HOAI approach at hyperscalers reaches its limits

International hyperscalers, the major providers of cloud services and data centers, are increasingly raising the bar for construction execution. They expect not only reliable implementation but also integrated responsibility for planning, procurement, and construction. These demands contradict the traditional models that are entrenched in Germany, such as the Fee Structure for Architects and Engineers (HOAI) and the Procurement and Contract Regulations for Construction Services (VOB).

The HOAI and VOB provide a clear framework for the remuneration and execution of construction projects. However, these regulations are often not flexible enough to meet the dynamic demands of hyperscalers. These companies require faster and more efficient implementation of their projects, which poses challenges for German general contractors.

Challenges for German General Contractors

The traditional models of HOAI and VOB are designed for a step-by-step and often lengthy planning and execution process. In contrast, hyperscalers need an agile approach that allows them to quickly respond to market changes. This discrepancy leads to many German general contractors struggling to meet the expectations of their international clients.

Another issue is the fragmentation of responsibilities. In the classic models, planning, procurement, and construction are often divided into separate phases, which can lead to delays and misunderstandings. Hyperscalers, on the other hand, prefer an integrated approach where all aspects of the project are coordinated by a single provider. This requires a shift in the working methods of general contractors.

The necessity to adapt to the requirements of hyperscalers forces many German companies to rethink their internal processes. Some general contractors have already begun to develop new business models that enable faster and more flexible project execution. However, these changes are not without challenges, as they often also require a restructuring of existing teams and workflows.

Market Development and Future Perspectives

The demand for data centers and cloud services is steadily increasing, further enhancing the importance of hyperscalers. These companies are massively investing in the expansion of their infrastructure, which presents both opportunities and risks for the construction industry. Adapting to the new requirements could be crucial for many general contractors to remain competitive.

Some companies have already formed partnerships with hyperscalers to optimize their services and take on the required integrated responsibility. These collaborations could serve as a model for the future to bridge the gap between traditional construction practices and the demands of hyperscalers. The development of new standards and processes will play a central role in this.

The challenges arising from collaboration with hyperscalers are not only technical in nature. Cultural differences and varying working methods must also be taken into account. Therefore, successful integration requires not only technical adjustments but also a shift in the corporate culture of general contractors.

The discussion about adapting the HOAI and VOB to the needs of hyperscalers is already underway. Experts and industry representatives are working to find solutions that consider both the legal framework and the practical requirements of the construction industry. Developments in this area will be crucial in the coming years.