Construction Disputes Causes and Resolution Methods: A Case Study from a Developing Country

Abstract

The increasing complexity of the construction industry, characterised by diverse multidisciplinary project teams, various stakeholders, distinctive site conditions and uncertainties, can contribute to an antagonistic environment, which may result in disputes arising between the contractual parties. Identifying the most common causes of disputes is important for an efficient contract management process. This study aims to help project stakeholders incorporate consolidative contract management strategies before commencing a new project by identifying the most common causes of construction disputes in Jordanian construction projects. Key causative factors of disputes were analysed through a literature review, a questionnaire survey and a case study analysis of construction projects in Jordan. The results revealed that the main factors leading to disputes in Jordan are incomplete technical drawings/specifications, variations initiated by the owner/consultant (additive/ deductive) and errors and omissions in the contract documents. Moreover, the results show that the most popular methods of dispute resolution in the Jordanian construction industry are negotiation and arbitration. The findings can enable local and international construction stakeholders to initiate contract management strategies before commencing projects. More effective planning can help to reduce the negative impacts of known causes of disputes.