To insist or to concede? Contractors' behavioural strategies when handling disputed claims

Zhang, L; Fenn, P and Fu, Y (2019) To insist or to concede? Contractors' behavioural strategies when handling disputed claims. Engineering, Construction and Architectural Management, 26(3), pp. 424-443. ISSN 0969-9988

Abstract

Purpose: The purpose of this paper is to identify and analyse factors that affect contractors' behavioural strategies in resolving disputed claims. Design/methodology/approach: Factors were explored by a literature review and an open-ended questionnaire survey. In total, 9 hypotheses involving 12 factors were developed accordingly. Then a structured questionnaire survey was conducted, and 248 valid questionnaires were received from Chinese contractors. Partial least squares structural equation modelling was employed to test the hypotheses. Findings: Factors that have the largest impacts on the contractual approach and the relational approach regarding obliging and compromising are favourability of evidence, time pressure and reputation, respectively. Unexpected results show that obliging behaviours are negatively correlated with procedural fairness but positively correlated with occurrence time of the dispute. Research limitations/implications: The results are based on correlation, although the research design improves the internal validity. Furthermore, this study belongs to single-level research. In the future, researchers can conduct multilevel research to enrich theories. Practical implications: The findings not only enhance practitioners' understanding of the factors influencing contractors' behavioural strategies when dealing with disputed claims, but also offer insights into both parties' ex ante focus of attention on specific factors to facilitate the subsequent dispute resolution. Originality/value: This study furnishes a nuanced picture of multiple factors' impacts on contractors' behavioural strategies of claim-related dispute resolution, and thus supplements the relevant construction dispute management literature. From the perspective of contractual governance, it is one of those exploring drivers of contract application in problem situations. It extends the body of knowledge on this topic and hopefully will encourage more research on contractual governance from the reactive perspective.

Item Type: Article
Uncontrolled Keywords: construction; construction projects; contractual approach; disputed claims; project management; questionnaire survey; relational approach
Index terms: fairness, resolution, project management, construction dispute, governance, research design, dispute, validity, construction project, methodology, questionnaire, evidence, practitioner, partial least square, body of knowledge, literature review, strategy, structural equation modelling, survey
Subjects: business, research design and methodology, evaluation and assessment methods, data collection methods, practitioner, dispute resolution, data analysis and analytics, knowledge management, research methods, management, project management theory and practice, production management, conflict resolution, statistical analysis, leadership
Topics: Governance, Stakeholder Management, Roles and Professions, Research Practice, Project Management, Information Management, Business Strategy, Organizational Design, Legal Issues
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