By the numbers: The HKA analysis is based on 2,204 projects across 114 countries with a combined capital value of $2.43 trillion.

On average, the total costs in dispute represented 33.4% of project budgets.
Claims for time extensions sought to add an average of 65.8% to planned work schedules.
For projects scheduled to complete post-2020, claimed time extensions fell to 49% of schedules, and disputed costs dropped to 28% of budgets.

The big picture: The report identifies a "2020 watershed" moment, with projects scheduled for completion after this date showing marked improvement.

Change in scope, while still the most common cause of disputes, affected a smaller portion of projects (28%, down from 36% pre-2020).
Disputes related to design errors and incomplete information also declined significantly.
Failures in contract and subcontractor management were nearly halved as a cause of conflict.

Yes, but: Two factors bucked the positive trend and have become more significant drivers of disputes in recent years.

COVID-19: The pandemic was a factor in disputes on nearly a quarter (24%) of projects completing after January 2020, making it the second-most common cause of conflict.
Cashflow and payment: These issues continue to affect one in seven projects globally (14%) and have risen in rank as other causes decline. The report notes this problem is growing, especially on megaprojects, where it is a factor in over 25% of disputes.

Zoom in: The report highlights significant regional variations in dispute trends.

The Americas: Saw a drop in disputes over deficient workmanship, but the average value of claimed costs increased.
Europe: Made limited progress in reducing conflicts over design accuracy and workmanship, with claimed costs also on the rise.
The Middle East: Achieved significant reductions in schedule and cost overruns, despite having the highest rate of pandemic-related disputes and persistent payment conflicts.
Asia: Experienced a surge in disputes related to late approvals and contract interpretation, alongside COVID-19 disruptions.

What they're saying: "It is very encouraging to report our evidence that many types of disputes are afflicting a smaller proportion of projects in recent years – and the impact on outcomes, especially programs, may be easing," said Renny Borhan, Partner and CEO of HKA. "We cautiously welcome this progress, but as CRUX Insight makes clear, it is not universal."

SURVEY: Major Construction Disputes Are Easing, But New Risks Emerge

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