HKA’s 2019 CRUX Insight highlights 4,000 causes across 700 projects
Simon Moon, partner & COO, says project decision makers could benefit by understanding recurring causes of claims, disputes
HKA, an engineering and construction claims and dispute resolution firm has unveiled its second annual CRUX Insight Report that highlights over 4,000 causes across 700 projects in 72 countries, for which HKA has provided claim consulting and dispute resolution services.
The total project capital expenditure of these causes is more than $1.2tn, according to the report. The report says that the main causes of disputes are lack of control over scope and design, as well as poor drafting and administration of contracts. Skills gaps, cultural differences, and overinflated claims are also some of the drivers of disputes.
Speaking about the report, partner and COO at HKA, Simon Moon, said: “We know from this year’s report that lessons are still not being learned in the industry. The consequences of delay, disruption, lost productivity, cost overrun and poor quality are not only significant for clients, but for industry and economies at large.”
“All decision-makers on projects can benefit from a clearer understanding of the recurring causes of claims and disputes. We would encourage governments, policy-makers, influencers and professional bodies to engage with our CRUX research findings and its implications for the engineering and construction industry,” Moon added.
According to the report, disputes caused by human actions and omissions do not have a technological solution. The report highlights advancing digitalisation as a way to improve the information flow.
Meanwhile, chief business development officer at HKA, Toby Hunt, said: “If the industry is to break the cycle of repetitive disruption, delay and spiraling costs, employers, contractors and the whole supply chain must better understand, prepare for and manage the complexity of their projects.”
“All stakeholders should benefit from the use of CRUX data to re-assess the risk profile of their business, including by service, sector and location,” Toby added.