An industry report published by construction services provider EC Harris has revealed that UK construction disputes are resolved quicker and at less cost than the global average.
However according to the findings of the report contracting joint ventures have approximately a one in four chance of ending in disputes.
The Global Construction Disputes Report has estimated that the average value of construction disputes in the UK is approximately 4.6m, the lowest of all the countries in which it conducts operations. This was significantly lower than then global average value, calculated at 21.4m in 2010. The report also found that disputes were concluded far quicker, on average taking 6.75 months from beginning to resolution. Again far quicker than the average global dispute which took 9.1 months from beginning to resolution.
As with the global trend the UK saw an increase in the number of disputes in construction projects against the previous year. The most common cause for dispute being the failure to properly administer the contract but other causes for dispute included where contracts where perceived as containing ambiguities in the detail, incomplete design information and failure to make interim awards on extensions of time and monetary relief.
Gary Kitt, Head of Contract Solutions for EC Harris commented “Resolving these disputes represents an extremely expensive, time consuming and often unnecessary distraction for clients and contractors alike. In an age of ever slimmer margins, the industry needs to focus far more attention on anticipating and preventing complex disputes in the first place and where disputes have already arisen, to resolving them swiftly and effectively, before they disrupt – or even jeopardise – construction projects.”
Recipro is pleased to see that the UK construction industry is performing well in its dispute resolution with less expensive and more rapid resolution.