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 | Jul 19, 2017
Economic impacts of climate change will jump over next two decades
Average annual cost to buildings and infrastructure from eastern storms to rise by $7.3 billion.
Codes and Standards | Jul 18, 2017
Energy modeling yields accuracy within 4%, says new study
Results of the study support the usefulness of the practice.
Codes and Standards | Jul 13, 2017
Net Zero Energy rebranded as ‘Zero Energy’
ILF aims to make new certification the sole standard for highest performing buildings.
Codes and Standards | Jul 13, 2017
New York City creates $10 million fund to help women- and minority-owned firms win construction contracts
The money is earmarked for up to $500,000 surety bonds per contract.
Codes and Standards | Jul 12, 2017
New International Building Code allows weather-resistive barriers above 40 feet
Danger of propagating flames now deemed negligible.
Codes and Standards | Jul 10, 2017
New mass plywood panel project moves ahead with federal grant
New material is substitute for concrete and steel in multi-story projects.
Codes and Standards | Jul 6, 2017
Trump ups ante on apprenticeships, gives private sector more room to design them
Initiative aimed at alleviating construction industry worker shortage.
Codes and Standards | Jul 6, 2017
Flawed modeling to blame for green buildings failure to live up to hype on energy efficiency
Explains energy performance gap from expected savings to actual savings.
Codes and Standards | Jul 5, 2017
Research study examines tall timber buildings worldwide
Industry group developing criteria for categorizing wide range of construction approaches to tall timber buildings.
Codes and Standards | Jun 30, 2017
AAMA releases new document on aluminum fenestration and energy efficiency
The free download addresses entrances, storefront framing, curtain walls, windows and skylight fenestration systems.