Design problems are now the primary cause of construction claims and disputes, according to HKA'sĀ CRUX Insight 2020Ā report.
āDesign problems are more likely to occur as a result of increasingly tight timescales imposed upon third parties engaged in designā that result in late or incomplete designs and conflict between the parties, the report says. āFailings in the management of third parties across increasingly complex supply chainsā also cause major problems.
The consulting firmās 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 reportās 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.Ā HKA expects an increase in arbitration over litigation to settle disputes in the coming years.
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