Improving Processes
Nearly all respondents to the study indicated that project stakeholders could be better at mitigating risk along with avoiding and resolving disputes.
For 71% of respondents, keeping better records is a top priority for managing risk. Many standard-form and bespoke construction contracts demand that all communications are put in writing, ensuring that clear records are kept and can be referred to in conflict or dispute scenarios.
Project stakeholders may be concerned by possible additional costs incurred by having team members on site to keep accurate records, although there is an acknowledgement that contract management and document management systems are now sufficiently advanced that it makes record keeping considerably more straightforward (see our interview with a Senior Legal Team Member of a Multinational Construction Corporation on the next page). Moreover, being on site during the COVID-19 pandemic was often impossible or difficult, creating further challenges for effective record keeping.
“As margins have been squeezed even more, people may be looking at pulling or reducing the amount of people on site who would ordinarily be compiling these records. So it’s a bit of a Catch-22. But we really emphasise the need to do that,”
Adrian Bell, Co-head of the Infrastructure, Construction and Energy (ICE) Disputes Group
Participants also highlighted managing change better (69%) and submitting notices within prescribed time limits (65%) as priorities to improve risk management. 60% identified understanding the local market / region-specific factors prior to executing the project as another primary concern; this is especially true when dealing with governments or government linked entities, according to further research. Cultural empathy, an awareness of any local law requirements and an appreciation for conflict and dispute resolution is extremely valuable, according to respondents.
