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Report: Scope of Work Changes Top Cause of Construction Disputes
December 5, 2019
Construction Dive, Dec 2019
Dive Brief:
- In its second annual report on the cause of construction disputes, international consultancy HKA found that changes to a project’s scope of work was the most frequent contributor to disagreements across the sectors it studied: buildings; defense, aerospace and military; industrial; infrastructure; oil and gas; and power and utilities.
- In “CRUX Insight: A Global Sector Market Analysis,” the construction claims and dispute resolution firm analyzed 700 projects with a combined value of $1 trillion. HKA found that as contractors take on more design functions or subcontract that job out to others, disputes related to design have almost overtaken those related to contracts, which featured prominently in the company’s 2018 analysis.