CRUX INSIGHT - Claims and dispute causation a digital perspective, a guide published by HKA based on research and experience. “To reduce the prevalence of disputes, our industry must better understand and manage complexity.”

5 July, 2020

I am very pleased to introduce CRUX, HKA’s integrated research programme, and our first CRUX Insight report. Its analysis provides valuable insights into claims and dispute causation for major capital projects around the world on which we have provided cl

The CRUX integrated research programme was formed to capture both tangible and intangible knowledge across HKA’s operations, applying data science to derive value, not just for HKA and its clients, but for the wider industry. The team collated and analysed data and objective expert opinion on projects valued at more than US$400 billion where HKA provided claims consulting and dispute resolution services. The headline findings of CRUX Insight concern causation complexity. Our research shows an average of 13 interrelated causation factors per project. This debunks the simplicity myth which is perpetuated by some market commentators who choose to focus only on headline causes of claims or disputes. Our research identifies and considers numerous primary and secondary causes, and the interrelationships between them. We believe this approach better reflects the true picture and reveals the underlying constraints impacting the operational performance of the parties, projects and the broader industry. The team applied the same analytical and forensic expertise used in our claims and dispute resolution services to derive insights. Every project is unique. Yet comparative analysis of dispute causation footprints – the unique combination of points of failure – is possible, given the similarities in how projects are procured and delivered. To reduce the prevalence of disputes, our industry must better understand, prepare for and manage complexity. Crucially, project stakeholders can use causation footprint analysis to manage risks by proactively identifying likely companion factors to issues as they arise. This provides opportunity to formulate contingencies and mitigate their effects or impact. Our research programme is being integrated into our company practice. We will continue to analyse our dataset – which will grow – to optimise our service delivery and generate objective value, providing CRUX Insights for our clients and the industry. We invite you to use this data and future CRUX Insights to help manage risk on projects, understand and manage complexity, kick-start transformation within your organisation, and provide insight into digitalisation in the context of claims and dispute resolution. Succeeding in challenging times is all the more rewarding. Claims and Dispute Causation - A Digital Perspective

Attachments

  • CRUX-Insight.pdf ( 2 MB )