When and How to Fine-Tune LLMs
Understand when fine-tuning is the right approach and learn the practical steps to fine-tune language models for your specific use case.
Everything you need to understand artificial intelligence and how it applies to construction. From basic concepts like LLMs and prompting to advanced topics like RAG and fine-tuning.
What is AI and how does it work?
What are LLMs and how do they relate to construction?
How do I write effective prompts?
What are AI hallucinations and how do I avoid them?
When should I use AI vs traditional search?
Understand when fine-tuning is the right approach and learn the practical steps to fine-tune language models for your specific use case.
Learn how to implement Retrieval-Augmented Generation (RAG) in your organization. This guide covers the fundamentals, architecture, and best practices for building effective RAG systems.
Learn practical techniques for using AI to accelerate quantity takeoffs while maintaining accuracy and catching what automated tools miss.
Learn how to quickly assess bid packages and decide which opportunities are worth your team's time using a structured AI-assisted triage process.
Understand the data security implications of using AI tools and how to protect sensitive project information.
Understand why AI confidently produces wrong information and learn practical verification techniques to protect your work.
Know when AI gives you an edge and when traditional search is faster and more reliable for finding information in project documents.
Learn the fundamentals of writing effective AI prompts that get you useful, accurate responses for construction tasks.
Cut through the hype and understand what AI actually is, what it can do, and how it applies to construction and MEP work.
AI isn't replacing construction professionals—it's giving them superpowers. The contractors who understand AI basics today will have a significant competitive advantage:
But AI also has real limitations. Understanding these upfront prevents costly mistakes and unrealistic expectations.
AI is software that performs tasks traditionally requiring human thinking. It's not sentient, not a robot, and not magic—it's pattern recognition at massive scale.
Modern AI (specifically Large Language Models or LLMs like ChatGPT and Claude) works by:
1. Training on billions of documents to learn patterns in how words and concepts relate
2. Using those patterns to predict what text should come next given your input
3. Generating responses that match patterns it learned during training
For construction, this means AI excels at tasks like:
LLMs are the AI technology behind tools like ChatGPT, Claude, and Google's Gemini. They're called "large" because they're trained on enormous amounts of text—essentially much of the internet plus books, articles, and documents.
Key characteristics of LLMs:
For MEP contractors, LLMs are useful for:
"Hallucination" is when AI generates information that sounds plausible but is factually wrong or completely made up. This happens because:
In construction, hallucinations can be dangerous:
How to mitigate hallucination risk:
1. Always verify AI outputs against source documents
2. Ask AI to cite specific sections/pages
3. Use retrieval-augmented generation (RAG) to ground AI in your actual documents
4. Never use AI output for critical decisions without human review
The quality of AI output depends heavily on how you ask. "Prompt engineering" is the skill of crafting effective instructions.
Good prompts include:
Example - Poor prompt:
"Summarize this spec"
Example - Good prompt:
"You are an electrical estimator reviewing Division 26 specifications for a hospital project. Read the attached specification section and:
1. List all electrical systems mentioned
2. Identify any unusual requirements or specifications
3. Note any references to other specification sections we need to review
4. Flag any potential cost drivers or risk items
Format as a bulleted list with section references."
AI and search engines serve different purposes. Knowing when to use each saves time and improves accuracy.
Use traditional search when:
Use AI when:
Use both together:
The most effective approach often combines search to find source documents, then AI to analyze and extract from them. This grounds the AI in real documents while leveraging its analytical capabilities.
Don't begin with critical estimates or contract reviews. Start with tasks where errors are easily caught:
This builds familiarity while limiting risk.
Every AI output should be verified before use:
Build verification into your workflow, not as an afterthought.
Don't reinvent the wheel for every task. Create templates for common use cases:
Store these where your team can access and improve them over time.
Track what AI tasks provide the most value:
Focus investment on high-value applications. Abandon tasks where AI doesn't help.
Trusting AI output without verification—always check against source documents
Using AI for tasks requiring real-time information (current prices, availability, recent code changes)
Expecting AI to have company-specific knowledge without providing context
Writing vague prompts and expecting specific answers
Skipping the learning curve—AI requires practice to use effectively
Over-automating before understanding the basics
Not involving domain experts in reviewing AI-assisted technical content
Sharing confidential project information with public AI tools
No. AI is a tool that makes professionals more productive, not a replacement. The judgment, relationships, and experience of construction professionals remain essential. AI handles the tedious parts (searching documents, drafting boilerplate, organizing data) so humans can focus on decisions, negotiations, and problem-solving.
It depends on the AI tool. Public tools like the free ChatGPT may use your data for training. Enterprise versions (ChatGPT Enterprise, Claude for Business, or construction-specific tools like Pelles.ai) offer data privacy protections. Always check the tool's privacy policy and your company's security requirements before uploading sensitive documents.
AI accuracy varies by task. For summarization and information extraction, accuracy is high when working with clear documents. For generating numbers (estimates, quantities), AI should only assist—never replace—human calculation and judgment. Always verify critical information against source documents.
There's no single answer. General-purpose LLMs (ChatGPT, Claude) work for many tasks but lack construction-specific knowledge. Specialized tools like Pelles.ai are trained on construction documents and workflows. The best choice depends on your specific use cases, data security needs, and budget.
Start simple: use ChatGPT or Claude to summarize a document you've already read. Compare the summary to your understanding. Then try drafting an email or RFI. The key is starting with low-stakes tasks where you can easily evaluate the output. No coding or technical skills are required for most AI tools.
Entry costs are low. ChatGPT Plus costs $20/month per user. Claude Pro is similar. These are enough for many use cases. Specialized construction AI tools typically range from $50-500/month depending on features and users. The ROI question is: how much time does it save? Even one hour saved per week can justify the cost.
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