Design problems are now the primary cause of construction claims and disputes, according to HKA's CRUX Insight 2020 report.
“Design problems are more likely to occur as a result of increasingly tight timescales imposed upon third parties engaged in design” that result in late or incomplete designs and conflict between the parties, the report says. “Failings in the management of third parties across increasingly complex supply chains” also cause major problems.
The consulting firm’s previous report had found that change in project scope was the number one cause for disputes. Projects have also become more prone to deficiencies in workmanship and unforeseen physical conditions, the report found.
The report’s data was primarily compiled before the start of the COVID-19 pandemic. The report examined construction issues in 1,185 projects worldwide with a combined value of $1.8 trillion. HKA expects an increase in arbitration over litigation to settle disputes in the coming years.
Related Stories
Codes and Standards | Feb 1, 2019
Mass. governor proposes real estate transfer fee hike for climate resiliency projects
Opposed by real estate and trade groups, plan could generate $1 billion in next decade.
Codes and Standards | Jan 31, 2019
New York City will reform construction bid process
Streamlined process intended to improve efficiency, reduce hassle for bidders.
Codes and Standards | Jan 30, 2019
New AGC program aims to diversify construction workforce
More diversity needed to keep pace with demand for workers.
Codes and Standards | Jan 29, 2019
Registration now open for LEED v4.1 for New Construction and Interior Spaces
Emphasizes human health and integrative building design.
Codes and Standards | Jan 25, 2019
AEC professionals should push for net zero projects
Educate and lead clients to more sustainable choices, says LEED fellow.
Codes and Standards | Jan 24, 2019
OSHA unaffected by federal government shutdown
Agency fully funded for first nine months of 2019.
Codes and Standards | Jan 23, 2019
Hackers can easily take control of construction cranes
Potential for serious harm is real, say researchers.
Codes and Standards | Jan 22, 2019
Initiative will introduce open-source software for commercial and public building retrofits
Energy analysis tool will identify energy efficiency opportunities.
Codes and Standards | Jan 18, 2019
Texas city sues developer over changes in $1 billion mixed-use project
Revised plan eliminated 8-acre lagoon, trolley, show fountain, and reduced retail space.
Codes and Standards | Jan 17, 2019
First resilience benchmarks for U.S. communities released
Provides way to evaluate current state of resilience and guidance for areas of improvement.