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Eye on AI

#318 Olek Paraska: How AI Is Fixing the Biggest Bottleneck in Construction

53 min episode · 2 min read
·
Olek Paraska

Episode

53 min

Read time

2 min

Topics

Productivity, Startups, Fundraising & VC

AI-Generated Summary

Key Takeaways

  • Manual Takeoff Elimination: Construction estimators currently spend full days manually tracing room dimensions and counting doors on floor plans for every project. Togal's proprietary computer vision models extract measurements automatically, reducing this process from one day to under one hour, achieving 90% time savings. Every subcontractor previously measured the same spaces independently, creating massive redundancy across hundreds of contractors per building.
  • Training Data Challenge: Building accurate construction AI requires annotated floor plans from professional architects, not general crowdsourced workers, because construction drawings contain specialized nuances. Togal annotated thousands of real floor plans and developed synthetic data generation from CAD software. However, real-world messy construction data consistently outperforms synthetic data, as machine learning models can distinguish between them and synthetic data produces inferior results.
  • Agentic Preconstruction Workflows: AI agents now handle routine tasks like generating RFIs (requests for information), comparing floor plan versions to identify meaningful changes, and parsing 500-page specification documents to extract relevant scope. Agents connect perception layers (reading floor plans) with reasoning layers (large language models) to answer questions like what materials are missing or how to reduce costs while maintaining specifications.
  • Construction-Software Culture Gap: Togal employs both construction professionals working in their first software company and software engineers in their first construction company, creating internal communication challenges that mirror industry-wide technology adoption barriers. Construction resists bad technology, not technology itself, because physical world consequences make the barrier to entry extremely high. Solutions require deep construction domain expertise combined with technical capability.
  • Revenue Growth Indicators: Togal's annual revenue tripling for three consecutive years reflects industry hunger for solutions rather than typical startup growth from a small base. The company focuses on commercial buildings like hotels and hospitals, including most Miami high-rises. Construction productivity has stagnated or declined over fifty years while other industries advanced, creating massive opportunity for AI-driven efficiency gains.

What It Covers

Olek Paraska, CTO of Togal AI, explains how computer vision and AI agents automate construction estimating, a manual process that delays projects by years. Togal tripled revenue three consecutive years by solving the takeoff bottleneck where contractors manually measure floor plans. The company targets preconstruction workflows to accelerate building timelines and reduce costs.

Key Questions Answered

  • Manual Takeoff Elimination: Construction estimators currently spend full days manually tracing room dimensions and counting doors on floor plans for every project. Togal's proprietary computer vision models extract measurements automatically, reducing this process from one day to under one hour, achieving 90% time savings. Every subcontractor previously measured the same spaces independently, creating massive redundancy across hundreds of contractors per building.
  • Training Data Challenge: Building accurate construction AI requires annotated floor plans from professional architects, not general crowdsourced workers, because construction drawings contain specialized nuances. Togal annotated thousands of real floor plans and developed synthetic data generation from CAD software. However, real-world messy construction data consistently outperforms synthetic data, as machine learning models can distinguish between them and synthetic data produces inferior results.
  • Agentic Preconstruction Workflows: AI agents now handle routine tasks like generating RFIs (requests for information), comparing floor plan versions to identify meaningful changes, and parsing 500-page specification documents to extract relevant scope. Agents connect perception layers (reading floor plans) with reasoning layers (large language models) to answer questions like what materials are missing or how to reduce costs while maintaining specifications.
  • Construction-Software Culture Gap: Togal employs both construction professionals working in their first software company and software engineers in their first construction company, creating internal communication challenges that mirror industry-wide technology adoption barriers. Construction resists bad technology, not technology itself, because physical world consequences make the barrier to entry extremely high. Solutions require deep construction domain expertise combined with technical capability.
  • Revenue Growth Indicators: Togal's annual revenue tripling for three consecutive years reflects industry hunger for solutions rather than typical startup growth from a small base. The company focuses on commercial buildings like hotels and hospitals, including most Miami high-rises. Construction productivity has stagnated or declined over fifty years while other industries advanced, creating massive opportunity for AI-driven efficiency gains.

Notable Moment

Paraska reveals that some construction estimators still print architectural drawings and measure rooms with physical rulers on paper rather than using digital tools. This analog approach persists in an industry building multimillion-dollar structures, illustrating how construction operates decades behind software industries in adopting basic digital workflows, let alone advanced AI capabilities.

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Episode Transcript

Togal itself has, like, tripled in revenue, right, in the last, I don't know, last few years. We tripled in revenue three years in a row. So Yeah. Annually tripling in revenue. To be fair, is that because you're a a startup, you're growing from a small base? Is that indicative of how hungry the industry is for a solution like this? I would say the latter. I think the industry is hungry for solution like this. The industry is hungry for someone to listen. So, usually, I start by having, the guest introduce themselves, you know, explain your background so far as it's relevant. You know, I imagine, you've you've been doing this for a long time. Yeah. You've built AI systems across multiple industries. So can you give your background, and then I'll, I'll start asking some questions. My name is Alexander Oleg Alexander Baraska, also known as Oleg Baraska. I'm a CTO in Toggle AI right now. And, at Toggle AI, we built, AI systems for construction industry. But before that, I was building AI systems for Enditech, advertising, where we deployed AI to millions of users. Before it was, as widely distributed. And before that, I was in a streaming media industry where we built digital rights management systems, completely different, angle. You were in in building digital what kind of systems? Digital rights management. So it's system Oh. Ensure that That's interesting. Only a lot of people have access to the, content. Yeah. Yeah. So at at Togal, can you talk about, what's going on in the construction and the housing industry? Yeah. What yeah. How Togal addresses it, how AI can apply to it. You know. Sure. So I stumbled into Togol a bit of it by accident, but also because I was looking for something like this. Back in 2020, I think. I quit my job back then. I decided you need to start a startup, but I didn't didn't know what the startup should be about. But I did know that, I'm looking for a area where AI wouldn't make any meaningful impact. The reason why construction is interesting, I think, is because in the last fifty years, the improvement in construction from any sort of innovation has been zero. In some cases, it has been negative. So we have all of this progress in in the world in the world of bits, but in the world of atoms, it's going the different direction. And for me, as a software person, it was, interesting and challenging. I didn't understand why is that happening. And right now, it's all coming to the head, but, you know, it's it's something that has been brewing for decades, obviously. But housing crisis is a symptom of that. There's obviously problems with financing, problems with, all sorts of things with zoning, but it also is true that we're just not building fast enough. And, that's what Total is trying to tackle. It it seems trivial, but before …

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