The primary cause of construction claims and disputes is design problems. Construction projects are prone to more unforeseen physical conditions and deficiencies in workmanship. Tight timetables increase design problems with projects in Roseland, New Jersey. People should avoid other top drivers that cause disputes during construction projects.
12 drivers of construction disputes
Claims and disputes have a staggering toll on the construction industry. Construction litigation claims on over 1,100 projects was $48.6 billion without legal fees. The extensions in connection with the projects amount to 593 years. The top 12 drivers of construction disputes are from data on 410 2020 projects.
The top issues in construction were incorrect designs, workmanship deficiencies and incomplete designs. The next three issues include unforeseen physical conditions and a change in scope. Poor subcontractor or supplier management on a job causes disputes. The next three issues include late design information and claims that were opportunistic. Restricted worksite access is a top dispute driver. Contract management or administration failures are common during construction projects. The bottom issues in construction include adverse weather conditions and installation failures.
Ways construction avoids the drivers of disputes
Investing more time in up-front planning can balance out the uncertainty. Design and coordination can reduce conflict between many parties on a project. Don’t rush requests for proposals. Wait until advanced designs show reliable costs and schedules. Clients should get the true value of a bid by weighing experience, expertise, quality and price. Contractors should get the necessary resources for the design and set realistic timelines. Relevant stakeholders should review the design before the project starts. Set a project execution plan with the client and supply chain. Promote transparency from all parties in a project. The correct party should manage risks and opportunities during the project.
Projects of the study went up until February 2020. Construction firms should continue to investigate opportunistic contractor claims. In recent years, parties have been resolving disputes differently. Mediation over construction litigation is greater now than in previous reports. The employers, contractors and supply chain are mindful of the construction dispute changes.