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How Observance is Transforming Construction with AI-Powered Cost Efficiency

How Observance is Transforming Construction with AI-Powered Cost Efficiency
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Satyajit Ghana

Published on June 17, 2025

Construction AI

In a world where cities are expanding faster than ever before, the construction industry is under immense pressure to deliver projects on time, within budget, and at superior quality. Yet, inefficiencies continue to cost companies billions—especially in rapidly growing economies like India. That’s where Observance, the AI-powered Digital PMC (Project Monitoring and Control) platform by Inkers Technologies, is making a remarkable difference.

Built in India for the world, Observance is designed to tackle the deep-rooted inefficiencies plaguing construction through a unified, intelligent, and scalable platform. With its real-time monitoring capabilities, AI analytics, and seamless integration with industry tools, Observance is driving smarter, faster, and more cost-efficient construction management.

Let’s dive into how Observance helps construction companies reduce costs, avoid delays, and build with precision—while enabling a true digital transformation in the industry.

The Construction Cost Crisis: A Global Problem

Construction contributes nearly 10% to India’s GDP, yet it continues to suffer from chronic inefficiencies. As of 2024, over 449 major infrastructure projects in India have overshot budgets by a staggering ₹5.01 lakh crore. Globally, too, the construction sector remains one of the least digitized industries, relying heavily on outdated, manual methods.

The result? Wasted time, money, and resources due to:

  • Poor project tracking
  • Manual inspections
  • Communication silos
  • Rework and delays
  • Amid rising expectations and complex projects, traditional methods are simply no longer enough. The need for intelligent, data-driven solutions has never been more urgent.

    Introducing Observance: The AI Brain for Construction Sites

    Observance is a full-stack AI-powered Digital PMC (Project Monitoring & Control) platform that transforms how infrastructure is tracked, audited, and delivered. It integrates real-time site intelligence, computer vision, digital twins, and AI-driven analytics to bring visibility and control at every stage of a project.

    The platform is compatible with BIM360, Procore, Primavera, and MS Project, seamlessly linking planning, execution, and reporting into one intelligent ecosystem.

    Core Features That Power Observance:

  • AI-Powered Digital Twin Technology: Creates real-time, as-built 3D BIM models for continuous monitoring and predictive analysis.
  • Digital PMC Automation: Automates manual tasks like milestone tracking, manpower management, and quality control.
  • Visual & Thermal Defect Detection: AI-driven inspections flag visual defects, leaks, and moisture issues early—saving rework time and costs.
  • 360° Video Monitoring: Track weekly progress with immersive time-lapse views, annotations, and remote access from anywhere.
  • Drone + LIDAR Progress Tracking: Capture high-resolution site data with drones equipped with RGB, thermal, and LiDAR sensors.
  • AI-Driven Digital Audit Reports: Automate milestone-wise reporting, BOQ mapping, and progress verification for smoother approvals and payments.
  • Quantifying the Savings: The Observance Effect

    Observance isn’t just technology—it’s a bottom-line booster. Here’s how it delivers substantial ROI across key cost centers of a ₹1000 Crore infrastructure project:

    1️⃣ Travel & Site Visits – Savings: ~ ₹1.8 Crores

    Traditional multi-site inspections involve huge logistical and financial overheads. Observance cuts this by offering remote monitoring, 3D walkthroughs, and cloud dashboards.

  • Cost Allocation: 0.2% of total project budget
  • Savings: Up to 90% on travel costs
  • 2️⃣ Rework Costs – Savings: ~ ₹35 Crores

    Rework consumes 5–10% of project budgets, usually due to undetected quality defects or design deviations. Observance uses AI to flag issues early:

  • 140,000+ defects detected across 180+ sites
  • Real-time 360° visual comparisons and thermal scans
  • Cost Allocation: 5% of project budget
  • Savings: Up to 70% in rework costs
  • 3️⃣ Delay Overruns – Savings: ~ ₹31.6–₹39.5 Crores

    Delays are often caused by poor communication and outdated scheduling. Observance provides:

  • Centralized command center
  • Real-time progress tracking
  • Auto-mapped BOQ-linked 3D visualizations
  • Cost Overrun: 4–5% of total budget
  • Savings: 79% reduction in delay-related losses
  • Digital Twin Lifecycle Benefits – Savings: ~ ₹2 Crores

    Incomplete handover documentation causes major issues in facility management (FM). Observance’s interactive Digital Twin solves this:

  • Used for renovation, compliance, and FM
  • Supports warranty tracking and operational efficiency
  • Cost Allocation: 0.2% of project cost
  • Savings : Long-term O&M cost reduction of 10–20%
  • 5️⃣ Historical Data Utilization – Savings: ~ ₹1 Crore

    By archiving site scans and project data, Observance helps identify recurring issues, streamline inspections, and predict defects.

  • Improves long-term planning, SOPs, and training
  • Builds organizational memory that outlives staff turnover
  • Cost Allocation: 0.1% of total project cost
  • Summary Table: The Observance ROI Snapshot

    Beyond Cost Savings: Enabling Smarter Infrastructure

    While ₹72 Crores in potential savings per project is impressive, Observance offers more than financial benefits:

  • Faster handovers
  • Stronger compliance
  • Higher build quality
  • Greater stakeholder accountability
  • Real-time transparency for decision makers
  • These operational efficiencies position Observance as a cornerstone in the digital transformation of construction.

    The Future of Construction Is AI-First

    India’s march toward a $7 trillion economy by 2030 depends on infrastructure that’s fast, efficient, and intelligent. Observance is not just reducing costs—it's transforming how construction is visualized, executed, and delivered.

    With every site scan, every 3D twin, and every AI-generated report, Observance moves the industry away from reactive management to proactive intelligence.

    Ready to Build Smarter?

    Join 30+ forward-thinking developers already using Observance to deliver smarter, faster, and more cost-efficient projects. Don’t let blind spots, rework, or delays derail your budget.

    Don’t let delays, rework, and guesswork drain your budget. Embrace AI-powered construction with Observance today.

    How Observance is Transforming Construction with AI-Powered Cost Efficiency