Construction disputes are lengthy and costly battles in Asia

According to the latest research released by international construction consultancy, Arcadis, the average value of Asian construction disputes is US$67 million, 45 per cent higher than the worldwide average of US$47 million. Moreover the average time to resolve disputes in Asia in 2015 was 19.5 months, four months longer than the global average.

Why is it then that Asia, a region that has seen phenomenal growth in construction has for several years held the unenviable position as one of the most costly regions for dispute resolution?

Thanks to the economic slowdown, mainland Chinese contractors are diversifying away from their home markets. Whilst many have shown themselves to be adept at operating in overseas markets they have faced challenges to adapt to business cultures and construction practises of different markets. An unexpected effect of this could be increased competition for work in overseas markets resulting in lower prices, and perhaps an increase in disputes as new entrants become familiar with new ways of working.