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News Nov. 8, 2022

What are the top 10 causes of claims or disputes in construction?

The fifth annual Crux insight report on global construction claims and disputes shows construction project timelines are being delayed because of the Ukraine war, supply chain disruptions, and rising materials costs, according to www.constructiondive.com. Inflation also now threatens project outcomes in the U.S.

“Many of the dominant causes of claims and disputes—notably change in scope, unforeseen physical conditions and deficiencies in design or workmanship—arise from short-sighted attempts to save time and money up front,” said Toby Hunt, partner at HKA, a U.K.-based business consulting and services firm.

The report lists the following as the top 10 causes of claims or disputes in the Americas:

  1. Change in scope
  2. Physical conditions were unforeseen
  3. Incorrect design
  4. Workmanship deficiencies
  5. Incomplete design
  6. Poor management of subcontractors, suppliers or their interfaces
  7. Design information was issued late
  8. Contract management or administration failure
  9. Contract interpretation issues
  10. Restricted or late access to the site 
The report recommended construction firms move toward digitalization, at least streamlining the paper processes commonly used for change order management, project correspondence and design approvals. It also emphasized that team members involved must stay up to date with the latest technology and should share access to digital platforms.

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