ConstructionOnline Blog

Cydney Dorsey

Cydney Dorsey

Recent Posts by Cydney Dorsey:

Construction's AI Problem Isn't Artificial

The contractors positioned to get the most from AI aren't necessarily the earliest adopters. They're the ones with the cleanest data, strongest processes, and most disciplined operations.


Every contractor in the country is getting the same pitch right now: AI will transform your business. It will win you more bids, tighten your margins, and do in seconds what used to take your team days.

The demos are slick. The promises are bold. And the fear of being left behind is doing a lot of the selling.

But there is an uncomfortable truth buried under all that enthusiasm: AI does not fix a broken operation. It exposes it.

Point a powerful tool at a clean, disciplined process, and it can make good work faster. Point that same tool at a chaotic one, and it can make expensive mistakes faster.

Garbage in, garbage out...just faster, bigger, more expensive mistakes. 

The companies positioned to get the most from AI are not necessarily the ones racing to adopt every new tool. They are the ones who have already done the less exciting work of getting their operations in order.

Over the next few years, that distinction is going to separate the success stories from the failures, and it has almost nothing to do with which platform you adopt.

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Topics: Construction Operations Management Construction Operations

How to Calculate the ROI of Construction Management Software

You know what your construction management software costs. The invoice shows up every month, right on schedule. What's harder to pin down is what you're actually getting back for it, and that gap is exactly where most software ROI conversations get stuck.

Construction management software is an investment. Like any other investment your construction company makes, it should create measurable value for the business.

The challenge is that the return is not always found in one obvious place.

Some of the value may show up directly on the bottom line through better cost control or improved profitability. Other returns may come from hours of administrative work eliminated each week, fewer project mistakes, reduced rework, faster communication, or better documentation across the company.

That makes calculating the return on investment (ROI) of construction management software especially important.

Understanding construction software ROI gives contractors a clearer way to evaluate what their technology is actually contributing to the business, and whether the benefits justify the cost.

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Construction Labor Costs: What They Include and How to Calculate Them

Labor is one of the largest costs on any construction project—often 30% to 50% of total project cost for self-performed work, and for some trades and contract types, more. It's also one of the costs most likely to be wrong in the estimate, for a simple reason: the number most builders carry for labor isn't the number labor actually costs.

Materials get quoted. Subs get bid. But self-performed labor gets estimated with the number that's easiest to grab—the wage rate—and the wage rate is only part of the story. The rest shows up in payroll, quietly, on every job, whether the bid accounted for it or not.

This article covers what construction labor costs actually include, how to calculate a fully burdened labor rate you can trust in a bid, and—because percentages on a page never quite land the way a real job does—what the gap looks like on one crew, over one ordinary week.

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The Complete Guide to Construction Punch Lists

The project is 98% done. The owner is asking about move-in. Your super is wrapping up the last few trades. And then the punch list walkthrough happens.

Items nobody documented during construction. Subcontractors who don't agree they're responsible. A list that's incomplete, inconsistently formatted, and sitting in three different places. An owner who expected the project to be finished—not entering a new round of back-and-forth.

Sound familiar? It should. This scenario plays out on jobsites everywhere, and most teams chalk it up to the nature of closeout. But the truth is harder to ignore: most punch list problems aren't closeout problems. They're process problems that show up at closeout.

This guide covers everything construction professionals need to know about punch lists—what they are, how they work, how to manage them well, and how to build a closeout process that doesn't cost you time, money, or client relationships at the finish line.

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Topics: Punch Lists Project Tracking Construction Project Management

The Anatomy of a Repeatable Change Order Workflow

Every experienced builder knows the feeling. A change comes up mid-project—a client wants a different countertop, an inspector flags a code update, a subcontractor hits a hidden condition behind a wall—and suddenly there's a flurry of phone calls, emails, sticky notes, and "I'll get to it later" promises. The work moves forward, but the documentation lags behind. By the time someone tries to reconstruct what happened, half the details are missing.

This is how change orders quietly erode profit margins. Not through any single dramatic failure, but through dozens of small process gaps that compound across a project—and across every project a firm runs.

The solution doesn't lie in more diligence or more reminders. What's needed is a repeatable workflow: a defined sequence of steps that every change order follows, from the moment the change is identified to the moment payment clears. When that workflow is consistent, change orders stop being a source of friction and start functioning as the financial control mechanism they're meant to be. 

This article walks through the 6 stages that make up a proven, repeatable change order workflow and what each stage needs to include for the system to hold up in practice.

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Topics: Business Building Best Practices Change Orders Financials

What's the Real Cost of Poor Change Order Tracking?

Change isn't an exception in construction. It's part of the job. Every project, no matter how well planned, encounters modifications along the way: client upgrades, unforeseen site conditions, design clarifications, material substitutions. How those changes are managed often determines whether the project stays profitable. . .or spirals into dispute.

And yet, one of the most common operational failures in construction remains change order management. When documentation is delayed, approvals are skipped, or communication breaks down, the results are costly—not just in dollars, but in time, trust, and reputation.

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Topics: Business Building Best Practices Change Orders Financials

5 Mistakes Builders Make with Change Orders (and How to Avoid Them)

Change orders are one of the most consequential pieces of any construction project...and one of the most commonly mishandled. Done well, they protect margins, clarify expectations, and keep projects moving. Done poorly, they cause disputes, delays, and lost revenue.

Most change order problems don't come from a single dramatic failure. They come from small, repeated mistakes that get baked into how a team works.

Below are five of the most common mistakes—and what to do instead.

1. Relying on Verbal Agreements

2. Vague or Incomplete Scope Descriptions

3. Skipping the Internal Review

4. Treating Change Orders as Internal-Only

5. Losing Track of Cumulative Impact

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Topics: Best Practices Change Orders Financials Project Health

Construction Estimating 102: Building a Scalable Construction Estimating Process

In Estimating 101, we walked through the estimating trifecta—speed, accuracy, and profitability—and made the case that most construction companies achieve one or two of those targets but rarely all three. We talked about why estimates fall short in the real world, and we walked through a quick self-assessment to help you identify where your own process has friction.

That article was about diagnosis. This one is about what comes next. Once you've seen where the cracks are, the natural question is: what do you actually build in their place?

The answer isn't a better estimator or a bigger team. It's a better process—a scalable one. And building one starts with a mindset shift.

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Topics: Estimating Financials

Construction Estimating 101: Why Most Project Estimates Fall Short (and How to Fix Them)

Ask any ten construction professionals what makes a great estimate, and you'll likely hear the same three things: it's fast, it's accurate, and it protects profit. Call it the estimating trifecta. Now ask those same professionals how many of their recent estimates truly hit all three, and the conversation gets quieter.

The uncomfortable truth is that most construction companies consistently achieve one or two of those targets—rarely all three. Speed often comes at the expense of accuracy. Accuracy often slows turnaround to a crawl. And profitability, the whole point of the exercise, gets treated like an afterthought—something to check after the numbers are already out the door.

This isn't a small problem. The McKinsey Global Institute has tracked construction productivity growth at roughly 1% per year over the past two decades—well behind the 2.8% annual growth of the broader global economy. The industry isn't failing for lack of effort. It's failing because too many of the workflows that determine whether a project succeeds—estimating chief among them—haven't evolved to match the pace of the work.

Estimating isn't just math. It's the front door to every project you win, every margin you protect, and every relationship you build with a client. When it breaks down, the ripple effect touches everything that follows. The good news? The patterns behind most estimating failures are predictable—and fixable.

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Topics: Business Building Best Practices Estimating

Mastering Construction Payment Applications: A Practical Guide to Streamlined Billing

For construction professionals looking to reduce disputes, protect cash flow, and get paid on time. 

If you've spent time in construction finance, you know that getting paid isn't just a matter of doing good work—it's a matter of documenting it correctly. Payment applications, or "pay apps," are the mechanism through which contractors request compensation for completed work. Done well, they keep projects moving and relationships intact. Done poorly, they invite delays, disputes, and cash flow headaches that can ripple across an entire project.

This guide breaks down everything you need to know about construction payment applications: what they are, what they must include, how to manage them effectively, and how modern technology is transforming the process.

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Topics: Payment Applications