Solving the most expensive problems construction firms face in 2026

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2025 was a challenging year for the construction industry. A mixture of policy changes, workforce shortages, and general economic uncertainty took a toll on owner confidence and impacted new project starts.

Jeffrey Shoaf of the AGC of America voiced these concerns in the association’s 2026 industry outlook:

 

“Contractors are increasingly worried about the broader economy, the possibility of a recession and the outlook for materials costs.”

– Jeffrey Shoaf
CEO, Associated General Contractors of America

 

Those worries haven’t faded during the first quarter of 2026 as conflicts in the Middle East and resulting price pressures have increased uncertainty.

Even in this volatile environment, there are firm steps companies can take to not only hedge against those challenges, but reclaim the time and money they’re losing to problems that impact competitiveness.

The issues costing construction firms time and money

While labor scarcity, material volatility, slow pay, and margin compression aren’t going away as external factors, addressing these issues will help your organization operate more efficiently, and prevent time and money from being lost due to preventable issues.

Inefficient tools & processes

Wasted labor and high overhead costs are a major problem for construction firms who still rely on legacy systems, spreadsheets, or paper-based processes. The AGC of America’s 2025 National Outlook Survey found that contractors were focused on improving their use of technology:

  • 40 percent planned to increase their investment in document management software
  • 35 percent planned to increase investments in tools for project management and for estimating
  • 44 percent expected to increase their investment in artificial intelligence

But while many firms recognize the need, it can be challenging to implement new technology. Other businesses have specialized processes that make them more competitive and efficient, but that aren’t supported by off-the-shelf solutions.

And while many software-as-a-service providers promise to deliver all the features your team needs in a single package, there’s no guarantee that “one size fits all” will be the right fit for your way of working.

Lack of accurate, real-time information

Procore’s construction industry study revealed that that 18 percent of project time is being lost because workers are searching for data. Meanwhile, 76% of civil and infrastructure builders stated that they aren’t yet using their data to its fullest potential.

Without timely and accurate data on jobs, labor, costs, and materials, you can’t make the best decisions for your business – in the office, or in the field. Improving and integrating data sources and building a modern technology framework ensures that the data you need is available to support pricing, staffing, and strategic decisions.

As many business owners look to AI and automation for further cost savings, the need for accurate data to feed into those processes will only continue to grow.

Difficulty collaborating with outside stakeholders

Good communication is key to efficiency, safety, compliance, and on-time completion. Unfortunately, the quality of collaboration – especially between GCs and subcontractors – remains a key source of friction, according to numerous studies that highlight poor coordination linking directly to inflated bids, lower competitiveness, and lost growth capacity.

Collaboration challenges can be efficiency challenges as well, especially when subs have to compile GC-specific or owner-specific documents, then wait for multi-party review and payment processes to play out.

The more that can be done to remove that friction and ensure everyone has a full view of processes, the less time and money will be spent trying to achieve good results for all concerned.

Custom software and solutions can address all of these issues

Flexibility and efficiency are advantages of custom software solutions, which combine ease of use with secure digital workflows, as well as the ability to automate tasks so team members can focus on work that generates more value. And by integrating your software seamlessly with other industry-standard platforms and tools, you’ll make it far easier to do business with your company.

Our team delivers custom software solutions and workflow improvements that help construction firms achieve their full vision for success:

  • We helped Helmkamp Construction become more efficient with a custom solution and a mobile app that allows time to be recorded securely in the field. This streamlined their payroll and management workflows for about 80 percent less than the cost of a subscription to a SaaS field time entry system.
  • At RJP Electric, our custom software replaced paper records for labor and materials, and helps the team track safety training completion. The result has been a dramatic reduction in turnaround times, fewer errors, and the ability for their team to take on more projects with confidence.

How can we help your team achieve the same type of results? Book a consultation with us today and we’ll help you start getting time and money back.