Despite an overall reduction in the value of construction disputes in Asia, disputes in the region are still about 45 per cent higher than the global average of US$46 million per case, a survey showed.
Meanwhile, the length of time needed to resolve a construction dispute in Asia has increased to an average of 19.5 months, four months longer than the global average of 15.5 months, according to the report by Arcadis.
The value of disputes relating to global construction projects in Asia fell from US$85.6 million per case in 2014to US$67 million in 2015, the report showed. It also found that the value of construction disputes were the highest in the Middle East at US$82 million per case, followed by Asia.
This year’s report is Arcadis’ sixth annual study into the duration, value, common causes and methods of resolution of construction disputes across the globe.
Arcadis believes that although there is a construction slowdown, the mainland China, Hong Kong and Singapore markets are facing challenges presented by large scale infrastructure projects nearing completion.
“We are expecting to see the number of disputes we will be dealing with in the coming year to increase,” said Philip Moss, head of contract solutions for Asia at Arcadis.