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
| Aug 21, 2012
AGC offers second edition of the Federal Government Contractor: Ethics & Compliance Programs manual
This publication helps contractors appreciate the grounds for an alleged violation of the expected standards of business conduct and ethics, and to develop, implement, and document an effective ethics and compliance program.
| Aug 21, 2012
Federal Safe Building Code Incentive Act’s bipartisan support, no notable objection, bodes well for passage
The Safe Building Code Incentive Act would give states a little extra post-disaster federal funding if they enacted and enforced nationally recognized building codes for businesses and residences before disaster strikes.
| Aug 16, 2012
New York’s Barclays Center project accused of ignoring noise, pollution regulations
Construction crews racing to finish the Brooklyn Barclays Center are ignoring strict regulations to reduce noise and pollution, a new report by critics has found.
| Aug 16, 2012
Harness saves life of worker cleaning Washington state Capitol
Fall-protection equipment helped save the life of a worker who was cleaning the Washington state Capitol building in Olympia, after the platform he was using gave way.
| Aug 16, 2012
CSI webinar on August 21 focuses on electronic energy control
The Construction Specifications Institute (CSI) is sponsoring a free webinar on August 21 at 2:00 p.m. (EDT) on electronic energy control.
| Aug 16, 2012
Public sector pushes sustainable building forward
Not usually noted for its innovation, the public sector has done the most to advance sustainable building, according to a recent panel of green building professionals.
| Aug 16, 2012
Canada’s first net-positive building under construction in Milton, Ontario
The GreenLife Business Centre in Milton, Ontario near Toronto is set to become the first net-positive energy building in Canada.
| Aug 9, 2012
St. Paul cannot adopt overly restrictive egress windows policy, court rules
The Minnesota state Court of Appeals rejected St. Paul's attempt to adopt a policy on egress windows that was stricter than state law.
| Aug 9, 2012
Fire chief questions building code after St. Louis apartment building fire
A blaze that destroyed a 197-unit apartment building in St. Louis, Mo., displacing 250 residents, led the city’s fire chief to question the materials used in the construction of the four-story building.
| Aug 9, 2012
Ramps have strict criteria for ADA compliance
It is important for businesses to understand that an existing ramp at a building entrance may not mean that barrier removal obligations under the Americans with Disabilities Act have been met.
