PREPARED MIND Construction Technology - Base10 · Prepared Mind Construction Technology May 2018 3...

May 2018

P R E PAR E D M IN D

Construction Technology

Prepared Mind Construction Technology May 2018 2

E X E C U T I V E S U M M A R Y

Thesis

The construction industry has underinvested in technology over the last two decades resulting in many construction subsectors in need of automation improvements. Base10 believes the following key observations will drive the next wave of technology adoption in the sector: 1. Below the "enterprise" part of the market, tech penetration is still low, especially at the field level.

2. Existing workflow in the field is disjointed, inefficient, and provides a poor user experience which will lead

field operators to place increased emphasis on effective and streamlined collaboration tools.

3. Mobile is accelerating technology adoption by allowing all construction workers to capture real-time data at

scale and enabling significant growth opportunities.

4. System of record tools will continue to see increased penetration as the opportunities to leverage data to

build ancillary businesses increase.

Industry Key Takeaways

• The construction industry is one of the largest contributors to the world economy with an annual contribution

of $10 trillion, and is expected to reach $14 trillion by 2025, a CAGR of 3.8%.

• Despite being one of the largest sectors of the economy, the construction industry faces a productivity

problem due to limited investment in technology and inefficient awarding of procurement contracts driven by

a desire for the lowest price possible vs. the best balance of price and service.

• Accordingly, there are several opportunities for efficiency improvement through adoption of technology in the

industry, and while Base 10 has researched of most these areas, we are have emphasized three segments

– digital twin technology, construction management software, and insurance.

▪ Digital twin technology creates a digital replica of a project, enabling construction companies to track the

progress of projects in real time and detect errors as soon as they occur by comparing the as-built and

as-designed models, which can lead to significant cost savings. Companies Base10 has spent

significant time with include HoloBuilder, Veerum, Inovx, TADA Cognitive Solutions, and

onTarget.

▪ Construction Management Software enables the stakeholders involved in a project to collaborate more

efficiently by providing solutions that allow adjustments to construction blueprints and plans to be relayed

in real time to the construction site engineers and workers, as well as tools for mobile timekeeping, real-

time cost coding, geolocation of workers, and issue logging and tracking. Companies of high interest

to Base10 are Raken and Alice Technologies.

AI & Automation Key Takeaways

• The segments of the construction workflow cycle that are most dependant on software are accounting,

estimating, project management and scheduling. Currently, these workflows are still highly

dependent on spreadsheets as most existing software solutions are on-prem and lack AI

functionality.


• The construction industry is lagging the broader economy when it comes to AI and automation

spending. Given the growing size and complexity of construction projects, spending on technological

advancements will be necessary to increase productivity.

• New surveying techniques that integrate HD photography, 3-D laser scanning, and geographic

information systems, can help to bridge the gap between estimates and actual ground

conditions and automate project planning and monitoring. Integrating these techniques with pre-

existing technologies, such as drones, unmanned-aerial-vehicles (UAV), and light-detection-and-

ranging (LIDAR) technology, provides high-quality 3-D images that can be aligned with project-planning

tools. Companies of high interest to Base10 in this vertical include Veerum.

Progress and Next Steps

• Base10’s Prepared Mind is the result of many months of work meeting with entrepreneurs,

executives, and analysts in the industry and seeing firsthand how leading competitors operate. This

report is a selective summary of what we have learned and includes highlights from several high

impact conversations (out of dozens) Base10 has held with leading technology minds, founders with

industry expertise, executives, and industry analysts.

• Base10’s Prepared Mind into the construction technology industry has led to the identification of

potential investment opportunities such as Raken, Holobuilder, Veerum, Block, Notevault,

Smartbid.io, and Built Robotics.

• We continue to speak with industry participants daily and learn more about the pain points across the

entire sector. Our high priority focus is in the subsectors of digital twin technology, construction related

insurance products, and construction management software. We are in active discussions with

several entrepreneurs building new and compelling business models across these and other

subsectors within the industry.


T A B L E O F C O N T E N T S

Executive Summary……………………………………………………………………………….…………….2

Industry Key Takeaways……………………………………………………………………………….…2

AI & Automation Key Takeaways..………………………………………………………………….…2

Progress and Next Steps………………………………………………………………………………...2

Construction Technology……………………………………………………………………………………..5

Construction Industry Overview…………………………….…………………………………………..5

United States Construction Industry Outlook………….……………………………………………9

AI Automation Overview……….…………………………………………………….………………...13 HD Surveying and Geolocation……………………………………………………………………..16

5-D Building Information Modeling ……………………………………………………….….….…17

Digital Collaboration and Mobility ………………………………………………………….……... 17

Internet of Things and Advanced Analytics …………………………………………………..…. 18

Future-Proof Design and Construction …………………………………………………….……...19

Base10 High Priority Sub-Sectors ………………………………………………….………….…… 21

Digital Twin Technology ……………………………………………………………………………. 21

Construction Management Software………………………………………………………….…... 25

Construction Technology Landscape…………………………………………………………….… 28 Base10 Priority Ranking of Startup Landscape……………………………………………..…… 28

Comparables ………………………………………………………………………………………………….…. 40

Comparable Companies……………………………………………………………………………...… 40

Construction Technology Industry………………………………………………………………….…43

Research Process ………………………………………………………………………………………….…. 46

Real Economy Research Process………………………………………………………………...… 46

High Impact Corporates Interviews…………………………………….……………………….…47

Founder Interviews………………………………………………………………………….…….….…49


C O N S T R U C T I O N T E C H N O L O G Y

Construction Technology

Construction Technology Overview The construction industry is one of the largest contributors to the world economy with annual contribution of

$10 trillion and is expected to reach $14 trillion by 2025, growing at a CAGR of 3.8%.1 The growth in the

industry will primarily be driven by new real estate construction and rising infrastructure spend due to

increasing urbanization and growing population. The construction industry currently employs ~7.0%2 of the

world’s working population and has bottom-quartile profit margins compared to the other sectors, which has

historically constrained investment in technology and digitalization.

The industry is highly fragmented with thousands of firms broadly classified into two categories of companies

– larger firms engaged in the heavy construction markets of civil, industrial, and residential, and smaller firms

engaged in specialized trades such as mechanical, electrical, and plumbing work that act as subcontractors to

the general contractors hired by the larger firms.

The lack of investment in tech and innovation has resulted in a noticeable productivity problem. Productivity

growth in construction was limited to 1.0% over the last two decades compared to 2.8% for the overall

economy. 3 According to McKinsey, if construction industry productivity increases to the level of the overall

economic productivity growth, there is an opportunity to add $1.6 trillion to the construction economy, which

will further give a boost to the global GDP by 2%.4

Real Gross Value Added per Hour Worked, Index of 2005 $: 100 = 1995 Source: Improving Construction Productivity, McKinsey Global Institute, February 2017

— 1 Improving construction productivity, McKinsey Global Institute, July 2017 2 Improving construction productivity, McKinsey Global Institute, July 2017 3 Improving construction productivity, McKinsey Global Institute, July 2017 4 Reinventing Construction: A Route to Higher Productivity, McKinsey, February 2017

121

170

196

Construction Global Economy Manufacturing


US Industry Productivity and Performance, 1964-2012

Source: Shaping the Future of Construction, WEF and BCG, may 2016

In addition to limited investment in technology by construction companies, suboptimal awarding of

procurement contracts is restraining productivity growth in the construction industry. Often, public and private

owners opt for firms that submit the lowest bids for awarding contracts, even though small and specialized

trade contractors offer higher productivity solutions. Per the industry estimates, the large-scale players are

20%-40% more productive than small-scale sub-contractors due to scale and their vast experience; however,

there remain challenges in meeting cost and schedule commitments on megaprojects even in the more-

productive heavy construction works, as large firms routinely sub-contract specialized trades to small-scale

firms.

The industry also suffers from a lack of proper knowledge transfer, as lessons learnt from one project are not

applied in subsequent projects. This is mainly because companies have not institutionalized proper knowledge

transfer processes, resulting in lost experience and expertise after the completion of a project.

Unlike other sectors, big data generated at the construction sites is not captured by construction firms. If such

real-time data from these sites were captured, processed and analyzed, it would enable managers to identify,

0

50

100

150

200

250

300

1964 1972 1980 1988 1996 2004 2012

153%

Construction Labor Productivity

RelativeImprovement

Non-farm Business Labor Productivity

-19%


predict and effectively tackle problems as they occur, thereby reducing the time and cost overruns. Digital twin

platforms and services have the potential to fix this problem, as they can act as a system of record across

projects and pillars within an organization.

Base10 believes that to bridge the productivity gap and compensate for the lack of skilled construction

labor, construction companies are going to invest more in new collaboration technologies, design and

engineering, and technologies such as big data analytics and digital twins that have the potential to significantly

increase on-site productivity.


Potential Investment Opportunities across Construction Project Work Streams A construction project workflow cycle is highly dependent on spreadsheets and manual labor, which indicates

a lack of technology solutions. However, there is an upcoming trend of using technology to efficiently manage

the project work streams, resulting in rise of several new companies across segments.

Segment Company Description

Accounting GCPay Provides an online platform for automating subcontract management processes, specifically invoicing, compliance and lien waivers

Estimating STACK Technologies Provides construction estimating software coupled with the ability to share digital blueprint plans and collaborate in real time

Project Management Raken Provides construction management solutions such as daily reporting, sub-contractor reporting, and contractor reporting

Scheduling Alice Technologies Provides an automated BIM to provide optimized construction schedule solutions

Bid Management Building Connected Provides analytics tools to contractors for bid management

CAD/BIM SmartBIM Provides building information modeling software solutions such as content services, ecoScorecard, library, and virtual showroom solutions

CRM Cosential Provides cloud-based CRM and proposal automation tools to the construction industry

Prequalification SmartBid Provides construction bid management software that also has a prequal component to help general contractors select subcontractors

https://www.gcpay.com/

https://www.stackct.com/

https://www.rakenapp.com/

https://alicetechnologies.com/

https://www.buildingconnected.com/

http://www.smartbimtechnologies.com/

https://www.cosential.com/

https://smartbid.co/


Construction Can Catch Up with Total Economic Productivity by Taking Action in Seven Areas Several innovative companies and regions are addressing current market failures and improving productivity,

as well as cost and schedule reliability, within the construction industry. With action and widespread adoption

of these seven areas, the sector’s productivity could be 50 to 60 percent higher.

Cascading effect

Source: Reinventing Construction: A Route to Higher Productivity, McKinsey, February 2017

Despite technology at 15%, its true impact is larger as its effect is amplified on other categories as it acts as an enabler to all the categories helping improve productivity across the entire sector

United States Construction Industry Outlook The construction industry is forecasted to grow at 5.0% in 2018 (nominal dollars) in the United States vs. 4.0%

in 2017, which ended on a high note for the construction industry with both construction spending and

workforce witnessing positive year-on-year growth. Construction spending in the United States stood at $1.25

trillion in 2017, up by 2.6% as compared to 2016.1

1 US Construction Update – Year End 2017, JLL

Enabler

8-9

8-10

7-8

6-10

14-15

48-60

50

5-7

Cost Savings %

6-7

7-10

3-5

4-5

4-6

3-5

27-38

Regulation

Collaboration and contracting

Design and engineering

Procurement and supply-chain management

On-site execution

Technology

Capability building

Cumulative impact

Gap to total economy productivity

Potential global productivity improvement from implementation of bets practices Impact on Productivity (%)

Exte

rn

al

Fo

rce

s

Ind

us

try

dyn

a

mic

s

Fir

m-le

vel

op

era

tio

na

l fa

cto

rs


Construction Growth Forecast by Segment in the U.S.

Construction Spending in the U.S

$1.25 trillion 2017 U.S. construction spending

+2.6% Over 2016 spending total

Source: US Construction Update – Year End 2017, JLL

$0

$100,000

$200,000

$300,000

$400,000

2013 2014 2015 2016 2017

U.S. Construction Spending by Quarter ($ millions)

Q1 Q2 Q3 Q4

© Consensus

2017 2018

Total 4% 5%

Residential 6% 6%

Single Family 9% 9%

Multi Family 1% -1%

Non-Residential 2% 4%

Commercial 1% 2%

Hotels 8% -2%

Office 5% 6%

Retail -8% 1%

Education 5% 6%

Healthcare 1% 5%

Public Buildings 2% 6%

Industrial 0% 4%

Other Non-Residential 2% 0%

Non-Building 4% 4%

Roads and Bridges 5% 6%

Infrastructure 3% 3%


AI & Automation Overview

Emerging and established technology provides tools and software such as 3D laser scanning, embedded

sensors, drones, big data analysis, business information modelling, and mobile applications to the construction

industry, enabling companies to plan, design, and construct more efficiently and accurately, and reduce

construction costs. With projects growing in size and complexity, adoption of technological

advancements is necessary to improve the productivity and automation in the construction sector. The

construction industry as a whole is lagging the broader economy when it comes to AI and automation

adoption spending.

Source: Technology in the Construction Industry, eSUB

AI Adoption Across Industries

Source: McKinsey Global Institute AI Adoption and Use Survey (2016)

(1) Average estimated % change in AI spending, next 3 years, weighted by firm size

(2) % of firms adopting one or more AI technology at scale or in a core part of their business, weighted by firm size

0

1

2

3

4

5

6

7

8

9

10

11

12

13

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Leading Sectors Financial Services

Falling behind Construction

Education Consumer packaged goods

Professional Services Retail

Media and entertainment

Energy and resources

Automotive and assembly

Health care Travel and tourism

Transportation and logistics

High tech and telecommunications

Current AI adoption2

Fu

ture

AI

de

ma

nd

tra

jec

tory

1


The lifecycle of construction tech investing trends can clearly be seen in the chart below. Document

management is a category that has been heavily funded over the last two decades and there are entrenched,

large competitors who are winning the market and have led on innovation. From an early stage perspective,

there are less opportunities and the data support this conclusion. Performance dashboard, on the other hand,

is a very interesting category from an early stage perspective. As can be seen from the data most the companies

solving this problem have raised capital in the last five years, and it is an area we are seeing a lot of early stage

opportunities.

Source: The new age of engineering and construction technology, McKinsey (July 2017

Largest Smallest

Number of companies

invested

Cluster and use case Number of investments

Total amount invested

% of companies founded within

last 5 years developing tools

Digital collaboration

Design management

Document management

Contract management

Performance dashboard

On-site execution

Quality control

Safety

Field productivity

Back-office

Equipment management

Operations and management

Scheduling

Materials management

Preconstruction

Enterprise-resource-planning system


Construction Technologies across Construction Lifecycle The technologies within the construction ecosystem, as described below are constantly changing. Each new

adoption or data innovation enhances other parts of the ecosystem and the technology, as a result, is evolving

on an everyday basis.

Digital Design : Assist with document control and integration as design progresses from sketches to construction

documents

Preconstruction

Estimating: Automate

and improve the

accuracy of bid

estimates

Construction

relationship

management: Provide

dashboard for business-

development pipeline

Market Intelligence:

Gather and analyze

Information gathering from

past projects and

competitor performance

Marketplace: Create a

platform for stakeholders

to prequalify, evaluate,

and select partners

Construction

Design

management

Visualize drawings

and 3-D models

on site, on

mobile

platforms

Update blueprints

in the field with

mark-ups,

annotations,

and hyperlinks

Scheduling

Create, assign, and

prioritize tasks in

real time

Track progress online

Immediately deliver

work plan and

schedule to all

schedule to all

workers

Materials

management

Identify, track,

and locate

materials

across the

supply chain

Field

productivity

Track crew

deployment in

real time

Manage project

staffing across

skilled trades

Track on-site

productivity at

a trade and

worker level

Equipment

management

Track and manage

construction

equipment fleet

Quality control

Inspect remote

sites through

pictures and

tags shared

through app

Update and track

live punch lists

across projects

to expedite

project closure

Contract

management

Update and track

contract

compliance

checklist

Update records for all

client and

contractor

communication

regarding contract

terms

Track vendor

prequalification and

liens and manage

payments

Performance

dashboard

Monitor projects

progress and

performance

Provide

automated

dashboards

created from

field data

Generate

manpower

updates and

view past

reports on

handheld

devices

Document

management

Upload and

distribute

documents

Search all projects

across sites

Share information

across sites

Safety

Track and report

safety incidents

across the job

site

Alert workers on

safety

procedures and

provide tips live

Enterprise-resource-planning systems

Operations and Management

Work-order

Management

Remote monitoring of

building systems

Predictive

analytics for

system

management

Mid to small

project

management

Asset management

with an ongoing

record of facility

performance

Source: The New Age of Construction Technology, McKinsey, July 2017


According to a survey done by JBKnowledge, the respondents – which included professionals from firms such

as architectural/engineering/design firms, construction service providers, construction technology providers, as

well as design build general contractors, sub-contractors, general contractors/construction managers –

indicated the workflows that are most dependent on software are accounting (85%), estimating (60%), project

management (50%) and scheduling (50%).2 Interestingly, the respondents also noted that the same

workflows are still highly dependent on spreadsheets, indicating a lack of capable AI built into these software

solutions.

Workflow Dependent on Spread Sheets

Workflow Dependent on Software

Source: Annual Construction Technology Report, 2017, JBKnowledge

2 Annual Construction Technology Report, 2017, JBKnowledge

85.4%

60.4%

56.5%

49.2%

45.2%

45%

33.6%

25.1%

12.3%

2%

2.7%

Accounting

Estimating

Project Management

Project Scheduling

CAD/BIM

Takeoff

Bid Management

Client Relationship Management

Prequalification

None

Other

71%

58.7%

46.1%

43.3%

33.3%

29.8%

29%

18.9%

17.4%

13.5%

7.3%

5.6%

2.4%

Estimating

Accounting

Project Management

Bid Management

Takeoff

Project Scheduling

Tracking data/ Performance Metrics

Field Data collection

Prequalification

Client Relationship Management

CAD/BIM

None

Other


Base10 believes there are five key technological trends that can further help the construction industry

unlock its growth potential – higher-definition surveying and geolocation, 5D building information

modelling, digital collaboration and mobility, internet of things, and future-proof design and

construction.

Five Trends Will Shape the Automation of Construction and Capital Projects

Source: Imagining Constructions Digital Future, McKinsey, June 2016

5 Future-proof design and construction Designing with materials and methods of the future

Digital construction organization Developing next

generation of digital-native leaders to deliver

projects of the future

4 The Internet of Things and advanced analytics Intelligent asset management and decision making

3 Digital collaboration and mobility Moving to paperless projects, from the office to the workforce

2 Next-generating 5-D building information modelling Design platform for the future

1 Higher-definition surveying and geolocation Rapid digital mapping and estimating


HD Surveying and Geolocation Inconsistencies between actual ground conditions and estimates often result in last minute changes to the

project space and design, which leads to increased project costs and construction delays. New techniques that

integrate HD photography, 3-D laser scanning, and geographic information systems can significantly improve

accuracy and speed. These advances are enabled by pre-existing technologies, including drone and

unmanned-aerial-vehicles (UAV), and light-detection-and-ranging (LIDAR) technology, which provide high-

quality 3-D images that can be integrated with project-planning tools, such as BIM.

LIDAR represents an evolution is surveying; added mobility from drones and handheld technology is a

breakthrough

Overview of Technology Commonly Used in Site Surveys

Source: Imagining Constructions Digital Future, McKinsey, June 2016

While LIDAR has existed for some time, there has been a breakthrough in its use via drones/unmanned aerial

vehicles (UAVs) and handheld platforms:

• Handheld 3-D laser scanners

• Mounted on mobile platforms

• Some lidar systems are now under 10kg and can be deployed with drones/UAVs

LIDAR, when used in conjunction with ground-penetrating radar, magnetometers, and other equipment,

provides both under and above ground 3D images of project sites with more efficiency and reduces

discrepancies in the surveys. For example, during a survey of river sites for mini-hydropower plants in Southeast

Asia, surveyors used LIDAR maps to provide general terrain information and drone-mounted high-definition

cameras to focus on specific areas. Given the growing interest of companies in this space, Base10 is identified

Veerum, a digital twin technology solution, as a potential investment candidate. Veerum helps companies

collect data using drones and aerial imagery, and provides AI powered insights by creating a digital

replica of the project, thereby eliminating the need for a survey crew and automating the monitoring of

industrial construction sites. It also uses laser scanners to map a project site down to the millimeter, allowing

Electronic distance measurement GPS Photogrammetry Light detection and ranging

(lidar)

• Most commonly

deployed

• Requires on-site

personnel

• Best used for on-

site rechecks prior

to work

• Use GPS

coordinates

• Ineffective when

blocked (eg, by tall

buildings or clouds)

• Best used when

there’s a need for

high accuracy in

small open sites

• Uses high-

resolution images

• Requires

postprocessing time

to convert to usable

data

• Best used when

there’s a need for

high accuracy in

large sites

• Uses optical lasers

to detect thousands

of point per second,

with native 3-D

output

• May have issues

with some terrain,

such as steep

slopes


project managers to accurately build offsite and construct onsite, saving time and money while reducing the

chance of project delays.

5-D Building Information Modeling Similar to the way computer-aided 3D modeling transformed the building of aircraft and helped improve

sector productivity by up to ten times, Base10 believes 5D BIM could have similar effects and help

automate many processes in the construction industry. While the construction industry currently relies

on on-prem software tools, owners and contractors often use different platforms that do not sync with one

another. This means there is no single source that provides a dynamic view of project design, cost, and

schedule, allowing for delays and errors to go unchecked.

• 5D BIM is a five-dimensional representation of the physical and functional characteristics of any project that

takes into account the cost and schedule of the project, along with the standard spatial design parameters

in 3D.

• It includes details such as geometry, specifications, aesthetics, thermal, and acoustic properties, enabling

owners and contractors to identify, analyze, and record the impact of changes on project costs and

scheduling.

• This helps the parties involved to identify risks and complexities earlier and make better decisions by

avoiding any last minute surprises that could increase the project scope.

• Various studies have shown that construction companies that use BIM report higher efficiencies and

increased cost savings.

• Many governments in countries such as Britain, Finland and Singapore have made it mandatory for

construction companies to use BIM for public infrastructure projects, given the significant benefits to the

speed of execution of projects and keeping project costs under check.

Digital Collaboration and Mobility The construction industry still primarily relies on paper for blueprints, design drawings, procurement

and supply-chain orders, equipment logs, daily progress reports, and punch lists. Due to the lack of

digitization, there is a gap in data sharing between the stakeholder which creates inefficiencies. The use of

paper also makes it difficult to capture and analyze data, leaving a major chunk of important data uncaptured.

The capturing of historical data plays an important role in performance analytics that can lead to better

outcomes, risk management, and automation possibilities. Owners and contractors are beginning to

digitize their project-management work-flows offering digital-collaboration and field-mobility solutions.

• Digitizing workflows has already shown significant benefits in the retail and manufacturing industries.

• Even in the construction industry, digitizing workflows has shown significant improvements in terms of

efficiency and cost savings. For instance, in an American tunnel project with almost 600 vendors, the

contractor developed a single platform solution for bidding, tendering, and contract management. This saved

more than 20 hours of staff time per week, cut down the time to generate reports by 75%, and expedited

document submission by 90%.

• Crew mobility solutions have also proved to have a positive effect on productivity by enabling central planning

teams and on-site construction teams to connect and share information about progress in real time. The

availability of low-cost mobile connectivity via tablets and handheld devices, has resulted in a new generation

of “mobile first” cloud-based crew-mobility apps that can be deployed even at remote construction sites and

provide real-time updates. These are commercially viable for contractors and project owners of all sizes.

Given the aforementioned benefits, the digital collaboration and mobility solutions segment has emerged as

one of the key sub-sectors for construction technology startups and has attracted approximately 60% of all

venture funding in the construction technology sector. Accordingly, Base10 has looked at several

companies in this segment such as Raken, BuilderTREND, and Fieldwire. BuilderTREND provides a


construction management software that provides real-time access to construction scheduling, change orders,

documents, and blueprints to the stakeholders involved in the project. Fieldwire provides a mobile application

for contractors on the field and provides solutions such as task management scheduling, punch list inspection,

and plan viewing.

Internet of Things and Advanced Analytics As production sites get denser in terms of number of people, available construction equipment, and the amount

of work going on at the same time, they generate vast amount of data, a majority of which is not captured.

The Internet of Things (IoT), which has already seen deployment across sectors, uses sensors and wireless-

enabled equipment, and connects various assets. The technology solution would allow construction machinery,

equipment, materials, structures, and even formwork to transmit data to a central data platform at a construction

site, capturing performance data based on specified parameters. Sensors, near-field-communication (NFC)

devices, and other technologies can help monitor the productivity and reliability of both staff and assets. There

are several potential uses:

• Equipment monitoring and repair: Advanced sensors would enable the machines at the construction site

to detect and communicate maintenance requirements, send automated alerts for preventive maintenance,

and compile usage and maintenance data.

• Inventory management and ordering: Connected systems can keep stock of the inventory and use the

historical trends to forecast and alert site managers when stock is running short and when orders need to

be made. NFC tagging and tracking of materials can also pinpoint their location and movement and help

reconcile physical and electronic inventory. Veerum is currently tackling this problem with continuous

aerial drone flights.

• Quality assessment: Using vibration sensors at construction sites enables the workers to test the strength

and reliability of a structure during the construction stage. Workers can detect deficiencies in the structure

using data from the sensors and make the requisite changes.

• Energy efficiency: Sensors that monitor the conditions around a construction site and fuel consumption for

assets and equipment can foster on-site energy efficiency, enabling companies to adhere to strict

environmental regulations.

• Safety: Wearable bands can send alerts if workers on the site are in restricted areas or if a vehicle or asset

is stationary or non-operational for a given window of time during shift hours.

In addition to the above opportunities, the Internet of Things will also enable companies to capture data that

would have otherwise remained uncaptured. The insights gained through the adoption of advanced analytics in

construction projects can help to improve efficiency, timelines, and risk management.

For example, advanced analytics solutions have helped a major infrastructure project in London save time and

capital when project managers worked with a data-analytics company to produce a web-based adaptive-

instrumentation-and-monitoring system. The system absorbed field-sensor data, construction-progress data,

and workforce and vehicle movements. Statistical analysis based on this information helped project teams

detect anomalies and identify potential risks—critical information for a dense and historically sensitive city like

London.

There are a number of startups that have ventured into this space including; Rhumbix, a mobile platform for

construction field supervision to ensure crews have the materials, tools, equipment, and approved drawings to

complete the day’s work; Vernox Labs, a platform to analyze data from construction projects; Maana, a startup

providing big data analytics solutions across industries such as industrial, and oil and gas; C3 Energy, a cloud-

based suite of pre-built applications that offer big data, artificial intelligence, and IoT applications; and Cold

Bore Technologies, a data acquisition and digital twin solutions provider. Another startup, Built Robotics, has

taken the sensors from autonomous vehicles and retrofit them into construction equipment, and developed of

suite of autonomous software to manage the equipment. All these startups are helping to automate various

processes in the industry.


Future-Proof Design and Construction New building materials, such as self-healing concrete, aerogels, and nanomaterials, as well as new and

innovative construction approaches like 3-D printing and preassembled modules, can lower costs and speed

up construction while improving quality and safety. Building materials is a $1 trillion global industry, and often

materials account for more than half of the total cost of projects. Traditional materials such as concrete, cement,

and asphalt make up most of this demand. But new and better construction materials are also required due to

several trends:

• Green construction: There is an immense push to adopt materials and technologies with lower carbon

footprints.

• Cost efficiency: Given substantial cost pressures, there is a need for structural change in the choice of

materials, in addition to incremental lean efforts.

• Supply-chain agility: Transporting heavy materials and equipment has massive implications on supply

chain costs and time, especially because many new projects are located in remote or dense areas.

• Improved durability and strength: With capital costs rising and scarcity of land in many markets, owners

are insisting that projects have longer commercial lives.

• Off-site construction: Assembling lighter, easier-to-handle materials off-site can improve project efficiency,

address on-site space constraints, and create the conditions for crews to improve their skills.

A number of advancements have already been made in the past few decades in developing advanced

construction materials. Some of the new materials used in construction include:

• Self-healing concrete: Self-healing concrete uses bacteria as a healing agent to close cracks on concrete

and is currently at the proof-of-concept stage.

• Concrete canvas: Concrete canvas is formed by adding water to a layer of concrete cloth and then allowing

it to set. It is typically used for drains, channels, and passages, and is now available commercially.

• Topmix permeable: Topmix permeable is a cement alternative that can absorb 4,000 liters of water a minute

and is currently in the early-adoption stage.

• Aerogel: Aerogel is a super-transparent, super-insulating material that is 99.9% air.

• Nanomaterials: Nanomaterials are super-strong, ultra-lightweight materials that may eventually be a

substitute for steel reinforcement in structures and foundations, though they are still in the research stage.

Some of these materials could redefine how projects are conceptualized, designed, and executed. Using these

advanced materials along with new construction techniques such as 3D printing, pre-assembled and pre-

fabricated structures, and robot-assembled construction, would lead to tremendous cost-savings and increased

efficiency. However, adoption has been slow due to a lack of awareness and familiarity within the design and

engineering community, a limited supply chain and lack of availability at scale, and risk aversion among project

owners and contractors.

For example, despite being available for more than 30 years, ethylene tetrafluoroethylene (ETFE) only gained

widespread adoption after it was used to build part of the aquatic building for the Beijing Olympics in 2008.

ETFE weighs less than 1% of an equivalent glass panel and costs 24% to 70% less to install.

In addition to the technologies related to BIM, AR/VR, and data analytics, start-ups are also building new

technologies such as Exoskeletons that enable workers to perform difficult tasks using heavy equipment for

longer periods of time with less physical exertion. These wearable suits use motors, braces, and levers to

increase the user’s strength. Despite the fact that this technology is still in its nascent stages, a number

of start-ups such as Ekso Bionics and SuitX are operating in this space. These companies offer light-

weight designs of exterior scaffolding that can be used by workers in the construction and logistics industry.


Exoskeletons offered by Ekso Bionics; Source: Wired

As per ABI Research analysis, the exoskeleton market is expected to cross $1 billion over the next 10 years,

with more than half of the revenue coming from labor intensive sectors such as construction, manufacturing,

and logistics.

Global Revenue from Exoskeleton Sales (Reported and Projected)

65.6

97.4

136.4

193.3

-

50.0

100.0

150.0

200.0

2015 2016 2017 2018


Base10 High Priority Sub-Sectors

Digital Twin Technology The total size of the digital twin technology (DTT) market stood at $1.8 billion in 2016 and is expected to

reach $15.7 billion by 2023, growing at a robust CAGR of 37.9%.3 The growth in the market will primarily be

driven by increasing adoption of IoT by industrial and manufacturing industries. According to the global

research firm International Data Corporation (IDC), digital twin technology is among the major technological

advancement in which the companies would invest $2.1 trillion by 2019.4 The use of technology in the

construction sector can lead to savings of up to $21.3 billion per year in North America.5 As per Base10

research, the potential market size for the digital twin technology in North America alone would be $6.3

billion.6

A digital twin is an exact digital replica of a physical asset or a process in the digital world. It is built using

cumulative, real-time data which creates a digital model of the object or a process, providing intriguing insights

on system performance leading to actions such as change in the design of a system or a process.

Accordingly, the technology enables companies to tackle physical issues by detecting them in the digital

model upfront and with a higher degree of accuracy, thereby enabling them to remove inefficiencies.

3 Digital Twin Market by End User and Geography, Coherent Market Insights 4 Leveraging Digital Twins To Breathe New Life Into Your Products And Services, Digitalist Magazine 5 Wall Street Research 6 Base10 Research; (Based on the assumption that construction companies are willing to invest 0.5% of the project size in the digital twin technology)


Manufacturing Process Digital Twin Model Source: Industry 4.0 and the digital twin, Deloitte

To better understand the applications of the digital twin technology in the construction industry, it is best to first

understand how a digital twin is created. The creation of a digital twin encompasses two main phases –

designing the digital twin and integration of the enabling technology that facilitates exchange of real-time data

between the physical asset and the digital model. The data collected by the sensors is used in collaboration

with the data collected from the ERP systems and CAD models that enable real-time updating of the data

used for analysis.


Digital Twin Conceptual Architecture

Source: Industry 4.0 and the digital twin, Deloitte

The digital twin technology is currently in the early stages of adoption in the manufacturing industry and has

already generated a tangible return for its early adopters. It has enabled the companies to keep a track of the

events at a granular level. For example, a digital model of a jet engine enables engineers to examine the wear

and tear of the engine during the course of operations and helps them with design modifications to increase

the efficiency of the engine and also helps in predictive maintenance. Sight Machine, a Series B digital twin

technology startup that helps manufacturing companies in creating a digital twin of the manufacturing plant by

sourcing information through industrial cameras, sensors, automation systems, and other factory systems,

has already raised $53.9 million in funding. Another company, Inovx, provides inventory management

solutions using the digital twin technology to companies in sectors such as manufacturing, oil and gas, and

utilities. It has raised $2 million in venture funding till date. TADA Cognitive Solutions, a Seed stage startup

with $0.5 million in funding, provides a cloud-based analysis and digital twin creation solutions to the

manufacturing and supply chain industries. Another company that Base10 is looking at in this space is

onTarget, a Seed stage startup that enables companies to track the project visually and scheduling work by

using a digital replica of the project.


Source: Advanced Imaging Algorithms in Digital Twin Reconstruction of Construction Sites, intellectsoft

Applications of Digital Twin Technology in Construction:

The possible applications of the technology in the construction space include:

• Automated Progress Monitoring: By creating the as-built structure of the building, companies can

track the progress of the projects and can also compare it to the BIM design model to check for any

deviations in the building and rectify the errors in construction. It also enables companies to track the

status of the project by checking the actual percentage of work completed as the measurements

provided by digital twins are more accurate than human estimation.

• As-built vs As-designed models: The digital twin technology enables companies to check for errors

in the construction by comparing the planned design and the as-built projects. This allows the

engineers to detect the errors/deviations in the construction of the project, make the required changes

to rectify the error, and ensure similar errors do not reoccur.

Source: Advanced Imaging Algorithms in Digital Twin Reconstruction of Construction Sites, intellectsoft

• Resource Planning and Logistics: Using a digital twin, the construction companies can avoid over-

allocation of resources and predict the requirements well in advance.


• Safety Monitoring and Tracking of Workers: According to the Bureau of Labor Statistics, c.4,500

construction workers died on-site due to fatalities between 2013 and 2017 in the U.S., making

construction one of the most dangerous activities in the world. A digital twin allows the companies to

track workers’ movement and conditions in hazardous areas in real time. Tracking of employees also

allows companies to adhere to compliance regulations in countries where it is mandatory to track

construction workers at the site.

The digital twin technology, when integrated with the payment software system, enables companies to pay

contractors on a day-to-day basis and facilitates real-time tracking of construction inventory. The digital twin

technology has also reduced the costs of surveying crews on the site as surveying is now done using 3D-

scanning, LIDARs and UAVs/drones. By using digital twins, construction companies can eliminate costs

related to survey crews and realize significant cost savings, with additional benefits of easy tracking of the

status of the projects and inventory optimization.

Several start-ups have started offering digital twin solutions to the construction industry, including

Veerum, FINALCAD, and Cold Bore Technologies.

Construction Management Software Over the past few years, start-ups and tech companies have been creating software for the construction

industry that is changing the management of projects. The software includes collaboration, monitoring and

analytics tools amongst others that enable streamlining and optimization of construction operations. The

construction project management software market is expected to grow at a CAGR of 3.0% from $1.4 billion in

2016 to $1.6 billion in 2021, while the global project management software market and is expected to grow at

a CAGR of 9.3% to $6.1 billion between 2017 and 2025.

Global Construction Management Software Market Size Estimate (in $ mn)

Source: Transparency Market Research

According to Aconex’s 2016 survey of more than 70 US-based firms that handle projects ranging from under

$10.0 million to over $100.0 million:

• More than 40% report difficulty finding information, tracking issues, and holding subcontractors and

partners accountable.

1,360.0

1,580.0

1,000.0

1,600.0

2016 2021


• Nearly 60% are challenged by poor communication and collaboration between project owners,

contractors, and consultants.

• For over 33%, a lack of correct information leads to mistakes, delays, and rework that end up costing

them money.

Construction companies have been generating and handling large amounts of paperwork which is time-

consuming and subject to misplacement and errors. Digitization streamlines the entire documentation function

by enabling teams to generate submittals, RFIs, transmittals and other relevant documents; using their own

standardized templates and uploading them to a centralized cloud-based platform which results in better

management and ease of access through a virtual directory.

On the execution front, changes on-ground can be recorded in real-time on the platforms, enabling project

managers and all the other stakeholders to monitor the progress and adapt to new scenarios that come up

during construction. Through software, changes in plans can be communicated to all teams efficiently which

saves time and keeps all stakeholders well-informed.

Analytics tools using AI and machine learning provide managers with optimization solutions to organize

budgets and timelines which brings an increase in the overall efficiency of construction work. The tools also

facilitate risk management through the use of predictive analytics.

Construction management software provides benefits across multiple points in the project lifecycle, which is

estimated to save $215,700 annually in expenses for a customer.

Cost Savings achieved using Construction Management Software

Source: Procore Technologies Case Study

Among the industry players, Procore Technologies, who provides a cloud-based construction management

solutions, has emerged as a market leader. It provides solutions including a bidding platform with analytics to

evaluate vendors, a platform where drawings can be uploaded with overlays for comparison, collated emails

and meeting minutes, scheduling tools and document management tools for RFIs, submittals and transmittals.

BuilderTREND and Jonas Premier are close competitors of Procore in terms of industry leadership.

Companies such as BulldozAIR also provide a platform that uses images taken on-site to create a timeline to

track progress which can be viewed by all teams. The tools also enable generation of customized reports for

PROJECT MANAGEMENT

BID SOLICITATION

$2,160 48 hrs /year at $45/ hr

RFI PROCESSING

$6,750 150 hrs /year at $45/ hr

SUBMITTAL PROCESSING

$9,000 200 hrs /year at $45/ hr

CHANGE ORDERS

$10,800 144 hrs /year at $75/ hr

DRAWINGS AND DOCUMENTS

N OT SEARCHING FOR INFORMATION ON DRIVES

$3,240 72 hrs/year at $45/hr

PRE - CONSTRUCTION DRAWING MANAGEMENT

$3,600 80 hrs/year at $45/hr

DRAWING UPDATES

$9,180 204 hrs/year at $45/hr

DRAWING MARKUP/VERSION CONTROL

$21,600 288 hrs/year at $75/hr

PHOTO MANAGEMENT

$25,250 505 hrs/year at $50/hr

COLLABORATION

ACCESSING ACCOUNTING INFORMATION

$2,880 72 hrs /year at $40/ hr

PRE - CONSTRUCTION TO PM HAND - OFF

$6,400 64 hrs /year at $100/ hr

CALLING SUPERNTENDENTS

$35,640 792 hrs /year at $45/ hr

MANUALLY PROVIDING SUPER INFORMATION

$79,200 1584 hrs /year at $50/ hr

Total Savings: $215,700


tasks within the project. Another company, Newforma, provides algorithms that automatically index stored

data and establish patterns and relationships that can be used to put information into context when viewed by

different teams.


Construction Technology Landscape

In the first half of 2017, there were at least 25 deals in the construction technology space with a combined

value of approximately $169 million. Start-ups are coming up across segments including field equipment

management, construction products marketplaces, mobile and cloud technologies, artificial intelligence and

robotics, augmented reality and virtual reality, and CAD software.

In terms of closed deals, the construction technology market is still at a nascent stage and has attracted good

investor interest over the years. 2015 was a record year for smart money VC investment in the construction

technology industry, with 15 deals worth approximately $414 million, in line with total VC funding of $425

million across 59 deals. The funding increase was driven in part by an increase in average deal size to mid-

and late-stage deals, as a result of multiple investment rounds for CAD software provider Onshape ($80M

Series D) and drone company 3D Robotics ($50M Series C), among others. However, smart money VC

funding in the industry witnessed a slowdown in 2016 with a total smart money investment of $143 million

across 9 deals. As of June 30 2017, smart money VCs had invested $143 million across 3 deals.

Base10 Priority Ranking of Startup Landscape When determining the construction technology startup landscape from Base10’s point of view, we initially

reviewed several hundred startups who could be categorized as construction technology startups. The list

below contains early stage, seed stage, and Series A startups of high interest to Base10 as well later stage

startups that are well positioned in the industry and have good investors and/or significant momentum. We

also concentrated on companies based in the US; however, there are several companies listed based outside

the US that we still have high interest in. Our priority ranking methodology is below:

The list follows below and is as of May 2018.

Pre-Series A stage startups in US or Canada and in an industry subsector of high interest to Base10

Base10 priority 2 startups


Base10 low / no priority startups


Series A stage startups in US or Canada in an industry subsector of high interest to Base10, or;

Pre-Series A stage startups outside of the US or Canada in an industry subsector of high interest

Seed or Series A stage companies in industry subsector of medium interest to Base10, or;

Series A stage startups outside of US or Canada in an industry subsector of high interest to Base10, or;

Series B and later startups, or;

Series A startups with >$20M raised, or;

Seed companies in subsectors of little interest.

May 2018

Company Industry Sub

Sector B 10

Priority Location Stage Funding Notable Investors Short Description

Pantera Global Technology

Construction Management Software

1 Arizona NA 0.3 NA Provides construction management software that enables file sharing, document management, contact management, messaging, reporting, and collaboration.

BusyBusy Construction Management Software

1 Saint George Seed NA Caterpillar Ventures Develops software to help with labor and equipment time tracking for construction companies.

Fibo Construction Management Software

1 Sunnyvale Seed 0.1 Y Combinator Provides mobile work tracking for construction teams.

CINX Construction Management Software

1 Littleton NA 0.5 NA Provides a cloud platform that helps to easily synchronize internal departments, systems, products as well as project participants.

Cloud Takeoff (dba STACK Construction Technologies)


1 Mason Seed 0.3 CincyTech Provides a cloud-based tool for contractors in commercial construction with the ability to share digital blueprint plans and collaborate in real time.

Bridgit Construction Management Software

1 Kitchener Seed VC II 3.7 Communitech Rev, FundersClub, Hyde Park

Provides a cloud-based mobile and web construction software enabling real-time collaboration.

BuilderTREND Solutions


1 Omaha Seed 0.1 NA Provides a web-based home builder software to optimize communication between the residential builders, their customers, vendors, and subcontractors.

BuildPay Construction Management Software

1 New York Angel 5.5 NA Provides a platform for online payments designed to ease payments in the construction sector.

Hyphen Solutions Construction Management Software

1 Texas NA NA Perella Weinberg Partners

Provides integrated home builder application for supply chain management, collaboration and scheduling solutions.

Raken Construction Management Software

1 Cardiff Seed 2.0 Eniac Ventures, Rincon, Spider Capital Partners

Provides construction management solutions such as daily reporting, sub-contractor reporting, and contractor reporting.



Sector B 10


Einsite Construction Management Software

1 San Francisco Seed NA KPCB Edge Provides building Internet-of-things technology for construction and mining industries.

Pillar Technologies Construction Management Software

1 New York Seed 4.0

1517 Fund, Rough Draft, Sam Altschuler, Sound, Techstars

Develops safety sensors for construction that notify the workers of breaches.

Cold Bore Technologies

Internet of Things

1 Calgary Accelerator/Incubator 8.4 Zone Startups Calgary, Business Instincts Group

Provides digital twin solutions and real-time access to frac data.

SKUR Internet of Things

1 Oakland Seed 2.0 William Ibbs, Rick DeGolia

Provides cloud-based SaaS construction analytics.

Reconstruct Data Analytics 1 Champaign Seed 2.4

Grand Angels, Harbor Street, Illinois Ventures, Serra,

Provides predictive computer vision data analytics for construction sites.

Veerum Internet of Things

1 Calgary Seed 3.9 Brick and Mortar, Blackhorn,

Provides digital twin solutions to construction and capital projects.

Buildcon Construction Management Software

2 Belgrade Seed 0.1 500 Accelerator Provides a construction management web and mobile app enabling communication between engineers and project managers.

ALICE Technologies Construction Management Software

2 San Francisco NA 6.7 NA Provides an automated BIM to provide optimized construction schedule industrial solutions.

Drawboard Construction Management Software

2 Melbourne Pre-Seed 0.1 Startmate Provides a full featured PDF annotation tool that allows engineers to edit and share documents digitally.

Bouw7 Construction Management Software

2 Dokkum Seed 0.0 Rockstart Accelerator

Provides a construction management software, which optimizes the administration, planning and project management of construction companies.



Sector B 10


BuildUp Technologies


2 Mountain View Series A 15.5 UpWest Labs Provides users with all the tools needed to help manage construction projects onsite from a smartphone, tablet or via the web.

BulldozAIR Construction Management Software

2 Paris Seed 0.2 Impact USA, Y Combinator

Provides a task management software for construction projects, simplifying the process of tracking construction issues across a large number of construction sites.

Construct Construction Management Software

2 Porto Alegre Angel NA Plug and Play Ventures

Provides a communication platform for teams on construction projects.

EIDA Solutions Construction Management Software

2 Dublin Incubator/Accelerator NA Adopt a Startup Programme

Provides construction management solutions such as document management, progress tracking, and BIM integration.

eSUB Construction Software


2 San Diego Series A 5.0 Mainsail Partners, Revolution

Provides mobile project management solutions such as project management, time card management, corporate management, resource management, and field works mobile app, and scheduling services.

Falcon Brick Construction Management Software

2 Bangalore Seed NA LetsVenture, Mumbai Angels

Provides end-to-end mobile based solutions for the real estate, construction and infrastructure industries.

Leansite Construction Management Software

2 Harju Seed 0.0 Startup Wise Guys Provides a web-based application for supporting construction site management and providing access to the project data.

Fieldwire Construction Management Software

2 San Francisco Series A 14.3

AngelPad, Bloomberg Beta, Sand Hill Angels, Trinity Ventures

Provides mobile applications for the contractors on the field with functionalities such as task management scheduling, punch list inspection, and plan viewing.

NoteVault Construction Management Software

2 San Diego NA NA West Partners Provides a cloud-based platform that enables field workers to capture rich detail at the project site in near real-time.

think project! International


2 Bayern NA NA TA Associates

Offers cloud solutions for cross-enterprise collaboration oriented towards building construction, civil engineering, industrial construction as well as plant engineering and construction projects.



Sector B 10


Vernox Labs Data Analytics 2 Berkeley Pre-Seed 0.1 Y Combinator Provides a platform to analyze data from construction projects.

DotProduct Design Technologies

2 Boston NA NA Intel Capital Provides three dimensional data technology capture solutions.

onTarget Design Technologies

2 New York Seed 0.3

Acceleprise, MetaProp, Unshackled Ventures

Provides a visual analytics platform to mitigate risks of cost overruns and time delays of construction industry.

Joist Construction Management Software

2 San Francisco NA NA Accomplice, Matrix Partners

Provides a mobile application for industrial contractors that allows contractors to make estimates, send invoices, manage projects, and record payments.

Cooper Gray Robotics

Robotics 2 Oakland NA NA NA Provides heavy equipment through innovative applications of electric drive and Smart Control systems.

BetterView Robotics 2 San Francisco Seed 3.6 500 Startups, Arena, Haystack, Metamorphic,

Provides aerial imagery and data analysis solutions.

Viloc Construction Management Software

2 Flemish Region NA NA KPN Provides software for tool tracking and automated tool management.

VeriTread Marketplace 2 Florida Seed 5.2 Sumitomo, Pinewell Capital

Provides a platform to build, manage, and optimize internal transportation operations designed to simplify and improve the heavy-haul transportation industry.

Viirt Marketplace 2 Omaha Seed 0.9 Dundee Venture Capital

Provides pricing estimates for roof replacements by using satellite imagery.

Work Today Marketplace 2 Santa Monica Seed 1.1 E-MERGE, GAN, Hone, Mucker Capital

Provides an online employment portal online for blue collar workers.



Sector B 10


Buildmetric Construction Management Software

2 Ottawa Series A NA L-SPARK Provides a deficiency management platform for home builders to minimize the financial risks associated with construction.

Biosite Systems Construction Management Software

2 West Midlands NA NA Mobeus Equity Partners

Provides biometric access control and workforce management systems.

Capital Construction Solutions


2 New Lenox NA NA Elmspring Accelerator

Provides a module-based knowledge sharing platform to mitigate risk in construction by tackling various specific friction points.

Pavia Systems Construction Management Software

2 Seattle Series A 7.0 Eileses Capital Provides a suite of mobile applications which allows inspectors to capture data.

Xlsys Technologies (dba QwikSpec)


2 Bangalore Angel 0.8 Brigade Innovations Provides a cloud based field management mobile application for monitoring of field employees.

SignOnSite Construction Management Software

2 Canberra Seed 0.4 Sydney Angels Provides a site management platform that provides safety on construction sites.

Human Condition Safety


2 New York NA NA American International Group

Provides wearable devices, artificial intelligence, building information modeling, and cloud computing solutions.

GenieBelt Construction Management Software

3 Copenhagen Series A 7.1 Ditlev Bredahl, Giorgio Ponticelli, Solar

Provides solutions such as program management, project overviews, and instant reporting for managers.

Blue Ronin (dba Basestone)

Data Analytics 3 London Early Stage 6.0 Barclays Accelerator, Techstars

Provides a web-based drawing review application for the construction industry.

Rhumbix Data Analytics 3 San Francisco Series A 19.6 Brick & Mortar, Greylock, Spectrum 28, UJ Ventures

Provides a mobile platform for construction field supervision to ensure crews have the materials, tools, equipment, and approved drawings to complete the day’s work.



Sector B 10


Abvent Design Technologies

3 Paris NA NA Ardian Provides image and design solutions for CAD professionals in the fields of architecture and design, and photography.

IMERSO Design Technologies

3 Oslo Series A NA 500 Accelerator, StartupLab Catalyst

Provides 3D scanning software for smartphones for the construction industry.

Smartbim Design Technologies

3 Georgia NA NA NA Provides content services, ecoScorecard, library, and virtual showroom solutions.

Technical Sales International

Design Technologies

3 Rocklin NA NA NA Provides technology solutions and services such as building data managed content, autodesk software and job site solutions for the construction industry.

HoloBuilder Robotics 3 San Francisco Series A 2.3

Brick & Mortar, High-Tech Grunderfonds, Tandem

Provides AR and VR solutions to the construction industry.

InsiteVR Robotics 3 New York Seed 0.1

CyberAgent, Greg Castle, GVR, Ralph Gootee, Rothenberg, Tracy Young, Y Combinator

Provides AR/VR solutions that help architects and 3D designers to create immersive virtual reality experiences.

IrisVR Robotics 3 New York Series A 9.8

Azure Capital, Emergence Capital, Morningside, Techstars

Provides solutions that enable 3D designers, visualize, share and creates 3D models using virtual reality.

Sensopia – MagicPlan

Robotics 3 Montreal Series A 1.2 Normandy, Partech, Tekton

Provides an application used for making floor plans.

Scope AR Robotics 3 San Francisco Seed 2.0 New Stack, Susa, Y Combinator

Provides augmented reality smart instructions and live support video calling solutions.



Sector B 10


CBOT Robotics 3 Ostergotland Series A 0.4 ALMI, Almi Invest, LiU Invest

Provides automation solutions in the construction industry that enables companies to follow frame of reference tiles for tile filling and ensures smooth and unruffled placements.

Construction Robotics

Robotics 3 New York Angel 1.2 NA Manufactures robotics and automation equipment intended to automate construction process.

AirZaar Robotics 3 Missouri Seed 0.4

Missouri Technology Corporation, Quake Capital

Provides image-processing and visual intelligence for mining, construction and infrastructure clients.

Unearth Technologies

Robotics 3 Seattle Series A 4.3 John Boswell, John Case

Provides cloud-based project planning, project management and project completion solutions.

Dozr Marketplace 3 Ontario Seed 1.9 Communitech Rev, FairVentures

Provides a platform for equipment renting and leasing.

Getable Marketplace 3 San Francisco Series A 8.2

Amicus Capital, Andreessen Horowitz, , Lowercase Capital

Provides a free app for contractors to procure, manage, and pay for equipment rentals.

Kwipped Marketplace 3 North Carolina Series A 1.3 Inception Micro Angel Fund, VentureSouth

Provides an online rental marketplace where businesses can locate and rent the equipment from a global network of the company's suppliers.

Machinio Marketplace 3 Chicago Series A 4.4

Elevation Partners, Entrepreneurs Roundtable Accelerator

Provides an online search portal for buying and selling new and used industrial equipment and machinery.

Con-Conn Marketplace 3 Massachusetts Series A 0.6 NA Provides a web-based marketplace for the horizontal construction industry.

BuildZoom Marketplace 3 San Francisco Series A 14.2 8VC, Beenos, Cota Capital, Formation 8

Provides service designed to connect homeowners with licensed contractors.



Sector B 10


Architizer Marketplace 3 New York Series A 15.0

Alessandro Piol, AlphaPrime, August Capital, Gaspar Global

Provides a platform that connects architects to a network of peers and clients.

Ackcio Construction Management Software

3 Singapore Series A NA Entrepreneur First Provides real-time wireless monitoring solutions for the construction industry.

BuildingConnected Construction Management Software

Low/None San Francisco Series B 30.8 Bee Partners, Brick & Mortar, Crosslink Capital

Provides bid management solutions and connects construction professionals across the US.

Fieldly Construction Management Software

Low/None Skane Series B 2.1 K5 Advisors, Lund University

Provides a web based management system for the office combined with a fully integrated mobile app for the field.

Ipsum Construction Management Software

Low/None Santiago Series B 1.0 Wayra Provides an online productivity management platform.

Newforma Construction Management Software

Low/None New Hampshire Series D 30.3 Borealis, Kodiak Venture, North Bridge

Provides project information management software as well as consulting and implementation services, instructor led training, and support services.

PlanGrid Construction Management Software

Low/None San Francisco Series B 66.0

500 Startups, Base Ventures, Founders Fund, Northgate Capital, Sequoia Capital

Provides a mobile application for the construction industry that allows the construction workers to store, view, track, and communicate with construction blueprints on the mobile device.

Procore Technologies


Low/None Carpinteria Series F 182.2

Bessemer, Hamilton BioVentures, ICONIQ, Lead Edge Capital,

Provides Procore Construction OS which connects people, applications, and devices through a unified platform that helps construction firms manage risk.

Uptake Technologies

Data Analytics Low/None Chicago Series D 202.0

Revolution, Caterpillar, GreatPoint, Lightbank,

Provides predictive analytics platform for the construction industry.



Sector B 10


Flux Factory Design Technologies

Low/None San Francisco Series B 68.2

Andreessen Horowitz, Borealis, Far East, Google Ventures

Provides cloud-based collaboration tools for architects, engineers, and contractors to exchange data and streamline complex design workflows.

Graitec Design Technologies

Low/None Biévres Series B 7.5 Innovation Capital, Isatis Capital

Provides integrated design and detailing software for professional training, project mentoring and consultancy, design and visualization.

Onshape Design Technologies

Low/None Masachusetts Series D 169.0

Andreessen Horowitz, Bolt Innovation, Commonwealth Capital

Provides cloud and mobile professional 3D CAD system.

Revizto (dba Vizerra) Design Technologies

Low/None Moscow Series B 15.0 Leader-Innovations, Solway Investment Group

Provides a digital platform that helps architects and graphic designers to build interactive 3D models.

Pandora Augmented & Virtual Reality Technologies

Robotics Low/None Istanbul NA NA Bluecap, Huseyin Emre Yilmaz

Provides an application that uses augmented reality to present three dimensional architectural models in physical environment.

ShilpMIS Technologies

Robotics Low/None Surat Angel NA IvyCamp Develops VR and AR based products that help users create interactive VR applications.

Endless Robotics Robotics Low/None Hyderabad Seed 0.1

Avishkar Accelerator, Singapore Angel Network

Provides automation solutions for applying paints and coatings in construction and industrial applications.

Dronomy Robotics Low/None Tel Aviv Series B 1.5

31Ventures, Battery Ventures, LocalGlobe, Lool Ventures, Oryzn Capital

Provides custom software for using drones that makes it easier and safer for people to fly drones autonomously and avoid obstacles, especially in cluttered outdoor environments.

Propeller Aerobotics Robotics Low/None New South Wales

Seed 3.8 Accel, Blackbird, Cicada Innovations, Startmate

Provides GPS equipment for drones, drones data processing and drone mapping software services.



Sector B 10


Skycatch Robotics Low/None San Francisco Series B 47.0

Autodesk Spark, Google Ventures, Industry Ventures, Qualcomm

Provides a drone platform for commercial logistics applications with real-time HD imagery and video capabilities.

DroneDeploy Robotics Low/None San Francisco Series B 31.0

AngelPad, Emergence, Scale Venture, Draper Fisher Jurvetson

Provides a drone management platform helping contractors in data acquisition and uploading to the cloud.

Airware Robotics Low/None San Francisco Series C 68.2

Caterpillar, Intel Capital, Andreessen Horowitz, GE Ventures, Google Ventures

Provides an aerial information platform for the safe operation of commercial drones, providing hardware, software, and cloud services.

3D Robotics Robotics Low/None Berkely Series D 105.0

Atlantic Bridge, Autodesk Forge, Foundry Group, True Ventures, Qualcomm, Two Sigma

Designs and manufactures electronics and aerial vehicles.

SmartEquip Construction Management Software

Low/None Connecticut Series D 20.1 Connecticut Innovations

Provides software products for manufacturers, dealers and fleet owners across construction, industrial equipment and power tools industries.

Katerra Construction Management Software

Low/None Menlo Park Series D 1,078.4 DFJ Growth, Greenoaks, Khosla Ventures

Provides buildings design and project management services.

EquipmentShare Marketplace Low/None Missouri Series B 33.6

FundersClub, Insight Venture, Krillion Ventures, Romulus Capital

Provides a platform that combines insurance verification, background checks, payment processing, and an interface for lending and renting equipment.

Equippo Marketplace Low/None Zug Seed NA btov Partners Provides an online marketplace for used heavy equipment.

Buildkar Marketplace Low/None Bangalore Seed NA Mustafa Wajid, Umang Kumar

Operates as an online marketplace for building materials.



Sector B 10


Builk Marketplace Low/None Bangkok NA 0.4 500 Accelerator, Project Planning Service

Provides an online platform for construction services such as construction materials.

OfBusiness Marketplace Low/None Gurgaon Series B 16.1 Matrix Partners, Zodius Capital

Provides an online platform for business-to-business commerce focusing on bulk material supply, credit, and logistics for small and medium enterprises in the manufacturing and construction sectors.

Swee10 (dba Sweeten)

Marketplace Low/None New York Series C 7.6 Gotham Gal, Great Oaks, Navitas Capital

Provides a platform that matches home and small business owners with renovation needs to architects, designers, and general contractors for projects.

Express Lien (dba Zlien)


Low/None New Orleans Series B 16.8

Abstraction Ventures, Altos Ventures, Brick & Mortar,

Provides a platform to manage notices and lien waivers across clients' projects.

BuildSafe Construction Management Software

Low/None Stockholm Series B 1.2 Almi Invest, MOOR, Venture Cup

Provides an application to monitor the security on construction projects.

FINALCAD Construction Management Software

Low/None Ile de France Series B 22.9 Aster Capital, CapHorn Invest, Serena Capital

Provides 3D BIM solutions to manage and plan projects.

Maana Internet of Things

Low/None Palo Alto Series C 73.3

Accenture Ventures, GE Ventures, Intel Capital

Provides big data analytics solutions across industries such as industrial, and oil and gas.

C3 Energy Internet of Things

Low/None Redwood City Series F 248.6

TPG Growth, Primera Capital, The Rise Fund, Breyer Capital, Makena

Provides a cloud-based suite of pre-built applications that offer big data, artificial intelligence, and IoT applications.

Kespry Robotics Low/None Menlo Park Series C 61.4

Cisco Investments, DCM Ventures, ABB Technology Ventures

Provides automated drone systems intended for aggregates, mining and construction industries.

May 2018

C O M PA R A B L E S

Comparable Companies

As of May 2018

Company Name Ticker Share Price $

Market Cap $M

EV $M Revenue $M (LTM)

Rev Growth

Gross Profit $M

(LTM) GPM

EBITDA $M (LTM)

EV / Rev EV / GP EV/EBITD

A

Construction Companies

Fluor Corp FLR 61.5 8,601.9 8,292.1 19,521.0 2.5% 618.5 3.2% 651.5 0.42x 13.4x 12.7x

Jacobs Engineering Group Inc

JEC 60.5 8,565.5 10,191.6 10,221.5 (8.6%) 1,840.1 18.0% 484.8 1.00x 5.5x 21.0x

Snc-Lavalin Group Inc SNC 44.0 7,723.5 9,659.5 7,196.2 12.5% 1,459.7 20.3% 631.3 1.34x 6.6x 15.3x

Aecom ACM 36.1 5,742.8 9,058.2 18,755.9 4.6% 649.9 3.5% 796.1 0.48x 13.9x 11.4x

Wsp Global Inc WSP 50.2 5,193.4 5,970.6 5,351.8 11.1% 4,129.5 77.2% 398.3 1.12x 1.4x 15.0x

Quanta Services Inc PWR 33.5 5,029.5 5,567.2 9,466.5 23.7% 1,241.9 13.1% 594.9 0.59x 4.5x 9.4x

Emcor Group Inc EME 80.6 4,709.2 4,552.7 7,687.0 1.8% 1,147.0 14.9% 419.1 0.59x 4.0x 10.9x

Mastec Inc MTZ 44.9 3,696.8 5,027.6 6,607.0 28.7% 861.7 13.0% 586.6 0.76x 5.8x 8.6x

Dycom Industries Inc DY 105.3 3,284.5 3,960.8 2,977.9 14.8% 608.0 20.4% 362.3 1.33x 6.5x 10.9x

Stantec Inc STN 24.8 2,826.2 3,227.8 2,634.4 12.6% 1,409.2 53.5% 280.7 1.23x 2.3x 11.5x

Topbuild Corp BLD 79.0 2,813.6 2,999.0 1,906.3 9.4% 461.1 24.2% 153.3 1.57x 6.5x 19.6x

Kbr Inc KBR 16.7 2,353.2 2,414.2 4,171.0 (2.3%) 342.0 8.2% 314.0 0.58x 7.1x 7.7x

Exponent Inc EXPO 85.8 2,231.2 2,052.5 360.1 10.4% 126.4 35.1% 85.3 5.70x NM 24.1x

Granite Construction Inc GVA 55.2 2,209.0 2,114.7 2,989.7 18.9% 314.9 10.5% 165.1 0.71x 6.7x 12.8x



Market Cap $M


Rev Growth

Gross Profit $M

(LTM) GPM

EBITDA $M (LTM)


A

Installed Building Products IBP 57.5 1,810.7 2,077.9 1,132.9 31.3% 324.0 28.6% 129.4 1.83x 6.4x 16.1x

Min 1,810.7 2,052.5 360.1 (8.6%) 126.4 3.2% 85.3 0.42x 1.4x 7.7x

Median 3,696.8 4,552.7 5,351.8 12.5% 649.9 18.0% 398.3 1.00x 6.5x 12.7x

Average 4,452.7 5,144.4 6,732.0 14.0% 1,035.6 22.9% 403.5 1.28x 6.5x 13.8x

Max 8,601.9 10,191.6 19,521.0 31.3% 4,129.5 77.2% 796.1 5.70x 13.9x 24.1x


Market Cap $M


Rev Growth

Gross Profit $M

(LTM) GPM

EBITDA $M (LTM)


A

Construction Technology Companies

Dassault Systemes Sa DSY 132.9 34,631.1 32,877.3 3,646.8 7.8% 3,111.4 85.3% 1,069.4 9.02x 10.6x NM

Autodesk Inc ADSK 129.2 28,203.6 28,275.6 2,056.6 1.3% 1,753.2 85.2% (400.7) NM NM NM

Ansys Inc ANSS 162.6 13,666.3 12,784.5 1,095.3 10.8% 945.1 86.3% 458.4 NM 13.5x NM

Trimble Inc TRMB 36.1 8,981.7 9,358.2 2,654.2 12.4% 1,392.6 52.5% 429.4 3.53x 6.7x 21.8x

Ritchie Bros Auctioneers RBA 33.0 3,545.4 4,102.4 610.5 7.8% 531.5 87.1% 166.5 6.72x 7.7x 24.6x

Rib Software Se RIB 25.4 1,310.4 1,167.9 122.3 12.9% 73.8 60.3% 45.7 9.55x NM NM

Skyline Corp SKY 26.0 217.8 203.7 233.7 11.7% 31.4 13.4% 9.2 0.87x 6.5x 22.2x

Bimobject Ab BIM 3.9 203.9 190.1 9.9 NM 8.6 86.5% (5.6) NM NM NM

Fastbrick Robotics Ltd FBR 0.1 157.5 126.2 0.5 NM NA NA (3.2) NM NA NM

Elecosoft Plc ELCO 0.8 65.4 64.0 25.8 6.8% 22.6 87.9% 4.8 2.48x 2.8x 13.4x



Market Cap $M


Rev Growth

Gross Profit $M

(LTM) GPM

EBITDA $M (LTM)


A

Renoworks Software Inc RW 0.1 4.4 4.0 2.4 12.7% 1.7 70.2% (0.6) 1.69x 2.4x NM

Min 4.4 4.0 0.5 1.3% 1.7 13.4% (400.7) 0.87x 2.4x 13.4x

Median 1,310.4 1,167.9 233.7 10.8% 302.6 85.3% 9.2 3.53x 6.7x 22.0x

Average 8,271.6 8,104.9 950.7 9.4% 787.2 71.5% 161.2 4.84x 7.2x 20.5x

Max 34,631.1 32,877.3 3,646.8 12.9% 3,111.4 87.9% 1,069.4 9.55x 13.5x 24.6x

May 2018

Construction Technology Industry

Top 10 Construction Deals in 2018 YTD - As of May 2018

Announced Target Name Acquirer Name Status Deal Value $B

03/14/18 Abertis Infraestructuras Hochtief AG; Atlantia SpA; Abertis Infraestructuras

Pending 33.3

03/10/18 Zhongtian City Investment Guiyang Jinshiqi Industrial Investment Co. Ltd.

Pending 3.9

01/08/18 Lucid Energy Group II Goldman Sachs Capital Partners; Riverstone Investment Group

Pending 1.6

01/10/18 Primewaterview Holdings Nigeria Milost Global, Inc.; Isilo Capital Partners

Complete 1.1

03/23/18 Concession A25 Transurban Group Ltd. Pending 0.6

02/06/18 SandRidge Energy Midstates Petroleum Co., Inc. Pending 0.5

03/01/18 USI, Inc. TopBuild Corp. Pending 0.5

02/20/18 RSI Communities William Lyon Homes, Inc. Complete 0.5

02/14/18 Layne Christensen Co. Granite Construction, Inc. Pending 0.5

03/08/18 Hangzhou Shengyuan Real Estate Development Co.

Ningbo United Group Co., Ltd. Pending 0.4

Top 10 Construction Deals in 2017


10/30/17 CalAtlantic Group Lennar Corp. Complete 9.9

08/22/17 Joy City Property COFCO Property Co., Ltd. Pending 2.6

10/02/17 Medallion Gathering & Processing Global Infrastructure Management LLC

Complete 1.8

12/29/17 Hopewell Highway Infrastructure City of Shenzhen; Shenzhen Investment Holdings Co., Ltd.

Complete 1.3

10/26/17 Aecon Group Government of China; CCCC International Holding Ltd.

Pending 1.1

06/14/17 Beijing Huicheng Real Estate Development Co.

Beijing Zhende Real Estate Development Co. Ltd.

Pending 0.9

06/19/17 Lemminkäinen Oyj YIT Oyj Complete 0.9

08/02/17 The Miller Homes Group UK Bridgepoint Advisers Ltd. Complete 0.9

04/14/17 I&P Group Sdn.. S P Setia Bhd. Complete 0.8

03/22/17 Gainesville Renewable Energy Center Gainesville Regional Utilities; City of Gainesville (Florida)

Complete 0.8

May 2018

Top 10 Construction Deals in 2016


05/12/16 Nova Transportadora do Sudeste

Brookfield Asset Management, Inc.; Brookfield Infrastructure Partners LP; GIC Pte Ltd.; CIC Capital Corp.; Nova Transportadora Do Sudeste SA

Complete 5.2

11/24/16 Shanghai Zhongxing (Group) Co. China Enterprise Co., Ltd. Pending 3.0

12/01/16 Xella International Lone Star Americas Acquisitions LLC;

Complete 2.2

09/18/16 Legend Holdings Corp. Sunac Real Estate Group Co., Ltd. Pending 2.1

10/11/16 Beijing Vantone Real Estate Co. Jiahua Eastern Holdings (Group) Co.

Pending 1.8

08/08/16 Investimentos e Participações em Infraestrutura

VINCI Concessions SAS; Vinci Highways SAS

Complete 1.6

10/13/16 D. Carnegie & Co. The Blackstone Group LP Pending 1.6

09/29/16 Wuxi Guolian Environment & Energy Group Co.

Wuxi Huaguang Boiler Co., Ltd. Complete 1.2

08/08/16 JPM EOC Opal LLC SM Energy Co. Complete 1.0

01/21/16 Sociedad Concesionaria Autopista Central

Inversora de Infraestructuras SL Complete 0.8

Top Construction Technology Deals in 2018 YTD

Announced Target Name Acquirer Name Status Deal Value $M

04/23/18 Viewpoint, Inc. Trimble, Inc. Pending 1,200.0

02/02/18 e-Builder, Inc. Trimble, Inc. Complete 500.0

01/11/18 Construction Systems Associates, Inc. Universal-mCloud Corp. Pending 4.5

02/19/18 FABIS Sales Solutions GmbH & Co. adesso insurance solutions GmbH Complete 1.9

01/17/18 Cosmo Engineering KK ITbook Co., Ltd. Complete 1.0

02/22/18 Archibank KK /Archicloud Bus/ SHARINGTECHNOLOGY.INC Pending 0.6


Top Construction Technology Deals in 2017


12/17/17 Aconex Oracle Pending 1,200.0

03/07/17 Tagetik Software SRL Wolters Kluwer Tax & Accounting Complete 317.9

07/06/17 Compact Power Equipment Centers The Home Depot Pending 265.0

10/26/17 Chalco Shandong Engineering Technology Co., Ltd.

Government of China; Aluminum Corp. of China; China Aluminum International Engineering Corp.

Pending 54.3

08/02/17 Beijing Dongjing Tianyuan Software Technology Co.

Beijing Taikong Panel Industry Corp.

Pending 23.1

08/29/17 Hangzhou Changyun Lu Yun Property Ltd.

Hangzhou Yunqi Cloud Data Ltd. Pending 21.0

11/10/17 Eque2 Lloyds Development Capital; Eque2 Ltd.

Complete 17.4

02/03/17 Habitissimo SL Homeserve International Ltd. Complete 16.1

11/15/17 Exactal Group RIB Software SE Pending 14.3

11/15/17 leafnet Co. PCI Holdings, Inc. Complete 11.9

Top Construction Technology Deals in 2016


11/14/16 ServiceMax GE Digital Energy, Inc.; GE Industrial Systems

Complete 915.0

08/29/16 IronPlanet Ritchie Bros. Auctioneers, Inc. Complete 777.1

10/31/16 iSqFt Roper Technologies, Inc. Complete 632.0

04/28/16 Textura Oracle Corp. Complete 616.0

03/17/16 Conject Holding Aconex Ltd. Complete 72.0

12/06/16 WeGoLook Crawford Innovative Ventures LLC Complete 36.1

01/12/16 Insigma Mechanical & Electrical Engineering Co.

Hangzhou Chengshang Technology Co.

Pending 19.6

11/16/16 EPA SYSTEM ERI Holdings Co., Ltd. Complete 1.8

11/04/16 AWS Cambodia AWS Cambodia Ltd. /Sakhun/ Complete 0.6


Research Process

Real Economy Research Process

High Impact Corporate Interviews

SENIOR DIRECTOR AT SUNCOR ENERGY (TSX: SU, $66B MARKET CAP)

Key Takeaways

• Digital Twin technology is a commodity, there are lots of companies that can collect construction site mapping

• He estimates survey crew costs them $3.6M / year per project. The DT company they use replaces this

cost.

▪ 10 ppl, 10 hours per day, 7 days/week, $100/hr = $3,640,000

Suncor

• Fully integrated energy company with upstream, midstream, and downstream ops

• Upstream is primarily focused on oil sands and that is their main money maker

Digital Twin

• Definitely a commodity, lots of companies can collect mapping of structure

• When you think of complexity of construction, what is valuable to them is analysis of data for more efficient

work execution

• Allows them to monitor inputs / inventory in real time (accurate) and in a format that lines up with their typical

work processes

• Have $300M of dirt, if you save 1% of that, it is huge

• Before they picked the DT company, talked to several other companies with drone capability but without data

capabilities

• Typically, would do rough guess on materials but now they can get accurate estimate

• Now they are in field and moving dirt from A to B, they do a digital twin every day/hour and can compare a

new DT to an older DT and actually calculate the volume moved

• Primary benefit is real time inventory picture


SENIOR DATA SCIENTIST AT CHEVRON (NYSE: CVX, $230B MARKET CAP)

Key Takeaways

• Scanning technology is a commodity but integrating the output into software systems of the end user is very

difficult. He would dig into their current integrations and strategy going forward

▪ Focus on CAD integrations. CAD comes in hundreds of different flavors and he doesn't think it is that

easy to just be integrated with all different versions. (focus on the software used by major EPCs - Bechtel,

KKR, Fluer, etc.)

▪ Also learn what other software sets they are integrating into (e.g. cost/schedule (Primavera) /project

management software - which would be relevant for quantity surveying)

• Believes DT companies would add the most value around inventory tracking for large projects and verifying

percentage of completion for each GC

▪ This is real value-add b/c right now it is done by surveying crews

▪ These crews are on the job site and ONLY report back the numbers, there is no visual

▪ If they can report numbers and visuals, this is a tangible improvement

• He is less familiar with the prefab uses but sees how it could be helpful

• Chevron, nor any of the other majors, would ever take something like Veerum in house. They want a third

party to do it for them

• Chevron is beginning to institute "Project Production Management" which emphasizes daily verification of

projects

▪ For every project, Chevron wants to establish a way to verify what people are reporting is true or not (this

sub bullet isn't quite right, but close enough for notes).

Project Production Management

• Moving to daily surveys

• Way to verify what people are reporting is true or not

• Nice complement, not a substitute

• Chevron does nothing themselves nor do any of the majors

• Integrations mots important things. All PMs care about

• Not ground breaking or tech changing but useful to PMs

• Data is the asset, has many different uses

SENIOR VDC ENGINEER AT AECOM (NYSE: ACM, $5b MARKET CAP)

Background

• Works for Aecom, build projects of all sizes, from LA Rams stadium, hospitals

• His role is VDC (virtual design construction group), support all the projects form virtual standpoint, get project

teams up to speed on technology on what they need to use


When did they first digital twin technologies a shot?

• Used system called multi-vista, it's a managed service operated by owner, do something similar but don't do

360 photos. That's been used on quite a few of projects in the past. This could be replacement for multi-

vista, could cut a lot of cost by manage it yourself, multi-vista is a managed service

• Don't always take progress photos w/ multi-vista/holobuilder. May not have expertise to do that on site for a

job

Value of 360 view?

• Much cheaper and you can manage it

• Spend 20m on Autodesk. Autodesk doesn't have Holobuilder functionality. Multi-vista is contracted through

owner so Aecom doesn't get cost #'s, etc.

Biggest value prop of BIM solutions?

• they virtually coordinate all the work going into the building before they go on-site. They were in a meeting

where they had 2 different trades arguing what was there vs. in model, but the previous week they ran the

photos from on-site (they were off-site) and they were able to give an answer right there from the photo and

move forward. If they didn't have that photo, they'd have to contact someone on-site to get measurement to

help answer the question

How hard is it to get someone on-site to take photos?

• Not difficult, so long as that person exists

• How long does it take? Depends on project size

• How often do they go through to take photo? Depends on project size and complexity

What other software tools to use?

• Autodesk, all their 360 products, revit, Autocad

• CMIC for project management

• For logging hours? Use 360 field

SENIOR PROJECT MANAGER AT HENSEL PHELPS, ONE THE LARGEST GENERAL

CONTRACTORS IN THE US

Background

• Superintendent for Hensel Phelps top 25 GC, have offices in 8 locations in US, headquarters in CO. Andrew

is working on SF airport project, 1.2B project

Were they looking for 360 degree capture solution?

• Yes, they were so frustrated with the solutions out there, they tried building something internal. What else

did they look at? Looked at Plangrid but wasn't good for project documentation/issue tracking, multi-vista (all

they do is come out and take pictures for you, 0 value there), and 1 other company (like Autodesk but not

them)


• Multi-vista was originally amazing bc you could scan a picture and take dimensions from it. MV is higher

resolution than HB

• How do you schedule w MV? They force you into cadence (every Friday at 4pm), they do have on-call for

24 hr / 12 hr notice. It's worse than scheduling Verizon to come to your house. They tell you they can come

from 9-4pm, which is totally useless

• HB links photos to floorplan, no other software does that, works like how they think about building

Main use case?

• Documenting periodic process at SFO. Will send 17 field engineers (users) that will go out and record what

the area looks like, document. What they intend to use it for is for inwall or ceiling compliance, can document

it with minimal strain on project staff

How long will the pictures last?

• 10 years is the statute of limitations

• Since they started using it 1.5 years ago, they have active in 3 out of their 5 projects; they aren't using it in

2 projects

How much do they pay for it?

• Pay per sq. ft.

Founder Interviews

CEO OF FAST GROWING SERIES A DIGITAL TWIN STARTUP

Key Takeaways

• Digial twin companies main value propositions are:

▪ Ability to pay contractors on a daily basis from DT which tells them exactly how much of project is

completed. This happens automatically due to integrations with construction work flow payment software

▪ Ability to track construction inventory in real time

▪ Replacement of surveying crews

▪ From top to bottom is 4-6 month sales cycle from customer generation to close of contract

▪ Customization of each project is in the data capture. I.e. what data does the customer want on a daily

basis

Use case examples

• They are leveraging the data from the DT to solve problems

• Client 1

▪ Use satellite imagery, drones for some data capture

▪ They are seeing on their computer an exact replication of their facility but then the functionality part is

whether or not it is heat mapping or showing them where the project is not fitting reality


▪ Progress reporting on daily basis (are you 45% complete or 56% complete)

▪ Tracking volumes of all inventory

o If contractor says they have installed 42% but contractor says 48%

• Building integrations to pay contractors and to not try to replace things, just integrate into existing systems

• Primary project softwares are SAP and Oracle Primavera. Microsoft also has Microsoft Project. Person

investing in this round is a high up at Oracle. Exec at Oracle is investing

▪ Pay contractor based on percentage of completion on project

▪ Everyone can see it and it is calculated precisely

Value Prop to Customers

• Ability to reduce risk on cost and schedule around these big projects

• They bring truth and reality of project to track everything that is happening

• The problem on big projects is on global average they go over budget by 30%

• They replace costs

▪ Clear and linear they replace is cost associated with gathering info to measure these projects

CO-FOUNDER OF FAST GROWING GROWTH STAGE CONSTRUCTION TECH

STARTUP

Background

• 60% of construction budgets are over budget and over time - they enable better decision making to keep

budgets in line

Product

• Enable them to make better decisions by having the right planning tool, integrated with their master plan and

taking it down to the field.

• Allows their customers to integrate their 3D BIM models, and from there you can automate field work and

understand lean team

• That creates integration between master plan and field plan. They add ML that does recognition of scan of

the vision to compare plan vs. actual

• They can answer questions like: who is delaying your project, verify your invoices, how is weather impacting

your schedule, etc. this can be pushed back to master schedule so entire feedback loop is complete

• Initial focus is commercial construction. 200 projects actively using on target now

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