Data center developers can’t afford to let long-lead equipment create delays. That’s why Owner Furnished, Contractor Installed (OFCI) procurement strategies have become a common practice across the industry. When handled well, OFCI offers owners greater control over schedule, technical specifications, pricing, and availability. But it also introduces layers of complexity that require tight coordination and clear communication.
Based on CYMCOR’s experience providing project management services for more than $8.7 billion in data center construction, here are seven key issues every project team should consider when deploying this approach.
1. Tie OFCI Equipment to the Construction Schedule
When owners pre-purchase equipment before design is finalized, and construction commences it is vital to integrate delivery timelines directly into the construction schedule. Otherwise, critical items like generators, UPS units, or switchgear may arrive too early or too late, causing storage concerns, commissioning delays or resequencing work.
Best practice: Within the Critical Path Schedule assign each OFCI item to a specific predecessor and successor activities in the project schedule so adjustments happen automatically as the timeline evolves.
2. Clarify Risk and Insurance Coverage
Once OFCI equipment leaves the vendor and is delivered to a job site or warehouse, who’s responsible if it’s lost or damaged? This question is often overlooked, but the financial implications are significant. Depending on the delivery point and contractual arrangements, ownership may transfer before the contractor touches the equipment.
Best practice: Ensure builder’s risk insurance includes OFCI materials and defines when care and custody shift between owner and contractor.
3. Eliminate Scope Gaps in Installation Responsibilities
Some OFCI components arrive fully assembled. Others require sub-assembly, piping, or exhaust systems installed on site. If responsibilities aren’t clearly assigned, critical work may be missed or delayed.
Best practice: Spell out who is responsible for all assembly, accessories, and final connections. Don’t assume the vendor or contractors will handle site installation unless stated explicitly.
4. Confirm Technical Submittals Against Actual Equipment
Design teams need accurate specs early, but equipment may be procured months (or years) in advance. If the final shipment differs in model, dimensions, or connection configuration, it may create costly rework.
Best practice: Require engineers to review all submittals prior to final design documents are produced. Contractor shall be required to compare approved submittals with the actual equipment delivered, validating correctness and verify with the construction team before installation work begins.
5. Coordinate Storage, Staging, and Site Delivery
Most OFCI deliveries don’t go straight to the job site. Instead, equipment may be stored off-site in regional warehouses or with subcontractors. This approach can work well but requires detailed planning around inspections, transportation, and timing.
Best practice: Determine in advance who is responsible for inspection, storage, staging, and transport. Include this in subcontractor scopes to avoid confusion later.
6. Consider the Impact of Technology Shifts
Data center cooling systems and power requirements are evolving rapidly. Gear that seemed like the right choice a year ago might not support the scale or density demanded by new AI workloads. This is especially relevant for HVAC components and power distribution systems.
Best practice: Stay informed about product advancements and potential obsolescence. If flexibility is needed, limit early procurement to foundational equipment and delay purchases for tech-specific components.
7. Decide Who Should Carry Schedule Risk
Not every developer takes the same approach to OFCI risk. Some want complete control and accept the responsibility that comes with it. Others prefer to assign procurement to the general contractor, even at a higher price, to avoid schedule exposure.
Best practice: Decide early who owns the risk for delivery delays and structure contracts accordingly. Every day a facility sits incomplete represents potential revenue loss or lease liability.
OFCI procurement can be a strategic advantage but only when coordinated with care. Without early alignment among the design team, contractors, vendors, and owner representatives, even minor errors can result in major delays. By addressing these seven considerations from the outset, project teams can reduce uncertainty and keep critical infrastructure moving forward.
If you’re planning a data center project involving OFCI equipment, consider aligning with a project management team that understands how to manage delivery, design coordination, and site logistics from start to finish. Experience matters when timing is tight and the stakes are high.
