Key Findings

In this analysis of the construction market, CMS surveyed over 50 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. 

This 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. 

The value in predicting and constantly addressing risks and points of tension in “real-time” during the course of a project is outlined within this report. The majority of our survey respondents now either always or often consult internal legal/contract management or external counsel at the outset of a project to identify areas of risk and put strategies in place to mitigate these. 

Our survey also shows that most participants will either always or often attempt to resolve issues during the course of the project rather than dealing with them collectively at the end. A significant proportion will also invest in legal advice during the course of a project to achieve early resolution of conflict points. 

Our findings confirm that time and cost continue to be the cause of conflict points and disputes, with COVID-19 causing additional strain due to lockdowns, social distancing and other restrictions on the importation of materials and the like. 

Nearly all our survey respondents acknowledge that there is further room for improvement in how risks are managed during the course of a project. The highest number of survey participants identify keeping better records as an important means of managing risk. Managing change better, submitting notices within the prescribed time limit, earlier identification of risk during the tender phase and better management of the supply chain/contractors are also thought to be areas where the management of risk can be improved.