Risk is inherent on construction projects and disputes frequently arise. The Federal Facilities Council has stated that one in four construction projects results in a dispute that leads to arbitration or litigation. With large scale, complex projects the likelihood of serious, time-consuming and expensive claims increases. With this in mind, Navigant has teamed with McGraw Hill and the law firm of Pepper Hamilton to research the issue of construction risk mitigation to identify the strategies that help avoid disputes and increase profitability.
This study, which focuses on three major sectors of the construction industry – energy, infrastructure and healthcare, sheds light on typical issues and the risks associated with each. The research identifies the extent of the issues which arise on projects in these three sectors, as well as the drivers, obstacles, barriers and new risk management strategies that afford a more complete understanding of risk mitigation in construction. Through a series of interviews with owners, contractors, design professionals and construction managers, the study explores the experience and opinions of the players in the industry. The study also identifies a number of risk mitigation strategies that have been successfully employed on projects around the globe.