5 Ways AI Takeoffs Can Stop Cash Burn in Construction

Construction cash burn can sometimes come from a singular, catastrophic mistake. But that’s, fortunately, pretty uncommon. Instead, most cash burns result from numerous small miscalculations and missteps. Mistaken quantities, rework, outdated plans, and disconnected teams quietly cut into profits, leaving firms frustrated and with less money in the bank.

At the center of many of these issues is the takeoff process. Not because estimators aren’t good at their jobs—they are—but because legacy, manual takeoff workflows were never designed for the speed, complexity, and margin pressure modern contractors operate under.

AI-assisted takeoff software changes that equation by automating repetitive tracing, clicking, and labeling. This gives time and energy back to estimators so they can focus on strategic thinking, optimization, and collaboration. It’s all about empowering preconstruction professionals to make better decisions earlier in the process, thus reducing cash burn throughout the project.

Let's explore five ways AI-backed takeoff software helps contractors reduce cash burn across preconstruction and beyond.

#1 More Accurate Quantities Means Fewer Costly Misses

Inaccurate quantities are one of the fastest ways to burn cash. The most obvious consequences include overspending on materials or scrambling to purchase more later—both of which slow down the build and erode margins.

Solving this problem requires close attention to detail. But with long plan sets, tight deadlines, and constant revisions, even experienced estimators are vulnerable to small misses.

AI-assisted takeoffs flip that dynamic. Instead of starting from zero, estimators begin with a complete, AI-generated baseline. Walls, doors, windows, areas, and counts are detected consistently across the plan set, and the estimator’s role shifts from repetitive clicking to verifying, refining, and applying expert judgment.

An independent study conducted by the University of Kansas illustrates this impact. An estimator was asked to perform a quantity takeoff using architectural floor plans for a fire station. With Togal.AI, the AI-assisted takeoff took just 1.2 minutes. Manual corrections—including adjusting projections, fixing annotations, and adding unrelated elements—took an additional 36 minutes.

Conversely, performing t takeoff manually with On-Screen Takeoff took more than two and a half hours!

The takeaway is clear: AI-assisted takeoff tools dramatically speed up quantity takeoffs while maintaining a high degree of accuracy—and they keep estimators firmly in the captain’s seat.

Fewer misses mean fewer scope gaps. And fewer scope gaps mean fewer downstream budget leaks.

#2 Faster Turnaround Without Sacrificing Control

How much time and money are burned bidding on projects that never turn into wins? Slow takeoffs limit how many bids a team can realistically pursue. When a team is consumed by one time-intensive estimate, other viable opportunities often slip by.

AI-backed takeoff software accelerates the preconstruction process, allowing teams to pursue more projects without sacrificing diligence. Less time is wasted chasing missed opportunities, while the number of potential wins increases.

Select Painting, for example, adopted Togal.AI to improve its estimating workflows. One of the biggest benefits they cited was spending less time on bids they didn’t win—freeing the team to pursue more opportunities and ultimately secure more work.

This unlocks several advantages for preconstruction teams:

• More bids completed with the same team
• Better-informed go/no-go decisions
• More time spent on strategy, collaboration, and relationship-building instead of clicking and tracing

From an executive perspective, this is leverage. The same estimating team can support more revenue opportunities without increasing headcount. Just as importantly, estimators aren’t forced to cut corners—reducing the risk of rework and losses later.

#3 Reduce Costly Disconnects with a Single Source of Truth

Version control is a consistent headache in construction. When teams work in silos, money is quietly drained through rework, mismanaged material orders, and miscommunication between the office and the jobsite. All this is to say that misalignment is expensive!

To address this, many firms are moving to cloud-based platforms. When plans, quantities, and collaboration live in one system, teams operate from a single source of truth. Revisions aren’t buried in email threads, and marked-up plans aren’t left open to conflicting interpretations.

‍Togal.AI’s cloud-based takeoff software serves as a shared foundation for estimators, general contractors, and subcontractors. Everyone references the same quantities, drawings, and assumptions. When plans change, updates flow through the takeoff automatically instead of triggering manual rework or guesswork.

That shared foundation helps prevent:

• Overbuying materials
• Missed revisions
• Cost overruns caused by outdated information flowing downstream

Ultimately, less confusion means less cash burn.

#4 Errors Get Caught Earlier, When They’re Cheaper To Fix

Ask any construction veteran, and they’ll tell you: the earlier an error is caught, the cheaper it is to fix.

Manual workflows can, unfortunately, surface issues too late. Maybe it's during reviews or handoffs—but often errors aren’t discovered until they are in the field. By then, the financial damage is difficult to undo.

AI-backed takeoffs provide a different kind of safety net. Consistent detection across plan sets makes anomalies easier to spot, whether it’s missing scope, inconsistent quantities, or revisions that didn’t carry through.

These aren’t decisions made by AI, rather, they’re signals surfaced by the tool. Human experts still make the final call—but with better visibility and fewer blind spots.

That shift from reactive correction to proactive validation reduces rework, disputes, and unplanned spending.

Case in point: Total Flooring Contractors was given just 48 hours to submit a bid for a 30-story high-rise. Using Togal.AI, the team completed the takeoff in time and caught costly errors before submission. The general contractor took notice—and ultimately awarded Total Flooring repeat work.

#5 More Bids Won With Better Confidence

Beyond simply controlling costs, success is also about winning the right work. When estimates are rushed, teams either pad numbers to reduce risk (and lose bids) or take on risks they don’t fully understand (and lose margins).

With more reliable quantities and more time to review assumptions, estimators using AI-assisted takeoff software can price work competitively without guessing. The result:

• Higher hit rates
• Fewer unpleasant surprises after award
• Healthier margins that hold up through execution

Over time, that confidence compounds: Fewer bad jobs, fewer fire drills, and a more predictable financial picture.

AI-Assisted Takeoffs Protect Margins

The most effective AI takeoff workflows remove friction. They reduce manual effort, surface risk earlier, align teams around a shared foundation, and allow experienced preconstruction professionals to apply judgment where it matters most. For executives focused on stopping cash burn, that combination is powerful.

‍Want to see how AI-assisted takeoffs work in practice? Request a custom demo of Togal.AI.