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Value of construction disputes in the Middle East declines despite longer resolution period, Arcadis reports

The 2019 Global Construction Disputes Report is an annual study from Arcadis that examines the most common causes of disputes on construction projects, as well as the average duration and value of disputes, and the method of alternative dispute resolution (ADR) most commonly deployed.

Shawkat El Abbas

Director of Claims and Contract Solutions, Middle East +971 569845391 Ask me a question

 The 2019 Global Construction Disputes Report is an annual study from Arcadis that examines the most common causes of disputes on construction projects, as well as the average duration and value of disputes, and the method of alternative dispute resolution (ADR) most commonly deployed.

Currently in its ninth edition, the 2019 report reveals: 

  • Average value of construction disputes in the Middle East decreased during the reporting period in line with the global construction market trend.
  • After two consecutive years of decline in dispute duration, the average time needed to resolve a dispute increased, recording the longest dispute duration since 2010.
  • Poorly drafted or incomplete and unsubstantiated claims emerged as the new top dispute cause with failure to properly administer the contract still a recurring issue.

The report also revealed that a balance between logic and emotion is key to resolving construction disputes in the Middle East as shown in the region’s most common dispute causes and preferred methods of alternative dispute resolution.

Shawkat Abbas, Head of Quantum Contract Solutions Arcadis Middle East, said: “Poorly drafted or incomplete and unsubstantiated claims, the top common cause for disputes, is telling us that claimants must stick to an evidence-based approach if they want to reach a satisfactory conclusion. Combined with the other two common dispute causes, the industry is confirming the importance of complete understanding of contract administration and claims fundamentals."

“With party-to-party negotiation still the most preferred resolution method, we see how important open and consistent communication among different parties is in resolving disputes. Seeing the importance of logic and facts in the causes of disputes and the emphasis on the human aspect in reaching a resolution are not contradictory at all. Instead, this is telling us that we must have substantial understanding of the problems, but we should always keep in mind that we are dealing with creatures of emotion and not just with numbers in our spreadsheets,” Shawkat added.

Click here to view the full findings of this year’s report.

 



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Shawkat El Abbas

Director of Claims and Contract Solutions, Middle East +971 569845391 Ask me a question

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