Payment disputes are bad news for large construction companies; they jeopardise relationships with suppliers, consume administrative resources, undermine staff morale and often cause project delays.
So why do disputes remain so common in the Australian construction industry? Research suggests the value of such disputes routinely runs into tens of millions of dollars and that they can take many months to resolve. And yet, there’s little sign of the construction industry addressing this issue, with statistics showing no let-up in the number of disputes.
- Shared responsibility, and work load, meaning less unnecessary wasted time spent on the payment claim process
- Reduced scope for disputes
Digital technologies, smarter payment processes and cultural change such as stronger leadership and collaboration can help such businesses to streamline their payment processes and finally begin to reduce the number and value of disputes, to the benefit of all involved.