In today’s construction and infrastructure environment, visibility is everything. With squeezed budgets, complex supply chains and increased scrutiny on delivery, there is no room for inefficiency. With UK adjudication cases at an all-time high, Dr Stuart Kings, technical director at Sypro, examines the root causes and the role of digital tools in turning conflict into collaboration.

According to Construction Adjudication in the United Kingdom: Tracing trends and guiding reform – a joint 2024 report from King’s College London and The Adjudication Society – adjudication referrals rose by nine per cent in the past year. With 2,264 disputes recorded – the highest number to date – it’s clear that many construction projects, and their owners, are still falling short when it comes to managing contracts effectively.

Against this backdrop, digital contract management tools offer a compelling solution. These platforms enable real-time visibility, support collaboration across stakeholders, and reduce the likelihood of disputes. Most importantly, they help shift the sector from reactive problem-solving to proactive project delivery.

Preventing disputes through proactive oversight

While disputes are often associated with large, complex projects, the data tells a different story. Of the referrals logged by KCL, 42% were for claims between £125,000 and £500,000, and another 28% fell between £500,000 and £1 million. Disputes can arise on a project of any size, underlining the need for consistent and robust contract management, no matter the value or scope.

Cited by half of all survey respondents, the leading cause of dispute was inadequate contract management. But that’s only the tip of the iceberg. Many other frequently reported issues, such as poor communication (17%), inadequate contract documentation (19%), and unclear or unfair risk allocation, can often be traced back to poor contract setup or inconsistent oversight throughout the project lifecycle.

Digital contract management systems reduce these risks by centralising project documentation and communication. Instead of relying on multiple versions of spreadsheets, PDFs and email threads, project teams can access a shared platform that provides a single source of truth. Real-time updates, time-stamped records and automated alerts ensure that no task slips through the cracks and that every stakeholder is working from the most current information.

Strengthening stakeholder relationships

Construction delivery is inherently collaborative, but in many cases, stakeholders such as contractors, clients, architects and consultants operate in silos. This disconnect can lead to duplication of work, missed responsibilities and, in the worst cases, relationship breakdowns that fuel costly disputes.

The second most cited cause of disputes in the KCL report was ‘lack of competence from project partners’, highlighted by 42% of respondents. While this figure is down slightly from 48% the previous year, it still shows there is work to do in improving how contracts are delivered collaboratively.

Good contract management starts with clearly defined roles and responsibilities. But it also requires active monitoring and engagement from all involved. Digital tools support this by breaking down silos and enabling consistent communication between all project partners. From day one, teams can collaborate on the same documents, manage deadlines together, and resolve queries quickly and transparently.

When roles are understood, risks are clearly allocated, and everyone can see how their work connects to the wider delivery plan. Teams are more likely to succeed and less likely to fall into disputes.

Avoiding delays with real-time visibility

Construction projects are often delivered under tight timelines and even tighter margins. Any delay – whether caused by a missed communication, misinterpreted clause or undocumented variation – can quickly lead to cost overruns and strained client relationships.

That’s why having real-time oversight of contract compliance and project progress is essential. Digital contract management tools provide dashboards and reporting functions that flag risks and highlight where attention is needed before issues escalate. Whether it’s notifying a team of an approaching deadline, tracking whether key actions have been completed or logging variations with full transparency, these systems provide the foresight that traditional methods often lack.

In many cases, the contract will specify the platform or communication method to be used, making compliance even more important. Centralising communication not only improves collaboration but ensures that interactions are documented in a way that complies with contract terms. If a dispute does arise, there is a full audit trail ready to support the project’s position.

How NEC4 and JCT are evolving dispute resolution

Standard contract forms are also adapting to reduce the risk and cost of disputes. Under NEC4, adjudication remains mandatory with Option W2 – though in some cases, direct court resolution may be more cost-effective. For international projects, Option W3 introduces a Dispute Adjudication Board (DAB) – a proactive measure where members visit sites to identify and resolve issues early, though it’s typically suited to larger projects.

JCT 2024 has also taken a more preventative stance. Parties must now notify each other of potential disputes, with named senior executives engaging in early, good-faith negotiations. While adjudication rights remain under the Construction Act, this step encourages resolution before escalation.

These contract updates reflect the industry’s shift toward earlier, more collaborative conflict resolution. A robust contract management tool should support these changes as standard, offering built-in templates and workflows that ensure both compliance and clarity from the outset.

Laying the foundations for long-term success

The data from the KCL report offers valuable insight into how the sector can improve. It shows that while disputes are still prevalent, many are preventable through clearer documentation, better communication, and stronger contract governance.

Improving contract setup is a key part of this. A comprehensive contract checklist ensures that responsibilities, timelines and risk allocations are clearly laid out at the outset. Once the contract is live, a digital tool can help ensure that each part of the agreement is monitored and delivered effectively, with all stakeholders able to engage and act as required.

While adjudication may remain a necessary process in some instances, prevention is far preferable. Disputes drain time, money and morale – and in a volatile construction environment, some organisations simply can’t afford the impact.

From risk to resilience

The construction sector is no stranger to challenges. From material price volatility to skills shortages and complex stakeholder environments, there are many moving parts to manage. But with effective digital tools, contract management no longer needs to be one of the problem areas.

By improving visibility, enhancing collaboration and reducing avoidable errors, digital contract management platforms help teams stay ahead of issues – protecting projects and bottom lines. The sector has the data. Now it’s time to act.

For more information about Sypro and its contract management solution, please visit https://www.sypro.co.uk/