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 | Nov 18, 2016
Canada GBC launching Zero Carbon Buildings Initiative
First step toward Zero Carbon Building Standard.
Codes and Standards | Nov 17, 2016
Santa Monica, Calif., passes historic net-zero ordinance
Includes more stringent commercial, multifamily building standards.
Codes and Standards | Nov 14, 2016
Six more states approve legal marijuana, creating opportunities for developers
Federal prohibition complicates the picture.
Codes and Standards | Nov 14, 2016
Los Angeles voters approve billions to tackle traffic and homelessness
The approved measures will create new rail lines and permanent housing.
Codes and Standards | Nov 9, 2016
NRMCA updates environmental impacts of concrete
The EPD now includes 88 companies, 72 mixes.
Codes and Standards | Nov 9, 2016
Louisiana flood projections require urgent action, officials say
The 'no net loss’ prediction now seems unrealistic.
Codes and Standards | Nov 8, 2016
American Concrete Institute offers new guide for repair of concrete buildings
The guide provides assistance on assessment and rehab.
Codes and Standards | Nov 7, 2016
The AISC prequalified seismic moment connection standard is now available
You can download the 2016 version for free.
Codes and Standards | Nov 4, 2016
Obama Administration makes a push for denser, more affordable cities
The administration calls for zoning code changes and other measures to create more housing.
Codes and Standards | Nov 3, 2016
OSHA proposes safety standards changes to reduce employer costs
The changes include clarification on excavation standard and reporting job-related hearing loss.
