What Causes Construction Disputes?

At least 68 key industry reports have been written about domestic construction in the last 50 years, but none of them have sought to squarely address the causes of construction litigation. Whilst a number of academic papers purport to address the topic (at least 25 in the last 30 years), none have focussed on High Court TCC litigation specifically save for a study published by Hamshaw’s Daniel Shaw in 2016, which determined the causes of TCC litigation by analysing 927 judgments handed down between 2004 and 2014.

The study observed problems/failures in executing agreements, and problems/failures in drafting agreements, as the two most prevalent elements causative of TCC litigation; almost half of all hearings in the TCC over the ten-year sample were said to have resulted from such problems/failures.

Whilst reliable conclusions are difficult to draw from only one study, particularly when the categories of causative elements are (by necessity) not specific, it would appear that those involved in construction projects should focus attention upon ensuring that agreements are carefully drafted and executed in the first instance, if they wish to improve their chances of avoiding the time and costs associated with appearing in the TCC.

If you are looking for help and advice concerning preparing construction contracts, or related documents, contact Hamshaw today.