Dive Brief:
- Construction recovering from the recession means more projects, and more projects means more disputes over construction costs and payments as the average U.S. construction dispute last year rose to $34.3 million, triple the year before.
- An annual report from Arcadis on disputes worldwide said it took, on average, 13.7 months to get a settlement, up from 2012.
- The biggest single source of disputes was allegations of errors and omissions in contract documents.
Dive Insight:
The rise of joint ventures, design-build and other multi-party construction methods raise the likelihood of disputes because project documentation is more complex. Arcadis' U.S. executive vice president, Joe Siebold, said the lesson is that the industry needs "better contract administration, more robust documentation and a proactive approach to risk management."