Skip to content

Productivity is a hot topic in every industry, from the location people work from, to the ideal number of hours a person can work at maximum capacity—everyone is always looking for ways to optimize. In the construction industry, productivity and efficiency are crucial for continued success, but speed can’t be at the expense of accuracy.  

In recent years, rapid advancements in technology appear to offer construction a competitive edge, but just how much of a difference can software make in a construction business? Quite a lot.  

Construction and technology are unifying faster and faster, and reluctance to adapt may be a determining factor in your ability to build a successful and lasting business. The best place to start is to understand how integrating the right technology stack is the first step to the longevity of your business. 

The Problem with Productivity in the Construction Industry 

Productivity is at the top of most businesses' priority lists. After all, time is money, and efficiency is king. With so many different elements to contend with as a construction company (multiple job sites, multiple teams, equipment, office space, admin processes, etc.), running things smoothly requires a lot of effort. 

But with so many plates spinning, even small inefficiencies can cause bottlenecks that impact every level of business. 

According to the operations article “How Inefficiency Negatively Impacts Your Business” by Marina Martin, inefficient processes can impact business revenue by an average of 20-30%! 

It can be tempting to take an “if it ain’t broke don’t fix it” approach, especially because technology (like contractor software) will never really be able to replace the human mind, but as we’ve said in other articles… automation and technology don’t eliminate the human element, they enhance it 

Automating tedious tasks and creating optimizing processes can empower your team to do their best work and can help with improving productivity overall.  

Trends in Construction Industry Tech 

One method that construction businesses use to increase efficiency is by implementing technology. From remarkable Augmented Reality (AR) tools that allow project managers to see virtual representations of designs in real environments, to cutting-edge software that cuts down on manual admin tasks by 70% in some cases–the future of construction has one foot in the digital world and shows no sign of slowing down. 

As technology continues to advance, the more accessible, effective, and affordable it becomes. Now, even small construction firms can take advantage of cloud-based software that optimizes back-end processes. Here are some of the most promising tech trends sweeping the industry. 

Augmented Reality (AR) 

When the term augmented reality (AR) or virtual reality comes up, most people tend to think of the video game industry. However, augmented reality is also making remarkable advancements in industries such as medicine, education, construction, and more.   

When it comes to construction, AR headsets now let designers and engineers see their concepts in a real-world environment, making it easier and faster to recognize problems with architecture and adjust accordingly.  


Manual data entry is time-consuming, which can negatively impact your level of productivity. Manual payroll tasks can take days, and our own research shows it can cost construction businesses over $10K per year. A press release by CareerBuilder revealed that HR managers sacrifice 14 hours every week on manual data entry that could be automated. Automating AP and payroll can save that money and countless hours, and drastically decrease human error that cuts even deeper into revenue. 


Drone technology makes it easier than ever to survey land and get a bird’s-eye view of a project’s progress. Aside from a highly detailed aerial view, drone technology can include 3D Lidar scans that use laser technology to create a 3D representation of what it surveys. Plus, integrated AI capabilities make it safer to obtain data from above without putting real humans at risk. It can also identify structural issues, making maintenance and quality control procedures much faster by automatically sending second-to-second construction data to BIM-based software.  

 5 Ways Construction Software Increases Productivity 

By 2026, experts predict that AI in the construction industry will reach $4.51 billion, according to Those numbers clearly show just how much of a positive impact construction technology has on businesses. The following breaks down the positive correlation between efficiency and technology implementation in construction—and how automation can improve every level of business operations. 

1 - Accounts Payable 

Accounts payable is a complex and exhaustive process in any business. This is especially true in construction because of stringent compliance guidelines. Using technology to automate manual data entry saves time and lowers the risk of human error–one of the most costly admin issues around.  

For example, one 2018 study by Gartner revealed that “poor data quality” can cost US businesses $10 MILLION dollars each year. 

(If you’d like to learn more about how to increase efficiency and accuracy in your AP department, check out this article.) 

2 - Payroll and Time Tracking 

Just like paying bills, accurately and on time, is the bare minimum in business, it’s just as important to extend that mentality to payroll. However, traditional timecards and manual payroll processes cause a major strain on resources and (sometimes) results in mistakes on someone’s paycheck. Not only that, but it can also open the possibility for bad habits like “buddy punching.”  

According to the US Bureau of Labor, almost 12 million people were employed in the construction industry in 2022. That’s a lot of professionals to track, categorize, and pay– but automating payroll makes the process easier on everyone, encourages compliance with company policies, and ensures employees are paid exactly what they’re owed.  

3 - Collaboration and Approval 

Managing a construction company is dynamic. Each day is different, and company leaders are often pulled in ten different directions (and possibly across multiple sites) during any given day. This can make collaborating and getting approval (for payroll or invoice payments) difficult.  

Intuitive technology can help bridge the gap in communication by creating seamless contact points throughout the communication chain. Mobile app compatibility keeps admin and site teams in contact, while automated notifications and the ability to quickly approve items from anywhere make every process more efficient.  

It’s even making waves in prefabrication thanks to 3D printing and mobile technology, increasing accessibility and clarity at every stage of the development and manufacturing process. 

4 - Ensuring Compliance 

Automating administrative construction tasks contribute to one of the most challenging and important aspects of working in the construction industry: compliance. Because everything related to finance and business operations is consolidated and tracked on one central platform, record-keeping is faster and more accurate than ever.   

Modern construction software transforms the overly complex task of building and staying compliant, streamlining it into a more efficient and stress-free experience for everyone involved. 

5 - Easily Integrate with What’s Already Working 

Enterprise Resource Planning (ERP) software has been around for nearly half a century (like Sage), and they’ve been a go-to system for many businesses. Implementing new construction-centric technology doesn’t mean old systems must be removed. The right tool can integrate with your current ERP software, and create greater harmony throughout every process by getting rid of information silos and improving clear and effective communication. 

Construction Insights Delivered Straight to Your Inbox

Group 52

Subscribe to our email newsletter for the latest construction insights.