find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Asian construction disputes getting lengthier

Asian construction disputes getting lengthier


Construction disputes in Asia, which are often in relation to the administration of contracts, are lasting longer than ever, according to a new report by Arcadis.

Arcadis’ sixth annual Global Construction Disputes: Don’t get left behind report reveals that construction disputes in Asia are both lengthy and expensive compared with other jurisdictions.

The amount of time taken to resolve Asian disputes rose 62.5 per cent from 12 months in 2014, to 19.5 months in 2015. This is four months longer than the global average of 15.5 months.

While dispute values in Asia dropped 21.7 per cent from US$85.6 million in 2014, to US$67 million in 2015, it remains much higher than the global average of US$46 million.

The study also reveals that in 2015 there were some changes in the reasons behind disputes in Asia as compared to previous years.

The study found that the most common causes of construction disputes related to the administration of contracts.

The top three causes were failure to properly administer the contract, failure to make interim awards on extensions of time and compensation and poorly drafted or incomplete and unsubstantiated claims.

"The construction industry faced head winds, particularly with commodity and currency volatility," Mike Allen, global leader of contract solutions at Arcadis, said.

"It is evident that the natural resources market is now operating against a very different economic backdrop. The business case assumptions that were likely used to endorse projects and programs have therefore changed, presenting a huge challenge to the project and entity risk profiles."

Where a dispute did occur, joint ventures were more likely to be behind the cause in Asia, with a JV–related difference the cause in 41.4 per cent of all cases, compared with a global average of 25.5 per cent.

The report also found that the three most common methods of alternative dispute resolution that were used during 2015 in Asia were party-to-party negotiation, arbitration and mediation.

"We are expecting to see the number of disputes we will be dealing with in the coming year to increase," Philip Moss, Arcadis head of contract solutions, Asia, said.

"Given the current economic conditions, stakes are high for both parties and no one is looking to engage in long and protracted disputes; thus we are likely to see a further increase in the use of ad hoc forms of alternative dispute resolution in the region.

"With that said, perhaps the best course of action is to seek to resolve issues before they become a formal dispute, instead of passively looking at ways to address issues that arise on the projects."

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Asian construction disputes getting lengthier
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...