“With COVID-19, the industry is dealing with an impact that it has never faced. Creative solutions will be required to successfully start and complete projects. Components that are part of the successful collaboration such as unlocking creativity, trust between project participants, dealing with change in a positive way, and sharing common goal will be vital for the successful completion of projects and overcoming impacts of the COVID-19 pandemic.” This is the opening paragraph from the Arcadis 2020 Global Construction Dispute report, just released a few months ago.
We at GLA couldn’t agree more. Ehab Hasan, one of our facilitators, expressed on his June 25, 2020 Blog titled: “How Using a Partnering Approach on Construction Projects Leads to Less or No Disputes/Claims.”
“Partnering instills a culture of trust and mutual understanding between both partners and stakeholders. This valuable relationship is, in a lot of cases, more important than the contract. Risk prevention and mitigation also plays a crucial role in the achievement of little to no disputes/claims on projects.”
Why is this important, according to the Arcadis Report, although, Globally, the average value of contract disputes and length of resolutions in the construction sectors slightly decreased from 2019, the conclusion was that overall number of disputes increased. Just to give you a perspective:
(to download the GLA infographics PDF, click here)
Experts suspect that the industry is yet to see the real impact of COVID-19. In addition, California is facing a very early and destructive fire season and record temperatures, which combine for a recipe for an increase in claims related to delays and increased costs on projects.
Construction partnering not only allows for better understanding and subsequent mitigation, but also adds a factor of risk prevention, according to Ehab Hasan. Embracing a culture of partnering not only at the project level but also at a company level is crucial to avoid being part of the “bad news” statistics. We all want our projects to be “award winning”, and be in the other side of the spectrum “good news” statistics.
At GLA, we believe in our mission: to eradicate arbitration and litigation from the construction industry. It is in our DNA. Our job is to plant and nurture a culture of partnering, knowing that the outcome is to break barriers, overcome challenges and render exemplary projects.