Proposal & Business Case · Forge AI LLC

Blue — Indianapolis
Field Operations Pilot

A 90-day pilot on one work unit: cut coordination drag, return general-foreman and foreman hours to the field, and put cited safety and spec answers in a foreman's hand — without a call, a binder, or a hunt through Teams.

Prepared forHydaker-Wheatlake Construction Field sponsorGage Crabtree · GF, Indianapolis Prepared byZack Kikendall · Forge AI LLC DateJuly 2026
IT security review: complete — approved to proceed by Stacy Mahnke, VP IS&T (USCCO). No network integration, no domain join, no Azure, no OAuth, no M365, no ports opened, no accounts provisioned. Runs on an HWC-supplied hotspot. The remaining decision is funding.
THE DECISION

What we're asking for

One-time setup
$800
Founding-unit rate — covers the device. Standard rate is $1,500; Forge is absorbing install and document-load time for the founding unit.
Monthly subscription
$2,500/mo
Billed monthly in advance. One work unit: 1 GF + 8 foremen.
Month-one outlay
$3,300
Cancel any time in the first 90 days on 30 days' notice. Exposure never exceeds one month.
+$2,029
Net positive inside the pilot
Conservative case, after every cost
1.8 mo
Payback
Inside the 90-day window
1.8×
Ongoing monthly return
$4,488 benefit vs $2,500 fee
40%
Of our estimate needed to break even
20 of 50 hypothesized hours
The pilot pays for itself before it ends — on the conservative case, with every assumption haircut. The base case returns +$6,911 at 1.8×. But the number that should make this an easy approval is the last one: our hour estimate can be wrong by 60% and HWC still comes out ahead.
THE CASE

Six things worth knowing

Headlines first. Expand any line for the full basis, sources, and math — every number below is either HWC's own or sourced to a published benchmark.

01 The money is in crew standby, not "hours saved" When a foreman stops to hunt a spec or a locate status, the crew is standing — hours HWC already pays for and gets no production from. $1,134per month
Basis & math

Forge doesn't do smoke-and-mirror cost savings. "Hours saved × hourly rate" looks big and changes nothing on the P&L — returned salaried hours are capacity, not cash. Nobody comes off payroll. So we lead with the line closest to real money.

ScenarioIdled hrs/moCrew-hrsValue / mo
15% of lookup time idles a 3-person crew used — conservative3.159.45$1,134
25% of lookup time idles a 3-person crew base case5.2515.75$1,890
40% of lookup time idles a 3-person crew8.4025.20$3,024
What we are deliberately NOT claiming. A "crews start 15 minutes earlier every day" model produces figures north of $15,000/month for this unit. We excluded it entirely. Earlier starts only convert to revenue if there's billable work waiting to absorb the capacity, and Forge doesn't have HWC's backlog data to assert that. If HWC knows the Indianapolis unit is capacity-constrained, this section is materially understated — worth revisiting after the pilot produces real numbers, not before.
02 Four use cases, ~50 hours a month Hypothesis Route sheets, spec & safety lookups, 811 status, 811 drafting. This is a hypothesis from a field walkthrough — not a measurement. The pilot tests it. $3,128after 50% haircut
The four activities
ActivityHrs/moRateValue/moBasis
Route sheet & scheduling16$130 GF$2,080~45 min/day: collect, compile, correct, distribute — every working day
Spec & safety lookups21$120 FM$2,5208 crews × ~2/day × ~8 min hunting Teams, binders, or the GF
811 locate status7$125 mix$875~10/wk × 10 min round trips: foreman → GF → portal → foreman
811 locate drafting6$130 GF$780~4/wk × 20 min, single-property & short-run, drafted for GF approval
Gross hypothesized50$6,255Per month, per work unit

Why we don't claim $6,255/month

Returned admin hours from salaried staff don't hit the P&L. A rigorous case applies a realization haircut — the share of returned time that converts into useful output rather than being absorbed as slack. We model three and use the middle:

30%
$1,876
below breakeven
50%
$3,128
Used — conservative
70%
$4,378
base case

This line alone doesn't justify the investment, and we won't pretend it does. Stacked with crew standby it clears comfortably. Presented alone, it should be discounted — which is why it isn't the headline. The 50 hours is one general foreman's estimate of his own unit's drag; we're not asking anyone to take it on faith, we're proposing a cheap test with the breakeven set at 40% of it.

03 Safety: we claim $227/month — and nothing more Expected value A 10% reduction on ~0.57 expected recordables is a fraction of an incident. We present it as small, because it is. The tail risk is a separate conversation. $227per month
Mechanism, expected value, and the tail

This pilot came out of a safety initiative discussion. The mechanism is narrow and testable: when the right clearance, approach distance, or procedure is one text away — cited to the page in AES's own manual, from the phone a foreman already carries — it's more likely to actually get checked than when the answer costs a call, a binder, or a hunt through Teams. Blue does not make the safety decision. It removes the friction between a qualified worker and the standard.

What we claim
Unit headcount (approx.)25
Expected recordables/yr @ 2.3 per 100 FTE~0.57
5% reduction$1,360/yr
10% reduction used$2,721/yr
20% reduction$5,441/yr

Expected value is the honest way to carry this line: $227/month. One unit of 25 people doesn't generate many claims.

What we do NOT claim: the tail
90-day pilot cost$8,300
One avoided burn / arc-flash claim$64,973 · 7.8×
One avoided fall / slip claim$54,499 · 6.6×
One avoided average claim$47,316 · 5.7×

To be explicit, because these two boxes must not be conflated: the expected value is $227/month. The figures at left are tail risk, not a forecast. Forge is not claiming HWC will avoid a claim, and this proposal does not rest on it. The point is narrow: the downside of running the pilot is capped at one month's fee. The downside of a preventable incident is not capped at all.

The EMR lever

Workers' comp for power line and utility construction (NCCI class code 7538) is priced off the Experience Modification Rate, recalculated annually on three years of claims history. An EMR above 1.0 raises premium on every payroll dollar — and in this industry it can disqualify a contractor from bidding work at all. Safety adherence isn't only a cost line here; it's a revenue-eligibility line. Claims avoided this year compound into premium and bid eligibility for the next three.

04 The model $4,488/mo conservative vs a $2,500 fee. Break-even needs 20 of 50 hours. Full P&L, both cases, and the sources behind every input. 1.8×conservative
Full model
LineConservativeBase case
Crew standby avoided — closest to cash$1,134 (15% idle)$1,890 (25% idle)
Hours returned — capacity$3,128 (50% real.)$4,378 (70% real.)
Safety expected value$227 (10% red.)$340 (15% red.)
Monthly benefit$4,488$6,609
Less: monthly fee($2,500)($2,500)
Net monthly benefit$1,988$4,109
Return multiple1.8×2.6×
90-day net (after 2-wk commissioning)+$2,029+$6,911
Payback1.8 months1.3 months
Year-1 net benefit$23,056$48,508
20 hrs
Monthly hours to break even — 40% of the 50-hour hypothesis
66 hrs
Total hours to break even across the entire 90-day pilot
$0
Further liability if cancelled — no term, no penalty, no clawback. Fees already paid cover service already delivered; hardware retrieved, data destroyed & certified.
Every input & its source
InputValueSource & note
Foreman base rate$60.00/hrProvided by HWC (G. Crabtree)
General foreman base rate$65.00/hrProvided by HWC (G. Crabtree)
Foreman fully burdened$120.00/hrProvided by HWC — implies a 2.00× burden multiplier
GF fully burdened derived$130.00/hr$65 × 2.00 burden. Overwrite with the actual figure if it differs.
Unit composition1 GF · 8 foremenIndianapolis unit, per field walkthrough
Crew size behind a foreman assumed3Conservative. Used only for standby modeling.
Recordable injury rate2.3 / 100 FTEBLS, private industry, 2024 — lowest since 2003
Avg lost-time claim, all causes$47,316NCCI Workers Comp Statistical Plan, accidents 2022–23
Avg burn claim (arc-flash proxy)$64,973NCCI, by cause of injury, 2022–23
Avg fall/slip claim$54,499NCCI, by cause of injury, 2022–23
What we deliberately did not do. We use NCCI employer-side claim costs, not the widely-quoted NSC figure of ~$48,000 "per medically consulted injury." The NSC number measures economic cost to society — the NSC says so explicitly — and is routinely misapplied to company P&Ls by vendors who want a bigger number. We also did not stack an OSHA-style indirect-cost multiplier on top, which would double-count components NCCI already includes. Both moves would have roughly tripled this section. This model is built to survive Finance, not to impress it.
05 The pilot measures itself Two weeks commissioning to baseline today's real numbers, ten weeks live and instrumented, then a day-90 scorecard reported as measured — including anything that underperforms. Day 90scorecard
How the hypothesis gets tested
Weeks 1–2 · Commissioning

Baseline

Documents loaded, unit configured, foremen onboarded. We measure today's actual route-sheet build time, lookup frequency and duration, and locate round-trips — before Blue changes anything. This becomes the denominator. Blue produces no claimed value during commissioning, and the 90-day math above reflects that.

Weeks 3–12 · Live

Instrumented operation

Every interaction logged: question asked, answer given, source cited, time to answer. Route sheets timestamped. Locate checks counted. No self-reported numbers.

Day 90 · Scorecard

Measured vs. hypothesis

Baseline vs. actual, in hours and dollars at HWC's own rates. Answer accuracy and citation rate. Foreman adoption. Delivered to leadership as-is.

MetricTargetWhy it matters
Hours returned / month≥ 20 (breakeven)The floor. Below this the pilot hasn't earned continuation — and we'll say so.
Route sheet build time45 min → < 10 minDirectly measurable, every working day
Answer accuracySpot-auditedHWC's safety lead has standing rights to audit any Blue answer against the source document. Every answer carries its citation, so verification takes seconds.
Citation rate100%Every safety answer cites document, section, and page — or Blue declines and routes to the GF
Foreman adoption≥ 6 of 8 activeAn unused tool returns nothing. Adoption is the leading indicator of everything else.
Locate round-trips eliminated≥ 60%The most visible daily coordination friction
06 Risk — and what we're not promising Exposure capped at one month. No IT integration. Blue doesn't make safety decisions. The 50 hours could be wrong. Forge is a small company. All of it, stated plainly. 1 monthmax exposure
Stated plainly

Financial exposure is capped at one month

Billed monthly in advance. Cancel any time in the first 90 days on 30 days' notice. Hardware is Forge-owned and retrieved; data destroyed and certified. No penalty, no clawback, no minimum during the pilot window.

No IT integration risk

Reviewed and approved by USCCO IS&T. No domain join, no AD, no VPN, no Azure, no OAuth, no M365 or Teams. Runs on an HWC-supplied hotspot. Nothing to provision, nothing to de-provision, no ports opened.

Blue does not make safety decisions

It surfaces the cited standard from AES's own manual and routes to the GF when it can't cite one. The qualified worker decides, every time. This is a faster path to the manual — not a substitute for it, and not an authority over it. Answer accuracy is spot-audited by HWC's safety lead throughout.

The 50 hours is a hypothesis

It comes from a field walkthrough, not a measurement — which is exactly why weeks 1–2 baseline it. If the real number is 25 hours, the pilot still clears breakeven. If it's below 20, the scorecard will say so plainly and HWC shouldn't continue.

Vendor concentration

Forge is a small company. That risk is real, and it's why the pilot is structured this way: one device, one unit, cancel on 30 days' notice with hardware retrieved. HWC is never deep in, and nothing about the unit's operation becomes dependent on Forge remaining heroic.

Capability expansion is not included

Direct email/calendar comms, 811 ticket submission, and project-management support are deliberately out of scope and not priced here. Each requires its own scoping and IT review — as VP IS&T directed. We're proving the narrow version first, on purpose.

TERMS

What a green light approves

Setup (founding-unit rate)$800 one-time
Subscription$2,500/mo, billed monthly in advance
Month-one outlay$3,300
Term1 year, with a 90-day pilot exit rider
Pilot exit (days 1–90)Cancel any time · 30 days' notice · no penalty
On exitHardware retrieved · data destroyed & certified
Scope1 work unit — Indianapolis · 1 GF + 8 foremen
IT statusApproved — no integration, no provisioning
ExpansionOut of scope — separately scoped, with IT review

One work unit, 90 days, $3,300 to start. If the numbers aren't there at day 90, cancel and we pull the hardware.

Field sponsor
Gage Crabtree
General Foreman, Indianapolis · Hydaker-Wheatlake Construction
Proposal & questions
Zack Kikendall
Founder, Forge AI LLC · zack@forgefurther.ai · (317) 698-3371