Despite the subjective and error-prone nature of manual visual inspection procedures, this type of inspection is still a common process in most construction projects. However, Automated Construction Inspection and Progress Monitoring (ACIPM) has the potential to improve inspection processes. The objective of this paper is to examine the applications, challenges, and future directions of ACIPM in a systematic review. It explores various application areas of ACIPM in two domains of (a) transportation construction inspection, and (b) building construction inspection. The review identifies key ACIPM tools and techniques including Laser Scanning (LS), Uncrewed Aerial Systems (UAS), Robots, Radio Frequency Identification (RFID), Augmented Reality (AR), Virtual Reality (VR), Computer Vision (CV), Deep Learning, and Building Information Modeling (BIM). It also explores the challenges in implementing ACIPM, including limited generalization, data quality and validity, data integration, and real-time considerations. Studying legal implications and ethical and social impacts are among the future directions in ACIPM that are pinpointed in this paper. As the main contribution, this paper provides a comprehensive understanding of ACIPM for academic researchers and industry professionals.