The global construction market is in crisis. Credit is tight or non-existent. Development deals are stalled or stopped. The money flow from lenders- to owners -to contractors is slower than normal. Based on past history, these conditions lead to more claims, more disputes, and more arbitration and litigation. So, what can be done to avoid or reduce the historical equation of “less money equals more disputes?” The construction industry has long served as a “laboratory” and proving ground for innovative dispute resolution prevention and resolution. Some processes have worked better than others. There are the preventative processes such as “partnering”.
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.