Making AI Work: Tips & Tricks for Contractors

We are in the midst of another technology revolution, one as important as the internet or mobile phones, with artificial intelligence (AI) tools becoming increasingly accessible and practical for contractors of all sizes.

From drafting proposals to managing complex Excel spreadsheets, AI can transform how contractors work, if they know how to use it effectively. For most modern AI users, this means understanding how to “talk” to AI, otherwise known as “prompting.” This guide will explain and demystify AI prompting and provide practical examples to help contractors harness these powerful tools while addressing common security concerns.

Understanding Prompting: The Key to AI Success

At its core, prompting is simply the art of communicating with AI tools. Think of it as giving clear directions to a highly capable assistant who needs specific instructions to deliver the best results. Just as you wouldn't tell a subcontractor to "build something nice," you can't expect AI to read your mind. The quality of your output directly leads to the quality of your input.

In the beginning, when ChatGPT was introduced, most users were excited to just get plain English responses; this was a very new experience. As we’ve grown more comfortable with these tools, we want them to perform better and to actually be useful. And that’s where more careful prompting comes in. As you’ll see, many of the drawbacks that AI has can be handled, or at least minimized, by good prompts.

For contractors, mastering this skill means the difference between generic responses and tailored solutions that actually save time and money. The good news is you don't need a computer science degree to write good prompts, just a little understanding and some practice.

Background: What Happens When You Enter a Prompt

Modern AI is based on Large Language Models (LLMs), and these work by accepting everything you’ve entered, and based not just on what you’ve entered, but also where various items are in the paragraphs, and how you’ve marked things, creating a probability for what is the best response. This means AI is sensitive to everything you’ve included, as well as what’s in the beginning, how you end the prompt, whether you’ve been clear on outputs and more. Below we outline these details and suggest best practices.

Anatomy of a Good PromptA well-crafted prompt contains several essential elements that work together to produce the results you want. Understanding these components will help you construct prompts that consistently deliver valuable outputs.

Start with clear context and role: Provide context about your situation. For example: "I'm a general contractor preparing a bid for a commercial renovation project" gives the AI crucial information about your role and task.
Tell it what you want done: Be clear and complete. Instead of "Help me with a proposal," try "Create an executive summary for a commercial renovation proposal highlighting our 20 years of experience and focus on sustainable building practices."
Provide your desired output format: Specify how you want the information presented. Do you need bullet points, paragraphs, a formal letter or a table? The AI will follow your formatting preferences when clearly stated.
Include constraints and requirements: Include limitations or specific requirements. For instance: "Keep it under 500 words" or "Use terminology appropriate for municipal government clients."
Provide examples if you can: For many requests, giving the AI an example of what you're looking for can dramatically improve results. This is particularly useful when you have a specific style or format in mind, or if you have a form you want filled out (e.g., RFI).

Example 1: Drafting Proposals and Documents
One of the most time-consuming tasks for contractors is creating professional proposals and documentation. AI can streamline this process when prompted correctly.

Poor Prompt: "Write a proposal for construction work."

Effective Prompt: "I need to write a proposal for renovating a 10,000-square-foot office space. The client is a law firm that values professionalism and minimal disruption to their operations. Create a two-page executive summary that includes:

Our company's 15 years of commercial renovation experience.
Commitment to completing work during off-hours.
Our bonding capacity and insurance coverage.
Timeline showing eight-week completion.
Emphasis on our previous work with professional services firms.
Please use formal business language appropriate for legal professionals."

This detailed prompt provides context, specific requirements and clear formatting instructions, resulting in a polished, professional document that requires minimal editing. You can reasonably save two to three hours per proposal using this approach, allowing you to bid on more projects without sacrificing quality.

Example 2: Figuring Out Software and Technical Issues

Construction software can be complex, and contractors often struggle with technical challenges. AI can serve as an on-demand tech support specialist when prompted properly.

Scenario: You're trying to create a Gantt chart in project management software but can't figure out how to link task dependencies.

Poor Prompt: "How do I use project software?"

Effective Prompt: "I'm using Microsoft Project to schedule a residential construction project. I have all my tasks entered but need to link dependencies so that:

Foundation must be complete before framing starts.
Electrical rough-in happens after framing but before insulation.
Drywall can't start until electrical inspection passes. Please provide step-by-step instructions for creating these task dependencies, including which menu options to use and any keyboard shortcuts that might help."

This approach transforms AI into a personalized tutorial system, providing specific guidance for your exact situation rather than generic software advice. Many contractors find this more helpful than searching through lengthy user manuals or watching generic YouTube tutorials.

Example 3: Customizing Excel for Construction Management

Excel remains a cornerstone tool for contractors, but many only scratch the surface of its capabilities. AI can help you create custom spreadsheets, formulas and automation that specifically address construction industry needs.

Real-World Application: A contractor needs to track material costs across multiple projects with automatic markup calculations and budget alerts.

Effective Prompt: "Create an Excel formula system for a construction materials tracker that:

Calculates 15% markup on all material costs.
Flags any line item over $1,000 in red.
Automatically sums materials by category (lumber, electrical, plumbing).
Includes a dashboard showing total costs vs. budget for each project.
Works with data starting in cell A2 with columns for: Item, Category, Cost, Project Name.
Please explain each formula and where to place it."

This targeted approach helps contractors build powerful, customized tools without expensive software or consultants. The AI can provide not just the formulas but also explain how they work, enabling contractors to modify them as needs change.

What if I Don’t Have Time to Write Long Prompts?

One trick you can use is to write something high level, then tell the AI to ask you questions, one at a time, until it knows enough. This is great for things like agenda writing, where the prompt would be:

“Create an agenda for tomorrow’s meeting. Ask me questions, one at a time, about the meeting until you have enough information to complete the task.”

If the questioning goes on too long, you can always tell the AI “Please stop asking questions and draft the agenda.”

Avoiding Hallucinations

One of the big drawbacks of LLMs is that, when they don’t know the answer, they’ll make something up. Even worse, because they’ve analyzed your request and come up with a high probability answer, incorrect answers often seem plausible. One way to avoid this is by ending your prompt with a clear statement of what to do if the AI doesn’t know the answer. Here’s a good example: “If you don’t know the answer, don’t make it up. It is OK to say you don’t know.”

A second way to avoid hallucinations, especially when you’ve asked for something long, is to require that the AI provide a bulleted list of factual statements that are made in their response. Here’s an example:

“After you have answered the question, add a bulleted list of all factual statements made or referred to in the answer, with links to the source of that information.”

It turns out that by requiring the AI to list the facts it included, it will often correct itself. And you have an easy way to check each item.

Data Security: Addressing the Elephant in the Room

One of the biggest concerns contractors express about AI adoption is data security. The good news? When used properly, mainstream AI tools from reputable providers are generally safe for business use. However, understanding best practices is crucial.

Key Security Considerations:

Choose Reputable Providers: Stick to well-known AI platforms from established companies like OpenAI, Anthropic, Google or Microsoft. These organizations invest heavily in security infrastructure and compliance.
Understand Data Handling: Most major AI providers don't train their models on your individual conversations when using business accounts. However, always review the terms of service and privacy policies.
Protect Sensitive Information: Never input client social security numbers, credit card information or highly confidential bid strategies. Treat AI conversations like email, professional but not for ultra-sensitive data.
Use Business Accounts: Consider enterprise or business subscriptions that often include additional privacy protections and data handling guarantees.

Best Practices for Contractors:

Anonymize project data when possible (use "Client A" instead of actual names).
Review your company's AI usage policy or create one if it doesn't exist.
Train your team on appropriate AI use.
Keep records of AI-assisted work for accountability.
Regularly review and update security practices as technology evolves.

The construction industry's digital transformation is accelerating, and contractors who embrace AI tools gain significant competitive advantages. By mastering the art of prompting, you can transform these powerful tools from mysterious black boxes into practical assistants that save time, improve quality and help you win more business.

The examples provided here are just the beginning. As you explore AI tools, you'll discover countless ways to apply them to your specific needs — from safety planning to cost estimation, from client communication to regulatory compliance. The key is to start somewhere and build your skills through practice.

Published: August 28, 2025

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