Procurement at a Crossroads

Tender evaluation is one of the most resource-intensive stages in construction. For decades, procurement teams have handled thousands of pages of submissions while trying to balance speed, accuracy, and fairness in decisions that shape billion-pound projects. Despite its importance, inefficiencies remain widespread.

Manual evaluation cycles often stretch into weeks, consuming valuable senior staff time and costing tens of thousands of pounds per round. McKinsey research suggests construction projects overall lose up to 15% of their value through inefficient processes, a figure familiar to surveyors who have seen delays and disputes triggered by poorly documented decisions.

As one industry analyst noted, “Procurement has become the choke point of modern construction projects. Without reform, inefficiencies at this stage cascade across the entire lifecycle.”

With mounting pressure to deliver projects faster, more transparently, and in line with ESG standards, procurement is at a crossroads. The industry is asking: can artificial intelligence provide the breakthrough construction has long needed?

The Case for Change: Weeks Lost in Evaluation

One major development entity recently provided a clear example. Their procurement team, tasked with evaluating consultant bids, found that each cycle took up to three weeks and cost more than $21,000 in staff time and resources. Multiple assessors manually scored submissions, reconciled contradictory judgements, and compiled reports, delaying project initiation and draining capacity.

These challenges are far from unique. The RICS Procurement and Tendering Guidance Note has long warned about the risks of “inconsistent evaluation processes” and the need for traceability. Yet evidence shows the problem persists: tender decisions often lack comprehensive justifications, leaving room for disputes.

AI-powered evaluation platforms illustrate the scale of inefficiency. In one case, 10 tender submissions (each around 400 pages) were processed in two hours, compared to four weeks manually. The outcome was not only speed but accuracy: scoring aligned with human panels, while inconsistencie

Expert Perspectives: Transparency and Trust

Bias in tender evaluation is not an abstract concern. In a recent gap analysis on a large-scale development project, human evaluators awarded contradictory scores for the same criteria. In one striking case, a bidder was ranked highly on “Sustainable Design Practice” despite explicitly excluding LEED certification from its proposal.

Industry experts emphasise that even well-intentioned human review can introduce bias, whereas structured AI systems provide consistency and defensible outcomes

This is where AI’s role in procurement gains traction. Unlike manual scoring, AI systems back every score with evidence, ensuring a fully auditable trail. For surveyors, this means decisions are not only faster but defensible in front of boards, auditors, or even courts.

As the RICS consultation on AI standards (2025) emphasises, members must ensure transparency, client communication, and accountability in all AI-assisted decisions. A platform that produces evidence-linked audit trails directly supports these professional obligations.

RICS Standards in Focus

In March 2025, RICS launched a public consultation on its draft Professional Standard for Responsible AI Use. The proposed framework highlights four principles directly relevant to procurement:

· Human oversight must remain central, AI should support, not replace, professional judgement.

· Decisions must be transparent and explainable so that surveyors can justify outcomes to clients and stakeholders.

· Every procurement decision should have a defensible audit trail, ensuring accountability.

· Data governance, client communication, and risk management must all be evaluated when adopting AI systems.

Source: RICS consultation notice

Efficiency Redefined: From Weeks to Days

McKinsey estimates that AI can deliver productivity gains of up to 20% and cut costs by 15%, with project delivery timelines improved by as much as 30%. Within procurement, the impact is even sharper.

In real-world pilots, tender evaluations that previously consumed four weeks were reduced to four days end-to-end (including reporting). Costs dropped by nearly 90%.

This matters not only to large developers but to surveyors overseeing procurement on behalf of clients. By reducing administrative overhead, firms can reallocate senior staff to higher-value tasks such as risk assessment, stakeholder engagement, and sustainability planning.

Industry practitioners emphasise that AI is not about replacing professional judgement, but about freeing time for higher-value work.

Data Security: Meeting Rising Standards

Efficiency and transparency alone are not enough. As procurement digitalises, data security has become paramount. Tender documents contain sensitive commercial and technical details, breaches could compromise not only projects but reputations.

Electronic procurement systems must therefore meet stringent standards. RICS draft standards require safeguards for privacy, confidentiality, and risk assessment. In the Middle East, regulations such as Saudi Arabia’s Personal Data Protection Law (PDPL) mandate that sensitive data is stored within the Kingdom. AI systems now address this by encrypting all data, storing it in-region when required, and ensuring that no personal data is shared or sold.

For surveyors and project owners alike, this means adopting AI need not compromise confidentiality. On the contrary, it can strengthen compliance with both local regulations and international best practices.

Procurement and ESG: Aligning with the Bigger Picture

Procurement today is no longer just about time and cos, it is about sustainability and governance. The UN Sustainable Development Goals and growing ESG reporting obligations mean procurement teams must evidence fair, transparent, and environmentally responsible practices.

AI evaluation tools can assist here, too. By systematically cross-referencing proposals against sustainability requirements, AI systems have flagged misalignments that manual assessors missed. This ensures that commitments to green standards, circular economy practices, or carbon reduction targets are not overlooked in the rush to award contracts.

As Daniel Sweeney, Head of Sustainability at John F. Hunt Group, observed in a recent RICS discussion: “The circular economy only works if procurement decisions reflect it from the outset. Transparent evaluation is the first safeguard.”

Sustainability Lens

· AI cross-checks tender submissions against sustainability requirements, flagging inconsistencies missed manually.

· Supports ESG reporting by ensuring procurement decisions align with carbon and circular economy targets.

Industry Validation: Not Alone in the Field

AI-powered procurement is gaining global traction. In Europe, new platforms have raised millions in investment to automate supplier identification and evaluation, citing widespread inefficiencies in construction procurement. Investors and developers alike are recognising that procurement is overdue for digital transformation.

What differentiates specialised construction platforms is their industry-specific training and deployment at large scale. Where generic systems provide administrative support, these tools embed directly into technical, commercial, and contractual evaluations, replicating human scoring logic while enforcing consistency.

Market Signals

· Recent startups raised multi-million funding rounds (2025) to automate procurement workflows.

· McKinsey: AI in construction can boost productivity by 20%, cut costs by 15%, and reduce delivery times by 30%.

· Investors and developers alike see procurement as the next frontier of digital transformation.

Looking Forward: AI and the Future of Procurement

For RICS members, the adoption of AI in procurement raises both opportunities and responsibilities. On one hand, surveyors can deliver faster, fairer, more defensible outcomes. On the other, they must ensure that technology is deployed responsibly, meeting standards for transparency, governance, and security.

The RICS draft standard on AI (2025) sets a clear direction: AI must support, not replace, professional judgement. Every decision must remain explainable, every client relationship underpinned by trust.

Real-world pilots demonstrate what this looks like in practice:

· Efficiency: reducing evaluation timelines by 70–85%.

· Fairness: removing bias and contradictions through evidence-based scoring.

· Security: safeguarding sensitive data in compliance with regional and international laws.

Key Takeaways for Surveyors

· Efficiency: Reduce evaluation timelines by up to 85%.

· Fairness: Eliminate contradictions through evidence-based scoring.

· Security: Meet regional and global data protection standards.

· Compliance: Align with RICS emerging standards for responsible AI use.

Conclusion: Empowering Expertise, Not Replacing It

The future of construction procurement is not about automation replacing expertise. It is about giving professionals the tools to apply their knowledge more effectively, with greater confidence and transparency.

As one project director involved in a recent pilot reflected: “AI didn’t take our decisions away. It made sure our decisions could stand up to scrutiny.”

For surveyors, project managers, and procurement officers, this represents a fundamental shift. By embracing AI responsibly, the industry can reduce disputes, improve governance, and deliver projects with clarity from day one.

Procurement has always been the gatekeeper of construction projects. With AI, it can finally become the enabler.

Questions for Reflection

· How much senior staff time could your organisation save if tender evaluations took days, not weeks?

· Would your decisions withstand audit or legal scrutiny with today’s documentation?

· How is your procurement process addressing sustainability and ESG obligations?

· Is your current system prepared for RICS’s forthcoming AI standards?