Average UK Construction Dispute Value Remains at All-Time High

Added: Over a year ago by Arcadis

The average value of construction and engineering disputes in the UK remained at $34m during 2017. This continues to represent the highest average level since Arcadis started producing the Global Construction Disputes Report in 2010, with UK Construction now being costlier on average than the North America and Europe regions.

“The primary causes of disputes are all matters that could be avoided by a more integrated and collaborative approach to project procurement.”

Whilst UK Construction appears to be resolving disputes in a timelier manner; the average value of UK disputes remains at an all-time high with the top-ranking causes of disputes, including a failure to properly administer contracts, remaining prevalent from previous years. Our Report argues that UK Construction is aware of the prevalent issues it faces and what is required to resolve them but could better utilise this knowledge in becoming more proactive to avoid future disputes.

Globally, the 2018 Report reveals an increase in both the overall length and value of construction disputes, with the findings demonstrating that human factors are affecting these disputes. This year’s Report continues to address the importance of early dispute resolution, and ideally the avoidance of disputes altogether, though project teams around the world continue to struggle. Many of the leading causes of disputes remain the same as in previous years, begging the important question of whether construction professionals are learning from their mistakes when it comes to disputes.