{"id":905514,"date":"2026-04-01T15:46:07","date_gmt":"2026-04-01T21:46:07","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=905514"},"modified":"2026-04-01T15:46:09","modified_gmt":"2026-04-01T21:46:09","slug":"construction-contract-revisiting-reliability-of-ai-drafting","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-revisiting-reliability-of-ai-drafting\/","title":{"rendered":"Revisiting Reliability of AI in Drafting Construction Contracts"},"content":{"rendered":"\n

Mario Nicholas | Stoel Rives<\/a><\/p>\n\n\n\n

Nearly three years ago, which is light years in the world of artificial intelligence (AI), I drafted\u00a0an article<\/a>\u00a0published by the Daily Journal of Commerce on whether AI could be trusted to draft a construction contract<\/a>. At the time, the blunt answer was \u201cno.\u201d I recently revisited this topic using a leading AI chatbot. Despite significant improvements in AI over the past couple of years, project owners, contractors and design professionals should still avoid putting their complete trust in AI to prepare their next construction contract \u2014 at least not without human intelligence reviewing the work of the AI chatbot.<\/p>\n\n\n\n

While AI is developing at breakneck speeds, discretion is (still) the better part of valor when it comes to drafting and reviewing construction contracts. In 2023, for purposes of the above-referenced article, I experimented with ChatGPT to see if I could use it to generate an accurate mechanic\u2019s lien waiver form to pair with a construction contract for a project in California. At the time, it produced a form that looked pretty good to the untrained eye but was not compliant with California law.<\/p>\n\n\n\n

When I made this same query to a leading AI chatbot this week, the chatbot produced an accurate form along with a disclaimer to the user accurately stating California requirements when preparing lien waiver forms. When I experimented further and asked the same AI chatbot some basic questions for drafting a change order provision, things did not go as well. Unprompted, the chatbot presented me with a mini-dissertation on change order options and language to seamlessly incorporate into various industry forms, such as American Institute for Architects (AIA) forms. I hadn\u2019t asked for these suggestions and, while they looked helpful at first blush, it set off an alarm due to the prevalence of \u201cAI sycophancy\u201d \u2014 a documented pattern where an AI model pursues human approval over accuracy. The chatbot even quoted so-called \u201ccore provisions\u201d from an AIA form, which it referred to as \u201cexact text excerpts\u201d but \u201ckept below the copyright threshold.\u201d Not recognizing the referenced \u201cexact text excerpts,\u201d I typed \u201cAre you sure?\u201d I received this response:<\/p>\n\n\n\n

\u201cYou\u2019re right to challenge that \u2014 my earlier description was not reliable, and I conflated concepts that are often handled in the Owner\u2013Contractor agreement (A101\/A102\/A133) with what A201 actually says. Thank you for catching it. Below is what I can support from published, citable sources.\u201d<\/p>\n\n\n\n

While AI has clearly made significant strides in the past couple of years, this anecdote suggests that project owners, contractors and design professionals should still think twice before relying too heavily on AI in connection with their next contract.<\/p>\n\n\n\n

Many attorneys have learned this lesson the hard way as courts across the country have been issuing scathing legal decisions chastising (and often sanctioning) attorneys and law firms for submitting court filings containing false, AI-generated case citations or legal opinions. In one case, just last month, a federal judge in New York issued a\u00a033-page decision and order<\/a>\u00a0detailing the many AI-produced errors in court filings by the attorneys. Similar to the AI sycophancy concerns discussed above, the judge in the New York case pointed out that the court filing at issue was \u201cnoteworthy for its conspicuously florid prose,\u201d as it \u201cfeatured an extended quote from Ray Bradbury\u2019s \u2018Fahrenheit 451\u2019 and metaphors comparing legal advocacy to gardening and leaving the indelible \u2018mark(s) upon the clay.\u2019\u201d<\/p>\n\n\n\n

Notwithstanding the above concerns, AI is making significant inroads into the construction industry and will continue to do so. AI\u2019s relevance to the construction industry continues to develop daily, and articles are regularly published regarding the uses and associated risks of AI. For example, the Daily Journal of Commerce recently published\u00a0an article<\/a>\u00a0discussing authorship and data disclosure risks for contractors and design professionals when using AI on construction projects.<\/p>\n\n\n\n

AI\u2019s impact on the construction industry is likely to be profound, if it isn\u2019t already. Project owners, contractors and design professionals should stay up to speed on AI developments and continue to experiment with ways to boost their productivity. But they should also proceed cautiously \u2014 and not forget to ask, \u201cAre you sure?\u201d<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 801.641.8304, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Mario Nicholas | Stoel Rives Nearly three years ago, which is light years in the world of artificial intelligence (AI), I drafted\u00a0an article\u00a0published by the Daily Journal of Commerce on whether AI could be trusted to draft a construction contract. At the time, the blunt answer was \u201cno.\u201d I recently revisited this topic using a… Continue reading Revisiting Reliability of AI in Drafting Construction Contracts<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,3918,11331,224],"class_list":["post-905514","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-ai","tag-artificial-intelligence","tag-construction-contract","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nRevisiting Reliability of AI in Drafting Construction Contracts - 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