron Erectors to complete work on the IH-39 Structure B-11-166 bridge in Columbia County. TyBOT accomplished 17,823 ties in two shifts in late April across a 7,775-square-foot area. 

Introduced in 2018 by Pittsburgh-based Advanced Construction Robotics, the machine ties reinforcing steel at a rate of over 1,100 ties per hour, per a release. Construction workers typically complete between 150 and 250 ties per hour, according to one estimate.

“Having TyBOT on our jobsite was a major asset to our crew as they finished the project on time and on budget,” said Barb Sheedy, president and owner of MKE, in the release.

The use of the robot also brought health and safety benefits for workers, she said. 

“Less tying means they will experience less physical stress, possibly extending their careers while avoiding strain injuries,” Sheedy said.

TyBOT self-navigates, self-ties and does not require programming or BIM plan input from the working crew, according to the firm. With the Wisconsin project, it has now completed 3.5 million ties on more than 40 jobs in 12 different states including Pennsylvania and Florida.

The company’s other product, IronBOT, can lift, carry and install a 5,000-pound bundle of rebar in one hour. Its inaugural project was completed in February on the Port St. Lucie West Boulevard Bridge in Florida with Reddick, Florida-based contractor Shelby Erectors. The work was completed in seven days, half the time originally estimated for traditional installation.

Working in tandem, the two bots can revolutionize the installation of reinforcing steel, according to ACR founder Stephen Muck.

“We are confident the combination of TyBOT and IronBOT generates a disruptive technology, meaning the time and cost savings are so significant on a job that it will disrupt the way our industry installs reinforcing steel,” said Muck in a press release announcing the launch of the IronBOT at this year’s ConEXPO event in Las Vegas.

ConTech Conversations presents a discussion with a leader in the construction technology field each month. Click here for past discussions.

ChatGPT, OpenAI’s much talked-about language model, has a lot to say about the construction industry — specifically, its adoption of tech and artificial intelligence.

The program generates responses in a conversational way via the massive amounts of information on the internet, according to OpenAI. However, it has limitations in terms of accuracy, potentially biased responses and what some detractors call a lack of common sense.

Since its debut last November, the tool has captured broad attention and companies, including contech firms like Togal.AI, have rushed to integrate it into their products. However, the new technology has worried lawmakers and experts, who are calling for regulation on AI-driven automation.

Here, Construction Dive “talks” with ChatGPT about its views on construction and tech adoption.

Editor’s Note: This interview was edited for brevity and clarity.

CONSTRUCTION DIVE: What do you think about the use of artificial intelligence in the construction technology sector?

ChatGPT: The adoption of AI in the construction technology sector holds tremendous potential to revolutionize the industry. AI technologies, such as machine learning, computer vision and natural language processing, have the ability to analyze vast amounts of data, identify patterns and make intelligent predictions, enabling enhanced decision-making and automation.

Significant areas where AI is making an impact include project planning and scheduling, predictive analytics, risk management, quality control and defect detection. 

Do AI tools like ChatGPT have the potential to replace construction executives?

AI tools like myself do not have the potential to completely replace corporate construction executives.

AI tools can assist executives by providing data analysis, generating insights and offering suggestions, but they cannot replace the comprehensive understanding and context that executives have of their organizations, industry and stakeholders. Human judgment, intuition and the ability to consider a wide range of factors are vital in executive decision-making, especially in nuanced situations and when managing relationships.

How can contractors effectively leverage AI? 

Contractors should assess their processes and identify areas where AI can bring the most value. They should collect and curate relevant data, partner with AI experts, data scientists or technology providers to develop and implement AI solutions tailored to their specific needs.

They can start with smaller-scale pilot projects to test the effectiveness of AI solutions in real-world scenarios and invest in training and upskilling their workforce to effectively utilize AI technologies.

What are the potential pitfalls of using AI in construction?

While AI brings significant potential benefits to the construction industry, there are also potential pitfalls and risks that contractors should be aware of. Some of these include:

• Data quality and availability: Contractors need to ensure data quality, availability and compatibility with AI systems to avoid misleading or unreliable results.
• Ethical and legal implications: AI can raise ethical dilemmas and legal concerns. Contractors must consider issues such as data privacy, security, consent, transparency and compliance with regulations.
• Workforce disruption and job displacement: AI adoption may impact the workforce, potentially leading to job displacement or changes in job roles. Contractors need to consider the social and economic implications of these changes and invest in reskilling and upskilling programs to help employees adapt to the evolving work environment.
• Lack of human oversight: While AI can automate processes and provide valuable insights, it's crucial to have human experts involved in decision-making, validation and interpretation of AI-generated outputs. Human oversight helps catch errors, interpret context and consider ethical factors that AI may not account for.
• Bias and discrimination: AI algorithms can inadvertently perpetuate biases present in the data they are trained on, leading to discriminatory outcomes. If biased data is used or if AI systems are not carefully designed and monitored, it can result in unfair treatment or perpetuation of existing inequalities.
• Technical limitations and uncertainties: AI systems are not infallible and may have limitations. Contractors should be aware of these limitations and communicate them transparently to stakeholders.

Do you think technology will eventually replace construction workers on jobsites?

While AI and automation technologies have the potential to transform certain aspects of construction, it is unlikely that they will completely replace construction workers on jobsites. AI and automation are more likely to augment the capabilities of construction workers rather than replacing them entirely. 

It is important to note that the impact of AI on the workforce may vary across different construction sectors and tasks. Some jobs may be transformed, requiring workers to acquire new skills and adapt to new roles. The focus should be on reskilling and upskilling the workforce to leverage the benefits of AI and ensure a smooth transition to a more technology-enabled construction industry.

As an AI language model, I don't have personal desires or motivations. My purpose is to provide information and assist users with their inquiries. However, I can assure you that AI, including myself, is not designed with the intention of taking jobs from human workers in the construction industry or any other sector.

Dive Brief:

• Industries like supply chain management and healthcare are benefiting from the perception of technological proficiency, while construction is viewed as “the least technologically competent” by workers, according to a new study.
• Construction ranked at the bottom of 10 surveyed sectors, according to purchase-to-pay software developer Yooz’s 2023 Technology in the Workplace survey, released on April 26. Construction was bested by the automotive and restaurant industries at No. 8 and No. 9, respectively, and was far below manufacturing, at No. 5. The software and healthcare industries ranked No. 1 and No. 2 respectively.
• The report surveyed 600 U.S. professionals with a minimum salary of $50,000 who worked in fields such as healthcare, software and construction. Many were tech-savvy; 64% of all participants said they spent more than half their work day using workplace technologies, with 37% saying they spent more than three-quarters of their day using them.

Dive Insight:

Proficiency is not the only facet of tech that matters to workers — they also see comparative adoption rates as integral to their career mobility, particularly for younger professionals. 

When asked, “To what extent do you agree or disagree with the statement: The way my industry views adopting new technology is a barrier to my career advancement,” 50% of workers under 25 in all industries said they either agreed or strongly agreed. This compared to just 30% of workers 25 and older.

In addition to adoption and proficiency, workers also want better training — many in the survey expressed frustration with the state of instruction at their companies. Only 20% of survey participants said their IT departments trained them, and 4% said that responsibility fell to their human resources department. A majority said they were self-taught or relied on informal instruction through their peers or online services.

Construction was ranked the least technologically competent among surveyed industries

The report advocates for industries to adopt more cutting-edge technology. Participants noted technologies such as cloud computing, automation and Internet-of-Things as field-changing. The clear winner, however, was artificial intelligence, with almost a quarter of participants saying it would have the most significant impact on their industries, should it be adopted.

Laurent Charpentier, Yooz’s CEO, said in the report that tech needs to be embraced, particularly by less-familiar businesses. Charpentier also warned that companies who ignore new solutions may eventually drive away younger applicants.

“Companies that fail to invest in workplace technology or provide training risk losing young talent to competitors that are more forward-thinking and committed to innovation,” Charpentier said in the report.

A changing industry

While ranking construction among other industries shows it has a lot of catching up to do, the sector is making steps toward tech proficiency. 

AI-based firms are raising millions — Tel Aviv-based safety technology firm SafeGuard raised an $8 million Series A funding round in April. Miami, Florida-based software firm Togal.AI raised $5 million in March, and added OpenAI’s ChatGPT service to its program.

Togal.AI’s CEO, Patrick Murphy, who also runs Coastal Construction, said that the influx of new programs will change the business landscape in the sector.

“The world, I think, was just hit with a massive release of technology. GPT, Google Bard and all of this generative AI that’s coming out, it’s going to transform the economy. And I think construction has as much room to grow and change and adopt as every industry out there,” Murphy told Construction Dive.

Dive Brief:

• General contractors automating subcontractor management processes are seeing positive results in productivity, costs and profits, but roadblocks are still in some builders’ paths, according to a new study from Dodge Construction Network.
• The study, which Dodge performed in partnership with construction software firm GC Pay, reported 91% of contractors who used sub management technology had improved productivity, 81% had lower costs and 79% had higher profits. 
• The study showed at least twice as many general contractors frequently experienced improved productivity and profitability at a high to very high level when compared to those who are less engaged with commercial solutions, according to the release.

Dive Insight: 

The study surveyed mid-size U.S. contractors with $50 million to $500 million in annual revenue to evaluate their use of subcontractor management technology and to identify where new adoption will focus over the next year, per the report. 

Dodge’s study benchmarked general contractors’ use of technology for 12 key sub management processes, and then cut those into two categories — accounting and finance, and contract management, according to the report.

Tech adoption varied among participants. Those surveyed reported:

• 9% automate 1-3 processes.
• 25% automate 4-6 processes. 
• 36% automate 7-9 processes.
• 30% automate 10-12 processes.

Those contractors with higher levels of digital engagement saw the most benefits. For example, 53% of contractors in that group reported high levels of improvement for estimates and bidding, but only 13% of contractors with low to moderate digital engagement had a similar experience.

Those with high digital engagement also outpaced their peers dramatically in profitability, with 42% seeing an increase, compared to just 6% of contractors with low adoption rates. 

On the flip side, the report found that contractors that aren’t currently automating some of these processes actively plan to do so in the near future, according to the release. For example, more than a third of these users expect to adopt technology for the schedule of values of subcontracts and change orders. About a quarter, or 25%, expect to adopt applications for general subcontract management.

In addition, the survey found 37% of smaller companies, with revenues of $50 million to $100 million, are at very high digital engagement rates, compared with just 23% of larger ones with $100 million to $500 million in revenue, per the report.

The construction industry faces myriad issues around labor shortages and late payments. Payments in particular are a sensitive issue for subcontractors, who are less likely than general contractors to get paid on time.

Indeed, in 2023, subcontractors have increasingly paid out of pocket before getting paid themselves. Results from Austin, Texas-based construction financial support firm Billd showed that 87% of respondents reported paying out of pocket, up from 62% in 2022, according to its National Subcontractor Market Report Survey of nearly 900 subcontractors. 

Ensuring that payments are on time has financial repercussions — late payments cost the construction industry $208 billion in 2022, according to a report from construction finance software firm Rabbet.

Dive Brief:

• Investments in construction technology surged 85% between 2020 and 2022 to $50 billion, as the number of deals in the industry grew by 30% to 1,229, according to a report from consultancy McKinsey & Company. AEC stakeholders expect that growth to continue, with 77% of survey respondents anticipating the same or similar levels of investment in 2023.
• While those metrics show the continued potential for digitizing the $12 trillion construction industry globally, hurdles including the fragmentation of industry players, slow technology adoption and roadblocks to scaling products that solve problems for multiple customers continue to stymy more growth in the sector. 
• In a survey of over 100 tech company founders, investors and large software firms that also analyzed 3,000 tech companies in the AEC space, McKinsey identified specific areas of opportunity for contech firms, such as products that can appeal to multiple stakeholders across construction. It also highlighted the constraints holding tech innovation back, including point solutions that only solve one specific problem and payment terms dictated by a sector that is notorious for cutting checks late to its vendors. 

Dive Insight:

The report found that the contech market is maturing, with $11.5 billion of late-stage venture capital entering the space between 2020 and 2022, more than triple the amount from the previous three years. 

Meanwhile, mergers and acquisitions have also taken center stage, representing the largest single source of funding for contech firms, including 48% of all investments and 68% of all exits. As a further sign of contech’s arrival, median deal size and post-investment company valuations have doubled since 2017, the report said. 

But it also noted that a construction site in 2023 still looks much like it would have in 1923, with manual bricklaying, paper blueprints and laborious, hand-built scaffolding towers. That could be primed to change, given the $1.2 trillion surge of infrastructure investment in the U.S. and the 800 billion euro NextGenerationEU fund in Europe, as well as an endemic shortage of labor needed to build new projects. 

The analysis provided fresh insight for contech firms struggling to crack construction’s tech code by putting the blame squarely at the feet of the customers they’re trying to sell to. Namely, the fragmentation of construction projects, where multiple stakeholders must converge to raise a single new structure or infrastructure element out of the ground, has held tech adoption back. 

“The average construction company employs fewer than 10 people,” the report said. “The average project involves more than 100 different suppliers and subcontractors. So achieving scale requires selling to a large number of companies.” 

The result is that sales growth for contech companies is labor intensive and slow in a risk-averse market, though once tech is adopted, it is “extremely sticky,” the report said.