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 | Dec 16, 2021
Home builders defeat proposed Oklahoma energy conservation code upgrade
Builders cite high home prices for opposition.
Codes and Standards | Dec 16, 2021
Laws and regulations complicate growth of community solar gardens
New projects stymied by utility resistance and legislative restrictions.
Codes and Standards | Dec 16, 2021
Property owners need systematic approach to GHG emissions reduction
Energy hog buildings at risk for becoming stranded assets.
Codes and Standards | Dec 13, 2021
ABC releases guide to technology for improving safety performance
Provides details on how to identify, choose, and implement technology.
Codes and Standards | Dec 8, 2021
Construction industry is the top target for cyberattacks
Smart building tech is a new avenue for criminals.
Codes and Standards | Dec 8, 2021
Proposals to add more multifamily to Atlanta prompt drive for Buckhead to secede
City aims to increase housing as projections point to sharp population increase.
Codes and Standards | Dec 7, 2021
Design problems now the primary cause of construction claims and disputes
More likely to occur due to more tight timescales imposed upon third parties engaged in design.
Codes and Standards | Dec 5, 2021
New standard for Phase I environmental reports requires more research work on many sites
Update affects around 250,000 commercial real estate transactions a year.
Codes and Standards | Nov 30, 2021
Dept. of Energy publishes RFP for technical assistance on supporting better building codes
Addresses advanced standards to reduce energy consumption and GHG emissions.
Codes and Standards | Nov 29, 2021
Ithaca, N.Y., votes to electrify, decarbonize all its buildings
First initiative of its kind in U.S.
