Danielle Ternes/Construction Dive
This feature is a part of The Dotted Line series, which takes an in-depth look at the complex legal landscape of the construction industry. To view the entire series, click here.
Disagreements can arise on any size project and over a wide variety of issues. Consultancy firm HKA found in a 2020 report that scope changes drove the majority of construction disputes worldwide, followed by design errors; incomplete design; substandard management of subcontractors and suppliers; unforeseen physical conditions; issuing design information late; deficient workmanship; differences in contract interpretation; and late approvals.
Of the $1.8 trillion of projects that HKA examined, construction disputes cost almost $50 billion and extended job schedules by 71%.