Change Orders Often Spark Conflict, But They Don’t Have To

The construction industry scores the dubious distinction of having among the 

most and costliest lawsuits. Scope changes are consistently a top cause of these disputes, according to London-based HKA Global, a consultancy that specializes in construction risk mitigation and dispute resolution. 

These conflicts sap contractors’ time and money. Disputed sums on projects in the Americas reached more than a third of their value, averaging $100 million or 33.6% of capital expenditure, HKA’s newly released Crux insight report found. Nevertheless, this situation is not inevitable — there are many steps contractors can take to avoid claims.

Construction pros can mitigate this risk by understanding and planning for the common causes of project disputes. Change orders are a key pain point to address before shovels hit dirt, legal experts say. 

To read the rest of the story from our sister publication, Construction Dive, click here.