‘Time’ and ‘cost’ revealed to be leading causes of conflict in international construction projects, according to research

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2nd July 2020 10:01 - Construction

‘Time’ and ‘cost’ revealed to be leading causes of conflict in international construction projects: A global survey of more than 50 construction and legal executives has found that 100% of survey participants feel that risk management on global projects could be improved, with more than three-quarters (76%) citing key factors of conflict being either ‘time’ or ‘cost’. 

The International Construction Survey 2020 sought to build a picture of where potential disputes are occurring, as well as look at how they are then managed, in order to try and minimise future issues. The research polled participants from Europe, Africa, Latin America, Asia Pacific and the Middle East. 

While time and cost were both selected by 38% of respondents respectively, quality was also seen as a potential source of conflict (10%) while a further 14% said ‘other’ factors were a cause.

Asked about the areas they feel could be better managed in projects, 38% said ‘keeping better records’, followed by ‘managing change better’ (37%), earlier identification of risks during tender phase’ (33%), and ‘submitting notices within prescribed time limits' (30%). 

‘Better management of supply chain or subcontractors' was an area that 29% thought could be managed better, as was 'improving the understanding of local markets' (24%) and 'managing design issues' (21%) better. 

Survey findings also revealed that 100% of respondents have had experience of resolving disputes separately during the course of a project, which resulted in a more successful outcome, while eight in ten (84%) agreed that spending a small amount on legal advice during the course of the project can help achieve 'earlier resolution of conflict points'.

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