VC and political strategist Bradley Tusk details his past experience with Katerra and how he managed to avoid making a costly investment in the now-bankrupt construction startup. Disrupting the construction industry makes a lot of sense on paper. The industry is massive. The Associated General Contractors of America estimates that $1.3 trillion is spent on construction in the U.S. alone every single year. Yet it’s a highly fragmented industry. It doesn’t use software or technology intelligently, labor costs are high, it has very intensive operating needs, and it comes with significant regulatory, media, and political risk.