The surge in artificial intelligence data center projects is driving demand and increasing contractual risks, warn construction attorneys Ryan Gilchrist and Ashley Sherwood. They emphasize that owners and contractors must thoroughly understand contract terms to manage risks effectively. Key contract elements include clear scope definitions, risk allocation, and contingency planning for supply chain disruptions and labor shortages. Proper contract management can prevent costly disputes and delays in these complex, high-stakes projects. For AECM professionals, mastering these contract nuances is essential to safeguard project timelines and budgets amid rapid AI infrastructure growth. Industry players should prioritize contract reviews and risk assessments during project planning. Upcoming milestones include the release of updated contract guidelines tailored for AI data center builds, expected later this year.
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