UK Construction Disputes Reach ‘Exceptionally High’ Level

Posted on by Cavendish Munro

In a recent article on Construction News, Mark Smulian took a look at some of the results from a study by consultancy firm Arcadis into the rising levels of dispute seen within the construction industry. It was found that the value of disputes in the UK had risen by more than 360% in just 4 years to a staggering £17.2 million.


The 2014 figure, however, is slightly lower than the previous year where disputes peaked at £17.8 million. It is thought that many disputes are being settled before the parties involved are subjected to court proceedings which could cost them even more in return.

Resolving Disputes

The study also found that the average time to resolve these disputes was increasing when compared to the previous year. During 2014, it took around 10 months to settle each case compared to just 7.9 months from 2013, but in slightly more positive news for the UK, it was found to have a shorter resolution period when compared to the rest of the world with international disputes lasting an average of 13.2 months.

Cavendish Munro’s Broking Director Henry Nava said, “As a broker we have certainly seen an increase in claim volume from all construction business classes, particularly the architects and engineers. The majority of disputes seem to be arising from debates over the poorly drafted terms of engagement and ambiguous interpretation of responsibilities and liabilities on site.”

What Can We Expect For The Future?

It is thought that the number of disputes will continue to rise during 2015, this is in part down to a labour shortage within the industry, combined with the pre-agreed terms on contracts that were drawn up during the global recession. All of this data raises the need to secure the appropriate level of insurance in order to protect yourself, both as an individual, and as a business from financial hardship.

How Cavendish Munro can help you

At Cavendish Munro, we understand your Professional needs and can advise you on the best policy to protect yourself and your business. For further details, please visit our Professional Indemnity Insurance page or call our office direct on 020 7264 0545 – a member of our team will happily ensure you have the right PII policy to suit your specific needs.

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