Our friends at Construction Dive, a construction industry newsletter, recently reported the Top 10 Causes of Construction Claims or Disputes in America.
According to the 5th Annual CRUX Insight Report on global construction claims and disputes, these are the most common sources of such claims in America:
1) Change in scope
2) Physical conditions were unforeseen
3) Design was incorrect
4) Workmanship deficiencies
5) Design was incomplete
6) Poor management of subcontractors, suppliers or their interfaces.
7) Design information was issued late
8) Contract management or administration failure
9) Contract interpretation issues
10) Access to the site was restricted or late
Many of these causes are interrelated and share common roots. The irresistible urge by owners to minimize upfront design starts the domino effect. Complex projects on a fast-track leads to changes in scope, unforeseen site conditions, and deficient design.
The solution suggested in the report emphasizes digitization by all parties in the construction process. The goal is to streamline the paper trail for change order management, project correspondence, and design approvals. A common digital platform for all involved in planning and delivery needs to be in place to provide a common data environment.
KGR Partner Greg Cafouros primarily focuses on design professional liability, construction law, and general liability litigation.
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