The Rise of Construction Disputes: Why the Industry Needs Expert Intervention

The construction industry is a cornerstone of economic growth but is facing a surge in disputes across the world.

According to a recent Global Construction Disputes Report, the average value of construction disputes worldwide reached almost $55 million in 2023, a sharp increase from previous years. Additionally, the average time taken to resolve disputes now exceeds 15 months—up from just 13 months a few years ago.??

In Australia, disputes are particularly acute in large infrastructure projects, especially in energy and tunnelling, where complexities and cost overruns often lead to contention.?

Key Factors Driving the Increase in Disputes?

1. Complexity of Projects:

Energy and tunnel projects, vital to Australia's infrastructure expansion, often involve intricate designs, multi-tiered subcontracting, and cutting-edge technologies. Such complexities increase the potential for misunderstandings or contractual breaches.?

2. Cost Overruns and Delays:

As reported by Deloitte in their 2023 Construction Industry Outlook, nearly 70% of megaprojects globally experience cost overruns of 30% or more, while 60% miss their completion deadlines. The pressure to deliver on tight budgets and timelines fuels disagreements over accountability.?

3. Unclear Contractual Entitlements:

Many disputes arise from ambiguous contract terms. When stakeholders fail to define key responsibilities and expectations upfront, disagreements over variations, extensions of time, or payment claims become inevitable.?

Why Accura Consulting is the Solution?

In an era of rising disputes, expert intervention is no longer optional—it is a necessity. Accura Consulting stands uniquely positioned to address these challenges. With specialised expertise in the construction sector, Accura helps clients navigate the most contentious issues, including:?

• Quantification of Cost Impacts: Determining the true quantum of cost due to delays, disruptions and scope creep is one of the most critical yet misunderstood aspects of dispute resolution. The Accura Consulting team brings unparalleled precision to this analysis, ensuring that clients understand our financial standing.?

• Delay Analysis: Time is money in construction. Accura Consulting provides rigorous delay analysis using fact-based cause and effect analysis helping clients substantiate or challenge claims effectively.?

• Contractual Clarity: Accura excels in interpreting and scope and technical entitlements, empowering clients to make informed decisions and minimise risk exposure.?

Proven Results in a Challenging Landscape?

Accura Consulting’s deep understanding of energy and tunnel projects—two of the most dispute-prone sectors—gives it a significant edge. By working with top-tier construction companies as well as leading construction law firms, we have established ourselves as a trusted advisor.?

Moreover, our cost-effective, local expertise challenges industry misconceptions that expert consulting is either prohibitively expensive or lacks relevance. With a proven track record, we have helped clients reduce dispute resolution times and avoid costly legal proceedings.?

Looking Ahead: Prevention Over Cure?

While resolving disputes efficiently is crucial, preventing them is even more vital. By engaging consultants like Accura Consulting early in the project lifecycle, construction firms can identify potential risks, establish robust contract management practices, and foster better communication among stakeholders.?

In a climate where construction disputes are becoming increasingly frequent and costly, Accura Consulting offers a lifeline. With our expertise, clients can not only resolve disputes but also build a foundation for smoother, more profitable project execution.?

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Paul