AI in Construction Contracts — How to Adopt Safely Without Being Exploited
Artificial intelligence is moving from buzzword to business reality. In construction, its potential is vast — automating claims preparation, flagging contract risks, and even helping negotiate better terms. But this power cuts both ways. If adopted blindly, AI can leave contractors and subcontractors out of pocket, exposed, or locked into one-sided arrangements.
At Riakos Consulting, we’ve spent the past two years researching large language models (LLMs), data processing, and their implications for construction law and practice. That work included formal study and qualifications in AI systems — because we saw that standing still would mean falling behind. We now use that knowledge to help our clients move forward with confidence.
The Risk of Jumping Too Quickly
The pressure to “get on board” with AI is intense, particularly for smaller businesses. Vendors promise cost savings and competitive advantage — but too often those promises hide traps.
Vague scopes: Without a tightly defined brief, development costs spiral.
Hidden ownership risks: Some providers retain control of source code or trained models, leaving the client dependent.
Data exposure: Uploading sensitive contracts without proper safeguards risks breaching confidentiality or losing control of valuable project information.
Example: A subcontractor engaged a developer to build a digital contract-tracking tool. The proposal lacked detail. By the end of the project, costs had tripled, timelines slipped, and ownership of the tool stayed with the provider. Instead of reducing risk, the subcontractor had tied themselves into more.
What Safe Adoption Looks Like
Adopting AI safely is less about the technology itself and more about how you approach it.
Scope clearly: Define deliverables, milestones, and ownership before the first line of code is written.
Review quotes critically: Beware of unrealistic savings or open-ended service descriptions.
Protect IP and data: Ensure you retain ownership of outputs, and that your project data is not re-used without consent.
Seek independent advice: Peer review and second opinions help test whether a proposed solution is fit for purpose.
Lessons from Real-World Experience
Our research and formal qualifications in AI give us a front-row seat to both the potential and the pitfalls. We’ve seen that when scoped correctly, AI can streamline claims analysis, automate document preparation, and help identify risks early — truly levelling the playing field for subcontractors and mid-tier contractors.
But we’ve also seen how rushed adoption can do the opposite: wasting money, creating dependencies, and exposing businesses to exploitation. The difference is strategy.
Conclusion
AI is the most revolutionary technology to enter construction contracts in decades. Power is knowledge — and without the right knowledge, power can be abused.
At Riakos Consulting, we bring the depth of two years’ dedicated research and formal qualifications in LLMs to every advisory engagement. Our role is to help contractors and subcontractors adopt AI safely, strategically, and on their own terms.
Don’t be left behind. Leverage our expertise to ensure AI works for you — not against you.
