Unbundling AECO Tech

Outdated and Fragmented Market Segments

In the construction technology (AECO tech) world, the traditional "design, bid, build" market segmentation is increasingly obsolete. This fragmented perspective can create a disjointed industry where:

• Designers, contractors, suppliers, and operators work in silos
• Tools serve individual phases but don't integrate seamlessly
• Data becomes isolated, inhibiting collaboration
• Stakeholders navigate disconnected technologies with limited cross-functionality
• Project timelines extend with delays, miscommunication, and increased costs

The conventional construction breakdown looks like this:

Currently, most construction SaaS offerings fall into these discrete categories:

1. Design & Modeling Software (Revit, Archicad, Rhino, SketchUp)
2. Design & BIM Collaboration (Revizto, BIM Track, Trimble Connect)
3. Document & Drawing Management (Aconex, Egnyte, Newforma)
4. Estimating & Preconstruction (STACK, DESTINI Estimator)
5. Scheduling & Planning (Touchplan, ALICE Technologies)
6. Project Management (Procore, Autodesk Construction Cloud)
7. Field & Site Management (Raken, Fieldwire, PlanGrid)
8. Cost & Financial Management (Jonas, Sage 300 CRE)
9. Procurement & Materials Management (Kojo, Agora)
10. Workforce & Labor Management (Bridgit, Workyard)
11. QA/QC & Commissioning (CXAlloy, BlueRithm)
12. Facilities & Asset Management (AkitaBox, Archibus)

Focus on Transaction Flows

Rather than segmenting by phase, we need to focus on transaction flows—the movement of information, work, and responsibility between stakeholders. Key questions to address:

• Who Needs What from Whom? Understanding dependencies between stakeholders
• How Does Information Flow? Ensuring seamless data transfer between parties
• How Does Work Get Passed Along? Creating clear handoffs with synchronized workflows

For example, when design specifications change midway through construction, it leads to delays, wasted materials, and added costs. A system tracking these transaction handoffs would enable smoother transitions across phases.

Transaction-Based Market Segments

Looking at the industry through the lens of transactions helps focus on collaborations between market segment layers:

This view shifts focus from generic "Project Management" platforms to following the entire construction supply chain thread.

The Need for Vertical Integration in AEC Tech

Instead of all-in-one platforms, the industry needs vertical integration within each pipeline step. This means creating tools that:

• Specialize deeply in specific tasks or phases
• Remain highly integrated with other tools in the workflow
• Enable seamless information flow from one platform to the next
• Allow stakeholders to understand work and information flow throughout the process

Examples of Vertical Integration

• Design Phase: Specialized tools for specifications and BIM that connect directly to procurement systems
• Bidding and Procurement: Tools that connect contractors and suppliers early in the process
• Modular Construction: Logistics platforms tracking units through transportation, installation, and assembly
• Installation and Commissioning: Submittal management systems ensuring documentation before installation

Potential Vertical Solutions

Many of the newer player in this list are startups navigating product market fit, some like in Bid Management are legacy companies, this is definetly not an exhaustive list.

Spec Writing & Organization Review Tools

1. Roger Started with a Procurement Log and has expanded to Scopes
2. Fohlio Specification management for interior designers and architects
3. SpecRight Creating and managing specifications efficiently
4. Mbue Drawing review to reduce errors
5. CheckSet Expert review services for specifications and drawings

Estimating & Quantity Take-off

1. Countfire Automation for counting items from digital drawings
2. Togal AI and machine learning for drawing information extraction
3. 1Build Originally an estimating tech-enabled service that seems to have spun out an AI estimate buisness called Handoff
4. Sparkel Automating quantity takeoff with AI and image recognition
5. Modulize Automation in construction processes

Bid Management

1. Dodge Data & Analytics: Construction project data and bid management
2. Pipeline Suite: Bid leveling, comparison, and work authorization
3. BidMail: Bid solicitation and distribution
4. PlanHub: Platform connecting general contractors with subcontractors

Bid Response and RFx Requests

1. BasisBoard: Simplifying bid response for subcontractors
2. Loopio: Streamlining RFP responses with content management
3. Tended: Bid tracking and document management

Submittals

1. BuildingBlok, ProCore, Autodesk Construction Cloud: Part of larger platforms
2. Parspec.io: A standalone submittal management system

Manufacturing Resource Planning

1. Offsite, cmexe.io: Specialized for construction
2. CurrentSCM, Elementum: Supply chain management applications
3. Katana, Aligni: Integration with project management software
4. Turvo, Samsara: Transportation management systems

A Case for Unbundling existing Construction Services

The construction software industry has become overly complex with massive all-encompassing platforms that seem to be rivaling ERP system companies of the past tech waves. Our future lies in unbundling these systems and creating nimble, purpose-built vertical or niche solutions that:

• Target specific pain points in the construction process
• Focus on transaction or information flows between businesses rather than arbitrary market segments
• Enable deep integration and seamless data exchange
• Facilitate better communication and reduce delays

By moving away from the bloated "this is how we have always done it" paradigm and focusing on the interactions between parties, the industry can create more efficient, collaborative, and cost-effective solutions. Smaller, focused platforms will address specific challenges that larger tools can't solve, ultimately transforming how buildings are designed, manufactured, and constructed.