The One Big Beautiful Bill Act (signed on July 4, 2025) rewrites U.S. tax and spending policy just as decisively as the 2017 Tax Cuts and Jobs Act. Given that pre-construction teams are responsible for foundational elements such as cost modeling, labor forecasting, and bid strategy, this phase is the first to absorb the operational and financial implications. Key provisions with direct implications for builders include:

• Permanent 20% pass-through deduction (Section 199A): Nearly all GCs and subs file as S-corps or LLCs

• 100% bonus depreciation restored through 2029: Heavy equipment, laser scanners, servers and even many software licenses can be expensed in year 1

• Immediate R&D expenses revived (Section 174): “Process innovation” on a specific project now yields an instant tax write-off - think prefab workflows or LLM-powered schedule optimizers

• Raised SALT cap ($40k for five years): Improves cash flow on privately-financed projects in high-tax states

• $150B for immigration enforcement and $157B for defense/energy work: Expect simultaneous labor tightness and a surge of federal RFPs with FAR, Buy-America and cyber-security riders

With the One Big Beautiful Bill Act triggering a seismic shift in U.S. tax and spending priorities, pre-construction teams are under pressure to respond quickly. From bonus depreciation and SALT cap changes to stricter immigration enforcement and federal compliance mandates, the ripple effects are immediate and far-reaching. Pre-con is on the front lines managing cost libraries, planning labor, evaluating capital decisions, and shaping bid strategies. In this new landscape, AI isn’t just a nice-to-have, it’s fast becoming essential.

Opportunities for Pre-con team and ways to leverage

1. Cost libraries: Keeping up with tax changes

As tax depreciation classes are updated and SALT scenarios evolve, keeping cost libraries current has become a moving target. Rather than relying on manual updates, AI-powered agents particularly those based on large language models (LLMs) can inject the latest IRS tables directly into estimating software. This real-time integration reduces errors and improves responsiveness to policy shifts, ensuring that cost models reflect the most recent tax guidance automatically.

2. Make-or-Buy equipment decisions: Optimizing under uncertainty

With 100% bonus depreciation reinstated, teams are reevaluating whether to lease or purchase equipment. This is no longer a simple accounting decision, it now involves weighing after-tax costs under various scenarios. Reinforcement-learning models can analyze these choices across multiple tax regimes, helping pre-construction leaders make decisions that maximize net present value (NPV) and align with long-term strategy.

3. Labor planning and overtime: Navigating a tight market

The labor market is being squeezed from both ends: while overtime wages are now tax-free for workers (increasing their appeal), immigration crackdowns are narrowing the available talent pool. AI-driven scheduling tools can model the trade-offs between using more OT and staying on schedule. These predictive models help balance cost, risk, and timeline allowing more strategic labor deployment in an increasingly volatile market.

4. Compliance burden: Automating the paperwork

As federal funding ramps up, so too does the regulatory overhead. Pre-con teams must now account for FAR clauses, Davis-Bacon wages, Buy-America sourcing rules, and cybersecurity stipulations. AI copilots can assist by auditing project specs and drafting compliant language for bids, particularly those powered by retrieval-augmented generation (RAG). This streamlines document prep and minimizes the risk of noncompliance, all while speeding up the proposal process.

5. Cashflow timing: Forecasting refund opportunities

With accelerated expensing rules back in place, cash flow strategy has become more tax-sensitive. Teams that can front-load purchases or project expenses may unlock larger tax refunds earlier. Monte Carlo simulation models, especially those integrated with ERP systems and pay apps, can forecast different spending timelines and their downstream cash-flow impacts. The result? Smarter, tax-aware capital planning right from the pre-con phase.

These stress points aren't theoretical, they're already reshaping day-to-day operations in pre-construction. Fortunately, the AI toolkit to address them is no longer hypothetical either. Whether you're looking to automate tax sensitivity in estimates, de-risk labor exposure, or fine-tune your cash flow against new refund opportunities, targeted AI systems can deliver immediate impact.

High impact plays of AI

To translate AI’s potential into real-world impact, pre-construction teams need tools that are both technically sound and operationally relevant. The following five solutions are designed for immediate deployment, each targeting a specific friction point introduced by the One Big Beautiful Bill. Here’s what your AI playbook could look like in action:

AI tools are only as valuable as the speed and precision with which they’re deployed. With policy changes already in effect, pre-con leaders need a focused execution plan to capture early advantages. The following 90-day roadmap outlines the most immediate, high-impact moves to align your tech stack with the new regulatory and economic landscape.

The One Big Beautiful Bill isn’t just a tax update, it’s a full-scale reallocation of risk, reward, and responsibility across every line of a pre-construction estimate. The firms that translate these new rules into AI-native workflows will move faster, price more accurately, and protect margins while others scramble to adapt. Whether you're building in-house tools or buying off-the-shelf agents, the time to act is now.

Get ahead of the turbulence and turn policy disruption into competitive tailwind.