Construction disputes are becoming increasingly costly and time-consuming. With the average dispute in North America valued at $30.1 million and lasting nearly 17 months, even smaller disputes can wipe out a project’s entire profit margin. A $1 million dispute on a $20 million project with 4% profit ($800K) can push a contractor $200K into the red.
The good news? Artificial Intelligence is emerging as a powerful tool to prevent these disputes before they escalate. Here are three key ways AI is helping construction teams identify and mitigate risks early in the project lifecycle:
1. Early Design Issue Detection
Modern construction projects involve thousands of documents across multiple trades and disciplines. Even the most diligent teams struggle to thoroughly review everything, especially with today’s compressed timelines. AI can analyze construction documents in as little as 48 hours, scanning for:
- Incomplete designs
- Scope gaps
- Cross-discipline discrepancies
- Documentation inconsistencies
This comprehensive analysis covers architectural, MEP, and overall document health checks, helping teams spot potential issues before they impact the budget or schedule.
2. Risk Impact Assessment
Not all design issues carry the same weight. AI helps teams prioritize by categorizing issues based on:
- Potential cost impact
- Issue severity
- Frequency of occurrence
- Critical vs. medium vs. low-priority status
This allows project teams to focus their resources on resolving the most critical issues first. Consider this real example: On a student housing project, AI analysis identified conflicting specifications between architectural and interior design drawings for 425 bathrooms. Catching this early avoided potential rework costs exceeding $1.4 million.
3. Streamlined Issue Resolution
Cloud-based AI platforms are transforming how teams collaborate to resolve design issues. Key benefits include:
- Unlimited user access for all stakeholders
- Shared access to identified issues and document markups
- Clear visual documentation of problems
- Faster RFI processes
- Enhanced decision-making through better information sharing
Industry experts agree that investing more resources in early planning and design review is crucial for preventing disputes. Firmus AI is making this early intervention more practical and cost-effective than ever before. By identifying and resolving design issues during preconstruction, teams can minimize risks, control costs, and build greater trust among project stakeholders.
The construction industry may be worth $1.98 trillion in the US alone, but it’s the smart application of new technologies like AI that will help ensure more of those dollars go toward successful project completion rather than costly disputes.
Additional Resources
Article – Avoiding construction Disputes
Article – RFIs Made Easier. For Everyone.
