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
| Sep 11, 2013
San Francisco expected to drop firefighter air tank refilling station rule for skyscrapers
San Francisco is poised to drop a requirement that skyscrapers have refill stations so firefighters can recharge their air tanks during a blaze. The city has required that new high-rises have the air refill systems for about ten years.
| Sep 5, 2013
State legislatures continue to raise the bar on green school construction
Since the beginning of 2013, the USGBC has followed more than 125 bills across 34 states that seek to advance healthy, high-performing schools.
| Sep 5, 2013
Construction industry groups create coalition to respond to new OSHA silica rule
A group of 11 construction trade associations has created the Construction Industry Safety Coalition in response to the Occupational Safety and Health Administration’s (OSHA) proposed rule on silica for the construction industry.
| Sep 5, 2013
Red tape delays California county jail construction projects
California authorized $1.2 billion for jail construction in 2007, but not a single county in the state has completed a jail project since then.
| Sep 5, 2013
New CM-at-risk and design-build options create controversy in Ohio
Some contractors say Ohio's new system puts small and midsize construction companies at a disadvantage.
| Sep 5, 2013
Outdated codes slowed disaster recovery in Tuscaloosa, Ala.
Outdated building codes and lack of a master plan slowed the initial rebuilding stage after a devastating tornado leveled parts of Tuscaloosa, Ala. in 2011, according to the city’s mayor.
| Aug 28, 2013
Building collapse prompts legislation to beef up demolition regulations in Philadelphia
Philadelphia City Council will introduce legislation next month to strengthen the regulation of building demolition practices.
| Aug 28, 2013
Rules requiring contractors to boost hiring of veterans criticized
Some businesses are pushing back against proposed rules requiring federal contractors to step up their hiring of returning military service personnel.
| Aug 28, 2013
OSHA moves to reduced exposure to crystalline silica
Under a proposal from the Occupational Safety and Health Administration, the new permissible exposure limit to crystalline silica per cubic meter of air could be changed from 250 micrograms to 50 micrograms.
| Aug 28, 2013
IPMSC chooses members of committee for global property measurement standard
The International Property Measurement Standards Coalition (IPMSC) has selected 19 real estate experts from around the world to join its Standards Setting Committee to develop a global standard for measuring property.
