Top 20 reasons for claims and disputes in construction

[Matthias-Bohner]

I came across a recent study about the top 20 reasons for claims and disputes in construction projects. It highlighted the fact that three design-centric factors – incorrect, late, or incomplete design information – were clustered within the global ranking’s top five causes, with the three of them combined afflicting a greater proportion of projects overall (44.8%) than scope changes alone (38.8%).

For me it sounds like most contractors are bidding on incomplete information and collaboration is still an issue in most complex projects. What happened to the Design-Bid-Build vs Design-Build delivery models? Sure we have tools, like our S4/HANA Cloud for Projects or our partnersolution from Smartapp, but I don't think it is a tool related problem.

What do you think, can contractors do to avoid or at least reduce claims and disputes?

[Noor_AlRashedi]

Thanks for sharing, Matthias. Indeed, it is one of the major issues. Open book methodology and clear responsibility matrix are key elements. I would love to hear from all group members. What do you think? Please share your views/stories 🙂 

[Matthias-Bohner]

If you want to read more about those reasons and the report, you can find it on Link. 

They have it by region and there are quite some differences...