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Readjusting Risks: CMS International Construction Survey 2021

Introduction

The COVID-19 crisis is an extreme example of the many unexpected incidents that impact construction projects, resulting in heightened tensions and disputes amongst stakeholders. The pandemic has accentuated many of the typical frictions that occur in the construction industry, as well as highlight new challenges. No matter how experienced or astute the parties to a project are, when negotiating and concluding contracts, there is always the potential for an unforeseen event to cause major disruption, resulting in commercial pressures and financial losses.

Readjusting Risks, the latest CMS International Construction Survey for 2021, is available to download now. This year's report examined more than 50 responses from senior members of the industry and conducted interviews with leading figures that have key responsibilities for construction contracts, projects and the resolution of disputes. The survey drew in responses from across the world, especially Europe, Middle East, Africa, Asia and Latin America. 
 
The report showcases the primary trends in the market, from the increasing enthusiasm for arbitration as a preferred form of dispute resolution, along with mounting preferences for mediation and other forms of alternative dispute resolution (ADR), to industry-wide recognition that keeping better records and managing change more effectively are vital to minimising tensions and potential disputes. It also reviews the additional strain of COVID-19 on the industry.

 

Market views

There are many ways for buyers to explore helping sub-contractors, including reinforcing advance payments. Nobody was really prepared for a black swan event like COVID-19.
William Zhang, Head of Legal and Contracts, Samsung C&T Corporation, Asia Pacific Regional Office
Roger Harwood
There’s absolutely no question that keeping good records is fundamental. I think that the penny has dropped across the industry in recent years. It can prevent disputes from arising in the first place or at least enable you to put your best foot forward when in a full-on dispute process.
Roger Harwood, General Counsel at Bumi Armada Berhad
Record keeping is crucial in dealing with tensions and disputes, no matter how one intends to resolve those, but finding the right communication channel is key to amicable resolution. Contractors and clients should work together to form effective mechanisms to resolve disputes.
Kaan Aksu, Chief Legal Counsel (Foreign Legal Affairs) at ENKA İnşaat ve Sanayi A.Ş.

CMS Construction Disputes - the trailer

Key contact

Adrian Bell
Partner
Co-head of the Infrastructure, Construction and Energy Disputes Group | Joint Managing Director for Asia and the Middle East
London
T +44 20 7367 3558
Publication
Readjusting Risks - CMS International Construction Report 2021
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