Feb 6, 2025

A Local, Competing General Contractor Hired a Data Engineer... And You Should Be Scared, Here's Why

Construction firms are beginning to hire data engineers, and that should be a wake-up call to the industry.

L.D. Humphreys

Founder & CEO

TL;DR

Construction firms are beginning to hire data engineers, and that should be a wake-up call to the industry. Data-driven companies will:

  • Make better business decisions with real-time information

  • Improve bidding accuracy and project efficiency

  • Reduce costly mistakes and operational waste

  • Create a stronger and more engaged workforce

If you’re a GC or subcontractor, the first step isn’t hiring a data engineer—it’s evaluating how you currently manage and use data. Start by assessing your tech stack, eliminating redundant processes, and ensuring you have a Single Source of Truth for project-level and business-level data.

Analyze your 1's & 0's to understand you X's & O's. First movers advantage is real!

Dreams Do Come True!

A few weeks ago, I came across a LinkedIn post from a newly hired data engineer at a mid-sized general contractor expected to do $200M in revenue this year. His job? Developing and managing relational databases, building secure data pipelines, and implementing automation to streamline workflows. You're probably wondering what the hell is a Data Engineer and what does this jargon even mean.

In simple terms, this means he’s organizing all the company’s data into one place, making sure different software systems talk to each other smoothly, and automating tedious tasks that slow down projects. Essentially, this firm wasn’t just talking about digital transformation—they were investing in it.

That moment confirmed something I’ve been pushing for a while now: construction firms are waking up to the power of their data and what unlocking this data can do. This is data that firms are producing just by doing. It already exists, this isn't something you need some scientist to get.

and the firms that can see the writing on the wall move first to use it well will dominate their competition. The ones that don’t? They’ll be left scrambling, wondering why they keep losing bids and falling behind on projects.


The Real Threat: Why Competitors Should Be Scared

Hiring a data engineer isn’t just about innovation, it’s about survival.

Here’s why:

  1. This GC will capture and leverage valuable data that others let slip through the cracks. Historically, us builders rely on gut instinct and anecdotal experience. But this firm? They’re now able to bid more competitively, move projects along faster, and improve client relationships by making data-backed decisions.

  2. They can offer real accountability. Imagine having instant access to financial forecasts, project delays, and workforce productivity instead of reacting when things go wrong.

  3. They’ll minimize costly mistakes. Data-driven firms like this one will reduce bidding errors, improve project operations, and uncover inefficiencies before they become serious problems.

  4. Their leadership will make better decisions. With real-time, accurate data at their fingertips, they’ll scale their business proactively—not reactively like their competitors. A problem that plagues this industry.

  5. They will build a stronger, more engaged workforce. Instead of fighting fires daily, employees will have the bandwidth to focus on high-value tasks, creating a better work environment and increasing retention.

The companies that take this step aren’t just improving operations. They’re fundamentally changing how construction businesses compete.


How a Data Engineer Can Solve Construction’s Biggest Inefficiencies

Bringing in a data expert isn’t just a fancy, cool to do move, it’s actually a pretty practical one. Here’s how I speculate this hire will immediately impact their business:

  1. Find where cost overruns exist by using historical data to predict budget risks before they become bigger problems and cause contractual imbalances.

  2. They identify scheduling inefficiencies and enable leadership to create smarter workflows and track delays in real time.

  3. Find pricing & cost discrepancies and help in standardizing financial data to ensure accurate, competitive bids and job costing efforts

  4. Find where the firm can eliminating redundancy so they can focus on automating repetitive tasks that drain time and resources.

  5. Make better, proactive decision-making and allow leadership to confidently shift from reactive problem-solving to anticipating and mitigating risks before they materialize.


The First Domino: What Should You Do Next &How Can You Compete?

Most companies don’t have a clear picture of their inefficiencies. A data engineer will map out where waste lives in the business, serving as the catalyst for transformational change.

You can’t fix what you don’t measure. And right now, too many construction firms are guessing their way through business decisions.

So, If you’re a GC or subcontractor reading this, the answer isn’t to run out and immediately hire a data engineer. The first step is to take inventory of your existing tech stack and fully assess your internal processes!

Start with these questions:

  1. Are you really maximizing the software tools you already use?

  2. Do you have redundant manual entry across multiple softwares or platforms?

  3. Are you tracking project data in real time or relying on outdated reports?

  4. Does your company have a Common Data Environment like Google Drive or Sharepoint for a Single Source of Truth?

  5. Have you considered integrating your software to improve data flow?

  6. Would deploying Power BI dashboards provide your leadership with better visibility into business performance?

Even something as simple as implementing internal communication tools like Slack can increase efficiency and transparency across projects. Also, Slack can be a place to house information and external comms with Subs and other consultants. This information won't be lost in case of turn-over.

The key is to first understand where your gaps are. Then, take deliberate steps to standardize reporting, integrate your tools, and move toward data-driven decision-making.

Data-Driven Firms Are Already Winning

As you can see this isn’t theoretical, it’s already happening. Large-scale GCs and infrastructure firms are leveraging data analytics to bid smarter, operate leaner, and deliver projects faster.

Outside of construction, industries like manufacturing have revolutionized operations by implementing data-driven processes. Lean manufacturing principles rely on real-time tracking, predictive analytics, and automation—all of which construction firms can learn from.

The First Movers Advantage Is Real

The tide is shifting. Construction firms that adopt data-driven strategies will lead the industry—those that don’t will be stuck playing catch-up. The question isn’t whether data will transform construction. The question is whether your firm will be ahead of the curve or be left behind.

So, are you watching from the sidelines, or are you preparing to compete in this new era?

If you’re interested in figuring out how to take the first step, let’s connect. I’ve been deep in this space and would love to discuss how construction firms can future-proof their business and stay ahead of the competition!

Until next time! Adopt or Die.


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Your Journey to Running a more Profitable Construction Company Starts Here

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Get started

Your Journey to Running a more Profitable Construction Company Starts Here

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Get started

Your Journey to Running a more Profitable Construction Company Starts Here

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Get started

Your Journey to Running a more Profitable Construction Company Starts Here

a yellow crane with a sky background

Get started

Your Journey to Running a more Profitable Construction Company Starts Here

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