AI Bot Could Spot Construction Claims Before They Become Costly Disputes

A Florida-based startup called Contract Dispute Analytics has created an AI bot named Claims Intelligence, which it claims can potentially save the construction industry millions of dollars by preventing costly contract disputes. The bot works by analyzing project communications and identifying language associated with potential disputes, such as mentions of additional work, unforeseen conditions, interruptions, and delays.

Founder Richard Nasrawy, an attorney with 20 years of experience in the construction contract sector, believes that contractors often fail to assess additional costs when taking on extra work, which can lead to projects being completed for free in effect. He has developed Claims Intelligence to head off potential disputes before they become major issues, potentially saving the industry substantial sums.

Construction disputes are becoming increasingly document-heavy, with a typical case involving thousands of emails, daily reports, meeting minutes, and change orders. Berkeley Research Group estimates that AI-assisted review could reduce review time and costs by up to 85 percent. Claims Intelligence is unique in that it proactively identifies potential claim issues in routine project communications, unlike existing products that require users to first identify potential claim issues and submit records for analysis.

By monitoring project communications and linking emerging issues to contract requirements, notice obligations, supporting documentation, and potential cost or schedule impacts, the bot aims to help all stakeholders, including owners, agencies, consultants, and other project stakeholders, identify potential claim issues early on and avoid expensive delays, penalties, and losses.