Collaboration and interoperability are the future of preconstruction

“Fail to plan, and you plan to fail,” as the saying goes. This adage is especially true in the construction industry, where every bit of steel, lumber, and labor must be accounted for to avoid wasted time and resources, and a blown budget. In a business where building owner needs are nuanced, materials are expensive, and sustainability requirements are strict, architects, engineers, and general contractors can’t afford to wing it. The stakes are too high.

Luckily, there’s a shift happening in AECO. There’s a reason why architecture and construction firms are focusing on and investing in the process that happens before a project breaks ground. The success or failure of a project can now often be traced back to its earliest stages: the preconstruction phase.

This growing realization is driving preconstruction enhancements into the spotlight. But what does the future hold? Can more collaborative, efficient, and thorough planning help overcome the built environment’s biggest challenges?

Preconstruction is the critical bridge between design and construction, where vision becomes reality. After the design phase wraps up but before crews break ground, teams work through the complexities of turning architectural concepts into fully constructible plans. This phase is crucial to a project’s success, influencing everything from budget accuracy to timeline efficiency.

Architects define the design intent, creating construction documents illustrating how the building should look and function. From there, general contractors translate those plans into actionable models and workflows that the project team utilizes to execute in the field. But preconstruction isn’t just about estimating costs, procuring materials, and assembling a building team—it’s about refining concepts, mitigating risks, and ensuring that what’s designed can be built efficiently and successfully.

“Preconstruction is defined as the planning phase of a construction project, including design, budgeting, and organization. But honestly, it feels more like the phase where you engage your team, your relationships, and build trust, to implement a successful construction project across your owner, architect, contractor, and subcontractors,” says Sue Bhattacharjee, Norcal Director of Preconstruction at Gilbane Building Company.

“Sometimes, the players change from precon to construction, but the basic setup of the project, demeanor of the team, and the behavior of the OAC [owner-architect-contractor] and how it functions sets the precedent for a long-term good—or bad—relationship.”

While preconstruction happens behind the scenes, its impact is front and center. Preconstruction is more than just planning—it’s where projects are won or lost and where margins are made or eroded. This phase sets the foundation for success, allowing general contractors to mitigate risk, structure the bidding process, engage trade partners, and establish schedules that keep execution on track.

For both clients and contractors, a strong preconstruction process brings undeniable benefits, including:

• Reducing risk by identifying issues and unknowns early

• Providing clarity on project scope, execution strategy, and deliverables

• Defining realistic timelines, ensuring more accurate scheduling and planning

• Identifying cost-saving opportunities that add value without compromising quality

By evaluating every scenario upfront, preconstruction fosters confidence between clients and contractors. Clear expectations reduce surprises, streamline execution, and ultimately lead to a smoother, more successful project.

A well-structured preconstruction phase lays the groundwork for successful project outcomes, addressing critical details before construction begins. This stage starts with an initial meeting, also known as a preconstruction meeting, to align on project goals, followed by in-depth planning that refines the design, estimates costs, and explores value engineering opportunities to optimize the budget. Managing project scope, identifying potential risks, and outlining contingency plans for the client and contractor help mitigate surprises down the line.

Site feasibility studies and environmental considerations are also key factors during preconstruction. Teams assess soil conditions, evaluate existing utilities, and determine necessary equipment while exploring sustainable building options and lifecycle costs. By addressing these elements early, teams can ensure a smoother, more efficient build, reducing the risk of schedule and cost overruns.

“For the longest time, preconstruction happened under different names—a business development-savvy project executive, a verbose estimator, or an aggressive PM (project manager) who keeps getting repeat work from the same client,” says Bhattacharjee. “In the past 10 years, preconstruction as a role has become more prominent. It is recognized as a breed of estimators or PXs (project executive) who not only know the numbers but can explain the numbers and influence design in an impactful manner.”

Bhattacharjee says that, as this function has gained more recognition, so has innovation in the field. “With the rise of integrated project delivery-style contracts and design-build projects across all of America among different sectors, the way we communicate the estimate, design decisions, schedule, and project budget trends to our clients is undergoing massive changes,” she explains. “From simple Excel spreadsheets or a complicated P6 schedule to more visual dashboards, innovation is happening in every possible way.”

Preconstruction is where projects come to life—digitally—before any physical work begins. With estimating, designing, and revisions happening in tandem, rigid phases give way to a more fluid, collaborative approach. The right digital tools and connected workflows are essential, ensuring teams can refine plans in real-time and align on scope early.

Seamless collaboration in the digital space leads to stronger project outcomes. More accurate estimates mean fewer budget surprises, contractors and trades can bid and schedule with confidence, and changes become easier to implement.

Preconstruction is evolving rapidly, but the challenges teams face today are increasingly complex. One of the biggest hurdles is fragmented communication. When stakeholders, from owners to subcontractors, work in silos, misalignment can lead to costly rework, scope creep, and budget overruns before construction begins. Without a centralized platform for collaboration, critical details can get lost in the shuffle, creating inefficiencies that ripple throughout the project lifecycle.

Another pressing issue is tightening budgets and unpredictable costs. With material prices and inflation fluctuating and labor shortages driving up expenses, contractors must navigate an increasingly volatile market. Accurate cost estimation is crucial, yet many teams still rely on outdated methods that leave too much room for error. Without data-driven forecasting and real-time cost tracking, firms risk underestimating expenses or overpromising on bids.

The growing demand for sustainable and high-performance buildings adds another layer of complexity. Clients want energy-efficient, environmentally responsible designs, but integrating green building strategies into preconstruction requires careful planning, early decision-making, and a clear understanding of long-term costs. Without the right tools and expertise, balancing sustainability with budget constraints can be a significant challenge.

To address these challenges and stay competitive, firms must embrace digital solutions, leverage connected workflows, and prioritize collaboration from day one.

Bhattacharjee sees potential for digital solutions to address the two main challenges she currently sees in the process. First is communication. “Communication is always a challenge in preconstruction,” she says. “What I say and what you hear are two different things. I am hoping with the advent of new precon dashboard-type software in the market, this challenge can be overcome as we get smarter at showing the information and the clients get better insight into interpreting the information. It’s important we help our clients make the right decision by providing them with the information they care about. The transparency using these dashboards will help both parties improve their understanding and ask the right questions to help make informed decisions.”

The second challenge she sees is the need for digital solutions to address a lack of data standards across construction firms. “I am hoping AI is able to sift through all of our data at each of our firms, and help categorize it in a consistent manner to a data standard that we as a construction consortium can create and use,” Bhattacharjee says. “But, right now, every firm struggles to ensure that they have a database where the scopes within an estimate are categorized correctly. I am hoping just like UniFormat and MasterFormat were created, there are more stringent standards so we can really analyze data across firms, so the same client is comfortable using different GCs and still has the right understanding of the scopes and budget if all of us have the same definitions.”

As preconstruction lays the foundation for project success, cloud-based tools act as a backbone to keep all stakeholders aligned. By centralizing project data, teams can work seamlessly from the start, ensuring transparency, reducing delays, and accelerating execution.

The benefits are clear. Cloud-based tools enable teams to update and access critical information simultaneously, eliminating version control issues. Cloud-based collaboration also boosts efficiency and productivity, making document sharing, approvals, and communication instantaneous—teams can work concurrently rather than sequentially.

Today’s cloud-based tools and platforms are increasingly bringing advanced capabilities like AI into the mix. For instance, AI-powered clash detection enhances project outcomes by identifying design conflicts early, reducing rework, and optimizing resources. This cuts costs and also supports sustainability efforts by minimizing material waste. As the industry moves toward more connected and data-driven preconstruction processes, cloud collaboration is no longer a competitive advantage—it’s a necessity.

Software interoperability is transforming AECO projects by enabling efficient data exchange across platforms, ensuring continuity and collaboration throughout the preconstruction phase. By integrating key tools like Autodesk Forma, Autodesk Construction Cloud, the AEC Data Model, and BIM visualization in Revit, teams can work more efficiently with real-time, accurate project data.

Seamless integration eliminates redundant data entry, reducing errors and improving workflow efficiency. A unified data environment enhances decision-making, allowing stakeholders to optimize project design, budgeting, and scheduling with confidence. Interoperability supports more sustainable design practices by integrating energy modeling and lifecycle assessment tools into planning, helping teams make environmentally responsible choices from the start. As projects become more complex, connected software ecosystems are essential for efficiency, accuracy, and sustainability in modern construction.

Common data environments (CDEs) are essential for maximizing the benefits of digital solutions in preconstruction, ensuring seamless collaboration, reduced inefficiencies, and better decision-making throughout the project lifecycle. In short, CDEs act as a centralized digital hub and data storage where information comes together as part of project and BIM workflows. By centralizing project data, CDEs facilitate real-time updates between architects, engineers, and contractors, minimizing miscommunication and data duplication. The result is greater project predictability, with teams leveraging real-time insights to enhance risk management and optimize planning.

As technology continues to evolve, AI and machine learning are transforming preconstruction by improving cost estimation, risk assessment, and scheduling accuracy. Predictive analytics helps teams anticipate potential issues before they arise, reducing costly delays and overruns. Meanwhile, IoT (Internet of Things) integration is enhancing project data collection, enabling real-time monitoring of site conditions, material usage, and equipment performance, leading to more informed decision-making before construction even begins.

Looking ahead, AECO projects will become even more data-driven, with digital twins and cloud-based collaboration platforms playing a larger role in project planning. Automation and generative design will streamline workflows, reducing manual inefficiencies and improving sustainability outcomes. As firms continue embracing digitalization, the future of preconstruction will be defined by greater accuracy, efficiency, and seamless integration across all project phases.

“There are two things I am hoping for,” says Bhattacharjee. “First is an acknowledgment of data inconsistency, and a creation of a construction consortium that all companies follow, and it would be tied to their license. So no matter what you build, all contractors would be tied to the same mothership. You can then use this information in a multitude of ways as technology improves around us.”

Second on her wish list is that “clients are comfortable using visual dashboards during preconstruction, where they help steer the boat and make informed decisions confidently. Then they take those durable decisions, and present to their internal teams fearlessly, and the GCs can seem to be the unsung heroes.”

The future of preconstruction lies in seamless digital collaboration, where cloud-based platforms and software interoperability break down silos and drive efficiency. Embracing digital tools from the outset empowers teams with more accurate estimates, better risk management, and streamlined workflows, ultimately leading to stronger project outcomes. While adoption challenges remain, firms that prioritize training, integration strategies, and leadership buy-in will stay ahead in an increasingly competitive industry.

Bhattacharjee shares the top five things that everyone in preconstruction should consider:

1. The success of the team depends on you. “Your ability to empathize, be kind, and listen always determines your impact on the team. If you are listening to your architect, your client, and your trades, and not just hearing them, you can influence the design, cost, and schedule in a multitude of ways. This is important for your team to succeed.”

2. It’s not us versus them anymore. “See how I say ‘your’ team. It’s intentional. If the designer is unable to make a decision, help drive them by asking the right questions in a timely manner. If your trade is stuck, unstuck them by checking in regularly.”

3. Pick up the phone and talk. “Know how people like to communicate. Some people like a Teams chat and some prefer a text. By knowing that, you will get a response ten times faster than an email.”

4. Upfront honesty and transparency go a long way in building a relationship in a world where everyone fears litigation. “Please ensure you always are planning ahead, and acknowledge how you PDCA—plan, do, check, act—to ensure how to keep going despite the constraints you face.

5. “Lastly, as a precon professional, A3s and CBAs (choosing by advantages), which are lean tools, are great ways to hone your skills as you take part in the decision-making process.”

As AI, IoT, and automation continue to transform preconstruction, the industry must also address a pressing challenge: the talent and labor gap. Future AECO professionals need access to upskilling programs, mentorship opportunities, and hands-on experience with digital tools to prepare for the next generation of construction.

By dually investing in technology and workforce development, firms can build a pipeline of skilled professionals ready to take on the industry’s evolving demands. Now is the time for industry leaders to embrace innovation, refine their processes, and invest in the future of both preconstruction and the workforce that will drive it forward.