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
| Nov 20, 2013
How LEED and Green Globes stack up
An analysis of the strengths and weaknesses of the Green Globes rating system and LEED standards puts LEED ahead, but doesn’t discount the merits of Green Globes.
| Nov 14, 2013
First LEED v4 certified project garnered by Beijing furniture showroom
Haworth’s showroom in Beijing’s Parkview Green building has been recognized as the world’s first certified LEED project under the USGBC’s new LEED version 4 beta program.
| Nov 14, 2013
OSHA proposes requirement for large firms to disclose workplace injuries
A proposal from the Occupational Safety and Health Administration would require companies with more than 250 employees to disclose workplace injury and illness reports online.
| Nov 14, 2013
GSA asks for input to help study energy-efficient technologies on its buildings
The General Services Administration has posted a request online, asking those in industry, academia and nonprofits for information on green building technologies.
| Nov 14, 2013
Document on gypsum boards sets stage for preparing Environmental Product Declaration
The Gypsum Association has completed the development of a product category rules (PCR) document for North American gypsum boards.
| Nov 14, 2013
ISO, FLASH team up to promote stronger building codes
ISO has joined the national nonprofit Federal Alliance for Safe Homes (FLASH) to encourage communities to build disaster-resistant buildings that can withstand hurricanes, tornadoes, earthquakes, and other catastrophic events.
| Nov 6, 2013
Cost to small businesses from silica rule is raised by progressive group
The silica-dust rule from the Occupational Safety and Health Administration could put small businesses at a disadvantage on the cost of complying with the mandate, according to the Center for Progressive Reform.
| Nov 6, 2013
Uneven snow load concern prompts structural study of Minnesota college auditorium roof
The roof of the Memorial Auditorium of Concordia College in Minnesota will undergo a complete structural analysis because it was built to 1946 codes and may not be able to accommodate uneven snow loads.
| Nov 6, 2013
Dallas’s goal of carbon neutrality by 2030 advances with second phase of green codes
Dallas stands out as one of the few large cities that is enforcing a green building code, with the city aiming to be carbon neutral by 2030.
| Nov 6, 2013
Task force to examine resiliency in the face of climate change
President Barack Obama recently signed an executive order related to climate change and disaster-management efforts during severe weather events and other disasters.