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
| May 9, 2013
Post-tornado Greensburg, Kan., leads world in LEED-certified buildings per capita
Six years after a tornado virtually wiped out the town, Greensburg, Kan., is the world's leading community in LEED-certified buildings per capita.
| May 9, 2013
SMACNA’s new HVAC sound and vibration guide open for public review
Sheet Metal and Air Conditioning Contractors National Association’s (SMACNA’s) new “HVAC Systems Sound and Vibration Guide” is available for a 45-day public review.
| May 9, 2013
NSF Sustainability launches VOC emissions testing, certification for commercial furniture industry
New program offers sustainable certification and indoor air quality testing for commercial furniture makers.
| May 1, 2013
House bill would give OSHA more authority over state workplace-safety plans
A recently introduced U.S. House of Representatives bill would give the Occupational Safety and Health Administration (OSHA) more authority over state workplace-safety plans and toughen penalties for companies that knowingly violate OSHA regulations.
| May 1, 2013
New commercial landlord disclosures go into effect in California in July
Two new landlord disclosure requirements become effective in California on July 1, 2013.
| May 1, 2013
New ASHRAE residential indoor air quality standard adds carbon monoxide alarm requirement
The new 2013 version of ASHRAE’s residential indoor air quality standard adds a requirement for carbon monoxide alarms.
| May 1, 2013
AAMA publishes standard for multipoint locking hardware for side-hinged doors
The American Architectural Manufacturers Association (AAMA) recently published the first North America standard for multipoint locking hardware for side-hinged door systems.
| Apr 24, 2013
‘W visa’ program could hamper construction industry's growth
The Senate’s bipartisan immigration reform proposal will provide interim legal status to some 11 million undocumented people.
| Apr 24, 2013
North Carolina bill would ban green rating systems that put state lumber industry at disadvantage
North Carolina lawmakers have introduced state legislation that would restrict the use of national green building rating programs, including LEED, on public projects.
| Apr 24, 2013
BOMA’s 360 Performance Program approaches 600 building designees
The Building Owners and Managers Association (BOMA) International conferred the BOMA 360 Performance Program® designation upon 44 properties in major commercial real estate markets across the U.S. in the first quarter of 2013.