Historically, the process of construction scheduling has been as much art as science, with plans made by schedulers based principally on past experience, rather than on the evaluation and testing of different options to produce an optional schedule. Why haven’t schedulers traditionally explored multiple plans? In short, this was because with existing software, such exploration was simply too difficult to do. But recent advances in artificial intelligence are bringing new capabilities to the scheduling world, perhaps the most intriguing of which is “construction optioneering.”
So what is this new addition to the scheduling world? And how does it benefit the general contractors and owners that are adopting it?
Construction optioneering gives companies the ability to use “what if” analysis to explore different ways to build, to “pressure test” existing schedules and find alternatives that could be faster, less risky, and more profitable. The category was created by ALICE Technologies, and its product ALICE Core enables builders to import a P6 schedule into the ALICE platform and immediately begin testing alternatives to the baseline. Builders can use the product to consider questions such as “what if I added an extra crane to the building site?,” “what if my shipment of steel from concrete arrived from China a month late?,” or “what if a nasty winter storm delayed the start of construction by two weeks?.” With the power of AI, builders can find ways to address these issues and adjust their schedules to account for such situations.
The discipline can also be used to address broader performance questions, such as “how can I reduce my total build time” or “how can I change my schedule to reduce labor costs”?
In the case of ALICE, such easy manipulation and exploration of schedules is made possible by the fact that the product is parametric. This means that the schedules’ key elements are converted into variables – variables that can then be easily changed to evaluate the impact of such changes and determine the optimal path forward.
Once a scheduler has optioneered his schedule this way, he can then export it back to P6 and OPC, where he can compare it against his baseline schedule and export results to owners and other audiences that may contractually require that contractors share schedules with them as a P6 or OPC file. Given that the Oracle Primavera product family is an established industry standard, such a requirement is no surprise. And now, using these products and ALICE Core together, schedulers have a new-found ability to deliver AI-optimized schedules that are substantially more efficient.
ALICE Technologies CEO, René Morkos, recently commented, “2023 was the year in which AI received widespread recognition as an innovation that would radically change the technology landscape. In 2024, companies are pushing forward in industry after industry to put AI to work. Construction scheduling is the perfect example of a very focused use case for AI – one in which it can substantially impact productivity and profitability.”
Where has construction optioneering seen early wins? Thusfar, it has resonated particularly well in the industrial and infrastructure segments, sectors where the project size is fairly large ($100M+) and the ROI significant. A general contractor might put construction optioneering to work in building a nuclear power plant, for example, or an oil and gas pipeline. But as the technology continues to advance and software prices drop, we should see adoption spread quickly to additional sectors – such as commercial – and to smaller projects.
In short, the construction optioneering is a game in early innings. But given the speed with which the AI segment is progressing, the potential for optioneering to make a substantial impact on our industry in just the next few years is high.
Author: PHIL CARPENTER
PHIL CARPENTER
CMO, ALICE TECHNOLOGIES
Phil joined ALICE with 30 years of strategic marketing and communications experience. He built the marketing function from the ground up at multiple high-growth startups, such as Yalo, Latin America’s leading conversational commerce company, and SideStep, which created the travel search engine category and was purchased by Kayak. Phil also served as senior partner for Allison+Partners, the global marketing services agency, where he ran the firm’s six west coast offices. In addition, he co-founded Whiskey Creek Properties, a real estate development company that builds multi-family rental properties in Phoenix, AZ. At ALICE, Phil is responsible for driving global marketing and communications, including growth marketing, product marketing, event marketing, and corporate communications. He received his BA from Stanford University and MBA from Harvard University.
Company: ALICE TECHNOLOGIES
ALICE Technologies is the creator of the world’s first construction optioneering platform. Founded in 2015 and spun out of research from Stanford University, ALICE helps large contractors and owners to reduce risk and plan, bid and build more efficiently. The company works with large customers in the infrastructure, industrial, and commercial construction segments, such as Bouygues, SCS JV and Implenia. Headquartered in the U.S. ALICE also has significant operations in the Czech Republic, the U.K., and India. Learn more at www.alicetechnologies.com.
