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Enterprise AI Analysis: AI-Driven Automation of Construction Cost Estimation

Enterprise AI Analysis

AI-Driven Automation of Construction Cost Estimation: Integrating BIM with Large Language Models

Authors: Mohamed Abdelsalam, Amr Ashmawi and Phuong H. D. Nguyen

The construction industry faces challenges in estimating costs because the processes are time-consuming and involve a high likelihood of making errors. For instance, quantity take-offs are often inaccurate, and there is not a simple way to integrate data from Building Information Modeling (BIM) platforms and cost databases. This study introduces a framework that utilizes the Model Context Protocol (MCP) to ensure seamless integration between large language models (LLMs) and BIM models through Autodesk Revit in order to enable fully automated cost estimation workflows. The developed system combines an AI-powered MCP server with cost databases that are standard in the industry, such as the 2025 Craftsman National Building Cost Manual and the ZIP code-based location modifiers. This system enables LLMs to automatically obtain quantities from BIM models, match components to cost items, make regional changes, and make professional cost estimates. A case study of estimating the cost of an electrical system shows that the framework can reduce estimation time from 2.5–3.5 h (manual baseline) to 42.3 ± 3.7 s (n = 5 runs, warm start), representing a 98.6% efficiency gain, while being more accurate with respect to industry standards. The system processed 187 BIM elements in three component groups (receptacles, conduits, and panels). It automatically matched them to the right cost database items, used location-specific modifiers for ZIP code 01003, and made a full cost estimate of USD 13,945.81 with detailed breakdowns and a percent difference of %5.1 of the manual estimation. This research enhances automation in construction by developing a methodology for AI-BIM integration using standardized protocols, shows the practical application of AI in construction workflows, and provides empirical evidence of the advantages of automation in cost estimation processes. The results indicate that MCP-based AI integration presents a novel approach for construction automation, delivering improvements while applying professional standards of accuracy and availability.

Executive Impact

Leveraging AI and BIM, our framework delivers unprecedented efficiency and accuracy in construction cost estimation.

0% Efficiency Gain
0% Cost Variance (Automated vs. Manual)
0 BIM Elements Processed
0s Average Estimation Time

Deep Analysis & Enterprise Applications

Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.

Integration Protocol
Performance & Efficiency
Accuracy & Reliability
Enterprise Application

Enterprise Process Flow: MCP-Based Estimation

Phase 1: Model Interrogation & Quantity Extraction
Phase 2: DB Integration & User Parameterization
Phase 3: Intelligent Component-Cost Matching (AI Reasoning)
Phase 4: Cost Calculation & Synthesis
Phase 5: Professional Reporting & Visualization
M × N to M + N Simplified Integration Complexity via MCP

The Model Context Protocol (MCP) transforms complex M × N integration problems (many tools to many data sources) into a manageable M + N problem, significantly reducing integration complexity in construction workflows. This enables AI systems to dynamically access data, find capabilities, and invoke functions across various platforms.

Integration Method Comparison

Aspect Current Literature/Practice Advancement in This Study
Integration Method
  • Relies on custom, one-off solutions (APIs, plugins) that are hard to scale.
  • Introduces standardized protocol MCP as a universal adapter, solving the “M × N" integration problem.
Automation Scope
  • Mostly semi-automated, focusing only on quantity take-off.
  • Achieves full end-to-end automation from BIM interrogation to final report in <45 s.
98.6% Reduction in Estimation Time

The framework reduced estimation time from a manual baseline of 2.5–3.5 hours to an average of 42.3 seconds with AI-driven automation.

Measuring Performance: Automated vs. Manual

The automated system achieved a mean execution time of 42.3 s (SD = 3.7 s, n = 5) from user command initiation to complete HTML report generation. This included MCP server initialization, Revit model interrogation, cost database parsing, component matching, calculations, and report generation.

In contrast, manual estimates by a professional estimator with 8+ years of experience using standard industry practice (Revit Schedules for QTO, manual database lookup, spreadsheet calculations) took between 2.5, 3.0, and 3.5 hours (mean: 3.0 h).

This stark difference quantifies a 98.6% efficiency gain, making real-time cost feedback possible during iterative design phases.

Efficiency Comparison with Prior Studies

Study Automation Level Time Efficiency
This Study (MCP + LLM) Full end-to-end
  • 98.6% reduction
Alazawy et al. (2024) [34] (SVM-BIM) QTO only
  • Not reported
Attia (2025) [35] (AI-BIM integration) Project workflows
  • 30% efficiency improvement
Traditional BIM QTO QTO only
  • Baseline
100% Cost Database Matching Accuracy

The AI system demonstrated perfect accuracy in matching BIM components to the appropriate cost items in the Craftsman National Building Cost Manual 2025 and applying location modifiers for ZIP code 01003.

Accuracy Assessment: Quantity Extraction & Overall Estimate

Quantity Extraction Accuracy:

  • Receptacles: Automated = 30, Manual = 29. Discrepancy: 3.4% overcount (AI misclassified a junction box).
  • Conduit: Automated = 2450 LF, Manual = 2526.5 LF. Discrepancy: 3.1% undercount (AI aggregated connected conduit runs differently).
  • Panels: Automated = 2, Manual = 2. Discrepancy: 0% (exact match).

Overall Estimate Accuracy: The AI-generated total cost was USD 13,945.81. The manually verified estimate (using corrected quantities) was USD 14,006.28. This resulted in an initial variance of -5.1%, which falls within acceptable ranges for preliminary estimates (±10–15%) but exceeds the tighter tolerance for detailed bid-level estimates (±5–8%). Professional validation is still crucial for production use.

Accuracy Comparison with Prior Studies

Study Automation Level Accuracy Metric
This Study (MCP + LLM) Full end-to-end
  • -5.1% variance
Alazawy et al. (2024) [34] (SVM-BIM) QTO only
  • 0.41-1.48% variance
Elmousalami (2020) [27] (Various ML) Prediction only
  • 7-15% MAPE
Traditional BIM QTO QTO only
  • Professional standard

Transforming Construction Workflows with AI

This research confirms that the convergence of LLMs, standardized protocols (MCP), and BIM data represents a transformative shift for construction cost management. The developed framework acts as a powerful, accurate, and immensely efficient assistant capable of reshaping estimating workflows.

The key finding is the profound efficiency gain: 2.5–3.5 hours of manual effort reduced to under 45 seconds. This accelerates real-time cost feedback during design iterations.

The most effective application is a hybrid human–AI collaborative workflow, where AI generates rapid preliminary estimates, freeing skilled professionals to focus on validation, value engineering, and complex judgment. This synergy leverages AI's speed and consistency with human contextual understanding and expertise.

AI-BIM Automation: Bridging Research Gaps

Aspect Current Literature/Practice Advancement in This Study
AI Application
  • Focuses on predictive models or theoretical LLM frameworks.
  • Empirically validates an LLM for domain-specific reasoning, with 100% accuracy in cost matching.
Solution Replicability
  • Often presents proof-of-concept or proprietary tools without a clear adoption path.
  • Provides a detailed, replicable blueprint (architecture, algorithms, validation protocol).
Performance Validation
  • Lacks comprehensive quantitative benchmarks against manual standards.
  • Delivers rigorous metrics: 98.6% time reduction and accuracy within professional confidence intervals (±8%).

Calculate Your Potential ROI

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ROI Estimator

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Your AI Implementation Roadmap

A structured approach to integrating AI into your enterprise workflows for maximum impact.

Phase 1: Discovery & Strategy

Assess current workflows, identify AI opportunities, and define clear objectives and KPIs. Establish core team and pilot scope.

Phase 2: Pilot Program Development

Develop and integrate initial AI solutions (e.g., MCP-based BIM integration) on a small scale. Test, gather feedback, and iterate.

Phase 3: Scaled Deployment & Training

Expand AI solutions across relevant departments. Provide comprehensive training for your teams to ensure smooth adoption and maximize utilization.

Phase 4: Optimization & Continuous Improvement

Monitor performance, fine-tune AI models, and integrate new data sources. Establish governance for ongoing AI evolution and innovation.

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