In keeping with an aggressive business plan focused on software development for the construction industry, Autodesk has made two key acquisitions that it hopes will broaden its construction management platforms.
Today, the company says that it has completed its $875 million cash acquisition of PlanGrid, a seven-year-old startup based in San Francisco, which provides construction productivity software that enables GCs, subcontractors, and owners to have real-time access to project plans, digital blueprints, punch lists, work tasks, progress imagery, daily field reports, and submittals.
Also today, Autodesk discloses that it has signed a definitive agreement to acquire BuildingConnected for $275 million in net cash. San Francisco-based BuildingConnected was founded in 2012, and has grown to become the largest digital network of construction professionals, with more than 700,000 people in its database. Its cofounder Dustin DeVan had been a general contractor before starting the company, which currently has about 180 employees.
BuildingConnected helps owners and GCs find and hire qualified contractors for their projects. It moves Autodesk into preconstruction planning to help contractors decide which subs and suppliers to go with. It includes TradeTapp, a subcontractor risk analysis platform; and Bid Board Pro, a platform that helps subs manage and win more bids. BuildingConnected’s customers include such contractor giants as Turner, McCarthy, Mortenson, StructureTone, Skanska, Clark, Ryan Companies, and AECOM.
(Autodesk has taken a particular interest in developing products that get subs more involved earlier in projects. At its recent Autodesk University event in Las Vegas, Autodesk showcased its strategic alliance with eSub Construction Software, a cloud-based system of record for trades to plan and track their employees’ productivity. eSub is the field data component within Autodesk’s BIM 360 platform.)
Its latest acquisition “provides an opportunity for Autodesk and BuildingConnected to connect every business in the construction industry, becoming the definitive source of information throughout the sector,” says Jim Lynch, Vice President and General Manager, Autodesk Construction Solutions. “Our tools empower all stakeholders with greater visibility and better information to make immediate decisions. We’re excited about creating a robust digital marketplace for the global construction industry, helping to boost productivity, while lowering cost and risk.”
BuildingConnected has 700,000 trades in its database, and helps contractors select the best subs and suppliers for their projects. Image: Autodesk
A late bloomer when it comes to implementing technology, the construction sector is now embracing tech to help manage projects at a time when the industry is grappling with labor shortages and other factors that cause 70% of construction projects to be delivered late and/or over budget.
Capturing, analyzing, and disseminating design- and construction-related data are the primary objectives of Autodesk’s product development and expansion strategies. “We are trying to completely digitize the construction process all the way from design to build,” Andrew Anagnost, Autodesk’s evangelical CEO, tells Forbes. “With the completion of [the purchase of] BuildingConnected, we feel we have acquired all the important assets we need to acquire.”
Clayco, the design-build firm, chose Autodesk BIM 360 and PlanGrid to help digitize each step of the construction process in order to accelerate project delivery, reduce risk and increase productivity. “I’m excited to see how Autodesk and PlanGrid will work together to encourage collaboration between the project team and owners from the time a building is conceived, all the way through to handover,” says Bob Clark, Clayco’s founder and CEO.
Autodesk expects PlanGrid to contribute approximately $100 million in annual recurring revenue. Autodesk does not project any ARR from its acquisition of BuildingConnected.
Related Stories
AEC Tech | Oct 3, 2024
4 ways AI impacts building design beyond dramatic imagery
Kristen Forward, Design Technology Futures Leader, NBBJ, shows four ways the firm is using AI to generate value for its clients.
Digital Twin | Aug 21, 2024
Digital twins: Transforming operations for greater efficiency
While efforts to improve building efficiency have been iterative, recent advancements have significantly enhanced the interaction between facility managers, building owners, and their facilities.
Affordable Housing | Aug 7, 2024
The future of affordable housing may be modular, AI-driven, and made of mushrooms
Demolished in 1989, The Phoenix Ironworks Steel Factory left a five-acre hole in West Oakland, Calif. After sitting vacant for nearly three decades, the site will soon become utilized again in the form of 316 affordable housing units.
Great Solutions | Jul 23, 2024
41 Great Solutions for architects, engineers, and contractors
AI ChatBots, ambient computing, floating MRIs, low-carbon cement, sunshine on demand, next-generation top-down construction. These and 35 other innovations make up our 2024 Great Solutions Report, which highlights fresh ideas and innovations from leading architecture, engineering, and construction firms.
Virtual Reality | Jul 8, 2024
Can a VR-enabled AEC firm transform your project?
With the aid of virtual reality and three-dimensional visualization technologies, designers, consultants, and their clients can envision a place as though the project were in a later stage.
Affordable Housing | May 30, 2024
General contractor’s keys to a successful affordable housing project
General contractors can have tremendous influence over a project’s success in terms of schedule, budget, and quality. However, to ensure a project is put on this path, there are a few factors that must be considered.
AEC Tech | Apr 30, 2024
Lack of organizational readiness is biggest hurdle to artificial intelligence adoption
Managers of companies in the industrial sector, including construction, have bought the hype of artificial intelligence (AI) as a transformative technology, but their organizations are not ready to realize its promise, according to research from IFS, a global cloud enterprise software company. An IFS survey of 1,700 senior decision-makers found that 84% of executives anticipate massive organizational benefits from AI.
AEC Innovators | Apr 26, 2024
National Institute of Building Sciences announces Building Innovation 2024 schedule
The National Institute of Building Sciences is hosting its annual Building Innovation conference, May 22-24 at the Capital Hilton in Washington, D.C. BI2024 brings together everyone who impacts the built environment: government agencies, contractors, the private sector, architects, scientists, and more.
BIM and Information Technology | Mar 11, 2024
BIM at LOD400: Why Level of Development 400 matters for design and virtual construction
As construction projects grow more complex, producing a building information model at Level of Development 400 (LOD400) can accelerate schedules, increase savings, and reduce risk, writes Stephen E. Blumenbaum, PE, SE, Walter P Moore's Director of Construction Engineering.
AEC Tech | Mar 9, 2024
9 steps for implementing digital transformation in your AEC business
Regardless of a businesses size and type, digital solutions like workflow automation software, AI-based analytics, and integrations can significantly enhance efficiency, productivity, and competitiveness.