How small contractors can win work without investing in AI

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How small contractors can win work without investing in AI
Image: iStock | © Daniel Balakov

Buyers are increasingly using AI to find suppliers, but does that mean everyone should invest in it? Andrew Preston, Director of Marketplace, argues that for sole traders and small firms, the fastest route to new construction work is often the simplest one

In a competitive sector like construction, fear of missing out could too easily drive your business strategy, with new AI platforms claiming to prevent it launching almost every week. A recent piece in this publication argued that AI is already reshaping how buyers build their supplier shortlists, and that’s worth noting. Understandably, contractors might wonder whether it’s worth investing. For most sole traders and small firms, the honest answer is probably not.

But if buyers use AI, shouldn’t I too?

It’s a fair question. Many of us now use AI platforms to answer queries, search for products and services and get advice. With so much talk about AI’s influence on buying habits, holding back on your own AI investment can feel risky.

For large contractors with IT and marketing functions operating multiple teams across regions, a dedicated AI platform and time spent optimising online content for AI search could pay off. But for small firms and sole traders, the picture is very different.

Size matters in this conversation because the UK construction industry is dominated by small and medium-sized enterprises (SMEs): RICS notes that construction has more SMEs than any other UK sector, with 870,000 companies operating in it. Moreover, under the Procurement Act 2023, buyers are encouraged to work with SMEs as part of their social value proposition.

However, for sole traders or subcontractors with only a few employees, complex AI strategies that take time, resources and a chunk of the budget are likely to cost more than they deliver.

How small contractors get found by buyers

Being found by a buyer who uses AI in the search process doesn’t mean you have to be adept at AI yourself. When a main contractor or public body runs an initial supplier search, the results usually come from an established platform, database, or approved supplier list. If you are listed there with up-to-date details and accreditations, the platform does the matching for you. That’s why keeping your prequalification current on an established industry platform wins more work than new software. Platforms with a dedicated SME filter add extra value, because buyers who must consider SME access and social value under the Procurement Act may want to search specifically for SMEs.

Our Construction Marketplace Health Index found that over a third of subcontractors (34%) find getting noticed by the right contractors their biggest challenge. When we asked how they win work today, 54% said it’s through good relationships and word of mouth. To me, this points to visibility as the hurdle, but once a buyer knows you’re there, reputation and trust take over, as they always have.

So the real question for a small firm isn’t, ‘Should I buy AI?’ It’s, ‘Am I visible in the places buyers already look?”

A tradesperson finishing a job at 6pm doesn’t want to open a dashboard full of predictive analytics features, with a stack of updates to go through. They want to log in, see who is looking for their services, and reply to an enquiry from their mobile phone. That doesn’t mean leaving AI out. Good platforms will already have it built in where it genuinely helps, such as matching contractors to relevant opportunities, sorting enquiries or pulling up information about a prospect. Contractors get the benefit without having to manage any of it themselves.

A straightforward matching platform, for an affordable, predictable monthly fee, is often all a sole trader or newly established contractor needs. It’s enough to get in front of the right people and show you are credible, reliable and available for work.

The right tool for the job

AI plays an important role in construction, and that role will only grow. But small firms should be wary of buying technology just for fear of missing out. For most, the smartest way to benefit from AI is through a platform that already has it built in.

The test for any new tool is straightforward. Will it help me win more work without taking time away from the work itself? If the answer is no, or not yet, you may have better options. Being visible to the right buyers doesn’t need to be complicated. Like anything in construction, it just needs the right tool for the job.

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