The main factors driving construction disputes
Ed Poon, director of Canadian forensic operations at HKA, in a recent article examined the primary drivers of construction claims and disputes.
The construction industry has long been a litigious one, facing the challenges of long timelines, ballooning budgets and costs, and the complex interplay of owners, developers, and contractors working on multifaceted projects.
The sophistication of projects is one major factor driving litigation. Construction projects today involve structural, mechanical, electrical, plumbing, and smart technology that must integrate seamlessly and meet various regulatory requirements. An omission in one area can lead to a cascade of change orders resulting in delays and cost overruns.
Another major factor is the siloed nature of the work occurring on construction projects. Specialists such as software engineers, sustainability consultants, and others will focus on their part of the project without always understanding the whole. This narrow focus can lead to poor coordination – and a change in electrical inadvertently clashing with HVAC systems might result in delays and disputes.
As well, the traditional design-bid-build model – which keeps the stages of a project completely separate – means that errors in design are generally not caught until construction begins, sparking disputes.
Poon notes that other methods of construction project delivery attempt to enhance collaboration, but also have their own shortfalls.
One is “design-build and construction manager at risk (CMAR).” Design-build projects consolidate work under one dual entity, and CMAR similarly uses a single partner to oversee and coordinate work from beginning to end. Although the methods improve collaboration, they can blur the lines of responsibility.
Another is “lean construction and integrated project delivery (IPD),” which combine owners, designers, and builders into an integrated team. This method requires a difficult cultural shift, however, and disputes can still arise if trust or communication breaks down.
The BIM method uses virtual building models to align project stakeholders, but it only works if all parties know how to use the technology system effectively.
Lastly, modular construction fabricates building modules off-site to be assembled on-site, but introduces new risks in quality control, coordination, and supply chain.
