The average value of construction disputes in North America decreased slightly to $19 million last year, but the time it takes to resolve disputes increased by more than two months (up to 17.7 months) and is among the highest globally, according to the 2018 Arcadis Global Construction Disputes Report. In North America, 82 percent of disputes settle before trial when using alternative dispute resolution, with party-to-party negotiation being the No. 1 method of ADR.
Globally, the top three causes for disputes in 2017 were failure to properly administer the contract; poorly drafted, incomplete or unsubstantiated claims; and the employer, contractor or subcontractor failing to understand or comply with its contractual obligation.
The report also states that as many U.S. cities invest in infrastructure—and larger and more complex projects begin to materialize—project teams will need to work with claims professionals to more proactively assess, avoid and mitigate risk, as well as improve the early dispute resolution process.
