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The Dotted Line: The difference between public and private projects when it comes to resolving payment issues

Disagreements can arise on any size project and over a wide variety of issues. Consultancy firm HKA found in a 2020 report that scope changes drove the majority of construction disputes worldwide, followed by design errors; incomplete design; substandard management of subcontractors and suppliers; unforeseen physical conditions; issuing design information late; deficient workmanship; differences in contract interpretation; and late approvals.

Of the $1.8 trillion of projects that HKA examined, construction disputes cost almost $50 billion and extended job schedules by 71%.

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