Construction is a trillion-dollar industry, but it’s not without challenges. According to recent reports, construction disputes can reach staggering values, with the global average at $52.6 million. While not all contractors experience disputes that large, any dispute can be incredibly costly. Even disputes under $1 million will still be huge for the average contractor.  For example, on a $20 million project, if it has 4% profit built-in ($800K) and you lose a $1 million dispute; you’re in the red $200K!

The top causes of these disputes often stem from changes in scope and incomplete designs. In fact, design errors, which include three design-centric factors— incorrect, late, or incomplete design information—are all ranked in the top five global causes. This design triple whammy afflicted a greater proportion of projects overall (44.8%) than scope change alone (38.8%), and it’s having a significant impact on the industry.

Fortunately, AI technology is emerging as a powerful tool to mitigate these risks early in the project lifecycle. In the full article, we look at three ways AI is helping project stakeholders avoid costly disputes:

1. Identifying Design Issues: AI-powered software can analyze complex multi-discipline documentation in as little as 48 hours, detecting issues such as incomplete designs, scope gaps, and discrepancies across architectural and MEP, as well as overall document health.
2. Assessing Impact: AI tools can not only identify issues but also assess their risk impact level, allowing project teams to quickly prioritize and address critical problems before they impact procurement accuracy, schedule, or budget.
3. Enhancing Collaboration: Cloud-based AI solutions enable better collaboration by providing all stakeholders with access to the same identified issues, document markups, and view comparisons. This leads to faster decision-making and more efficient problem-solving.

There is no question that design-related issues can have a major impact on preconstruction processes, bid and procurement accuracy, and the progress of a project, leading to errors, cost overruns, delays, and disputes. Analysts agree investing more resources earlier could preempt many of the most common disputes. The good news is that with advancements in construction technology, project teams can identify, assess, and manage project risks early and proactively.  AI is bringing forth an era where risk is minimized, and trust is maximized.