It’s common knowledge there are three phases of construction – design, bid, and build. The fourth unspoken phase in our industry? Litigate. According to Arcadis’ 2021 Global Construction Disputes Report, the average cost of disputes in 2020 for North America was $37.9 million, more than double 2019’s number ($18.8 million). That is a sobering statistic for our industry, and one whose impact on your business can be minimized. By owning your data from the onset of a project, no matter what platform a GC requires you to use, you are protecting your business, mitigating risk, and avoiding potential legal fees. 

Here we’ll guide you through the legal risks in construction, dive into source of truth data, and provide solutions for how to protect your business from litigation with your own system. 

Arcadis reported the number one cause of construction disputes in 2020 was the owner, general contractor, and/or subcontractor failing to comply with contractual obligations. Other common causes of litigation are quality of construction, project delays, nonpayment, and workplace injury. 

Timeliness, or lack thereof, is a headlining theme with disputes. Lack of immediate access to documents causes lengthy court cases. In 2020, the average time to resolve disputes was 14.2 months. That is over a year of your company’s time, energy, and money put toward a case that could have been prevented. 

Further delaying resolution? Court backlogs. The pandemic has impacted our judicial system, shutting down state and federal facilities for weeks or months at a time. Cases cannot progress in a timely manner, putting projects at a standstill. The overwhelmed legal system has caused many to settle quickly to resolve matters, whether they are responsible for the dispute or not. 

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