Change in scope, unforeseen physical conditions and incorrect design were the top three causes of construction claims or disputes in the Americas in 2021, according to a study by Crux Insight, a research program developed by HKA, a construction claims and dispute resolution firm.
Change in scope, unforeseen physical conditions and incorrect design were the top three causes of construction claims or disputes in the Americas in 2021, according to a study by Crux Insight, a research program developed by HKA, a construction claims and dispute resolution firm.
The study analyzed 522 projects from 18 countries in the Americas, and the largest categories were residential and commercial buildings.
The study’s full list of the top 10 causes for construction claims/disputes was as follows:
1. Change in scope
2. Physical conditions were unforeseen
2. Design was incorrect
4. Workmanship deficiencies
5. Design was incomplete
6. Poor management of subcontractor/supplier and/or their interfaces
7. Design information was issued late
8. Contract management and/or administrative failure
9. Contract interpretation issues
10. Access to site/workforce was restricted and/or late
“The most dominant causes of claims and disputes are not only intertwined, they also tend to share common roots,” the study stated. “Project owners seek to minimize their outlay on up-front design, allowing contract work to proceed, which almost invariably leads to changes in scope. Main contractors on design-build contracts can succumb to similar cost-saving temptations with a view to improving thin margins.”
The full report can be found here.
