Construction Technology

In an era of rapid technological advancement for the construction industry, one piece of technology looms above the rest in status and notoriety — artificial intelligence.

Its omnipresence in the larger business conversation has not escaped construction. While industry pros took a cautious stance toward the tech after its widespread release in late 2022, contractors are now increasingly turning to AI in order to solve business problems, largely via chat-like interfaces that serve up hard-to-find project specs with just a few keystrokes.

For example, London-based Balfour Beatty is in the process of developing StoaOne, a large language model generative AI assistant that will help employees mine what Kasey Bevans, Balfour Beatty US chief information officer, calls “untold billions of data points.”

“To our teammates, it will feel like StoaOne is talking to them, providing instant insights and project information as they procure, plan and execute their projects,” Bevans said in an email to Construction Dive.

Swedish contractor Skanska is also working on its own AI helper — Sidekick, a generative AI chatbot built on the same technology as ChatGPT, which will help employees at the company plumb the firm’s collective expertise on projects and problems. The company told Construction Dive that Sidekick had seen over 2,500 interactions during the 30 days prior to Dec. 16, when Skanska pulled the data.

Using AI in this way addresses one of construction’s oldest and most fundamental challenges – namely, culling together and making sense of information from hundreds and even thousands of stakeholders on a project in an industry that is more fragmented than unified. The result has been an AI arms race among contractors to develop tools — or bolt them together off the shelf — to make sense of myriad data sources in seconds. 

“Data is everywhere, and it's unstructured, and the challenge that I've had over the last four or five years is coming up with the right meta tagging schemes or structures to make them universally useful to everyone,” said Mike Zeppieri, vice president of emerging technology at Skanska USA. “What AI has allowed us to do is not have to worry about that as much, as long as we build it into a data model.”

Top down and bottom up

However, as AI democratizes access to project information and the knowledge gap levels out, contractors are also feeling heat to adopt it faster, and better, than their peers.

While most see it as a tool to aid their business, contractors are also experiencing a subtle,  underlying pressure to adapt or get left behind — whether from higher ups at the home office or teams’ telegraphed sense of urgency in the field. 

In particular, small contractors have reached a critical point in their businesses, where it’s important to keep up with tech adoption.

“It’s time to get big or strongly consider an exit very shortly,” said Chad Prinkey, the CEO of Baltimore-based Well Built Construction Consulting, a strategic consulting firm. Prinkey added that for a business to make those leaps, it needs financial strength.

“If you’d rather spare yourself the hassle of growth, consider selling as close to now as possible. Prices for small firms will diminish as the gap in sophistication between them and their acquirers grows,” Prinkey said.

In that sense, technology leaders may get squeezed from the top down, but also from the bottom up, where if they don’t implement AI as a business, their boots on the ground may go out and acquire it themselves. For example, while Gilbane prides itself as a tech-forward contractor, its field personnel have been clamoring for even faster uptake.

“We [started] to hear a lot of feedback and a lot of noise from our field teams, saying, ‘Why are we not doing this?’” said Rawle Sawh, Providence, Rhode Island-based Gilbane Building Co.’s director of operations technology. “‘A competitor of ours is doing this. Why are we not doing it?’”

More tech, more money

Contractors across the globe are already experimenting with AI as a means to enhance their businesses via outside companies.

Gilbane, for example, used New York City-based Trunk Tools’ chat-like offering to track nearly 21,000 documents on its $456 million joint venture renovation of the Baird Center, a Milwaukee convention venue. 

“How important is AI to the business as we move forward?” mused Lindsay Marshall, Gilbane’s director of data and analytics. “We recognize the power and the criticality of staying on top of the value that AI can offer.”

As AI’s value grows, so does the cash spend on the part of contractors looking to leverage it better, faster and smarter.

Jim Barrett, chief innovation officer for New York City-based Turner Construction, said that the company has at least tripled or quadrupled its investment in AI over the past couple years. 

Barrett said that while the firm already has in-house AI staff, the next steps would be to implement other large language models, like Google Gemini or Anthropic’s Claude, another conversational LLM backed by Google and Amazon, and integrate them into the company’s in-house systems.

“We're moving very quickly, and the challenge is keeping up with the rate of improvement in the AI solutions,” Barrett said.

Gilbane’s philosophy on AI usage is similar. Sawh said that if teams can demonstrate a need for a solution as well as a return on investment for the builder, Gilbane will likely spring for it.

“Let’s just say, where there’s a will, there’s a way,” Sawh said.

No risk, no opportunity

While contractors say AI provides a host of benefits, the advancement brings an implied problem — builders who fall behind in adopting the tech also risk losing a competitive edge in the marketplace, experts say.

Turner’s Barrett echoed a popular refrain — that AI won’t take a worker’s job, but the person who uses AI will. The same, he said, is true of companies, in that a builder that uses AI will disrupt the business of a builder that doesn’t.

“What I see in our industry and other industries is caution, almost fear, imagining all these scenarios of things that could go wrong,” Barrett said. “If you want zero risk, you also have zero opportunity.”

Balfour Beatty’s Bevans agreed.

“We also know that adopting new technologies and implementing them in our operations differentiates ourselves so we can significantly change the construction industry,” Bevans said.

Gilbane’s Sawh takes a more measured approach. Despite the company’s ongoing adoption of AI, the tech’s status as make-or-break tool is still undecided, in his view.

“I don't necessarily know if it would sink the ship,” he said about not adopting AI generally across the business to maintain a competitive position in the market. At the same time, he also aims to give his field teams the tools they need to do the job.

“We want to be able to support them, and this is the only way we can do it, by staying ahead of it,” Sawh said.

Dive Brief:

• Research to remotely pilot robots and improve how the machines model construction environments is well underway at the University of California in San Diego.
• The team, led by electrical and computer engineering professors Truong Nguyen and Nikolay Atanasov, is looking for ways to integrate robotics into the construction industry and improve the 3D models and mapping they use to navigate their environments, according to a Dec. 16 news release.
• Atanasov, who directs the Existential Robotics Laboratory at UC San Diego, said that the goal of the project is to automate the dangerous and dirty aspects of the construction industry, such as lifting heavy objects or welding, per the release.

Dive Insight:

The work is split into two parts— mapping out the area that the robot will need to see or understand and operating the machine remotely. Mapping turns what the robot sees into a 3D model, which the pilot can then interact with.

In recent years, robots have garnered increasing focus for the construction industry, due to their varied applications — laying bricks, tossing bags and autonomously performing tasks like layout — and their potential to keep humans away from dangerous jobs.

“Understandably, most workers aren’t willing to put themselves into dangerous situations,” Nguyen said in the release. “The work that we’re doing now means that a single operator can remotely operate several robots that can perform those tasks in a more safe, efficient and convenient manner.”

The group is nearly halfway through the $786,500 project, which runs until the end of August 2027. Part of the funding comes from the Korea Institute for Advanced Technology, a South Korean government research funding initiative, and the Korea Electronics Technology Institute, a South Korean research institute.

The research team will focus next on integrating the two solutions into one cohesive system. South Korean smart construction firm ITOne, another grant funder, will test the solution on an apartment construction project using robotic arms, per the release.

“We’re very happy with the results for the 3D construction, but we need to integrate that technology with robotic manipulators,” said Brian Lee, a postdoctoral researcher in Atanasov’s lab, in the release. “Now, we need to test it with a human operator and integrate our system with a compelling setup that can interface with a human.”

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Dive Brief:

• Skanska USA, the American arm of the Swedish builder and developer, has established Skanska Advanced Technology, a new specialized operating unit focused on high-tech and semiconductor manufacturing, according to a Feb. 5 news release.
• SAT employs more than 180 professionals and collaborates closely with Skanska’s regional operating units to deliver solutions across the company’s footprint. It currently has projects across Oregon, Arizona and California, per the release.
• Skanska said that establishing the business arm would help the firm meet the rapidly growing demand for high-tech and semiconductor manufacturing projects. It already has $23 billion in advanced technology projects completed or under construction, according to the company.

Dive Insight:

The new unit will operate as a part of the company’s USA Building business unit, per the release. Executive Vice President and General Manager Katie Coulson, a 25-year veteran with the company, will lead the division.  She previously served as senior vice president and account manager, a role in which she managed a longstanding relationship with Skanska’s largest high-tech manufacturing customer.

“Establishing SAT is an important strategic move for our business, and Katie is the ideal leader for our SAT team,” said Clay Haden, president & CEO of Skanska USA Building, in the release. “Under her leadership, we are well positioned to better serve our key customers and seize emerging opportunities in the high-tech/chips manufacturing sector.”

The contractor isn’t alone in its assessment. Even as construction firms continue to break ground and make progress on multibillion-dollar manufacturing projects, experts across the industry predict high demand for data center and semiconductor projects going into 2025. 

Edmonton, Alberta-based PCL, which has U.S. headquarters in Denver, recently announced a new group within its business to focus on advanced manufacturing builds, including jobs in the semiconductor, battery and electronics and life science sectors. PCL also projected confidence in the future of manufacturing construction, on the heels of initiatives such as Stargate, a new plan that will see tech giants pump up to $500 billion into AI infrastructure.

“[Data center construction] has emerged as one of the fastest-growing construction markets,” Brian Kassalen, principal and construction industry leader at Chicago-based Baker Tilly, an advisory, tax and assurance firm, told Construction Dive recently. “Even before the announcement of Project Stargate, data center construction was a top construction market with significant growth forecasted in 2025 and beyond.”

Dive Brief:

• The International Code Council is developing a new set of guidelines that will apply to what it calls 3D Automated Construction Technology for 3D Concrete Walls, according to the standards board.
• The standard will address requirements for 3D automated construction technology and 3D concrete used to build interior and exterior 3D concrete walls. It covers components built with or without structural steel reinforcing, used as bearing walls, non-load bearing walls and shear walls in one-story or multi-story structures, according to the organization.
• The council has been working on these standards since October 2023 and most recently met on Oct. 11 to approve its public comment draft. The ICC will hold its next meeting Friday, Feb. 14, where members of the evaluation committee will discuss public comments on that proposal.

Dive Insight:

Historically, 3D printing has failed to take off in commercial construction due to what Patti Harburg-Petrich, then a principal in the Los Angeles office of U.K.-based engineering firm Buro Happold, said in 2023 was the result of lagging code adoption.

“The issue is that it takes a really long time for new technologies and building innovations to get incorporated into the building code,” Harburg-Petrich said. “That’s for good reason: safety is the highest priority, so the building code is inherently conservative. But that also makes it a long, time-consuming, expensive process to get new technology incorporated into the code.”

However, contractors continue to experiment with the building method. FMGI, a general contractor out of Woodstock, Georgia, built a 3D-printed addition on WalMart’s Athens, Tennessee, location in partnership with Greeley, Colorado-based Alquist 3D. Work on a second project between the pair — a 5,000-square foot addition to a Walmart Supercenter in Huntsville, Alabama — will start this month, according to FMGI’s website.

The ICC already has measures in place for 3D printing on the residential side of construction, which includes standards for tiny houses and for the general residential code.

FALLS CHURCH, VIRGINIA — On Jan. 23, one of the coldest days in the D.C. region since 2018, Falls Church, Virginia-based HITT Contracting broke ground on its six-story, 270,000-square-foot headquarters that will emphasize sustainability and technology.

The building, designed by San Francisco-based architecture and design firm Gensler, will be powered by a 100,000-square-foot photovoltaic solar canopy and wind turbines, which the contractor said will offset all its energy needs, according to a news release. The company announced plans for the structure in November 2023.

It will also include an advanced power-over-ethernet system for lighting, electrical power, and data, alongside office furniture produced from recycled materials by HITT’s forthcoming 3D printing farm, per the release.

HITT CEO Kim Roy told Construction Dive she was looking forward to the photovoltaic array on the roof, which she said demonstrated the company’s commitment to sustainability.

“It’s very different — it’s a standout architectural feature, but also a physical representation of the impacts that builders should consider with energy usage and the environment,” Roy said.

The new home base will also contain a 40,000-square-foot research lab developed in partnership with Blacksburg, Virginia-based university Virginia Tech’s Coalition for Smart Construction, according to HITT. 

Joined by government officials, company executives and Boston Dynamics’ Spot robot dog, a parade of speakers praised HITT’s plans and the company’s history in Fairfax County, Virginia, where the contractor has worked since 1937.

“Thank you, HITT, for your investment, and thank you for trusting Virginia with the future of your company,” said Juan Pablo Segura, Virginia’s chief deputy secretary of commerce and trade, in a speech to attendees.

The two organizations will study technologies such as robotics and prefabricated structural steel frames, and engage the construction industry regularly through research and demonstrations, according to Shannon Andrea, director of communications and marketing in the D.C. area for Virginia Tech.

“We are excited to partner with HITT and grow our network of innovation to address the future of smart construction,” said Julie Ross, Paul and Dorothea Torgersen Dean of Engineering at Virginia Tech, in the release. “Upon completion, this space will provide an opportunity to partner with industry in the development of new technologies and approaches that will transform the construction industry while supporting graduate student research and experiential learning.”

It will also be a short walk away from public transportation — commuters can take a bus or train to the nearby West Falls Church station, served by the Washington Metropolitan Area Transit Authority, the Washington, D.C., area’s transit agency.

The company expects to deliver the headquarters by 2027, per the release.

Dive Brief:

• Following a 44% downturn in construction technology investment in 2023, the contech funding ecosystem seems to have stabilized last year, according to a report from Cemex Ventures.
• Total investment in the space grew marginally year over year, up 2% from $3 billion in 2023 to $3.1 billion in 2024, according to the report from the contech-focused venture capital arm of Monterrey, Mexico-based building materials firm Cemex.
• However, data indicated that investors were much more active in 2024 — investors and startups in the sector completed 325 deals in 2024, compared to 236 deals in 2023.

Dive Insight:

Construction also continues to grow as a total share of the overall venture capital market, according to the report. Contech made up more than 1.1% of total VC spend in 2024, compared to 1.06% in 2023 and 0.6% in 2019.

Cemex Ventures broke down its 2024 funding analysis into four categories:

• Enhanced productivity: Programs and offerings that help with fields such as project design and budgeting, digital twins and BIM, asset maintenance and tools that use artificial intelligence, raised approximately $1.5 billion.
• Green construction: Processes, products and services that help mitigate construction’s negative environmental impacts, including carbon capture and sustainable materials, garnered approximately $772 million.
• Future of construction: Products and platforms that shape the future of the industry, such as robotics, 3D printing and optimized materials manufacturing, reeled in approximately $535 million.
• Construction supply chain: Programs and offerings that help contractors manage their supply chains, including marketplaces, materials tracking and last-mile platforms, attracted approximately $231 million. 

Notably, three of the categories experienced year-over-year declines in investment funding. Only enhanced productivity firms raised more money than in 2023, more than doubling the subsector’s year-over-year funding total.

AI on the rise

The category benefited from a brewing AI arms race that has contractors moving quickly to adopt the technology to stay ahead of the curve and garner an advantage over their peers in the marketplace.

Cemex Ventures’ report noted that while 2024 was a strong year for AI, 2025 promises to take the race even further. The tech accounted for 28% of transactions in 2024 and 37% of total contech deal volume, according to the report.

“We predict these driving trends will become more pronounced by the end of 2025,” the report said. “The transition will be gradual as companies increasingly adopt AI-driven capabilities to strengthen their competitive edge.”

Geographically, North America remains the largest player in the contech ecosystem, according to the report. In 2024, the region generated almost 46% of investment dollars and nearly 56% of all deals. When combined with Europe, the two areas account for nearly 85% of investment.

Going forward

A question mark for the future, the report said, would be how much the new, Republican-led U.S. government will affect the industry’s performance. The report noted there is room for optimism, as the study’s authors anticipate economic progress and tailwinds from lower tax rates and policy reform that could counterbalance potential headwinds.

But Gonzalo Galindo Gout, head of Cemex Ventures, said that there isn’t a clear correlation between presidents and the contech ecosystem. Instead, it would fall to how President Donald Trump promotes economic activity in areas such as infrastructure, which would boost construction.

“[There are] plenty of questions in the next three to four months of how this will play out overall,” Galindo Gout told Construction Dive. 

Trump has been quick to make moves that could impact U.S. builders. On Jan. 21, Trump announced a plan by a joint venture among tech giants OpenAI, Softbank and Oracle, to invest $100 billion in AI infrastructure that could scale up to $500 billion by the end of his second term.

However, Trump also said that he plans to establish a flat, 10% tariff on China-based imports, along with a 25% tariff on Canada and Mexico, as early as Feb. 1. Contractors have told Construction Dive they’re bracing for the economic impacts of the tariffs, which could cause disruptions, shortages and cost increases in the industry.