The 2020 Arcadis Global Construction Disputes Report marks the 10th edition of the report and explores the vital role collaboration will play in the industry’s response to the COVID-19 pandemic. It recognizes the future uncertainty surrounding COVID-19 and the unique challenges that will be posed as projects restart. Whether the industry can respond cooperatively will play a large role in the quantity, duration, and value of construction disputes in 2020 and beyond.
Global insights: Human factors continue to cause the most disputes
This year’s report reveals that the average value and length of disputes dropped slightly from the 2019 report, but it remains to be seen if those trends can continue in a post-COVID-19 environment. Consistent with previous years, human factors and misunderstanding of contractual obligations continue to be a primary cause of disputes.
North American insights: Disputes on the rise with more expected
Dispute values, durations and volume all increased in North America. After continuously dropping since 2013, the average value of disputes rose from $16.3 million to $18.8 million. The average time taken to resolve construction disputes for North America increased from 15.2 months in 2018 to 17.6 months in 2019.
Overall, North America saw the volume of construction disputes increase compared to 2018, and the majority of survey participants expect this number to increase this year. It’s impossible to predict the full extent of COVID-19’s impact on construction, but ongoing project shutdowns are setting the stage for a continued increase in disputes.
The world is a complex place, Arcadis helps you navigate this complexity by understanding the bigger picture. Click here to read some of our experts' latest thinking.
Arcadis is committed to providing a healthy and safe work environment for all our employees.