Worked examples

Construction AI pilot economics

Hypothetical worked example. All figures are illustrative, not client results or industry benchmarks.

A transparent model for testing how adoption and full review time change an administrative pilot's economics.

Base scenario

InputIllustrative value
Task volume120 tasks per month
Manual time30 minutes per task
Assisted time, including review18 minutes per task
Adoption75%
Loaded labor rate$60 per hour
Recurring cost$420 per month
One-time setup$3,000

Tasks using the workflow: 120 × 75% = 90. Time released: 90 × (30 − 18) minutes ÷ 60 = 18 hours. Capacity value: 18 × $60 = $1,080. Net monthly value: $1,080 − $420 = $660. Simple payback: $3,000 ÷ $660 = approximately 4.5 months.

Lower-adoption scenario

At 50% adoption, 60 tasks use the workflow. Time released: 60 × 12 minutes ÷ 60 = 12 hours. Capacity value: 12 × $60 = $720. Net monthly value: $720 − $420 = $300. Simple payback: $3,000 ÷ $300 = 10 months.

Formulae

Tasks adopted = monthly task volume × adoption rate

Hours released = tasks adopted × (manual minutes − assisted minutes) ÷ 60

Capacity value = hours released × loaded hourly rate

Net monthly value = capacity value − recurring monthly cost

Simple payback months = one-time setup cost ÷ net monthly value

If net monthly value is zero or negative, there is no positive payback under those assumptions.

Interpret the result carefully

Released capacity is not automatically a cash saving. Do not count capacity value and payroll saving for the same hours. Decide whether the time supports more completed work, reduces delay, avoids overtime or simply moves effort elsewhere.

The loaded rate is an input to test, not proof of realized value. The model also excludes any benefit or cost that has not been defined and measured.

What a pilot should measure

Measure time before and after, correction effort, completion quality, exception frequency, actual operating cost and effective use. Record outputs that are rejected or completed outside the new workflow.

This hypothetical example does not recommend purchasing a product. A real decision requires the contractor's own workflow, costs, records and controls.