The average value of Middle East construction disputes increased slightly from 2018 to 2019 while the average length of time needed to resolve a dispute decreased. As the industry recovers from COVID-19 there will be an overwhelming number of decisions that need to be made to successfully start and complete projects, so what can we do to collaborate to achieve project excellence in a post-pandemic world?
This year’s report reveals that the value of disputes in the Middle East increased slightly from $57 million in 2018 to $62 million in 2019 while the average length of time needed to resolve a dispute decreased to 17 months, compared to 20 months in 2018.
This decrease is likely attributed to the liable parties and participants in the dispute process realizing that slowing down the dispute resolution process is in no one’s long-term interest, and that moving forward the claimants are not capable of withstanding long periods of time of uncertainty on the conclusion of their disputed amounts.
Shawkat Abbas, Head of Quantum Contract Solutions Arcadis Middle East, commented: “The fact that poorly drafted or incomplete and unsubstantiated claims is still the top cause of disputes in the Middle East is a reminder that claimants must focus more on producing well-written and fact-based claims that can be reviewed and assessed by the receiving party. Considering the ongoing COVID-19 pandemic, it is a good sign that involved parties are realizing the need to resolve disputes fast as manifested in the shorter average resolution period in 2019 because having prolonged disputes during these times can easily compound the already negative effects of the pandemic. Hopefully, this trend will continue for the rest of 2020 and beyond.”
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