Central Insurance Blog

Technology has become a driving force in modern construction. From project management software to artificial intelligence tools, many contractors view new technology as the key to faster timelines, fewer mistakes, and increased profits. However, when businesses adopt tools too quickly, the overlooked details can negatively impact a construction project, creating costly setbacks and frustrating delays.

John Carroll, commercial lines staff underwriter at Central Insurance, has seen firsthand how construction businesses approach new technology. 

“Most businesses adopt technology to increase sales or improve efficiency,” explains Carroll. “But if you don’t fully vet a tool or train your employees to use it properly, you can wind up with frustrated customers, wasted investments, and stalled construction projects.”

In this article, Carroll uncovers five of the most common mistakes he sees construction companies make when adopting new technology, and offers expert advice for reducing risk.

5 Common Mistakes Contractors Make When Using New Technology on Construction Projects

1. Losing the Human Touch with AI

AI-driven tools like chatbots, automated scheduling, and bid calculators are making their way into construction offices. These tools can reduce administrative work, but relying on them too heavily can backfire.

Scenario: A small general contractor creates a chatbot to answer client questions about project timelines. AI mistakenly pulls from an outdated schedule when a client asks when crews will begin framing. The client shows up at a site expecting progress, only to find the foundation isn’t complete. The AI misstep erodes trust, sparks frustration, and delays approval for the next phase of the construction project.

“Technology should support your business, not replace essential communication,” Carroll says. “AI is a great tool, but eliminating human oversight risks damaging relationships and slowing down your construction project.”

Adjusting The Approach

Contractors should use AI as a supplement rather than a substitute. Vet every AI-generated response, especially when it involves cost, scope, or scheduling. Keeping real people in the loop preserves trust and keeps construction projects on track.

2. Skipping Cybersecurity and Compliance

Construction firms handle sensitive data daily, from payroll records to subcontractor contracts. New apps and cloud platforms make managing this easier, but if you don’t address security, the results can be costly.

Scenario: A subcontractor utilizes a cloud-based project management platform to share blueprints and daily reports. Without proper security protocols, hackers can access the system and lock the contractor out of critical documents. Work halts for days while the breach is investigated, creating costly construction delays and raising data security concerns with the project lead. 

New technology also brings new exposures. Contractors implementing software without proper security measures risk data breaches, financial loss, and reputational damage. 

“One of the most expensive mistakes we see is overlooking cyber protections,” Carroll warns. “Without the right safeguards, a hack can stall projects and expose your business to financial loss.”

Adjusting The Approach

Contractors should confirm that any new platform includes encryption, multi-factor authentication, and vendor security certifications. Just as important, cyber insurance can cover the financial fallout of a breach, keeping a construction project moving even if systems are disrupted.

Adjusting The Approach

3. Underestimating Training

Even the best tool can’t help if employees don’t know how to use it. In construction, where many moving parts rely on precise coordination, a lack of training can quickly snowball into major scheduling issues.

Scenario: A contractor rolls out a new project management app to streamline crew check-ins and track jobsite progress. Because employees weren’t fully trained, some crews forgot to log updates, while others incorrectly input data. The project manager overlooked missing information until weeks later, when they discovered a critical supply order was never placed. Materials arrive late, pushing back the schedule and causing a chain reaction of construction delays.

“Inadequate training creates bottlenecks,” Carroll explains. “If your team can’t resolve simple issues, you risk frustrating customers and slowing down your construction project.”

Technology only works if people know how to use it. Without proper training, employees may struggle with simple tasks, frustrate clients, and slow down workflows. 

In construction, that could mean project managers cannot update schedules, crews miss safety alerts, or owners wait for critical approvals that never come. The result is often delays, inefficiencies, and costly rework.

Adjusting The Approach

Contractors should include training as part of every technology rollout, not as an afterthought. That means dedicating time for staff to practice, scheduling refreshers, and cross-training multiple employees to avoid single points of failure.

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4. Rushing Without Testing

When contractors feel pressure to improve efficiency or keep up with competitors, jumping at the first technology that promises results is tempting. But rushing into an investment without proper testing can create more problems than it solves.

Scenario: A mid-sized contractor commits to a new scheduling platform based on a vendor’s promises. Once implemented, the system doesn’t integrate with their payroll software or equipment rentals. Teams struggle to update timelines, and the confusion leads to double-booked crews and idle equipment. Instead of streamlining operations, the tool creates more bottlenecks and causes construction delays the contractor could have avoided with a real-world demo.

Contractors often adopt a platform based solely on a polished sales pitch. However, without understanding how it will interact with existing systems or how crews will use it daily, the technology can quickly derail a construction project.

Adjusting The Approach

“Utilizing real-world demos before committing to a purchase can make a huge difference,” Carroll advises. “It’s the best way to ensure a tool supports your construction project rather than slowing it down.”

Beyond demos, contractors should consult experts and ask tough questions of vendors: How will this tool integrate with existing systems? Can subcontractors access it easily?

What happens if the system goes down? Thoroughly vetting providers helps prevent wasted investments and project disruptions.

5. Overlooking Insurance Implications

Every new technology introduces exposures that a contractor’s current insurance may not cover. One incident can stall a project and drain resources if gaps aren’t addressed.

Scenario: A contractor begins using connected jobsite cameras to monitor progress remotely. When a hacker breaches a camera, they leak private footage online. The contractor assumes their general liability policy will respond, only to learn their policy excludes cyber incidents. With no cyber coverage in place, they face unexpected costs, reputational harm, and lost time resolving the breach — all of which stall momentum on the construction project.

Adjusting The Approach

Every new tool creates exposures that a standard policy may not cover. Reviewing insurance forms and adding cyber coverage can ensure businesses aren’t left unprotected.

“Whenever you adopt new tools, it’s worth checking with your agent to confirm coverage,” Carroll says. “Coverage should evolve with your business, including new exposures from technology. Adding cyber coverage is a smart way to help ensure your business isn’t left unprotected.”

The Central Difference

Construction technology can be a powerful tool for reducing errors and avoiding delays, but only when contractors take the proper steps to manage risk. At Central, our team works closely with agents and policyholders to identify new exposures, tailor coverage, and ensure technology strengthens your construction project.