Construction disputes causes and resolution methods: A case study from a developing country

Matarneh, S (2024) Construction disputes causes and resolution methods: A case study from a developing country. Journal of Construction in Developing Countries, 29(1), pp. 139-161. ISSN 1823-6499

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.

Item Type: Article
Uncontrolled Keywords: disputes; construction project management; contract management; dispute resolution; Jordan
Index terms: project team, arbitration, negotiation, construction dispute, Jordan, resolution, construction industry, international construction, construction project management, dispute, owner, case study, complexity, contract document, questionnaire, project stakeholder, construction project, variation, survey, strategy, literature review, drawing, specification, contract management, developing country
Subjects: data collection methods, strategic management, dispute resolution, technical documentation, project delivery, data analysis and analytics, management, development economics, project management theory and practice, contract management, production management, contractual condition, Geography, sociology, conflict resolution, systems engineering, industry analysis
Topics: Contract Administration, International Construction, Legal Issues, Design Practice, Stakeholder Management, Engineering Principles, Geographical Context, Project Management, Research Practice, Business Strategy
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here