If you’ve been in this industry for decades, you know the current conditions are unlike anything we’ve seen before. Margins are tighter, timelines are shorter, fuel costs will likely be higher, and every decision matters. As Mark Twain said, “History doesn’t repeat itself, but it often rhymes.” As we prepare for upcoming projects, we can look back at previous project costs and use the latest smart construction technology, including software and AI, to project costs for the current, uncertain economic conditions.
Reviewing previous construction project costs isn’t just about reminiscing about a job well done but taking a deeper look into past costs, accounting for every operational detail and how fleet managers maneuvered challenges in real time, whether that’s higher fuel costs or rental machinery hours. Traditionally, this meant manual logs and spreadsheets, but this is time-consuming and prone to error at times. We in the industry can continue to build processes with fleet management software (FMS) and fleet data to understand machine costs, like fuel usage or replacement parts, to manage changing material costs to create more accurate bids.
“Reporting machine data from their fleet gives contractors a level of accountability and visibility they’ve never had before,” said Larry Herman Jr., RDO Equipment Co. telematics manager. “It’s not just about closing out a project — it’s about learning from it. When you can see exactly how your machines performed, you can plan smarter for the next job.”
Paul Carlson, RDO Equipment Co.’s product manager for construction software, demonstrates high-accuracy survey solutions from Topcon Positioning Systems.RDO Equipment Co.
Use Fleet Data to Manage Machines, Schedule Maintenance
Connected platforms like make it easy to access, set up and optimize your fleet data. And with some OEMs offering support, such as digital self-repair tools, fleet managers have greater access to a wide variety of diagnostic readings, recordings and interactive tests, along with complete calibrations and condition monitoring. When machines are connected to the maintenance platforms, fleet managers can receive notifications, alerts and reports and can even train their teams through mobile apps. These tools enable collaboration to leverage data for the following tasks:
- Utilization — Track fuel, hours and machine usage.
- Productivity — Ensure the right-sized fleet and maximize technology utilization.
- Benchmarking — Understand current performance and identify improvement areas.
- Maximize uptime — Allow dealer access for proactive support.
- Maintenance planning — Schedule downtime for convenience with options like pre-paid or pay-as-you-go service contracts.
Some contractors choose to partner with remote support teams. “Recently, our machine health monitoring team identified an 850L dozer throwing low coolant pressure codes and alerted the local store,” Herman Jr. said. “After contacting the customer, the team inspected the machine and found a hole blown through the coolant reservoir.”
Herman Jr. explained that a technician was dispatched the next day to replace the reservoir and discovered additional potential issues. All repairs were made, preventing further downtime and avoiding catastrophic failure. When contractors take the time to use an equipment management software to examine fleet data, they can rely on troubleshooting tools like PRO Service or a trusted dealer to prevent costly downtime. While no two projects will be the same, unplanned costs can always put a contractor at risk of exceeding a project’s original bid. In 2026, some contractors are experimenting with the latest project modeling, material cost tracking software and AI.
The Role of Data and AI in Modern Construction
Fleet data from connected machines has become essential for job sites large and small. With material prices and labor costs fluctuating, accurate machine and project data is the foundation for better budgeting and bidding. Contractors who rely on guesswork risk underestimating costs or overbidding and losing work.
Hands-on support can include 3D modeling to solve equipment challenges.RDO Equipment Co.
“Bidding is always a challenge. Margins are tight, and the market fluctuates. We're fortunate to be in an area with a strong housing market,” said Jared Davis, one of the managing partners at Five Star Civil, a central Texas contractor who partners with RDO. "Equipment was a huge challenge when we first started, coming out of COVID. No one had the equipment or technology we wanted, but we were lucky to have great relationships with suppliers.”
Davis explains that he uses connected platforms to track machine data, which he references later when preparing bids.
“If we think we can do something faster, we adjust our bids accordingly to stay competitive,” Davis said.
Machine performance data, fuel consumption and utilization metrics provide a clear picture of actual costs. But the next frontier is AI-powered digital twins — virtual models of your machines and job sites that simulate performance, predict outcomes and optimize workflows. These tools allow contractors to anticipate issues before they happen and plan smarter for future projects.
Future Planning and Fleet Optimization
Connected platforms also help contractors plan for fleet replacement, monitor lease hours and learn about upcoming technology. They even allow integration of non-connected machines through APIs, aggregating data from multiple sources for a complete picture.
Imagine bidding on a new site development project. Instead of estimating machine hours based on experience alone, you pull data from your connected platform showing actual hours and fuel consumption from similar projects. Combined with AI-driven insights and digital twin simulations, you can create bids that reflect real-world performance, reducing risk and improving profitability.
Project estimates don’t have to be a headache. With connected equipment, AI-powered digital twins and connected platforms, contractors can review completed jobs faster, document accurately and plan smarter for the future. In a market where costs are unpredictable, data-driven decisions are the key to staying ahead.
