INVESTIGATION OF THE OCCURRENCE AND RESOLUTION OF CONTRACT DISPUTES IN THE CONSTRUCTION INDUSTRY: A CASE STUDY IN SRI LANKA
DOI:
https://doi.org/10.11113/mjce.v38.26524Keywords:
Construction Disputes, Dispute Causes, Dispute Resolution Methods, Dispute Prevention Strategies, Construction Disputes, Dispute Causes, Dispute Resolution Methods, Dispute Prevention StrategiesAbstract
The construction industry is highly dynamic and involves multiple stakeholders, often leading to disagreements and disputes during project execution. Such disputes negatively affect project performance, timelines, and cost. This study investigates the occurrence, causes, and resolution of contract disputes in the Sri Lankan construction industry and identifies effective strategies to prevent them. A total of 68 responses were collected from professionals, including 32 well-experienced adjudicators, through a questionnaire survey. The data were analyzed using the Relative Importance Index (RII) to rank major causes, assess familiarity and effectiveness of resolution methods, and evaluate the importance and ease of applying prevention strategies. Bivariate correlation analysis using SPSS was also conducted to identify relationships between familiarity and effectiveness of dispute resolution methods, and between importance and ease of application of dispute prevention strategies. The results revealed that design, contractor, and contract-related factors are the main causes of disputes. Adjudication, negotiation, and arbitration were identified as the most familiar and effective methods, while litigation was the least preferred due to its lengthy process. For prevention, clear contract documentation, regular communication, and contract administration training were found to be most important. Overall, effective communication, well-defined contracts, and greater awareness of resolution methods can minimize disputes and ensure smoother project delivery.
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