Balancing Act: Navigating Construction Risks and Exploring AI's Role and Limits

Jun 18, 2024

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This week on the Construction Genius Podcast, we explore the risk aspects of projects in the construction world, where the contractors have to be extra vigilant on the first 100 pages of a tender specification document, and how AI can help you make the process easier with our guest, Melvin Newman.

Melvin Newman is the President/CTO of PataBid Tenders & Quantify Platform. He is a skilled chief estimator with a background in both general and mechanical contracts. He is exceptionally skilled at managing information for tenders. To promote more accurate estimates and an ecologically sustainable methodology that eliminates paper usage, he developed numerous key developments in estimating, one of which was a fully digital approach.

During the conversation, we delve into the top three risks that every contractor must consider: schedule, liquidated damages, and delivery. We also discuss the importance of the contractor pre-qualification process, the reasons why AI won't replace humans, the distinctions between humans and AI in terms of intuition, the limitations of applying AI in construction, and the impact of AI on our thought processes. Malvin also shares his insights on why you need to develop a certain level of trust in the person with whom you are entering into a contract, but it is a necessity to verify that trust. He also talks about his company, PataBid, and the services their AI can provide for general contractors.

EPISODE HIGHLIGHTS

[03.09] The top three risks every contractor has to face.

[06.30] What you are missing in your pre-qualification process as a general contractor.

[10.22] The second law of thermodynamics and AI.

[17.18] Intuition and AI.

[20.22] Why AI has significant limitations in the construction industry

[23.27] How AI affects our thought process.

[28.30] The immediate use of 3D printing in construction.

[33.41] What every contractor must do when they are going into a new contract.

[40.31] Melvin’s company and how their AI can help contractors save time and make better decisions.

TIPS AND TOOLS TO IMPLEMENT TODAY

It doesn't matter what size you need to pre-qualify your trades.
Trust but verify.
If you have a trade that isn’t a perfect match for a project, you have to mitigate it before it becomes a risk.
AI isn’t here to replace humans. Ai is here to save you time by working faster. But speed is not equal to intelligence.
As a general contractor you must make everyone who is bidding on you aware of what’s in the first 100 pages of a contract.

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RESOURCES

Connect with Melvin

LinkedIn - linkedin.com/in/melvin-newman-208240a3/

Website - patabid.com/