Constructable: AI-powered search for construction teams delivered in seconds
In our recent podcast episode, we welcomed Emma and Molly, the co-founders of Constructable (YC S23), a company established this year in Santa Barbara, CA. They discussed how Constructable's AI chat is improving the management of project data for construction managers, aiding in quick and accurate information retrieval. Constructable uses AI chat to support construction managers. It helps to ask specific questions like "What slope is needed for drainage?" or "how do the submitted electrical bids compare?". Questions are answered in seconds instead of hours and this helps prevent mistakes which could cost hundreds of thousands of dollars.
Learnings from the Episode:
Takeaway 1: Transformers is creating an unprecedented opportunity in Vertical SAAS, Construction included.
Constructable streamlines data management for construction managers, consolidating information from diverse sources like Procore, email, and documents. This AI tool efficiently answers crucial project questions, aiding in precise decision-making and minimizing the risk of costly errors. Much like baking soda, Constructable provides solutions in seconds and AI enables the analysis of thousands of documents that would normally take hourss
The co-founders highlighted Constructable's role in handling extensive project documentation. Using AI, the platform addresses the inefficiencies and errors that can result from managing vast amounts of construction-related data. Construction projects are complex and constant change means a single project will have a huge amount of documentation. By the end of a construction project, they often have a 2000-page plan that had changed hundreds of times, thousands of change orders, and thousands of bids, RFIs, and submittals going back and forth between the general contractor, developer, architect, engineers, and tens of specialty contractors. These teams spend hours each week trying to find information across email, Procore, chat conversations, and document management systems. Beyond that, inaccuracy is rife, a study by FMI found that “bad data” – including data that is inaccessible, inconsistent, or untimely – cost the global construction industry $1.85 trillion in 2020.
Look at all the folders one of their customers had for just 1 project!
Takeaway 2: Expert Leadership and Customer-Centric Approach
Emma, Molly, and John Yoder bring their rich experiences from AppFolio to Constructable, focusing on customer-oriented solutions. Together they have spent the past 10 years working together at Appfolio (Nasdaq: APPF), where Emma was a VP of Product, John was a VP of Engineering, and Molly was a product growth leader.
Molly has first-hand experience in the world of construction. Her dad, husband, and brother-in-law are general contractors and specialty contractors and she previously worked for a large specialty contractor. They share there is no replacement for doing in person customer interviews and building deep customer empathy. Making sure the first 10 customers are happy is critical to finding produce market fit. Their approach ensures that the platform meets the specific needs of construction professionals.
The Team
Takeaway 3: Strategic Positioning in the Construction SaaS Market
Constructable's strategy in expanding its product features and reaching different user personas is underscored by its position in the 'Search' segment of the construction SaaS market. This is highlighted in the attached market map, which illustrates Constructable's role in providing effective solutions for complex construction project needs. They are starting with GCs and construction managers and realize that they will have an opportunity to help sub-contractors down the road. Additionally, they have been expanding their integrations so that Constructable talks to all existing software systems, to help teams avoid time-consuming and error-prone migrations.
