How LR Costanzo Increased Pre-Construction Throughput and Reduced Scope Writing Time by 80%

Overview

LR Costanzo Construction Services was facing a problem that is common in growing construction firms but rarely addressed directly: pre-construction had become the bottleneck to revenue.

The company’s ability to win work was not the issue. The issue was what happened after a project was awarded.

Before operations could begin, scopes had to be written, buyouts completed, and packages finalized. Only then could projects move forward and only then could billing begin.

At the center of this process was a small pre-construction team responsible for handling all scope development. As project volume increased, this team became a constraint on the entire business.

The impact was not just operational. It was financial.

“Delays in pre-construction meant delays in billing and delayed billing directly affected cash flow.”

The Challenge

The pre-construction real estate workflow relied heavily on manual effort. Scope writing, in particular, required detailed review of drawings, specifications, and past project data.

Each scope followed a general structure, but in practice, execution varied depending on who was writing it.

Limited Capacity in a High Impact Function

A two person team was responsible for producing between 10 to 50 scopes per month, depending on project volume.

Each scope required:

• Reviewing drawings and specifications
• Structuring trade specific requirements
• Formatting into company standards
• Adding clarifications, exclusions, and pricing structures

In most cases, this process took 1 to 2 hours per scope.

During busy periods, this translated into:

• Up to 100 hours per month spent on scope writing alone
• Limited ability to increase output without adding headcount

This created a hard ceiling on throughput.

Pre-Con Bottlenecks Delaying Revenue

The impact of this constraint extended beyond the pre-con team.

Projects could not move into execution until:

• Scopes were finalized
• Buyouts were completed
• Trade packages were ready

As a result, projects were frequently sitting in a queue, waiting for pre-con to catch up.

This delay had a direct consequence:

• Construction billing invoice could not begin until pre-con was complete
• Cash flow was pushed further out than necessary

The issue was not visibility, it was throughput.

Director Level Talent Stuck in Execution Work

The Pre-Construction Director, Charlie, was heavily involved in scope writing.

While this ensured quality, it came at a cost.

Instead of focusing on:

• Strategic planning
• Vendor relationships
• Process improvements
• Customer coordination

A significant portion of time was spent on operational tasks.

This is a common pattern in growing companies experienced leaders become execution resources because the system cannot scale without them.

Inconsistent Output Across Scopes

Even though scopes followed a general format, there was no enforced standardization.

Different team members:

• Structured scopes differently
• Used different language
• Included or excluded details inconsistently

This led to:

• Confusion for subcontractors
• Increased back and forth communication
• Occasional rework

Consistency was dependent on the individual, not the system.

The Solution

The approach was not to replace the team, but to change how scopes were created.

Instead of starting from a blank page, the system was designed to generate structured drafts that the team could review and refine.

AI Assisted Scope Generation

The core of the solution was a custom built scope builder capable of generating 80%+ complete drafts based on:

• Project drawings
• Specifications
• Historical scope data
• Trade specific formatting rules

Each scope followed the company’s existing three part structure:

• General
• Site specific
• Trade specific

Rather than writing from scratch, the team shifted to reviewing and editing.

This fundamentally changed the time required per scope.

Standardized Output Across All Scopes

Every scope generated by the system followed the same structure and formatting rules.

This ensured:

• Consistency across projects
• Clear communication with subcontractors
• Reduced need for formatting corrections

Supporting sections such as:

• Clarifications
• Exclusions
• Unit pricing
• Allowances

were included automatically when applicable.

Consistency was no longer dependent on the individual writer.

Intelligent Document Analysis

The system processed uploaded drawings and specifications to extract relevant information.

This allowed it to:

• Identify key requirements
• Flag non standard trades
• Suggest appropriate package groupings

For example:

• HVAC and plumbing could be combined into a mechanical package when appropriate
• Trade scopes could be structured based on project specific needs

This reduced the cognitive load on the team during scope creation.

Confidence Scoring for Quality Control

Each generated scope included confidence indicators highlighting areas that required closer review.

This ensured that:

• Critical details were not overlooked
• The team remained in control of final output
• Quality standards were maintained

The system supported decision making and did not replace it.

Inline Editing and Export

Scopes could be edited directly within the system and exported into standard document formats.

This allowed the team to maintain their existing workflows while improving efficiency.

Implementation

The implementation followed a collaborative approach.

Rather than delivering a fixed product, the system was built iteratively with direct input from the pre-con team.

Key inputs included:

• Existing scope templates
• Historical project data
• Trade specific requirements
• Formatting standards

The Pre-Construction Director remained closely involved throughout the process to ensure alignment with real world AI workflows.

Results

The impact was immediate and measurable, particularly in terms of time savings and throughput.

Efficiency Improvements

• Time per scope reduced from 1–2 hours to 15–20 minutes
• Significant reduction in manual writing effort

Increased Capacity

• Monthly output increased to 50+ scopes without additional hires
• Ability to handle higher project volume without bottlenecks

Operational Improvements

• Standardized scope formatting across all projects
• Reduced rework and clarification cycles
• Improved communication with subcontractors

Strategic Impact

Perhaps the most important outcome was how it changed the role of leadership.

Instead of writing scopes, the Pre-Construction Director shifted toward:

• Reviewing outputs
• Managing team performance
• Engaging with clients
• Driving strategic initiatives

This is where the real leverage came from.

Return on Investment

From a financial perspective, the investment was justified through multiple channels.

Direct time savings:

• ~30 scopes/month
• ~1.2 hours saved per scope
• Estimated annual value: ~$32,000+

Headcount avoidance:

• Eliminated the need for an additional hire
• Estimated savings: $60,000–$70,000 annually

Total Year 1 value:

• Approximately $92,000–$102,000

With a Year 1 investment of $86,000, the system effectively paid for itself.

From Year 2 onward, the cost drops significantly while the benefits continue.

Key Takeaway

Pre-construction is often treated as a necessary step before execution.

In reality, it is a critical leverage point in the business.

When pre-con slows down, everything behind it slows down including revenue.

By increasing throughput at this stage, LR Costanzo was able to:

• Accelerate project timelines
• Improve internal efficiency
• Unlock capacity without increasing headcount

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