9 Articles

AI Basics

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.

Questions This Topic Covers

1

What is AI and how does it work?

2

What are LLMs and how do they relate to construction?

3

How do I write effective prompts?

4

What are AI hallucinations and how do I avoid them?

5

When should I use AI vs traditional search?

Articles

LLMFine-tuning+1

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.

Feb 6, 20262 min read
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RAGLLM+1

Getting Started with RAG: A Practical Guide

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.

Jan 20, 20262 min read
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EstimatingTakeoffs+3

Using AI to Speed Up Material Takeoffs

Learn practical techniques for using AI to accelerate quantity takeoffs while maintaining accuracy and catching what automated tools miss.

Oct 8, 20256 min read
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MEPPreconstruction+3

The 10-Minute Bid Package Triage Using AI

Learn how to quickly assess bid packages and decide which opportunities are worth your team's time using a structured AI-assisted triage process.

Aug 22, 20255 min read
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AI BasicsAI Fundamentals+3

AI Security and Privacy: What Contractors Need to Know

Understand the data security implications of using AI tools and how to protect sensitive project information.

Jul 29, 20256 min read
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AI BasicsAI Fundamentals+2

AI Hallucinations: Why AI Makes Things Up and How to Catch It

Understand why AI confidently produces wrong information and learn practical verification techniques to protect your work.

Jul 22, 20256 min read
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AI BasicsAI Fundamentals+2

AI vs. Search: When to Use Each for Construction Documents

Know when AI gives you an edge and when traditional search is faster and more reliable for finding information in project documents.

Jul 15, 20256 min read
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AI BasicsAI Fundamentals+2

Prompt Engineering 101: How to Get Useful Answers from AI

Learn the fundamentals of writing effective AI prompts that get you useful, accurate responses for construction tasks.

Jul 8, 20256 min read
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AI BasicsAI Fundamentals+2

What Is AI? A No-Nonsense Guide for Construction Professionals

Cut through the hype and understand what AI actually is, what it can do, and how it applies to construction and MEP work.

Jul 1, 20256 min read
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Why AI Basics Matters

AI isn't replacing construction professionals—it's giving them superpowers. The contractors who understand AI basics today will have a significant competitive advantage:

  • Speed: Tasks that took hours now take minutes. Reviewing a 500-page spec for scope requirements, summarizing RFI responses, extracting key contract terms.
  • Consistency: AI applies the same rigor to the 50th document as the first, reducing human fatigue errors.
  • Availability: AI doesn't go home at 5pm. It can process bid packages overnight, have preliminary reviews ready by morning.
  • Knowledge capture: AI can be trained on your company's historical data, institutional knowledge, and best practices.

But AI also has real limitations. Understanding these upfront prevents costly mistakes and unrealistic expectations.

Key Concepts

What AI Actually Is

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:

  • Summarizing long documents
  • Finding specific information in specifications
  • Drafting standardized content (RFIs, submittals, meeting notes)
  • Comparing document versions
  • Extracting structured data from unstructured text

Understanding LLMs (Large Language Models)

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:

  • Text in, text out: You give them text (a "prompt"), they generate text back
  • No real understanding: They predict likely words, but don't truly "know" anything
  • Knowledge cutoff: They only know what was in their training data
  • Context window: They can only consider a limited amount of text at once

For MEP contractors, LLMs are useful for:

  • Answering questions about specifications
  • Drafting documentation
  • Analyzing contract language
  • Summarizing meeting notes
  • Generating report templates

AI Hallucinations: The Critical Risk

"Hallucination" is when AI generates information that sounds plausible but is factually wrong or completely made up. This happens because:

  • AI predicts likely words, not correct facts
  • It has no way to verify information against reality
  • It may combine concepts incorrectly
  • It fills gaps with plausible-sounding fiction

In construction, hallucinations can be dangerous:

  • Citing specification sections that don't exist
  • Inventing product specifications or compliance requirements
  • Generating incorrect calculations
  • Creating false contract interpretations

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

Prompt Engineering: Getting Useful Results

The quality of AI output depends heavily on how you ask. "Prompt engineering" is the skill of crafting effective instructions.

Good prompts include:

  • Context: What you're working on, your role, the situation
  • Specific task: Exactly what you want the AI to do
  • Format requirements: How you want the output structured
  • Examples: What good output looks like
  • Constraints: What to avoid, limitations, requirements

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."

When to Use AI vs. Traditional Search

AI and search engines serve different purposes. Knowing when to use each saves time and improves accuracy.

Use traditional search when:

  • You need the exact source document
  • You're looking for a specific fact with a definitive answer
  • You need current information (news, prices, availability)
  • Accuracy is critical and you can't verify AI output

Use AI when:

  • You need to synthesize information from multiple sources
  • You want to draft content, not just find it
  • You need help understanding complex language
  • You're doing repetitive analysis across many documents
  • You want to ask follow-up questions about what you found

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.

How to Get Started

1

Step 1: Start with Low-Risk Tasks

Don't begin with critical estimates or contract reviews. Start with tasks where errors are easily caught:

  • Drafting meeting note summaries (you attended the meeting)
  • Summarizing bid documents you're going to read anyway
  • Creating first drafts of routine correspondence
  • Organizing project files and documentation

This builds familiarity while limiting risk.

2

Step 2: Develop Verification Habits

Every AI output should be verified before use:

  • Cross-reference cited sections against actual documents
  • Sanity-check numbers and calculations
  • Have domain experts review technical content
  • Keep original sources accessible for comparison

Build verification into your workflow, not as an afterthought.

3

Step 3: Create Reusable Prompt Templates

Don't reinvent the wheel for every task. Create templates for common use cases:

  • Bid document triage prompt
  • Specification summary prompt
  • RFI drafting prompt
  • Change order justification prompt

Store these where your team can access and improve them over time.

4

Step 4: Build on What Works

Track what AI tasks provide the most value:

  • Time saved per task
  • Error reduction
  • Quality improvement
  • User satisfaction

Focus investment on high-value applications. Abandon tasks where AI doesn't help.

Common Mistakes to Avoid

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

Frequently Asked Questions

Will AI replace estimators and project managers?

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.

Is it safe to use AI with confidential project documents?

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.

How accurate is AI for construction tasks?

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.

What's the best AI tool for construction?

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.

How do I get started with AI if I'm not technical?

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.

How much does AI cost for a small MEP contractor?

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.

Key Takeaways

  • AI is pattern-matching software, not magic—it excels at document analysis, drafting, and summarization
  • LLMs can "hallucinate" (make things up)—always verify outputs against source documents
  • Good prompts include context, specific tasks, format requirements, and constraints
  • Start with low-risk tasks like summarizing documents you'll review anyway
  • Build verification habits into every AI-assisted workflow
  • AI augments human expertise—it doesn't replace judgment, relationships, or experience
  • Enterprise AI tools offer better privacy protections than free public versions
  • Track time saved and quality improvements to identify high-value AI applications

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