CONSTRUCTION DISPUTE MANAGEMENT AND MITIGATION
CD: How would you describe the level of construction industry disputes? To what extent have you seen a rise in conflict?
Rana: In a post-pandemic, war-ridden world, construction work is continuing to grow. This increase in work is not related solely to giga-projects underway in the Middle East but more broadly. There is, of course, a correlation between growth in construction work and growth in disputes. The industry is promoting and is being encouraged to use more sustainable construction practices and materials. Some of these practices and materials are novel and the risk allocation for the supply of works or services in this space can be complicated. Their use has, therefore, given rise to a new range of disputes. These include disputes with campaign groups in relation to sustainable, renewable methods or solutions, and disputes with suppliers and contractors in relation to the use of untested materials in construction.
Scott: There is a generous dose of the much anticipated cases spurred by the immediate and longer-term impacts of coronavirus (COVID-19) and a discernible increase in issues arising from more complex project structures, more ambitious timelines and heightened competitiveness. Across markets, the bigger issues are currently related to the pressures of rising interest rates and global supply chain disruption, on top of already ambitious and complex projects. In terms of inflation of project costs, we continue to see employers coming to the table proactively to agree pragmatic settlements with contractors to keep jobs moving.
Apr-Jun 2024 issue
Accuracy
National Grid
Quinn Emanuel Urquhart & Sullivan, LLP