Half of Middle East's 2014 JVs ended in disputes

A new study released by Arcadis finds poorly administered contracts as the most common cause of construction disputes in the Middle East

Half of Middle East's joint ventures ended in dispute last year.
Half of Middle East's joint ventures ended in dispute last year.

Poorly prepared contracts are the leading cause of construction disputes in the Middle East, a recently released report by global consultancy Arcadis revealed. 

Global Construction Disputes Report 2015 stated the Middle East region, in 2014, saw its dispute values increase to their highest value since 2011, growing from $40.9m in 2013.

Disputes worth $76.7m were reported in 2014, with the length of disputes being 15.1 months, Arcadis' study found.

The amount of time taken to resolve disputes in the region is increasing, the report continued, "with the average creeping up by just over a month in 2014".

"One striking statistic from disputes in the Middle East was that almost half of joint ventures (JVs) ended up in dispute during the year (2014), for the second year running; the highest of any region covered in the report.

"A failure to properly administer the contract remained the most common cause of dispute in the region," the report added.

"[This was] followed by poorly drafted or incomplete and unsubstantiated claims, which demonstrates the need to get the basics right."

The three most common methods of Alternative Dispute Resolution that were used during 2014 in the Middle East were arbitration, party to party negotiation, and mediation.


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