Preferred dispute resolution methods
In this deep 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.
Survey highlights
Key findings
Pandemic and pragmatism
Tracking tension
Pre-empting conflict
Making improvements
View key facts and figures from the Readjusting Risks: CMS International Construction Survey 2021
Key overview
Conclusion
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Unexpected events have always impacted construction projects, compounding the potential for full-scale disputes, the COVID-19 pandemic is an unprecedented global crisis affecting almost every single person on earth.
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While pragmatic responses to the effects of the COVID-19 crisis have calmed the turbulence (at least in the short term), they haven’t completely hidden the points of tension in contracts and the difficulties that have percolated the industry.
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Over the last decade, there have been increasing efforts within the industry to address potential points of conflict before or as they arise.
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Nearly all our survey respondents believe that improvements can be made to how risks are managed during the course of projects.
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When it becomes clear that an early-stage resolution of a dispute is no longer feasible and cases need to be addressed through formal channels, a sizeable majority of our survey respondents single out arbitration as the most appropriate form of dispute resolution.
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The construction sector has a reputation for being tense and fractious, given the tight financial margins that many parties operate under, coupled with the many events that cannot be anticipated.
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Interviews
CMS Partner Lynette Chew, on dispute avoidance, arbitration and effective mediation.
Lynette Chew
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A Chief Legal Counsel’s view on the impact of COVID-19 and dispute resolution through arbitration.
Kaan Aksu
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Roger Harwood, General Counsel at Bumi Armada Berhad, looks at the effects of COVID-19 on the construction industry and how to prevent disputes.
Roger Harwood
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Samsung C&T Corporation’s William Zhang, explores post COVID-19 improvements and his view on dispute resolution.
William Zhang
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