Average Claimed Value of Construction Disputes in US in 2013 Tripled Over 2012

According to the ARCADIS fourth annual Global Construction Disputes Report "the average claimed value of construction disputes in the U.S. tripled over 2012, to an average of $34.3 million. However, the U.S. was still well below average construction dispute values globally, behind Asia and the Middle East. At the same time, construction disputes in the U.S. took 1.8 months longer to resolve than in 2012, averaging 13.7 months."

Other findings of the report include:

  • Biggest cause for disputes in U.S. in 2013 was errors and omissions in the contract document
  • 2013 saw the global rise of the 'mega-dispute' worth over $1 billion
  • One in three joint ventures lead to disputes

Joe Seibold, executive vice president, ARCADIS U.S., comments, "Today's major construction projects are fast paced, complex and involve a multitude of parties, so there are numerous points at which a dispute can occur. Many of these disputes are resolved out of the public eye but do often result in significant costs and time overruns. Our research confirms the scale of these problems and highlights the need for better contract administration, more robust documentation and a proactive approach to risk management to help avoid and mitigate the most common causes of disputes."

(Read more about the ARCADIS report and the value of 2013 construction disputes...)