Importance of Dispute Prevention and Resolution in Construction Projects

Abstract--- Purpose: Competition in the construction sector is rapidly increasing due to the gradual but steady ingress of globalization. However, construction projects may result in delays during their various phases due to disputes. The present study aims to investigate the importance of dispute resolution techniques to settle a dispute. Methods: A descriptive quantitative research design was used to investigate 153 contractors, who were affiliated with 50 different firms in Jordan. The questionnaire was based on a 5-point Likert scale to gain adequate knowledge about the causal factors attributed to disputes. IBM Statistical Package of Social Sciences (SPSS) was used for statistical analysis. Results: Absence of contract and errors in the contractual documents were identified as the main cause of disputes. It also showed that disputes should be prevented to ensure timely completion and execution. Absence of contract and errors in the contractual documents were found to be primary dispute inducing factors, while factors that lead to change in ADR (Alternative Dispute Resolution) strategy selection were settlement time, dispute complexity, and implementation feasibility. Conclusion: It is suggested to conduct studies that evaluate the impact of pre-planning approaches to prevent and resolve disputes occurring in construction projects.