The majority of claims and disputes are not only intertwined, they also tend to share common roots – What does that mean? It means that the majority of claims and disputes in construction projects are caused by a combination of factors, including poor project planning and management, lack of communication, unclear contract terms, and unanticipated challenges on the construction site. By understanding these common roots, construction professionals can work to proactively address them and minimize the risk of claims and disputes.
When project owners prioritize cost savings by avoiding significant investments in upfront design, they open the possibility for changes in scope to occur during the construction process. This is because without a comprehensive design, the potential for unforeseen challenges or new requirements to emerge is greater, leading to modifications in the original plan. In other words, a lack of upfront planning can result in a higher likelihood of changes in scope during construction.
The top 10 causes of claims and disputes in construction projects are:
1. Design errors or omissions.
2. Inadequate or inaccurate contract documents.
3. Lack of communication and coordination between parties.
4. Poor project planning and scheduling.
5. Change orders and scope creep.
6. Poor quality of work or materials.
7. Unforeseen site conditions.
8. Disputes over payment.
9. Non-compliance with building codes and regulations.
10. Delays in completion of the project.
It is important to address these issues proactively in order to minimize the risk of disputes and claims during the construction process. Effective project management, clear communication, and a well-drafted contract can help reduce the likelihood of disputes and claims in construction projects.