DID YOU EVER KNOW ABOUT THIS?

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There are two main causes of construction disputes identified by ARCADIS, 1. failure to properly administer the contract and 2. Parties failing to understand or comply with contractual obligations are critical issues that can have significant impacts on the success of a construction project. Let's have a proper understanding of these main causes here.


The first cause, failure to properly administer the contract, refers to situations where parties may not have fully understood the terms and conditions of the contract, or where there may have been disagreements over the interpretation or application of certain clauses. This can lead to disputes, as one party may feel that they have not received what they were entitled to under the contract, or that the other party has breached their obligations.


One potential issue with this cause is that it may be difficult to determine what constitutes proper contract administration. While contracts are typically drafted with the intention of clearly outlining the rights and obligations of each party, there can be situations where the language used in the contract is ambiguous or open to interpretation. In such cases, it may be challenging to determine which party is in the right, leading to prolonged and expensive disputes.


The second cause, parties failing to understand or comply with contractual obligations, can also have significant consequences for a construction project. In this case, disputes may arise because one party has not fulfilled their obligations under the contract, or has failed to perform their duties to the required standard. This can lead to delays, cost overruns, and other issues that can negatively impact the project.


One potential issue with this cause is that it may be difficult to determine whether a party has failed to understand or comply with their obligations. In some cases, the language used in the contract may be complex or difficult to understand, making it challenging for one or both parties to fully comprehend their responsibilities. Additionally, there may be situations where a party has attempted to comply with their obligations, but has been unable to do so due to circumstances beyond their control.


In conclusion, while both causes identified by ARCADIS are critical factors that can contribute to construction disputes, there are potential challenges and complexities associated with each cause. To mitigate the risk of disputes, it is important for all parties involved in a construction project to have a clear understanding of their obligations under the contract and to engage in effective communication and collaboration throughout the project.

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