BuiltForward: The Future of Construction

Most commercial HVAC and refrigeration systems provide building operators with little visibility or control. Facilities teams often learn something is wrong only after receiving a complaint, while technicians arrive without the equipment data needed to diagnose the problem efficiently.

Rahul Subramany is the co-founder and CEO of Monaire, which adds a low-cost layer of wireless sensors, controls, software, and AI to existing commercial equipment. Monaire helps multi-site operators monitor their assets, optimize energy use, predict failures, coordinate repairs, and verify that the work was completed successfully.

In this episode:

00:00 — Introduction

01:00 — What Monaire does for multi-site operators

03:00 — The USPS experience that inspired Monaire

06:00 — Why commercial HVAC equipment still lacks connectivity

08:00 — Why Monaire sells directly to building operators

11:00 — The reality of reactive facilities management

16:00 — What an ideal connected HVAC system would look like

18:00 — Why BACnet hasn’t solved interoperability

21:00 — Connecting equipment from different manufacturers

24:00 — Monitoring, optimization and predictive maintenance

26:00 — How Monaire keeps installation costs low

27:00 — Using AI to predict equipment faults

29:00 — How commercial HVAC equipment gets purchased

32:00 — Working with existing HVAC service contractors

34:00 — Predictive maintenance and flattening seasonal demand

36:00 — HVAC contractors as a potential sales channel

38:00 — Why no one manages the building as one system

42:00 — Expanding into plumbing and electrical equipment

44:00 — Technician shortages, cooling demand and grid pressure

48:00 — How AI can improve HVAC service and energy efficiency

50:00 — Working within the system versus reinventing it

52:00 — Partnerships with major HVAC manufacturers

54:00 — What commercial HVAC could look like in 10 years

55:00 — Building the Samsara of commercial buildings

57:00 — Closing thoughts

Learn more:

Monaire: https://www.monaire.ai/

Rahul Subramany: https://www.linkedin.com/in/rahul-subramany

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Mike Kanaby has spent decades in construction, from working in the field to leading a $1.5 billion operation at Johnson Controls. Today, as Managing Partner at Profitability Works, he helps trade contractors improve their processes, strengthen operations, and scale more effectively.

We get into:

• Why contractors often hit operational growing pains around $20–30 million in revenue
• How small breakdowns in execution quietly erode profitability
• Why change order management is such a significant opportunity
• How to build processes that employees actually adopt
• Why technology implementations fail, even when the software is good
• What contractors need to fix before AI can deliver meaningful value
• How private equity-backed contractors can standardize operations without losing local strengths

00:00 – Introduction to Mike Kanaby and Profitability Works
03:00 – Why contractors hit a breaking point at $20–30M
05:00 – The three reasons owners pursue process improvement
08:00 – Why change management determines whether improvements stick
12:00 – The Building Excellence Blueprint: diagnostics, workshops, and implementation
17:00 – Why piloting new processes is essential
19:00 – Change orders: one of the biggest opportunities to improve profitability
22:00 – Finding root causes instead of treating symptoms
25:00 – Fixing handoffs between estimating, operations, and the field
28:00 – Why contractor data is often fragmented and unreliable
31:00 – Why construction software implementations fail
34:00 – Getting field-level buy-in for process improvement
38:00 – Measuring the financial impact of operational improvements
42:00 – Why contractors aren't ready for AI
47:00 – The relationship between technology adoption and operational excellence
52:00 – What private equity should standardize across acquired contractors
55:00 – Private equity's growing role in construction
58:00 – The future of ownership and the skilled trades

• Profitability Works: https://profitabilityworks.com
• Building Excellence — Mike Kanaby's book on process improvement for trade contractors: https://profitabilityworks.com/building-excellence/

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

• 00:00 – Meet Chuck Fenske of Carleton McKenna
• 02:30 – From the family construction business to investment banking
• 05:30 – Labor shortages and the aging construction workforce
• 08:30 – Why private equity is investing in construction
• 11:00 – What motivates contractor owners to sell
• 14:00 – Preparing for a sale and maximizing valuation
• 16:00 – What makes one contractor worth more than another
• 18:30 – Financial discipline, cash flow, and quality of earnings
• 23:00 – Bonding and surety considerations
• 25:00 – Why the highest offer isn't always the best
• 27:00 – What good private equity buyers do differently
• 30:00 – Roll-ups and valuation multiples
• 32:00 – Independent sponsors and long-term holding companies
• 34:00 – Building successful buyer-owner partnerships
• 37:00 – The future of consolidation in construction
• 38:00 – Technology, productivity, and labor challenges
• 44:00 – Owner dependency and succession risk
• 47:00 – Business brokers vs. investment bankers
• 50:00 – A construction M&A case study
• 53:00 – Strategic acquirers
• 55:00 – Choosing the right M&A advisor

• Carleton McKenna
• Chuck Fenske LinkedIn

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

In this episode of BuiltForward, I sit down with Chuck Mazzanti, who leads the construction practice at Christensen Group, a 100% employee-owned insurance and risk management firm. Chuck is also the founder of the Construction ESOP Collective.

We explore why construction companies are particularly well-suited to employee ownership, how Employee Stock Ownership Plans (ESOPs) work, and how they compare with private equity and other succession options.

We also discuss the practical realities of ESOP transactions, including valuation, financing, bonding capacity, and insurance, along with the importance of building an ownership culture.

Beyond ESOPs, we explore the coming wave of retirements in construction, the challenge of preserving institutional knowledge, and how AI and emerging technologies could reshape the industry.

00:00 – Introduction to Chuck Mazzanti and Christensen Group
02:00 – Chuck's background and how he found his way into construction insurance
05:00 – Understanding the complexities of insuring contractors
07:00 – Why employee ownership is particularly relevant to construction
10:00 – Chuck's personal experience with ESOPs and the financial benefits of employee ownership
16:00 – How ESOP transactions affect financing, balance sheets, and bonding capacity
20:00 – Building an employee ownership culture and getting buy-in
22:00 – When does an ESOP make sense for a construction company?
25:00 – ESOPs vs. private equity: Valuation, liquidity, and owner priorities
28:00 – Employee retention and the potential advantages of employee ownership
30:00 – How construction companies are valued in ESOP transactions
33:00 – What separates well-managed contractors from higher-risk businesses
37:00 – How safety, risk management, and insurance can create competitive advantages
41:00 – The relationship between insurance, surety, and bonding capacity
44:00 – The coming retirement wave and the challenge of attracting younger talent
47:00 – How contractors are adopting AI and emerging technologies
50:00 – Preserving institutional knowledge before experienced workers retire
55:00 – AI, workforce concerns, and the importance of bringing employees along
58:00 – What construction might look like in 10 years
1:01:00 – Final thoughts on embracing change and opportunity

• Christensen Group
• BuiltForward on YouTube
• BuiltForward Newsletter

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

There's been a lot of investment in construction technology over the past decade, but how much has really changed?

Eldar Sadikov, co-founder and CEO of Field Materials, believes we're still in the early days. While many expect the construction software market to consolidate, Eldar thinks there's room for many more large, successful companies to emerge.

Field Materials uses AI to automate the administrative work involved in purchasing and managing construction materials, including purchase orders, delivery tickets, invoices, and inventory. Eldar grew up around construction in Russia, where his father ran a general contracting business and his mother was the controller. He started programming at 13, went on to build an AI company that was acquired by PayPal, and eventually returned to construction after reconnecting with a friend from Stanford.

Eldar is optimistic about where the industry is heading. He believes we're entering a golden age for construction, driven in part by the enormous demand for AI infrastructure and the shortage of skilled labor needed to build it. In his view, those pressures could finally accelerate the productivity improvements and technology adoption that construction has struggled with for decades.

We also spend time on the experience of building Field Materials, including how Eldar and his team found their initial customers, what they learned along the way, and why they decided to focus on eliminating manual data entry rather than simply making existing workflows more efficient.

We cover a lot of ground, including:

• Eldar's background, from growing up in a construction family in Russia to building and selling his first AI company to PayPal.
• How a conversation with an old Stanford friend led him back to construction and eventually to starting Field Materials.
• Why materials procurement is still so manual, and how AI could change the way contractors handle purchase orders, deliveries, invoices, and inventory.
• What Eldar learned from talking to contractors before building the product, including why he would approach some things differently today.
• Why Field Materials initially focused on smaller specialty contractors rather than large general contractors.
• How feedback from early customers led to the decision to make eliminating data entry a central part of the product.
• Why Eldar believes the combination of AI infrastructure demand and labor shortages could usher in a golden age for construction.
• His prediction that traditional workflow software will become increasingly obsolete as AI takes on more of the work itself.
• How contractors might eventually build their own AI agents to automate tasks specific to their businesses.
• Why he disagrees with the idea that construction technology is overcrowded and headed toward consolidation.
• A real-world example of how Field Materials changed the purchasing and accounts payable processes at Worth & Company, a large mechanical contractor in Pennsylvania.
• How contractors evaluate the ROI of automation, from reducing administrative work to improving purchasing controls and capturing missed discounts.
• Why labor shortages, employee retirements, and growing project backlogs are driving interest in AI.
• What's next for Field Materials, and how Eldar sees the industry evolving over the next five to ten years.

Thanks to Eldar for joining me!

Links:

Field Materials: https://www.fieldmaterials.com/
Eldar Sadikov: https://www.linkedin.com/in/eldarsadikov/

00:00 Introduction
01:46 Welcome to BuiltForward
02:48 Growing up in a construction family in Russia
04:24 How Eldar found his way back to construction
06:45 The early days of Field Materials
08:37 Figuring out what to build
09:03 Why existing procurement tools weren't solving the problem
09:59 How ChatGPT changed the opportunity
11:57 Finding the first customers
13:10 What Eldar would do differently starting over
15:15 Why smaller specialty contractors were the right initial customers
18:30 Why selling technology to contractors is difficult
21:39 Learning from customer feedback
23:39 The decision to eliminate manual data entry
24:52 Why Eldar believes construction is entering a golden age
27:57 AI infrastructure, labor shortages, and productivity
29:21 Who buys Field Materials and why
30:16 Why traditional workflow software could become obsolete
32:57 Can contractors build their own software with AI?
35:05 The future of custom AI agents
36:29 Construction software fatigue and consolidation
38:10 Why construction tech isn't as crowded as people think
40:19 How Field Materials transformed procurement at Worth & Company
45:33 Building trust and demonstrating ROI
46:26 How quickly contractors can see results
47:02 What's driving contractors to adopt AI
49:19 Four ways automation delivers ROI
51:32 Why customers increasingly want custom AI agents
53:17 What's next for Field Materials
55:05 Where construction technology is heading
55:43 Final thoughts
56:49 Outro

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Micah Rodman is the CEO and co-founder of Kojo, a procurement, warehouse management, and finance platform built for trade contractors.

Kojo started with a simple observation: trade contractors were still spending enormous amounts of time moving information manually between the field, purchasing teams, and accounting systems. The founders spent months visiting job sites, talking with contractors, and watching how materials actually moved through their businesses before building their first product.

In this episode, Micah and I talk about how that initial wedge grew into a broader procure-to-pay platform, why contractors that initially appear completely unique eventually reveal what he calls “patterns of snowflakes,” and why he says Kojo isn’t really selling software—it’s selling organizational change.

We also get into what AI changes when software can understand operational data and take action, how contractors should think about building versus buying technology, whether AI will lead to fewer construction software vendors, and why robotics may reach construction through prefab and industrialized construction before it transforms the job site.

Episode highlights:

00:00 — Introduction and a timely Kojo implementation
03:25 — What Kojo does and the “operational debt” inside construction
05:35 — Why the founders chose construction and the trades
09:25 — Buying donuts, visiting job sites, and finding the initial wedge
11:25 — The manual purchase-order workflow that helped inspire Kojo
15:40 — From $30–100M contractors to billion-dollar customers
17:00 — Why contractors are “patterns of snowflakes”
19:00 — The seven steps of the procure-to-pay process
24:00 — Why contractors tolerate operational pain for so long
26:30 — “We’re not selling a product. We’re selling organizational change.”
29:00 — Meeting contractors where they are vs. changing inefficient workflows
32:00 — How AI changes what construction software can actually do
35:30 — Build vs. buy in the age of AI
40:00 — Does venture capital fit construction tech?
43:20 — Services as software and the next generation of construction technology
48:20 — Will contractors have more software vendors or fewer?
50:20 — The “holy grail” of a unified construction operating platform
55:35 — Robotics, prefab, and industrialized construction
58:15 — What construction can learn from automotive manufacturing
1:00:00 — Why Micah believes this is construction technology’s most exciting moment

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Brendan Hermalyn is the founder and CEO of Thalo Labs, which builds connected technology that helps commercial HVAC contractors monitor equipment, diagnose problems, and identify potential failures before they happen.

In this episode, Jason and Brendan discuss how technology could transform HVAC from a reactive service business into a predictive one — and what that could mean for technician productivity, contractor margins, equipment manufacturers, and the future structure of the industry.

Episode highlights:

02:00 — What Thalo Labs does and why HVAC is ripe for change
06:00 — Why Brendan chose HVAC and the role of electrification
12:00 — Hundreds of millions of HVAC units vs. hundreds of thousands of technicians
14:00 — Why Thalo started with commercial HVAC maintenance
17:00 — How installation quality can make or break heat pump performance
19:00 — Why selling energy savings isn't necessarily the best way to sell new technology
24:00 — Moving from individual projects to fleet-wide HVAC monitoring
27:00 — Escaping "pilot hell" and getting contractors to adopt new technology
31:00 — Why a sensor needs to become a "robot technician," not just another source of data
32:00 — How an air conditioner actually works
37:00 — Predictive maintenance, first-time fix rates, and the future of HVAC service calls
39:00 — Could HVAC ultimately be sold as a service?
41:00 — The fragmented HVAC equipment landscape
44:00 — Why third-party technology can have an advantage over individual OEMs
47:00 — Vertical integration: could contractors start making their own equipment?
50:00 — How Thalo sells into a fragmented, relationship-driven industry
53:00 — The emergence of higher-margin, technology-enabled service businesses
55:00 — Private equity, innovation teams, and who actually adopts new technology
58:00 — What separates forward-thinking HVAC contractors from the rest
1:01:00 — Regulation, refrigerants, electrification, and what could accelerate adoption
1:04:00 — Why HVAC infrastructure is hiding in plain sight

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Rob Spencer has spent more than 27 years inside construction companies, working his way from warehouse laborer to CIO and Chief Administrative Officer. He now runs BuiltTech Strategy Group, advising contractors on technology strategy, systems, AI and digital transformation.

In this conversation, we dig into how contractors should think about build vs. buy, why app fatigue is becoming a problem, where bespoke AI fits alongside established software platforms, and what it takes to turn employee experimentation with AI into dependable company-wide workflows.

We also get into data foundations, human-in-the-loop systems, shadow AI, technology budgets, and why Rob believes mid-sized contractors will increasingly need outside help to build and maintain custom AI tools.

Episode Notes

00:00 — Introduction
02:25 — Rob’s path from warehouse laborer to construction CIO
05:25 — What’s consistent across contractors — and what differs
08:25 — The acceleration of construction technology and growing app fatigue
10:35 — When contractors should buy software vs. build it themselves
14:30 — Getting the field involved in process and technology decisions
17:40 — Connecting technology investment to the top line and bottom line
20:25 — Leading edge vs. bleeding edge
23:25 — How Rob evaluates and pilots new construction technology
27:15 — What construction could look like 10 years from now
31:55 — How much contractors should spend on technology
33:30 — IT, innovation teams and frontline employees
37:40 — Where humans need to stay in the loop with AI
38:30 — Why the data foundation matters
43:00 — Shadow AI and the importance of governance
47:15 — Building an AI strategy around business objectives
50:45 — Giving employees freedom to experiment — with boundaries
53:45 — Turning an employee-built AI tool into a company-wide workflow
55:20 — Why construction may be heading toward fewer software vendors
57:15 — Where bespoke AI fits alongside the major platforms
59:15 — How AI changes the build-vs.-buy equation
1:00:40 — Who will build bespoke AI for mid-sized contractors?
1:01:50 — What does “AI-native contractor” actually mean?
1:03:45 — Rob’s new firm, BuiltTech Strategy Group
1:07:25 — How Rob assesses a contractor’s technology operation
1:09:30 — Repair, integrate or replace existing software?
1:11:00 — Using outside AI firms to build custom solutions
1:14:00 — Rob’s wish list for construction technology
1:16:00 — How contractors can get their data ready for AI
1:18:00 — Why owners should treat technology as part of delivering the project

Learn more about Rob Spencer

BuiltTech Strategy Group: builttechsg.com
LinkedIn: linkedin.com/in/spencer-robert/

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Ben Price joins Jason to explain how WND Ventures - the venture arm of DPR Construction - connects startups with one of the country’s largest general contractors. WND helps emerging technology companies test their products on active DPR projects and may invest when those pilots demonstrate real value.

Ben breaks down how DPR evaluates new tools, balances internally developed technology with off-the-shelf solutions, and moves successful pilots toward broader adoption. They discuss WND’s strategic-first investment model, its work with Dusty Robotics, and the growing roles of AI, robotics, prefabrication, and automation in construction.

They also explore why the industry remains in the early innings of its technological transformation, how contractors can avoid chasing shiny objects, and what founders should understand before approaching a major construction company.

In this epiosode:

• How WND Ventures connects DPR with construction technology startups
• Why WND often pilots a product before making an investment
• What strategic success looks like beyond financial returns
• DPR’s approach to internal innovation and project-level technology choices
• How successful tools spread across a large construction organization
• Where AI, robotics, automation, and prefabrication could have the greatest impact
• How DPR evaluates pilots using qualitative feedback and measurable results
• What founders need before approaching WND Ventures or another major contractor

Timestamps:

00:00 – Introduction
02:20 – Ben’s path into venture capital and construction
07:20 – DPR Construction and the evolution of WND Ventures
12:00 – Piloting technology before investing
13:20 – How WND works with DPR’s internal innovation team
15:10 – Defining strategic success beyond financial returns
16:20 – Dusty Robotics as a model for adoption at scale
17:40 – Thesis-driven investing versus opportunistic deal flow
20:20 – Strategic fit for DPR versus broader market potential
31:20 – Building technology internally and spinning out new companies
34:00 – Closing the gap between off-the-shelf tools and individual AI workflows
35:20 – How new technology spreads across DPR projects
37:30 – Is construction technology saturated or still nascent?
39:50 – How AI could transform construction
41:20 – Robotics, automation, and the future construction workforce
43:30 – Avoiding shiny objects and scaling technology thoughtfully
45:20 – Building a more rigorous pilot and evaluation process
47:20 – WND’s areas of interest, from robotics to prefabrication
49:40 – Advice for founders who want to work with DPR and WND
51:30 – Closing thoughts

Show notes:

• Ben Price on LinkedIn
• WND Ventures
• WND Ventures on LinkedIn
• DPR Construction
• Dusty Robotics

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/

Gregg Schoppman is a Partner at FMI and leads the firm’s Operations practice, working with contractors to improve productivity, profitability, and operational performance.

In this episode, we dig into how contractors actually improve their businesses, why process change is so difficult, how knowledge and judgment get transferred across organizations, and where technology and AI fit.

In this episode:

00:00 — Introduction
03:42 — Gregg’s path to FMI
05:18 — What FMI’s operations practice does
08:16 — Why contractors call FMI
10:38 — The problem you see vs. the real problem
13:42 — How Gregg diagnoses operational problems
15:34 — Why technology doesn’t fix broken processes
17:24 — Best practices vs. a contractor’s unique DNA
21:29 — Getting buy-in from the field
26:06 — Learning by observing how the work actually gets done
30:15 — Fix the symptom or look at the whole business?
34:14 — Why AI is coming up more with contractors
36:52 — How mid-sized contractors should approach AI
40:32 — Will AI fundamentally change construction?
43:09 — How AI is changing FMI
45:32 — What construction could look like in 10 years

BuiltForward
Exploring the future of construction and what it takes to build great construction businesses.

Hosted by Jason Jacobs.

More at https://builtforward.ai — or follow the weekly newsletter on LinkedIn: https://www.linkedin.com/newsletters/builtforward-7299979495069929472/