A group of construction industry veterans launched Lumber, an app designed to let companies manage construction projects with real-time updates of overall costs — and pay workers directly through the app.

Lumber, a startup technology company, is out to simplify construction project management with an AI-powered app of the same name.

As more construction companies join the platform, we're growing our data set that provides valuable, invaluable insights to the industry's operations.
Lou Perez, founding member and head of sales
Lumber

The Lumber app was designed to provide construction companies with real-time updates of information, including work time-tracking; payroll scheduling, processing and payment; compliance with human resources standards; and materials and overall job costs.

Lumber notes that the U.S. construction costs saw an average increase of 4% in 2023, then grew as much as 6% this year.

“Small to medium-sized construction firms face a formidable challenge as they confront labor constraints and a complex regulatory environment testing the limits of their operational capacity and profitability,” says Lumber founder and CEO Shreesha Ramdas.

Lumber deploys LLM platform and AI chatbbot

He adds that Lumber’s LLM-powered platform and AI chatbot were designed to help management teams at small and medium-sized construction firms to deploy what he calls a game-changing workforce experience. LLM, or large language model, is a form of AI processes natural language processing tasks.

“We’re revolutionizing the construction industry through the power of data and artificial intelligence,” says Lou Perez, a founding member of Lumber and head of sales.

He adds, “As more construction companies join the platform, we’re growing our data set that provides valuable, invaluable insights to the industry’s operations. So that information enables us to deploy LLMs, learn from data, and then suggest optimal ways of utilizing and scheduling construction workforces and managing materials.”

Lumber app

The multiple tasks managed through the Lumber app.

The Lumber app operates with pre-selected cost codes linked to equipment, materials and labor. For each task, an app user assigns the appropriate cost codes, such as for plumbing installations, maintenance work the necessary materials.

Construction managers can use the app to forward workers’ pay into their personal checking accounts. The app also offers worker incentive programs, such as a gamification program that lets workers earn gift card rewards for meeting labor performance goals.

Lumber charges app fees ranging from $8 to $30 per month per employee, depending on the feature set a company uses.

Lumber addresses a labor-constrained industry

“In today’s fast-paced and labor-constrained construction industry, payroll solutions for specialty contractors and the types of trade partners we use need to go beyond basic payment processing and adopt next-generation automation to stay compliant with regulations, boost efficiency, and enhance the employee experience,” Atul Khanzode, management executive at DPR Construction, the largest construction firm in California, in a Lumber press release. “I believe that Lumber is bridging much-needed automation to the construction industry with a modern, purpose-built payroll and time-tracking solution that is powered by a construction-specific LLM with an initial focus on industry regulations.”

Lumber launched last year with a SaaS-based workforce management platform that integrates job-site cost activity with back-office management teams. The company’s launch came with a $5.5 million seed round of funding led by Carbide Ventures. Other investors include firms Escape Velocity, 8VC, Sure Ventures, Converge VC, and Firsthand Alliance, as well as individual investors.

“The Lumber team brings together an exceptional blend of technological prowess and product expertise required to revolutionize workplace productivity in traditional industries,” said Pankaj Tibrewal, general partner, Carbide Ventures.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].

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