OVERVIEW

Last year, the average value of disputes in the Middle East dropped to $57 million in 2018 from $91 million in 2017. This is likely due to disputes trickling down the supply chain, involving suppliers and subcontractors, with typically lower dispute values. It is also relective of the value of projects that have been awarded in recent years, which ranged from mid- to large-size. Although the total volume of construction disputes is about the same as 2017, the average length of time needed to resolve a dispute has increased to 20 months, compared to 13.5 months in 2017. This increase is likely attributed to the low liquidity in the construction market, which encourages the liable parties in the dispute to postpone the timing of having to pay out the disputed amount by prolonging the dispute cycle as much as possible. The building market (which includes education, healthcare and real estate development) has topped the list for disputes for 2018.