How Much Is Too Much: A GC's Guide to Spending on Construction Software
- Alena Tuttle
- 4 days ago
- 3 min read
Walk any jobsite today and you’ll see the same tension: construction teams know they need better technology, but the software bills keep climbing. Procore, Autodesk, estimating tools, scheduling tools, timekeeping apps, safety apps… pretty soon a GC is staring at a five–to–six figure annual software budget and wondering:
“Are we spending too much?”
It’s a fair question. Here’s what contractors actually spend—and the point where software becomes either a competitive advantage or a money pit.
1. What contractors actually spend on software today
Most contractors spend 0.3% –0.7% of revenue on software. That translates to roughly:
$700–$2,000 per employee per year
Higher spend for commercial GCs, lower but rapidly rising for residential builders
A full tech stack including: PM platforms, accounting/ERP, estimating, HR/payroll, field tools, communication tools, and safety tools
This means:
A $10M builder spends around $30k–$70k/year
A $50M commercial GC likely spends $150k–$300k/year
A $100M GC can spend $300k–$600k/year
And yes—software costs have crept up over the past decade. But the more important question isn’t how much GCs spend. It’s what they get back.
2. Does spending more on software actually pay off?
Short answer: yes—but only when it’s the right software and it’s adopted well.
Deloitte’s economic modeling (across 600+ contractors) found that adding one new digital tool correlates with +1.1–1.4% annual revenue growth.
For a $100M GC, that’s $1.1–1.4M in incremental top line—per new tool.
High-skill users of project management software see real margin gains. A 2025 Dodge + Procore study found:
77% of high-adoption firms increased profit margins
83% reduced overhead by 5% or more
70%+ said they could handle more volume with the same staff
This is exactly what software is supposed to do, increase capacity without increasing headcount. But this leads business owners to ask the question, "what are my most expensive and urgent needs today?". Software can absolutely make contractors more money. But not all software spend is created equal.
3. So how much is too much?
You’re spending too much on software when your field teams aren’t using it.
Not when the bill is high, Not when you have “too many tools.” Not when you’re paying for integrations....Only when the software’s adoption is low and the workflows don’t change.
To be more specific, we made a quick checklist. You are overspending if:
You have more licenses than active users
The field sees software as “more admin work”
Tools don’t talk to each other
Work still happens through text messages, phone calls, or paper
PMs are double-entering the same info into multiple systems
Leadership can’t measure the ROI of any tool in the stack
This is the classic trap: a GC buys sophisticated tools, but teams continue to operate in the old way.
On the other hand, you are spending the right amount if:
Software replaces manual tasks—not adds to them
Field teams use it without needing training or new habits
The tool captures data teams were already generating
It makes your team faster, reduces rework, or cuts overhead
It increases project capacity without adding headcount
You can clearly connect the spend to margin or risk reduction
4. The one category where almost every GC underspends
Across all the research, one pattern kept showing up: Contractors massively underinvest in communication and documentation tools—despite miscommunication being a top driver of rework and claims.
Everyone invests in PM platforms.
Everyone buys estimating tools.
Everyone pays for scheduling and accounting.
But the biggest source of risk in the industry—
verbal decisions that never get documented—
has been left wide open.
Hardline exists because decades of jobsite insight show:
Supers make 30–50+ calls a day
Fewer than 10% get documented
Those undocumented calls drive rework, disputes, delays, and cost overruns
Software spend isn’t about “more tools.” It’s about covering the gaps where bad information costs real money.
5. A simple framework for GCs: “Software ROI in 10 minutes”
If you want to know whether your firm is spending too much, ask:
Does this tool remove admin or create admin?
If it adds admin → cut or replace.
Does it reduce rework, delays, or callbacks?
If not → it’s not mission-critical.
Does it enable more volume without adding staff?
If yes → keep it and double down.
Is the field using it daily without being forced?
If not → adoption problem → rethink.
Can leadership point to hard ROI within 6 months?
If no → reevaluate or renegotiate.
You don’t need 40 tools, you need the right 6–10 tools used effectively and consistently.
Most GCs aren’t spending “too much” on software, they’re spending on the wrong things or getting too little in return. The research is clear:
Smart digital adoption increases revenue
High-use teams see higher margins
Better data = fewer costly mistakes
Communication tools are the biggest blind spot in the industry
And the best-performing contractors all share one trait:
They treat software as a profit center, not an expense.
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