By the numbers: HKA's eighth annual CRUX Insight Report analyzed over 2,200 projects across 114 countries with a combined value of $2.43 trillion.

Across the full dataset, sums in dispute averaged 33.4% of contract budgets.
Contractors sought time extensions that would add an average of 65.8% to planned schedules.
The total value of costs claimed across the projects stood at $95.0 billion.

The big picture: The report identifies a "watershed" moment around 2020, with projects scheduled for completion after that date showing a marked decrease in several long-standing dispute triggers.

Change in scope, while still the most common cause of conflict, affected 28% of post-2020 projects, down from 36% previously.
Disputes over design issues—such as late or incomplete information—also dropped significantly.
Failures in contract management and administration as a cause of disputes nearly halved, falling to less than 9%.

Yes, but: Two factors bucked the positive trend and have become more prominent since 2020.

COVID-19 became the second-ranked cause of conflict for projects ending after January 2020, affecting nearly a quarter (24%) of all projects and almost a third (32%) of megaprojects.
Cashflow and payment issues now rank as the fourth-largest cause of disputes, impacting one in seven projects globally. This problem is magnified on megaprojects, where it affects over 25% of contracts.

Zoom in: The report identified significant regional variations in dispute patterns.

Middle East: Despite having the most pandemic-related disputes, the region saw major reductions in schedule overruns and disputed costs.
Europe: Showed limited progress on design accuracy and workmanship issues, and claimed costs increased.
Americas: Saw a drop in disputes over deficient workmanship, but the region’s historically low claimed costs rose.
Asia: Experienced a surge in conflicts over late approvals and contract interpretation.

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," said Renny Borhan, CEO of HKA. "We cautiously welcome this progress, but as CRUX Insight makes clear, it is not universal. Some regions, sectors, and causal factors buck this apparently positive trend."

SURVEY: Global Construction Disputes See Post-2020 Decline

Related Stories

Recommended For You