Short answer: Eldar Sadikov names three levers: handling twice the volume with the same staff, cutting material waste and rogue spending by paying negotiated prices, and shrinking invoice approval from 30-45 days to a few days for early-payment discounts.
Watch this answer from Episode 33 (starts at 10:18) · Episode 33 notes and transcript
From Episode 33: AI Is Transforming Construction — We’re Entering a Golden Era, starting at 10:18.
Jordan Metzner [10:17]: Awesome. And so tell us kind of the impact. Is the impact kind of like they're able to deliver faster, they're saving money, they're saving time, all of the above. Obviously, these are not like high-tech companies, so them building their own kind of like, vibe coded AI solutions probably not gonna cut it, especially because you mentioned these are large projects over a large amount of years and things like that. But, yeah, just tell us kind of the net impact on implementing the software to the bottom line.
Eldar Sadikov [10:41]: Yeah. No. I mean, the primary there are three, I would say, levers, but the primary impact is just overhead costs, just being able to accomplish more with less. What I mean by that is that if you're a contractor that's doing a $100,000,000 in volume of projects and you're gonna do 200 next year because you have a big backlog and you have maybe one or two people in your purchasing or accounts payable, now you can do the same volume or sorry, twice the volume that you did last year with the same staff because now you've automated so many tasks. So instead of doubling your head count, now you can actually accomplish the same amount of work sorry, twice the amount of work with the same with software, with the same staff. Or sometimes we also hear from our customers like, hey, I have my AP person retiring, I need automation because I'm not gonna be able to replace that person, how can I use software in that? So that's sort of an example of sort of like automating the human labor and or scaling humans to more volume, to more work. The second value is is actually about helping you with the material costs themselves. So like so much of the margin is bled because you either generate material waste, you double order something, or you pay in retail price instead of paying a pre negotiated rate that you went and negotiated with your supplier. A lot of the things that we do around procurement, automation, verification is to ensure that you pay the correct price with the supplier, you cut down the rogue spending, and do all of that.
Eldar Sadikov [12:11]: And lastly, I would say the last value prop is just, automating the payment cycle, the procure to pay cycle, which is a lot of times, the invoices takes thirty, forty five days to get approved, to review them, and it takes a lot of time to bill to pay all of your bills. We cut that time to literally a couple a few days because we can automate so many of the steps, which means that now you can you know, not only get through the payment cycle faster, but you can also get some discounts because of the because paying your invoices early essentially.
