Making improvements
Nearly all our survey respondents believe that improvements can be made to how risks are managed during the course of projects. Survey participants refer to a variety of key areas where these can be made, with keeping better records, managing change better and submitting notices within prescribed time limits viewed as the most effective methods.
A considerable 73% believe that keeping better records is a primary factor in managing risks during a project. This was consistently raised in our research, given its importance in resolving disputes whether through informal negotiations or more formal proceedings.
"For me, keeping better records is becoming even more important than ever, because arbitral tribunals are becoming much less interested in witness evidence. They are much more keen to see what the parties were saying at the time that these issues were arising and the contemporaneous documentation. So if you're putting together a robust case, either to pursue or defend an arbitration, it really is going to succeed or not on the strength of the contemporaneous documents. It's always been important, but it's probably more so than ever."
Adrian Bell, co-head of the Infrastructure, Construction and Energy (ICE) Disputes Group at CMS
"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
Additionally, respondents also single out a range of other primary factors such as earlier indication of risks during the tender phase, better management of the supply chain/sub-contractors, and improving the understanding of the local market and region-specific factors prior to project execution.
