Construction contract disputes across the world are getting longer, more complex and more expensive, according to the “Global Construction Disputes Report 2018” from design and consultancy firm Arcadis.
The value of North American disputes — or total costs added to a project for the additional work being claimed — dropped for a fourth consecutive year to $19 million in 2017, compared with the $43 million global average, the report found. Meanwhile, the average length of North American disputes increased from 15.6 months in 2016 to 17.7 months last year, exceeding the global average of 14.8 months.
Contract errors and/or omissions were the top cause of disputes in North America last year, followed by poor contract administration, which was trailed by failure on the part of an owner, contractor or subcontractor to understand or comply with contractual obligations.
Social infrastructure and the public sector collectively saw the most disputes while the transportation sector saw the second most.
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