Poorly drafted or incomplete and unsubstantiated claims has become the number one cause of construction disputes.
| 2019 RANK | OVERALL DISPUTE CAUSE | 2018 RANK |
| 1 | Poorly drafted or incomplete and unsubstantiated claims | New ranking in 2019 |
| 2 | Failure to make interim awards on extensions of time and compensation | New ranking in 2019 |
| 3 | Owner/Contractor/Subcontractor failing to understand and/or comply with its contractual obligations | 1 |
| Poorly drafted or incomplete and unsubstantiated claims became the top cause of construction disputes for 2019, a dispute cause not ranked in the top three in 2018. This continues to emphasize a need to bring on experienced industry advisors early in the process, and to work toward identifying the human factors that can lead to miscommunication or misunderstanding. Globally, the buildings (education, healthcare, retail/commercial, government) sector saw the most disputes, the same as 2018. | The highest value dispute $1.5 billion (US) |
The most popular methods for resolving disputes:
| 2019 RANK | MOST COMMON METHODS OF ALTERNATIVE DISPUTE RESOLUTION | 2018 RANK |
| 1 | Party-to-party negotiation | 1 |
| 2 | Mediation | 2 |
| 3 | Arbitration | New ranking in 2019 |
Overall, our Contract Solutions Team handled slightly more disputes in 2019 than in 2018, and we expect this to continue in 2020.
| 2019 RANK | MOST IMPORTANT FACTORS IN THE MITIGATION / EARLY RESOLUTION OF DISPUTES | 2018 RANK |
| 1 | Owner/contractor willingness to compromise | 2 |
| 2 | Accurate and timely schedules and reviews by project staff or third parties | New ranking in 2019 |
| 3 | Contractor transparency of cost data in support of claimed damages | 3 |
| 2019 RANK | THE MOST EFFECTIVE CLAIMS AVOIDANCE TECHNIQUES | 2018 RANK |
| 1 | Risk management | 1 |
| 2 | Contract and specification reviews | 2 |
| 3 | Third-party schedule reviews | New ranking in 2019 |