A new study suggests that the global construction industry is seeing longer disputes that involve smaller monetary stakes than in 2010, and that an improving business climate in the Middle East is motivating participants to settle differences over stalled projects and restart work.
Released May 28, the study by U.K.-based consultant EC Harris, measures trends in global construction contract disputes with data from cases resolved in 2011 by the firm, a unit of ARCADIS NV.
The study team found an 8% decrease in disputes’ average value—based on the contract’s worth, sunk costs, and other relevant values—and a 16% increase in dispute duration.