Construction disputes are both common and costly, posing a persistent threat to project delivery, budgets, and reputations. The latest HKA 2024 CRUX Report underscores the sheer scale of the problem. After analysing over 2,000 major projects across 107 countries — collectively valued at $2.254 trillion — the report revealed that the total amount of money in dispute stood at $84.44 billion. Even more startling, the cumulative delay across these projects amounts to almost 1,000 years.
These figures highlight a harsh reality: too often, disputes escalate long after the root causes have arisen, with parties becoming entrenched in their positions. By the time arbitration or litigation takes place, legal and professional fees can frequently exceed the original sums in dispute. It’s a cycle that drains resources, damages relationships, and undermines project success.
The role of the Conflict Avoidance Coalition
In response to this widespread problem, the UK’s Conflict Avoidance Coalition (CAC) is working to shift the industry mindset — from one that tolerates delayed action and costly disputes to one that prioritises conflict avoidance and early intervention.
The CAC brings together a powerful alliance of stakeholders, including clients, supply chain firms, and professional bodies such as the Institution of Civil Engineers (ICE), CIArb, ICES, DRBF, RIBA, and RICS. Leading organisations like Network Rail, Transport for London, Skanska, and Balfour Beatty, along with public sector bodies such as the Environment Agency and Houses of Parliament Restoration and Renewal, are also key supporters.
The Coalition’s goal is clear: promote practical measures that help prevent conflicts from escalating into full-blown disputes, saving time, money, and reputations across the construction and engineering sectors.
A commitment to preventing disputes
A central initiative of the Coalition is the Conflict Avoidance Pledge. Signing the Pledge signals a public commitment to proactively avoid contractual disputes and to use structured approaches to manage emerging conflicts early.
So far, nearly 600 businesses and organisations have signed the Pledge — a clear indicator that many across the sector recognise the need for change. These organisations are demonstrating through their actions that preventing disputes is not just aspirational — it’s achievable.
The UK Government and Cabinet Office have endorsed the Pledge, further embedding conflict avoidance within public sector procurement. The Construction Playbook, which guides government bodies procuring construction work, actively recommends signing the Pledge.
The conflict avoidance toolkit
Recognising that cultural change needs practical tools, the Coalition has developed the Conflict Avoidance Toolkit. This resource provides straightforward guidance on measures contracting parties can adopt to reduce the risk of disputes arising.
The Toolkit includes:
- Techniques to identify potential issues early
- Practical steps for resolving emerging conflicts quickly and cost-effectively
- Best practices for embedding conflict avoidance into contracts
The Toolkit is designed to educate and empower professionals at every level, fostering an industry-wide understanding of how early intervention prevents disputes, protects relationships, and keeps projects on track.
Building a more collaborative, productive industry
The Construction Leadership Council (CLC) has also endorsed the work of the CAC, highlighting that reducing disputes is essential if the sector is to meet the ambitious challenges ahead — delivering new homes, critical infrastructure, and achieving improved productivity, sustainability, and safety.
Shifting to a more collaborative, conflict-averse culture won’t happen overnight, but the benefits are undeniable. By embracing conflict avoidance, the construction industry can reduce costly disputes, improve project outcomes, and build stronger, more resilient relationships.
Avoiding disputes is no longer optional
In an industry where construction disputes cost billions and delay projects for years, conflict avoidance is not just good practice — it’s essential. With the combined efforts of the Conflict Avoidance Coalition, the Pledge, and practical resources like the Toolkit, the construction sector has a clear path towards a more efficient, collaborative future.
The message is simple: identify issues early, act proactively, and avoid the costs — both financial and reputational — of unresolved disputes. For an industry tasked with building the future, there is no time — or money — to waste.
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