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Has Construction Tech Failed its Most Important Customer?

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Published Jul 29, 2025

In episode 15 of The Power of Construction, we tackle a provocative question: Has construction technology actually failed building owners? Despite billions in investment, owners report that BIM automation and construction workflow optimization haven't solved their core problems. KP Reddy—CEO of Shadow Ventures—argues these technologies prioritize internal processes over owner outcomes, creating a massive credibility gap. We explore why construction technology problems persist and how AI in construction design could transform the industry around owner-first principles.


Key Topics Covered

  • Why traditional BIM and design processes are becoming obsolete
  • How AI will eliminate coordination problems and design phases
  • The disconnect between construction vendors and building owners
  • Future business model disruption through robotics and automation
  • Designing buildings for human-robot coexistence

Guest Overview

KP Reddy – Founder & CEO, Shadow Ventures

KP Reddy is the Founder and CEO of Shadow Ventures, a venture fund focused on innovation in the built environment. A civil engineer by training and serial entrepreneur, KP has founded and exited three tech companies with outcomes to NASDAQ, NYSE, and private acquisition. He's a globally recognized authority on AI, automation, and digital transformation in the AEC industry, and author of Creating the Intangible Enterprise and BIM for Building Owners and Developers. Shadow Ventures has more than 100 strategic investors focused exclusively on startups transforming the AEC and real estate industries.


Episode Summary

<em>The Power of Construction Podcast</em>: Season 2, Episode 15 - Has Construction Tech Failed Its Most Important Customer?

Has Construction Tech Failed Its Most Important Customer?

What if the construction industry has been building technology for everyone except its most important customer—the owner? KP Reddy, founder and CEO of Shadow Ventures, makes a provocative argument that BIM is dead and reveals why owners feel like they're spending billions on buildings while knowing nothing about cost, delivery, or performance. In this episode of The Power of Construction, Reddy explains how AI will eliminate the need for traditional design phases, why construction contracts and industry standards are holding back innovation, and how the "master builder" concept could return through robotics and artificial intelligence. This conversation challenges everything we think we know about construction technology and reveals why the future belongs to companies that prioritize the owner experience over traditional processes.

Episode Transcript

The Death of BIM: Why Traditional Models Have Failed

KP Reddy opens with a controversial declaration: BIM is dead. Despite authoring a definitive guide on BIM in 2011, Reddy argues that none of the promises have materialized. "We do not have digital twins of anything," he states, explaining that while BIM provided value through 3D visualization for humans who can't visualize complex geometry, the data component—the "I" in BIM—has been largely unused. The biggest benefit has been geometric coordination, but Reddy questions why we accept clashes in the first place, comparing it to buying a phone where the battery clashes with the lens.

AI's Revolutionary Impact on Design Processes

Reddy explains how artificial intelligence will fundamentally transform construction design. Unlike humans, AI doesn't need 3D visualization—it works with coordinate systems and mathematical relationships. "There's no reason why AI can't take a concept and create shop drawings and motion control to a robot," he argues. The traditional design phases (conceptual, schematics, design development, construction documents) existed because of human limitations and change management costs. AI eliminates these constraints, making it possible to move directly from concept to fabrication-ready drawings.

The Industry Standards Problem

Traditional industry standards like IFC, COBie, and MasterFormat are holding back innovation, according to Reddy. "By the time they maybe even near completion, the world has changed," he observes. The alphabet soup of industry organizations (AIA, ASFE, AGC) creates standards that never get completed or become obsolete before implementation. Each project type—data centers versus hospitals—has different requirements, making universal standards problematic. AI-powered contract generation will make traditional contract types and procurement processes obsolete.

The Owner as the Forgotten Customer

Reddy highlights a critical disconnect: owners spend billions on buildings but receive none of the transparency they'd expect from any other major purchase. "If you go buy a new car, they tell you how much it's gonna cost, when it's gonna be delivered, how many miles per gallon it gives, how much it's gonna cost to maintain. Yet if you spend a billion dollars on a building, you know none of these things." This power dynamic between infrequent building owners and daily practitioners creates a dysfunctional relationship where owners feel beholden to vendors rather than empowered as customers.

The Integrated Owners Forum: Changing the Conversation

Through the Integrated Owners Forum, Reddy brings together owners quarterly to discuss their actual experiences and needs. The forum reveals that zero percent of owners have been asked about their buying experience—a shocking statistic that explains why traditional procurement processes persist despite satisfying no one. The forum is launching demo days where AEC firms can showcase innovations outside procurement cycles, creating space for meaningful collaboration and knowledge transfer between different project types and markets.

The Power Dynamic Problem

Reddy compares the owner-contractor relationship to the patient-doctor dynamic, where service providers develop superiority complexes despite being hired to serve. Owners who build infrequently work with vendors who manage hundreds of active projects, creating an imbalanced relationship. This leads to situations where design teams and contractors appear to be "in cahoots," with RFIs leading to change orders that get approved as long as they stay within contingency budgets, only requiring owner approval when budgets are exceeded.

The Return of the Master Builder

AI and robotics will enable a return to the "master builder" concept, breaking down the silos created by increasing specialization. Reddy predicts that general contractors will start self-performing work traditionally done by subcontractors, especially when robots can handle the work. "If being a drywall sub means I just buy pieces of equipment, then why do I need a sub?" Similarly, mechanical contractors working on data centers—where 80% of the building is mechanical systems—are questioning why they remain subcontractors rather than becoming general contractors themselves.

Creative Destruction and Business Model Transformation

The construction industry will experience "creative destruction" as AI enables new business models. Companies that traditionally didn't self-perform may start doing so. Design-build becomes more accessible when AI can handle design work with minimal human oversight. Contractors are moving into development, architects into contracting, and developers into construction—blurred lines that AI will accelerate by reducing the risk and complexity of entering adjacent markets.

Designing for Human-Robot Coexistence

Reddy predicts that within five years, every building will have robots, requiring fundamental changes in design. "Are we designing buildings for both humans and robots to coexist?" he asks. This includes infrastructure considerations like charging stations and specialized transportation systems (robot-only elevators), as well as feedback loops where robots inform designers about buildability. The goal is "design for manufacture" methodology where concepts automatically generate shop drawings and machine instructions.

The Future of Work and Human Creativity

Rather than eliminating human roles, AI will free people from "salt mine work"—timesheets, coordination, and repetitive tasks that aren't why people entered the industry. This creates space for designers to focus on creativity and community engagement. "If you're building a school in a neighborhood and you're not spending a thousand hours talking to students and parents, how do you even begin to design a school for that neighborhood?" The technology enables more time for meaningful human interaction and custom solutions.

Generation Z and the Meritocracy Imperative

Reddy identifies a crucial disconnect between traditional construction culture and incoming talent. Generation Z grew up with leaderboards in video games where advancement was based on skill, not relationships or tenure. "You didn't get to be the owner's kid or grandkid to get to the top of the leaderboard—you had to earn it." This generation expects meritocracy, not longevity-based promotion systems, and will reject organizations that prioritize family connections over performance.

From Monoliths to Intangibles

As AI handles more analytical and process-oriented work, companies must shift focus from operational metrics to intangible assets like brand, culture, and mission. Traditional KPI-driven optimization creates "value stocks" that struggle to grow beyond efficiency gains. Future success requires becoming companies that clients choose not based on price but because "it makes people feel good" to work with them. This parallels how consumers choose iPhones despite technical alternatives—the complete experience matters more than specifications.

Rapid-Fire Q&A with KP Reddy

Book Recommendation: Abundance by Peter Diamandis—excellent for understanding innovation thinking

Sources for Different Perspectives: His kids and their friends

Advice to Younger Self: "Start finding a good fight earlier. Conformity is not your friend"

Innovation Shaping Construction's Future: Computer vision—cameras are everywhere and getting better at analysis

Industry Tagline: "Construction shapes society, society does not shape construction"—we build things of permanence


About The Power of Construction

The Power of Construction podcast dives into the intersection of construction and technology, delivering actionable ideas for industry leaders. Hosted by Kris Lengieza and Sasha Reed, it’s all about bridging innovation with practical solutions to boost productivity, address labor shortages and embrace digital transformation. Whether you’re a longtime listener or just starting, this recap is a perfect entry point.


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The Power of Construction Podcast

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Presented by

Dominic Jackson

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Dominic Jackson drives global brand marketing initiatives that blend storytelling, performance, and platform strategy. With a background rooted in brand strategy and campaign execution, he leads multi-channel programs across podcasting, paid media, interactive reports, and digital content platforms.

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Kris Lengieza

17 articles

Kris Lengieza is the Global Technology Evangelist at Procore Technologies. Kris brings a wealth of experience and passion to the intersection of construction and technology. Previously serving as the VP of Global Partnerships & Alliances, Kris oversaw a diverse ecosystem spanning channel, ISV, public, and association partnerships. His recognition as one of the Top 40 Construction Professionals Under 40 by ENR and BD&C underscores his impact in the industry. Kris’ journey began with 15 years working in the construction field, where he embraced technology as an early adopter and strived to seamlessly integrate data across all construction solutions. As a futurist and construction tech evangelist, Kris now collaborates extensively with industry innovators, tech organizations, and construction companies. Together, they explore transformative technologies that promise to revolutionize our work processes. Kris has played a pivotal role in Procore’s product strategy, delivering industry and technology insights to improve how Procore’s solutions serve the industry.

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Sasha Reed

15 articles

With more than two decades of experience in construction and technology, Sasha Reed is a sought after speaker and facilitator. As Senior Director of Industry Transformation at Procore, she showcases today’s most innovative leaders, deploying human-centric approaches to solve complex business challenges in construction. Sasha invests in advancing construction through her involvement as co-founder of the Construction Progress Coalition, former board member of the National Building Museum, and past involvement with NIBS BIM Subcommittees. In 2023 she was honored with the Excellence in Technology Award from the US Minority Contractors Association. She’s the co-host of Procore’s global Podcast, “The Power of Construction” and her co-founder journey with the Construction Progress coalition is told in the minidocumentary, “The Power of Standards” by The B1M.

View profile

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