The ‘Global Construction Disputes’ report from international consultancy company ARCADIS found that although the US figures reflected a wider global trend, there were variances, with the UK, Europe and the Middle East saw rises, with the value of disputes in the Middle East more than doubling to $112m.
Depressed market
‘The dramatic fall in the value of US construction disputes was largely caused by a generally depressed construction market,’ said Joe Seibold, executive vice president at ARCADIS. ‘We also saw an increasing emphasis from both public and private sector owners to avoid and mitigate disputes through risk management and early, field level, resolution of disputes. Nevertheless, despite this drop, disputes are still costing the industry significant time and money.’
Among the most common causes of disputes in the US were ambiguities in contract documents, conflicting party interests and incomplete design information.
Party-to-party negotiation was the most common method used in the US to resolve disputes, followed by mediation and arbitration.
Email your news and story ideas to: [email protected]
