Technology is changing the way construction projects are run, promising faster work and fewer mistakes. But experts warn that rushing into new tools without careful planning can cause big problems. John Carroll, a commercial lines staff underwriter at Central Insurance, says many construction companies make common mistakes when using technology that can lead to delays and extra costs.
One key issue is relying too much on artificial intelligence. AI tools like chatbots and automated schedules can help, but if they aren’t checked by real people, mistakes can happen. Carroll shared an example where a chatbot gave a client an outdated schedule, causing confusion and mistrust. He recommends using AI to support teams, not replace human communication.
Another serious risk comes from ignoring cybersecurity. Construction projects handle sensitive information on apps and cloud platforms, which can be vulnerable to hackers. Carroll recalled a case where a subcontractor’s system was hacked, halting work for days. He advises firms to check that their technology has strong security features like encryption and two-factor authentication, and to carry cyber insurance to protect against losses if a breach occurs.
Training is also often overlooked. Even the best software won’t work if workers don’t know how to use it properly. Carroll described a situation where employees failed to update a project app correctly, leading to late supply orders and delays. He suggests that companies make training a priority with ongoing refreshers and cross-training to keep everything running smoothly.
Many contractors also rush into buying new tech without enough testing. Carroll shared how one firm adopted a scheduling tool that didn’t sync with their payroll or equipment systems, creating confusion and wasted time. He urges contractors to insist on real-life demos and to ask detailed questions about how new tools will fit into their current operations.
Finally, new technology can cause unexpected insurance gaps. For instance, one contractor used cameras on a job site that were hacked, leaking footage. The contractor thought their general liability policy would cover it but found out it didn’t include cyber incidents. Carroll says it’s important to review insurance regularly and add cyber coverage when needed.
At Central Insurance, the team works with construction companies to spot risks and tailor coverage to keep projects on track. Carroll’s advice boils down to this: take your time with new technology, keep people involved, train your staff well, secure your data, and keep your insurance up to date. That way, technology helps your project, not hurts it.