5 top causes of conflicts on construction projects

By Emma Peterson. 

Learn the sticking points for previous projects to avoid them in your own jobsites. 

Over the years, the Carolinas Roofing and Sheet Metal Contractors Association (CRSMCA) has noticed that the entire industry is growing more competitive and costs for operation are continually rising. In response to this, it’s important to learn how to avoid cost disputes, overruns and other hiccups. The London-based HKA, a consultancy that specializes in construction risk mitigation and dispute resolution, recently released their sixth annual CRUX Insight Report on global construction claims and disputes shows the frequency of these conflicts and how they cause a loss of both time and money for contractors.  

They analyzed 1,800 projects in over 100 countries and found that in the Americas the top five causes of conflicts were: 

1. Changes in scope 
2. Incorrect design 
3. Deficiencies in workmanship 
4. Unforeseen physical conditions 
5. Incomplete design 

These conflicts have very real and damaging consequences for the larger projects. It is estimated by a Crux report that the disputed costs on projects in the America’s cost over a third of the entire project’s value. On average, that means there’s about $100 million of loss in project disputes from capital expenditure.  

Another interesting thing this report revealed was that there are differences in the number of conflicts across sectors. The sectors most likely to be affected by claims are building and transportation infrastructure. These projects faced claims with longer timelines and more delays than any other sectors, such as industrial and manufacturing sectors. On the other hand, reduced or altered scope due to unexpected conflict came up more frequently in offshore projects, such as oil, gas and wind. As for struggles in planning and coordination, the rail sector was found to be struggling the most.  

Read the full article to learn more about these common conflicts and how to mitigate these issues.