Contract rows take six months to settle

Grant Prior 11 years ago

Construction disputes are settled quicker in the UK than the rest of the world – despite taking more than six months to sort out.

Research by EC Harris revealed the average construction dispute in this country lasts 6.75 months from beginning to resolution.

That is quicker than the global average of 9.1 months and EC Harris said the relative speed was “primarily due to the use of statutory adjudication and collaborative forms of contract.”

The average value of disputes here is £4.6m compared to £21.4m worldwide.

The number of contract rows increased last year and EC Harris said the top five causes of conflict were:

  • A failure to properly administer the contract
  • Ambiguities in the Contract Documents
  • Failure to make interim awards on extensions of time and monetary relief
  • Incorrect contract selection when compared on a best fit with the project characteristics
  • Incomplete design information or Employer requirements (for design and build forms of contract)
  • Gary Kitt, Head of Contract Solutions, UK at EC Harris said: “Resolving these disputes represents an extremely expensive, time consuming and often unnecessary distraction for clients and contractors alike.

    “In an age of ever slimmer margins, the industry needs to focus far more attention on anticipating and preventing complex disputes in the first place and where disputes have already arisen, to resolving them swiftly and effectively, before they disrupt – or even jeopardise – construction projects.”

    Latest news

    Sellar unveils £1.5bn Liverpool Street station scheme

    £450m station upgrade will be included in hotel and office at no extra cost to tax payers
    1 day ago

    London flyover needs £50m structural repairs

    Safety checks force 7.5t weight restriction on 200m long Brent Cross flyover
    14 hours ago

    Firms called up for East London £1.3bn housing estates renewal

    Barking and Dagenham Council aims to build extra 4,000 homes in ongoing estate renewal plan
    13 hours ago

    HS2 milestone as first London tunnel drive starts

    First of six London TBMs launched for one of most complex tunnel drives
    22 hours ago

    Mace wins London’s “greenest” office tower

    Construction to start in January on London’s most sustainable office tower
    1 day ago

    FM Conway revenue soars to near £500m

    Pre-tax profit slips despite strong sales growth in 60th year in business
    15 hours ago

    Drop in domestic demand drags down Marshalls profit

    Building Products division flying high but spending slows on domestic projects
    13 hours ago

    Construction buyers report return to growth

    But optimism levels for future prospects drop to two-year low
    1 day ago

    Lee Marley Brickwork revenue soars to record £57m

    Cost inflation erodes major brickwork contractor's margin
    2 days ago

    Tilbury Douglas £55m Catterick health campus job approved

    Demolition underway for site start next Spring
    2 days ago

    Soaring costs see £10m Devon road project put on hold

    Tiverton junction on A361 for 500-home scheme halted
    2 days ago

    SDC lands latest £26m Cambridge lab building

    BioMed Realty to develop third building at Babraham Research Campus
    2 days ago

    University of Cumbria Barrow campus approved

    Construction work for the educational facility is set to begin next year
    2 days ago

    More than 27,000 people now working on HS2 construction

    Latest employment figures as project enters main building phase
    2 days ago

    Manchester arts centre running £100m over original budget

    Extra cash call as inflation pushes The Factory project cost to £211m
    3 days ago

    Firms on alert for £1bn refit and refurb framework

    Pagabo calls up firms for second generation refurbishment deal
    3 days ago

    Balfour targets next generation floating wind farms

    Balfour teams up with Aker to build concrete gravity base floating wind turbines
    3 days ago

    Esh Group returns to profit after reducing risks

    Major restructuring programme paying dividends at North of England contractor
    3 days ago

    Caddick acquires assets from failed facade specialist

    Deal to save Speedpanel operation from Speedclad ensures continuity on projects
    3 days ago

    Fusion21 names winners for £250m repairs framework

    Full list of 46 winning companies
    3 days ago

    RSK buys Scottish M&E specialist WGM Engineering

    £45m turnover Glasgow contractor employs 365 mechanical, electrical, and civil engineering staff
    3 days ago

    Cladding and roofing specialist falls £9m into red

    Lindner Prater runs into loss after remedial works needed on a major job
    4 days ago

    Ellmer propels growth at Byrne Group

    Concrete specialist Byrne impacted by project start delays
    4 days ago

    Kobelco suspends some plant sales over engine scandal

    Manufacturer stops selling some excavators and crawler cranes over emissions fear
    4 days ago

    Watkin Jones sounds profit warning

    Higher borrowing costs for buyers starting to hit sale prices and margins
    4 days ago

    First nuclear fusion plant to be built in Nottinghamshire

    £2bn-plus fusion energy plant to be built at West Burton coal power station site.
    4 days ago

    Peel sets up suburban build-to-rent developer

    New Letta arm aims to build 1,000 private rental homes in the North West
    4 days ago

    Wates Pre-Construction Director joins rival Real

    Matt Smith joins ambitious contractor and developer
    4 days ago

    L&G modular homes amassed loss deepens to £174m

    Modular arm suffers sixth successive loss but books first revenue of £12m
    5 days ago

    Chancellor does U-turn on top rate tax cut

    Plan to abolish 45p top rate a "distraction" from Growth Plan
    5 days ago

    Contractor services