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Value of construction disputes jumps to almost £27 million

The value of disputes within the UK construction and engineering industry grew by around a third during 2016. The average value increased from £20 million to a sizeable £27m. This is the highest rise in the UK since Arcadis began recording in 2010 and indicates a reversal of the trend which saw a steady decline over the previous two years.

Gary Kitt

Head of Contract Solutions +44 (0)207 812 2310 Ask me a question
Construction Disputes Report 2017

“It’s unsurprising that failure to properly administer the contract is still the biggest trigger of dispute, given so many relate to payment issues”

The most common cause of dispute experienced by the UK team during 2016 was a failure to properly administer the contract. We continue to see practitioners underestimating the importance of payment terms within construction contracts during 2016 and continuing in 2017. 

This is evident from the resulting adjudications and the subsequent enforcement proceedings seen before the UK judiciary, demonstrating the perils to a party of not issuing the required notices. Despite this issue being well highlighted, we anticipate that this trend will continue. 

Global Construction Disputes Report 2017 Key Highlights and Overall Findings

The overall global picture is somewhat different to that of the UK. The results show that both the value of disputes and durations have slightly decreased around the world. The decreased dispute value and dispute duration will have multiple effects for both parties and are likely to have a positive impact on the construction industry. 

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Gary Kitt

Head of Contract Solutions +44 (0)207 812 2310 Ask me a question

Arcadis White paper

Construction_Disputes_Report _2017
Global Construction Disputes Report 2017

The value of disputes within the UK construction and engineering industry grew by around a third during 2016. The average value increased from £20 million to a sizeable £27m. This is the highest rise in the UK since Arcadis began recording in 2010 and indicates a reversal of the trend which saw a steady decline over the previous two years.

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