Contractors can safeguard their projects by understanding and addressing common causes of construction disputes. According to the latest Crux report on global construction claims and disputes by HKA, the following issues are prime triggers for conflicts in America:
- Scope changes
- Incorrect design
- Workmanship deficiencies
- Unforeseen conditions
- Incomplete designs
The report, analyzing 1,800 projects across 106 countries, reveals that disputed costs in the Americas reach a significant one-third of project values, averaging $100 million or 33.6% of capital expenditure.
The economic landscape, including inflation and higher borrowing costs, makes U.S. general contractors less inclined to settle, preferring litigation for maximum recovery. The construction sectors experience diverse impacts, with buildings and transportation projects facing more extended time extension claims, while industrial and manufacturing projects see fewer delays. Offshore projects, especially in oil and gas (53.6%) and wind (45.0%), grapple with scope changes, while rail disputes rise due to planning and coordination challenges.
To navigate these complexities, contractors can gain knowledge to enable them to proactively address and mitigate the causes of cost disputes in their projects. Contact Burkhalter Law for assistance and guidance on these potential risks.
