The average value of construction disputes hit a record level in 2020, rising to £27.7m, according to data from Arcadis’ 11th annual ‘Global Construction Disputes Report 2021: The road to early resolution’.
…117% increase on 2017…
… main cause of disputes was owners, contractors, or subcontractors failing to understand and/or comply with their contractual obligations…
Construction Manager Magazine writes:
The figure represented a 117% increase on 2017, according to a survey by consultant Arcadis.
Meanwhile, 75% of respondents encountered disputes of claims specific to covid-19, Arcadis found.
But the average length of time to resolve disputes remained was less than 10 months – in line with the average amount of time taken in 2019.
Arcadis said that the data, featured in its 11th annual “Global Construction Disputes Report 2021: The road to early resolution,” illustrated industry-wide “ripple effects” of the covid-19 pandemic.
All regions surveyed saw an increase in “mega disputes” related to bigger capital programmes and private projects, which Arcadis said partially explained the increase in dispute value seen during 2020.
The main cause of disputes was owners, contractors, or subcontractors failing to understand and/or comply with their contractual obligations, according to the survey. That was followed by errors and/or omissions in the contract document and failure to make interim awards on extensions of time and compensation….
The full 2021 Global Construction Disputes Report can be found here
