How AI Is Transforming Contract Management in Construction
Release Date: 11/17/2025
Quit Getting Screwed Podcast
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* This episode originally aired on April 7, 2025 How can construction professionals protect themselves from unpredictable material price increases? Karalynn Cromeens emphasizes the importance of including a material price escalation clause in contracts to safeguard against financial strain due to rising costs. These clauses ensure contractors and subcontractors can recover any additional expenses when prices surge. By being proactive in contract provisions, businesses can prevent financial setbacks in uncertain times. Follow Karalynn Cromeens on . Follow Karalynn Cromeens on . Follow...
info_outlineA forward-thinking CPA becomes a champion for AI-driven innovation in construction through vision, expertise, and execution. Victor Sturgis applied his extensive background in public accounting and tax to create technology that streamlines contract management. Motivated by complex industry challenges, he co-founded First Rule, where he drives strategic partnerships and oversees change management. Through a balance of technical insight and human-centered design, he helps contractors move beyond resistance and adopt transformative tools that redefine operational efficiency.
Learn more about First Rule here.
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Key Takeaways
1. The construction industry is undergoing a technological revolution, yet it often lags in adopting new tools. Integrating AI and specifically tailored software like First Rule can dramatically increase efficiency, especially where outdated processes (like paper-based contract management) are still the norm.
2. Successfully implementing new technology isn’t just about robust products; it’s primarily a people-focused, emotionally charged transition. Listening to and empathizing with team members, starting small with pilot programs, and celebrating short-term wins are crucial for overcoming resistance and making change “stick.”
3. AI-driven tools can automate the tedious process of reviewing contracts, identifying risky terms, and offering actionable insights—even for those without legal expertise. As Victor Sturgis explains, AI not only saves time but also manages risk and provides training, raising the competency of users.
4. For new tech to be adopted widely, it must integrate seamlessly with existing platforms (such as Procore). Strategic partnerships and thoughtful integrations—like the Martin AI agent accessible from within project management software—help bridge the gap between digital and manual workflows, making life easier for users in the field and the back office.
5. Change is most successful when there’s strong internal leadership—executive sponsors and process champions—to guide, listen, and support teams. The conceptual lesson here is that tech implementation is as much about human psychology and effective leadership as it is about the technology itself.