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Report Indicates that the Average Construction Dispute Costs Nearly $11k

A recent article in the Engineering News-Record details a report titled “The Interpersonal Cost of Conflict in Construction” issued by the Center for Construction Research and Training.  The report reviewed and analyzed 41 conflict incidents that arose on various construction projects and determined that each conflict resulted in an average of 161.25 hours (or approximately 20 days) of lost time due to managing the conflict.  The report also indicated that the average cost of a cost of each conflict was $10,948.00.  Finally, the report determined that the primary trigger of conflicts attributed to interpersonal issues is most often actually an issue stemming the construction process.

This report emphasizes the importance of coordination between the various trades and the need for open communication between the contractors and subcontractors on a project.  Based upon this report, it is clear that proper coordination and planning of the construction process can result in a considerable savings in the form of avoidance of costly and time-consuming conflicts.

The entire Center for Construction Research and Training report may be accessed by following this link.  The ENR article summarizing the report is available here.