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What rework, cost overruns, missed claims, disputes and lapsed compliance cost a construction contractor

Published research on five costly problems on a construction job, with Queensland and Australia first. Each figure shows its source, the page it was read on, how sure we are, and what it is not. Anyone can dispute a figure, or add evidence.

Updated 2026-09-25 · maintained by Demiton · method

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Each disease's headline figure, against the margin

How to read a figure.

Rework: what it costs a contractor

Work done twice: poured to the wrong level, built off the wrong drawing, redone after a failed test.

The record holds 5 figures on rework from 5 sources. No Queensland-specific figure yet; the Australian figures apply.

Rework statistics: the table, questions and answers

No figurenobody has published a defensible oneContractor bore rework cost directly on 93% of projects; 23% of yearly profit lostAustraliaModerate confidenceContractor loss

What it is. Incidence and profit impact, not a share of contract value.

Sample. 98 projects with complete cost data (of 346 projects and 19,605 rework events), one contractor, six years of ledger data, public and private clients, building and infrastructure.

What it is not. Recorded rework was only 0.39% of contract value - the ledgers undercount. Margins were 6-9%, which is why 0.39% wiped out roughly a quarter of yearly profit. The 2018 paper on the same data reports 28%; cite one and say which.

Where it came from

rework_signal/rework_contractor_bears_it · AU · F41, F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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12.3%of contract valueDirect 6.4% plus indirect 5.9% rework cost, 161 Australian professionalsAustraliaModerate confidenceContractor loss

What it is. 12.3% of total contract value, direct plus indirect.

Sample. National survey of 161 construction professionals about recently completed Australian projects. Mixed sectors.

What it is not. A perception survey. Design consultants' and project managers' estimates differed significantly. A 'total of 10%' appeared only in a search snippet, not the abstract, so it is not cited from this paper.

Our arithmetic. 6.4% direct + 5.9% indirect = 12.3% (both from the abstract; the sum is ours)

Where it came from

rework_signal/rework_split_direct_indirect · AU · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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10%of contract valueMean total rework cost, 115 Australian civil infrastructure projectsAustraliaModerate confidenceContractor loss

What it is. 10% of contract value, including indirect costs.

Sample. Questionnaire survey covering 115 Australian civil infrastructure projects. The only peer-reviewed figure specific to civil work.

What it is not. Respondents' estimates, not measured cost records. Rework amount correlated significantly with cost and schedule growth (p<0.01).

Where it came from

rework_signal/rework_total_civil_survey · AU · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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5%of construction costDirect rework 'often' 5% of construction cost (framing in a US study of 359 projects)USLow confidenceMoney at stake

What it is. 5% of total construction cost, direct rework only.

Sample. The paper analyses 359 projects in the CII database, mostly US industrial and commercial.

What it is not. The 5% is the abstract's opening framing, not the paper's own measured result, and who bears the cost is not measured.

Where it came from

rework_signal/rework_field_direct_framing · US · F41, F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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0.38%of contract valueRework as recorded in one contractor's books, 0.38% rising to 0.76%Place unknownLow confidenceContractor lossSecond-hand

What it is. 0.38% of contract value, direct cost only, as recorded pre-completion.

Sample. One contractor's project data, collected by its quality managers. Adding post-completion corrections raises the average to 0.76%.

What it is not. SECONDARY - the paper itself returned 403 and was read through ASCE's news write-up. The article gives no sample size, country or sector. The same study found actual costs underreported by around 300%, which is the number that matters here: most rework is never written down as rework.

Where it came from

  • Love (2026), Quantifying the Costs of Field Rework in Construction second-hand
    abstract, as reported · source record
    Read via: ASCE Civil Engineering Source, 22 Jan 2026: https://www.asce.org/publications-and-news/civil-engineering-source/article/2026/01/22/how-much-does-field-rework-in-construction-actually-cost (the paper itself returned 403)

rework_signal/rework_recorded_in_ledgers · unknown · unknown ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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3%of construction costMean field rework above 3% of construction-phase cost, 150+ US heavy industrial projectsUSLow confidenceMoney at stakeSecond-handWithdrawn

Withdrawn. The figure cannot be traced to the source it cites. On 2026-09-25 two agents read CII's page for RS153-1 independently and neither found "above 3%" or "more than 150 projects" on it; the page carries no figure or sample size at all. Other write-ups attribute conflicting numbers to CII's field-rework research (a 5% mean, 144 projects, 4.6% for buildings) without page references. The full report is paywalled and was not read. The figure can return when someone reads the report and cites the page.

What it is. 3% of construction-phase cost, field rework; the mean is above this figure.

Sample. More than 150 heavy industrial projects, US, 2001.

What it is not. Seen on CII's summary page only; the report was not read. Industrial, not civil, and 25 years old. Who bears the cost is not measured.

Where it came from

rework_signal/rework_field_heavy_industrial · US · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Cost drift: what it costs a contractor

The job costing more than it was priced at, and how much of that the contractor carries.

The record holds 6 figures on cost drift from 6 sources. Queensland: 1 figure, including 13.8% of the year's capital budget (Queensland Government capital spending against budget, 2023-24).

Cost drift statistics: the table, questions and answers

13.8%of the year's capital budgetQueensland Government capital spending against budget, 2023-24QLDModerate confidenceOwner's money

What it is. 13.8% of the state's budgeted capital expenditure for the year, all portfolios.

Sample. The whole Queensland Government capital program, compiled by the Queensland Audit Office from state capital statements. 16.4% in 2022-23; about 15% a year on average since.

What it is not. The state's money, not a contractor's, and a spending variance for the year, not the cost growth of any project: spending can run ahead of budget because work is brought forward as well as because it costs more. The QAO restated the 2022-23 figure between reports (14% in 2023, 16.4% in 2024).

Where it came from

overrun_signal/overrun_qld_capital_spend_vs_budget · AU-QLD · F41, F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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23%of contract valueMean overrun from contract award, 16 Australian rail projectsAustraliaModerate confidenceMoney at stake

What it is. 23% of original contract value, final versus original.

Sample. 16 rail projects by a single contractor, AU$0.5b+, mostly WA, 2011-2014. Scope changes accounted for 99% of the cost increase; lump-sum projects that overran averaged 12.83%.

What it is not. Mostly scope variations the owner paid, not contractor losses. Median 12.3% against a mean of 23%, so a few projects dominate. Recorded as money_at_stake for that reason.

Where it came from

overrun_signal/overrun_contract_award_rail · AU · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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7%of contract valueFinal loss on 28 completed Australian infrastructure megaprojects, largest contractorsAustraliaModerate confidenceContractor loss

What it is. 7% of contract value, final profit at completion: the 9% tendered margin plus a further 7% (a 16-point swing).

Sample. 28 completed mega projects over A$500m, Australia, commenced 2000 to 2015, road, rail, water and social infrastructure, PPP and design-and-construct, from Tier 1 contractors' open-book project data.

What it is not. Megaprojects only: the paper excluded projects under A$500m because most of them made money, so this is not the loss on a typical civil job. The sample is selected for risk (PPP and D&C, alliances excluded). Grattan 2021, which cited it, doubts it: 'The study does not explain why shareholders would tolerate such a pattern of losses.'

Our arithmetic. Table 1, Total row: tendered profit A$3,328m at 9%, so contract value about A$37.0b; final profit A$(2,681)m, about (7.2%). The paper states the same result as "its original 9% profit margin plus a further deterioration of 7%" (abstract). Its "net profit (16%)" is final minus tendered, by its own definition on p.12, so it is not the loss as a share of contract value.

Where it came from

History

  • 2026-09-25 Read at source for the first time (previously second-hand via Grattan 2021). The paper gives the final result as a share of contract value, so the figure moves from an unquantified margin swing to a 7% loss; the grade moves from low (second-hand) to moderate (a sample selected for risk).

overrun_signal/overrun_contractor_margin_swing · AU · F41, F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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24%of the first promised costFinal cost over the first promised cost, 836 Australian transport projectsAustraliaModerate confidenceOwner's money

What it is. 24% of the first publicly promised cost, final versus promised.

Sample. 836 Australian transport projects of $20m or more, 2001-2016; $28 billion over in total; 34% of projects went over.

What it is not. Measured from the first promise, mostly before any contractor is signed, and paid by the owner (the taxpayer). The median overrun is 0%: a few projects dominate the mean.

Where it came from

overrun_signal/overrun_transport_australia_promised · AU · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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20%of the budget at the decision to buildAverage cost escalation on roads, 258 transport projects in 20 countriesGlobalHigh confidenceOwner's money

What it is. 20% of budget, decision to build versus actual cost, real terms.

Sample. Roads average 20% (N=167, sd=30); all project types average 28% (N=258, sd=39). Rail, bridge, tunnel and road projects across five continents.

What it is not. Measured from the decision to build, so most of it arises BEFORE a contractor is signed, and much of it is paid by the client. This is NOT a figure for what a contractor loses, which is why it is recorded as owner_side and excluded from the headline.

Where it came from

overrun_signal/overrun_roads_worldwide · GLOBAL · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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40.5%of the extra cost of overrunsContractors' share of the extra cost of overruns, Belgian public infrastructure (expert survey)BelgiumLow confidenceContractor loss

What it is. 40.5% of the total additional cost caused by overruns, as apportioned across the parties by 52 surveyed experts.

Sample. 52 Belgian public infrastructure stakeholders, 35% of them general contractors. Public tendering authorities were assigned 49% and contractors 40.5%.

What it is not. An opinion of who pays, not a measured cost: respondents apportioned 100% of the extra cost by judgement. Contractors assigned themselves 50.7%, others assigned them 35.6%. Belgium only, and a share of the overrun, not of the contract, so it is never multiplied by a contract value.

Where it came from

overrun_signal/overrun_contractor_share_belgium · BE · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Missed claims: what it costs a contractor

Variations, extensions of time, delay costs and retention the contract allowed and nobody claimed in time. Includes weather.

The record holds 6 figures on missed claims from 6 sources. Queensland: 2 figures, including 36.9% of the amount claimed (Share of the amount claimed in Queensland adjudication dismissed for no jurisdiction (246 decisions, 2022-23)).

Missed claims statistics: the table, questions and answers

36.9%of the amount claimedShare of the amount claimed in Queensland adjudication dismissed for no jurisdiction (246 decisions, 2022-23)QLDModerate confidenceMoney at stake

What it is. 36.9% of the total amount claimed across 246 adjudication decisions: claims the adjudicator could not decide at all.

Sample. 246 published Queensland adjudication decisions, March 2022 to August 2023; 66 (26.8%) were no-jurisdiction decisions.

What it is not. A nominating authority's own count of published decisions, not the regulator's statistics. A no-jurisdiction decision means the claim failed on procedure, such as timing or form, not on its merits, and the claimant may have other routes to recover, so this is money put at risk by procedure rather than a proven loss.

Our arithmetic. $70,119,333.18 claimed in no-jurisdiction decisions / $189,905,327.50 claimed across all 246 decisions = 0.3692 (the author calls it 'almost 37%').

Where it came from

claim_window/entitlement_lost_no_jurisdiction_qld · AU-QLD · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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9%of construction costContract variations as a share of project cost, Queensland public infrastructure (QAO audit)QLDModerate confidenceMoney at stake

What it is. 9% of the cost of the projects examined: over A$127 million in contract variations.

Sample. The Queensland Government infrastructure projects (mostly schools and public buildings) examined in QAO Report 16: 2021-22. One project, Fortitude Valley State Secondary College, reached 21.5% of its original contract value.

What it is not. A handful of audited building projects, not a sample of Queensland civil work. The denominator is total project cost, not the original contract value. Variations are money the client agreed to pay, the size of the pot, not a contractor loss. Corroborates the 10.6% change-order figure (67 Australian projects) from a Queensland regulator.

Where it came from

claim_window/entitlement_variations_qld_public · AU-QLD · F41 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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10.6%of contract valueClient-approved change orders, 67 Australian public infrastructure projectsAustraliaModerate confidenceMoney at stake

What it is. 10.6% of original contract value, client-approved change orders.

Sample. 67 completed public infrastructure projects from one contractor, Australia, civil. Mean change orders were about AU$5.1m and made up 11% of work value 2011-2014.

What it is not. SIZE OF THE POT, NOT A LOSS. No study measures how much of it a typical contractor fails to claim. Change orders were linked to HIGHER contractor margins, which is the opposite of a loss.

Where it came from

claim_window/entitlement_variations_pot · AU · F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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A$2,010per wet day (2025 AUD)Time-related site overhead per working day, Australian estimatorsAustraliaLow confidenceContractor loss

What it is. AUD per working day at the high end (AU$870 at the low end), 20 wet days is AU$17,400 to AU$40,300.

Range A$870 to A$2,010 (scenario)

Sample. 30 senior Australian estimators put about 45.49% of preliminaries as time-related for the whole job; preliminaries are 10-20% of the contract sum. On a $5M job that is AU$870 to AU$2,010 per working day, depending on the overhead rate and the working days in the year.

What it is not. A WORKED EXAMPLE, NOT A MEASUREMENT. Both inputs are weaker than we would like: the 10-20% preliminaries figure is a UK 2002 number cited second-hand, and the estimators' survey was mostly building work. No open Australian civil source gives either number. Use your own rates if you have them. The unit is per wet day, so this figure is never multiplied by a contract value. Price year taken from the source's data year; not yet confirmed against the source's tables.

Our arithmetic. Worked on a $5M contract. High end: 5,000,000 x 20% preliminaries x 45.49% time-related = 454,900 a year, / 226 working days = 2,013, shown as 2,010. Low end: 5,000,000 x 10% x 45.49% = 227,450 a year, / 261 working days = 871, shown as 870. The 45.49% is table 6; the 10% to 20% is the introduction, citing Chan & Pasquire 2002.

Where it came from

claim_window/weather_wet_day_overhead · AU · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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4.9%of contract valueAverage retention held, 419 clients and 508 contractors (UK)UKModerate confidenceMoney at stake

What it is. 4.9% of contract value, held until the defects liability period ends.

Sample. 419 clients and 508 contractors surveyed, UK, all construction. Retention was not received back at all after the defects liability period on 5% of tier-1, 10.8% of tier-2 and 13.1% of tier-3 contracts.

What it is not. The money is held, not lost, until it is not returned. UK data from 2017 with no comparable Australian study; the authors say some tier differences are not statistically robust.

Where it came from

claim_window/entitlement_retention_held · GB · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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No figurenobody has published a defensible oneNo published figure for weather cost as a share of contract valueUKLow confidenceContractor loss

What it is. None - the only share-of-cost figures found are a single residential project and a perception survey.

Sample. UK national weather data and standard building activities; a model with a worked example, not observed projects. Found UK weather extends durations by an average of 21%.

What it is not. Recorded as `none` on purpose. The research pass found only two cost-as-percent figures: 4% on one Sydney apartment project (sponsored content, residential) and 23.8% from a Pakistani perception survey the pass called implausible. Neither is a benchmark, so this register holds no ratio rather than a convenient one. See weather_wet_day_overhead for what IS measured.

Where it came from

claim_window/weather_market_ratio_none · GB · F41 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Disputes: what it costs a contractor

Money fought over, what it costs to fight, and how much is recovered.

The record holds 9 figures on disputes from 12 sources. Queensland: 4 figures, including 8.56% of the amount claimed (Adjudication awards against amounts claimed, Queensland 2024-25).

Disputes statistics: the table, questions and answers

8.56%of the amount claimedAdjudication awards against amounts claimed, Queensland 2024-25QLDModerate confidenceMoney at stake

What it is. 8.56% of the amount claimed, awarded across 214 decisions.

Sample. AU$81.9m awarded against AU$957.0m claimed across 214 decisions. Queensland only, security-of-payment disputes, all construction sectors.

What it is not. One A$634m claim dominates the total; without it the award rate is at most about 25%. The ratio is the research pass's own calculation, not the QBCC's. Do not use it as a typical loss rate.

Our arithmetic. AU$81.9m awarded / AU$957.0m claimed = 0.0856 (Table 23; the ratio is ours, not the QBCC's)

Where it came from

evidence_gap/dispute_recovery_adjudication · AU-QLD · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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14.9%of the amount claimedAdjudication awards against amounts claimed, Queensland 2020-21 to 2024-25 (decisions released)QLDModerate confidenceMoney at stake

What it is. 14.9% of the amount claimed in adjudication decisions released, pooled over five financial years.

Range 8.56% to 45.6% (reported min max)

Sample. Every decision released by the QBCC Adjudication Registry under the Building Industry Fairness (Security of Payment) Act 2017, 2020-21 to 2024-25: 983 decisions. By year: 2020-21 45.6%, 2021-22 30.6%, 2022-23 14.3%, 2023-24 27.3%, 2024-25 8.6%.

What it is not. Pooled dollars, so the largest claims dominate: 2024-25 alone is 65% of the amount claimed, and one A$634m claim sits inside it. The annual rate swings from 8.6% to 45.6%. It counts only disputes that reached a released decision, not every payment claim.

Our arithmetic. Awarded / claimed on decisions released, by year: 2020-21 $37,503,111 / $82,254,751 = 0.456; 2021-22 $15,854,534 / $51,816,751 = 0.306; 2022-23 $21,858,656 / $152,408,699 = 0.143; 2023-24 $61,524,294 / $225,306,009 = 0.273; 2024-25 $81,873,482 / $956,966,294 = 0.086. Pooled over five years: $218,614,077 / $1,468,752,504 = 0.1488.

Where it came from

evidence_gap/dispute_recovery_adjudication_qld_series · AU-QLD · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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12%of the amount claimedAmount determined against amount claimed in adjudication applications, NSW 12% / QLD 18% / VIC 35%, 2018-2023NSW, QLD, VICModerate confidenceMoney at stake

What it is. 12% of the amount claimed in all adjudication applications, including those that never reached a determination; NSW figure, with QLD and VIC as the range.

Range 12% to 35% (reported min max)

Sample. State regulators' adjudication statistics, NSW, QLD and VIC, 2018-2023: 9,784 applications, 5,657 determinations. NSW is 12%, QLD 18%, VIC 35%.

What it is not. The denominator includes the roughly 40% of applications that never reached a determination (withdrawn, settled or paid), so this understates what claimants recover on decided disputes: NSW 2011-12 on decided disputes only was 50.9%. A consultancy's analysis, with internal inconsistencies: Victoria's totals differ between the December 2023 and February 2024 editions, and the NSW prose total ($5.5bn) disagrees with its own table ($6.28bn).

Where it came from

evidence_gap/dispute_recovery_adjudication_success_ratio · AU-NSW, AU-QLD, AU-VIC · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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A$288,000per case (2019 AUD)Average loss per unpaid subcontractor, Queensland (146 submissions to the 2019 taskforce)QLDModerate confidenceContractor loss

What it is. Australian dollars lost per subcontractor reporting non-payment, excluding submissions about multiple creditors.

Sample. 146 submissions to a Queensland Government taskforce in 2019, mostly from South Queensland and from small contractors (90% under $12m revenue). Losses ranged from $1,500 to $6 million per individual.

What it is not. Self-reported and self-selected: the subcontractors who wrote in, not a sample of all subcontractors, and their own statement of what they were owed. The $112m multi-creditor submission is excluded from the average. Per case, not a share of contract value, so it is never multiplied by one.

Where it came from

evidence_gap/dispute_subcontractor_nonpayment_qld · AU-QLD · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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50.9%of the amount claimedAdjudication awards against amounts claimed, NSW 2011-12 (determinations released)NSWHigh confidenceMoney at stake

What it is. 50.9% of the amount claimed, across the 779 applications whose determination was released.

Sample. All 1,112 NSW adjudication applications in 2011-12, of which 779 reached a released determination. Claims under $100,000 (74% of determinations) were awarded about 84% of the amount claimed.

What it is not. One financial year, fourteen years old. It covers only disputes that reached a decision: the 333 applications withdrawn, settled or dismissed are outside it, so it is the recovery rate once adjudicated, not on every claim. Larger claims recovered a smaller share. Not comparable with the Queensland 2024-25 figure or the 2018-2023 success ratios, which divide by different populations.

Our arithmetic. $77,903,361 adjudicated / $153,143,608 claimed = 0.509 (Fig. 4, p.4). The report states the same result as 'about half of the aggregate amount claimed'.

Where it came from

evidence_gap/dispute_recovery_adjudication_nsw_2011 · AU-NSW · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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19.2%of the amount claimedClaimant's own cost of statutory adjudication as a share of the claim, New Zealand 2003-2023New ZealandModerate confidenceContractor loss

What it is. 19.2% of the amount claimed: the claimant's own costs of taking a payment dispute to adjudication, averaged over all claims.

Sample. All statutory adjudications administered by the Building Disputes Tribunal, 2003-2023 (43 to 152 cases a year). Respondents' costs average 17.64% and the adjudicator's fee 16.37% of the claim.

What it is not. One tribunal's own caseload, not every New Zealand adjudication. An average of per-claim percentages, so small claims dominate: under $30,000 the claimant's costs are 21.6%, over $10 million 1.74%. The claimant is usually, not always, the contractor or subcontractor seeking payment.

Where it came from

evidence_gap/dispute_adjudication_party_costs_nz · NZ · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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83%of total arbitration costsParties' own costs as a share of arbitration costs, 221 ICC awardsGlobalHigh confidenceContractor loss

What it is. 83% of total arbitration costs, being each party's own lawyers, experts and witnesses.

Sample. 221 ICC awards from 2012, all sectors - not construction-specific.

What it is not. The share is of arbitration cost, not of contract value, which is why the unit is a ratio but the basis is explicitly the arbitration bill. Litigation to recovery is not linear: fighting is expensive in people's time.

Where it came from

evidence_gap/dispute_party_costs_share · GLOBAL · ALL ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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33.4%of contract valueSums in dispute across 2,200+ projects in 114 countriesGlobalModerate confidenceMoney at stake

What it is. 33.4% of contract budget.

Sample. 2,200+ projects in 114 countries, US$2.433tn of capex, average US$1.25bn. Time extensions sought averaged 65.8% of planned schedules.

What it is not. CEILING, NOT TYPICAL CASE. These are HKA's own engagements - mostly disputed megaprojects that reached expert investigation. Read it as the top of the range for a job already in trouble, not the exposure on an ordinary civil contract.

Where it came from

evidence_gap/dispute_sums_at_stake · GLOBAL · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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US$60.1mper case (2024 USD)Average value of a construction dispute, North America 2024Canada, USModerate confidenceMoney at stake

What it is. US dollars per dispute: the claimed value of the additional work or event as asserted by the contractor.

Sample. Arcadis North America survey, 2024 data year, published June 2025. Average dispute length 12.5 months. The number of respondents is not stated.

What it is not. A consultancy's view of the disputes it sees, in North America only, and the value claimed by the contractor, not the amount won. A mean dragged up by a few very large disputes: 80% of claims are US$25 million or less and almost half under US$5 million. Not a share of contract value, so it is never multiplied by one.

Where it came from

evidence_gap/dispute_value_north_america · CA, US · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Lapsed compliance: what it costs a contractor

Accidents, lapsed licences and insurance, and the cost of breaching the obligations that come with the job.

The record holds 3 figures on lapsed compliance from 3 sources. No Queensland-specific figure yet; the Australian figures apply.

Lapsed compliance statistics: the table, questions and answers

19%of the total cost of work injuryEmployers' share of the total cost of work-related injury and illness (Australia)AustraliaHigh confidenceSocietal

What it is. 19% of the total cost, being the employer's share including workers' compensation premiums.

Sample. AU$61.8 billion total (4.1% of GDP), of which construction was AU$5.84 billion. Employers bear 5% excluding premiums, about 19% including them. The UK is almost identical at about 19% (HSE 2025).

What it is not. SOCIETAL, NOT THE CONTRACTOR'S BILL. Workers and the community bear the rest - recorded so the surface can show the real picture and exclude it from the headline. The report is internally inconsistent (74/21 in the summary, 77/18 in para 89) and its latest edition covers 2012-13. No construction-specific employer share exists.

Where it came from

compliance_gate/noncompliance_employer_share · AU · ALL ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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A$97,408per case (2013 AUD)Employer cost per construction accident, from a short absence to a fatalityAustraliaModerate confidenceContractor loss

What it is. AUD per incident to the employer, ranging AU$1,200 (short absence) to AU$97,408 (fatality).

Range A$1,200 to A$97,408 (reported min max)

Sample. Built from the Safe Work Australia 2012-13 dataset plus three Tier-two contractor case studies, Australia. Employer-borne: AU$1,200 (58.82%) for a short absence, AU$6,211 for a long absence, AU$50,175 for full incapacity, AU$97,408 for a fatality (2.23% of that accident's total cost).

What it is not. Not independent - it re-cuts the same Safe Work Australia data and is checked against only three case studies, with no averaged employer cost per accident. Severity-specific, so the high end is a fatality and not a typical incident. Penalties are separate and can reach AU$17.0m (Category 1, Commonwealth) or AU$20m (industrial manslaughter, NSW). Price year taken from the source's data year; not yet confirmed against the source's tables.

Where it came from

compliance_gate/noncompliance_cost_per_incident · AU · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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0.25%of contract valueAccident cost as a share of contract sum (Singapore building contractors)SingaporeModerate confidenceContractor loss

What it is. 0.25% of contract sum, insured (0.15%) plus uninsured (0.1%) accident cost.

Sample. A questionnaire survey of Singapore building contractors, 2011. Read from the paper's own abstract; the sample size is not stated there.

What it is not. Singapore building work, not Australian civil, and contractors' own survey estimates rather than cost records. The full paper has not been read, so the sample size is unconfirmed. A weak Indian study found about 0.48% accident loss; the often-quoted '7.9% to 15%' comes from 1990s US data that could not be verified and is excluded.

Where it came from

History

  • 2026-09-25 Previously read only as a search snippet (secondary, unverified). Now read from the paper's own abstract, which confirms the 0.25% and adds the insured and uninsured split. A survey of contractors' own estimates grades moderate under METHOD.md Section 4. The title and industry (building, F41) are corrected from the abstract.

compliance_gate/noncompliance_accident_cost_ratio · SG · F41 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Context

Figures that frame a disease rather than measure it, such as a typical planned margin. Never a headline.

9.89%of contract valuePlanned gross margin on Australian civil and transport workAustraliaModerate confidenceContext

What it is. Mean margin excluding overheads, of contract value.

Range 6% to 9.89% (across studies)

Sample. 67 projects from one Australian contractor (9.89%); 8 Australian transport projects (almost 9%); six years of one contractor's ledgers (6% to 9%).

What it is not. Two of the three sources are one contractor's data each, and all three are the same research group. The docs page rounds this to 9%.

Where it came from

context/planned_gross_margin · AU · F41, F42 ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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1.98%of contract valueHead office overhead as a share of the contractAustraliaLow confidenceContext

What it is. 1.98% of contract value, head office overhead.

Range 0.99% to 1.98% (scenario)

Sample. 30 senior Australian estimators, mostly building work.

What it is not. Our multiplication of two figures, one of them a UK 2002 number cited second-hand. Use your own rate if you have it.

Our arithmetic. Head office is 9.9% of preliminaries (table 4); preliminaries are 10% to 20% of the contract sum (introduction, citing Chan & Pasquire 2002). 9.9% x 10% = 0.99%; 9.9% x 20% = 1.98%.

Where it came from

context/head_office_overhead · AU · F ·the record ·link to this figure ·dispute this figure(or email support@demiton.io)

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Sources

Every paper, report and data release the figures come from. Sources read second-hand are marked.