Florida Startup Unveils AI Bot to Aid Construction Industry

A startup in Florida has introduced an AI bot poised to revolutionize the construction industry by reducing contract disputes and potential financial losses. Claims Intelligence, developed by Contract Dispute Analytics, functions as a virtual legal assistant, analyzing project communications to spot dispute-related terms.

Richard Nasrawy, founder of Contract Dispute Analytics and an attorney with two decades in construction contracts, shared with Newsweek that contractors often neglect assessing extra costs. This oversight can lead to substantial unpaid work, sometimes causing financial ruin for contractors.

Nasrawy leveraged AI to create a bot that identifies potential disputes early, offering significant savings. The tool scours communications for references to additional work, unforeseen conditions, or delays, alerting teams to review these issues.

A lot of disputes stem from excessive documentation. A typical case involves thousands of emails, reports, and change orders, rising tenfold over recent years.

Berkeley Research Group highlights that AI can cut document review time significantly. For instance, AI-assisted review of 100,000 emails can decrease costs from $216,000 to approximately $27,000. Despite the focus on retrospective reviews, these figures highlight the growing reliance on AI in handling large data volumes.

Claims Intelligence distinguishes itself by proactively monitoring project communications, eliminating the need for users to identify claims beforehand. Nasrawy cites Document Crunch, Procore, and InEight as related offerings but emphasizes his app’s unique feature of preemptive dispute identification. The app even allows for automatic folder scanning, enhancing its efficiency.

Available to more than just contractors, Claims Intelligence aids owners, agencies, and consultants. By offering early warnings, the tool helps preserve records, adjust plans, and resolve disagreements before they escalate into costly disputes.

Global consultancy HKA’s report found that disputed sums average 33.4% of contract budgets, with schedule extensions at 65.8% of initial plans. Reducing missed notices or unresolved misunderstandings could lead to significant savings.

Nasrawy terms the oversight of potential claims as “claim blindness.” By improving visibility, Claims Intelligence bridges the gap between project execution and contract administration, reducing financial exposure from unnoticed contractual issues.

An example given by Nasrawy involves a project where delayed utility relocation unexpectedly impacted access. The resulting claim required intensive resource allocation, underscoring the app’s ability to intervene early, saving millions.

David Jewett, a project manager, corroborates this value, noting its ability to immediately flag potential risks, avoiding prolonged disputes. The tool notably provides project-specific advice rather than generic information.

How Claims Intelligence Works

Users upload project contracts to identify essential clauses and requirements. As the project progresses, the system scans communications for disputes, alerting users to prepare notices. Newsweek verified the app’s effectiveness through basic testing.

Despite AI advancements, human judgment remains crucial for contract clarity and dispute resolution. Second Life Software partnered in developing the bot, offering four subscription tiers:

• Essential: $49/month for 30,000 tokens, scanning 300 emails.
• Team: $149/month for 120,000 tokens.
• Business: $399/month for 400,000 tokens.
• Enterprise: $999/month for 1.2 million tokens.

Pricing is based on email volume, with higher tiers for larger organizations. This approach ensures organizations can manage extensive project communications efficiently.