scholarly journals A comprehensive review of disputes prevention and resolution in construction projects

2019 ◽  
Vol 270 ◽  
pp. 05012 ◽  
Author(s):  
Wesam S. Alaloul ◽  
Mohammed W. Hasaniyah ◽  
Bassam A. Tayeh
Keyword(s):  
Dispute Resolution ◽  
Construction Industry ◽  
Alternative Dispute Resolution ◽  
Traditional Method ◽  
Construction Projects ◽  
Construction Project ◽  
Comprehensive Review ◽  
Step Process ◽  
Advantages And Disadvantages ◽  
General Step

The construction industry is complex, fragmented, dynamic and involves many parties in an adversarial relationship. This makes disputes almost inevitable in any construction project. This paper aims to provide a comprehensive review of the adopted methodologies in resolving disputes that arise in the construction projects. The paper evaluates and classifies the different methods of disputes resolution. A comparison was conducted between the advantages and disadvantages of each method. The paper distinguishes between the traditional method of disputes resolution; litigation and Alternative Dispute Resolution (ADR) methods such as arbitration, mediation, med/arb, mini-trial and dispute review board. In conclusion there is no best way to solve all kind of disputes in construction projects, however, a general step by step process of how disputes should be addressed is finally presented.

COMPARISION OF ALTERNATIVE CONSTRUCTION DISPUTE RESOLUTION MEASURES

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Ulrike Quapp ◽  
Klaus Holschemacher
Keyword(s):  
Dispute Resolution ◽  
Construction Industry ◽  
Alternative Dispute Resolution ◽  
Construction Projects ◽  
Legal Aspects ◽  
Construction Process ◽  
Legal Proceedings ◽  
Advantages And Disadvantages ◽  
Industry Practice

Construction projects often are particularly susceptible to conflicts due to their long-term character and complexity. In Germany, courts must deal with around 100,000 construction dispute litigations per year. Alternative Dispute Resolution (ADR) can be an alternative to expensive as well as time-consuming litigation and can help to relieve the judicial system. Furthermore, ADR may contribute to the satisfying settlement of a dispute between parties involved in the construction process and thus help to reach construction projects’ completion on time and within budget. Often, ADR mechanisms such as adjudication, mediation, and conciliation will be used. The paper analyzes the development of ADR in Germany in conjunction with European legal aspects. With special reference to the construction industry practice in Germany, various ADR measures and their advantages and disadvantages, as well as the current situation, will be explained. The authors conclude that, although ADR in Germany has experienced an upswing since the 1990s, it is used only to a small extent for settling disputes in construction projects. An increased knowledge about the advantages and disadvantages of different ADR measures in the construction industry would lead to more frequent uses of ADR. That, and a clever and detailed contract design, which helps to avoid conflicts basing on unclear contract contents, could save money and relieve the courts from time-consuming legal proceedings.

REACTIVE DEVALUATION AS A BARRIER AGAINST AMICABLE CONSTRUCTION DISPUTE SETTLEMENT

2019 ◽  
Vol 6 (1) ◽  
Author(s):  
Keyao Li ◽  
On Yi Chow ◽  
Sai On Cheung
Keyword(s):  
Information Processing ◽  
Conceptual Framework ◽  
Dispute Resolution ◽  
Construction Industry ◽  
Construction Projects ◽  
Dispute Settlement ◽  
Construction Project ◽  
Psychological Barrier ◽  
Efficient Construction ◽  
Project Objectives

Disputes are common in construction projects. Protracted unresolved dispute destroys contracting parties' desire to fulfil the project objectives. In this regard, promoting amicable and efficient construction project dispute resolution (CPDR) has been one of the key recommendations of almost every construction industry review. However, disputants' irrational behaviors would derail trajectory to settlement. Notable example of irrational decision is failing to seize settlement option that provides utility to both disputing parties. This can be the result of a deep-rooted psychological barrier called reactive devaluation (RD). RD describes the behavior of habitually devaluing the proposal raised by the counterpart. Disputants would reject a proposal irrespective of the quality and reasonableness of the proposal, just because it is raised by the counterpart. The occurrence of RD in CPDR would block proposal exchanges that are inevitable if a settlement is to be reached. This study aims to examine the application of RD in CPDR. Possible manifestations of RD in CPDR scenario were summarized and a conceptual framework of RD was proposed. Five types of RD were identified: reluctance to change, doubts about counterpart's ability, overconfidence, biased information processing, and mistrust of the counterpart. Furthermore, suggestions to alleviate RD were also discussed.

scholarly journals Ventajas y Desventajas de la Conciliación en la Resolución de Conflictos – Sobre Reparación del Daño al Medio Ambiente

2016 ◽  
Vol 03 (03) ◽  
pp. 111-139
Author(s):  
Angelina Isabel Valenzuela Rendón
Keyword(s):  
Sustainable Development ◽  
Dispute Resolution ◽  
Alternative Dispute Resolution ◽  
Sustainable Development Goals ◽  
Environmental Damage ◽  
The Sustainable Development ◽  
Advantages And Disadvantages ◽  
The Pacific ◽  
Environmental Damages ◽  
Development Goals

En el presente trabajo se exponen diversas ventajas y desventajas propias del medio alterno de solución de conflictos conocido como conciliación, esto a fin de dilucidar si se trata de un mecanismo adecuado para resolver controversias sobre reparación de daño causado al medio ambiente, lo que se realizará mediante la técnica metodológica cartesiana. Se observa que la conciliación es una forma de acceder a la justicia, adicional al proceso tradicional; además de que a través del procedimiento conciliatorio se fomenta la resolución pacífica de las disputas. Finalmente, se concluye que los pros de la conciliación tienen mayor peso que los contras. Por lo tanto, proponer el procedimiento conciliatorio significa ofrecer una alternativa de un mecanismo pertinente cuando se resuelven controversias sobre reparación del daño al medio ambiente; todo esto coadyuvando al logro de los Objetivos de Desarrollo del Milenio. In this research, different distinct advantages and disadvantages of the alternative dispute resolution known as conciliation are exposed. Through the Cartesian method, this presentation helps establish if conciliation is an adequate way to resolve disputes regarding reparation of environmental damage. Conciliation is a means to access justice, in addition to the traditional trial; furthermore, conciliation encourages the pacific resolution of disputes. Finally, it is concluded that the advantages of conciliation weigh more heavily than its disadvantages. Therefore, conciliation is a pertinent option to solve disputes regarding reparation of environmental damages, in order to achieve the Sustainable Development Goals.

scholarly journals Analysis of administrative barriers in the industry of the high-rise construction in Russian Federation

2018 ◽  
Vol 33 ◽  
pp. 03010 ◽  
Author(s):  
Irina Zaychenko ◽  
Alexandra Borremans ◽  
Svetlana Gutman
Keyword(s):  
Comparative Analysis ◽  
Construction Industry ◽  
Russian Federation ◽  
Construction Projects ◽  
Construction Project ◽  
Legal Framework ◽  
Low Level ◽  
High Rise ◽  
Administrative Procedures

The article describes the concept and types of administrative barriers encountered in various areas of the enterprise. The particularities of the Russian high-rise construction industry are described and a comparative analysis of administrative barriers in this sector is performed. The main stages and administrative procedures when the developers implement investment and construction projects in the field of high-rise construction are determined. The regulatory and legal framework for the implementation of investment and project activities in the high-rise construction industry has been studied and conclusions have been drawn on its low level of precision in the issue of the formation of competitive and efficient high-rise construction markets. The average number of administrative procedures for the implementation of the investment and construction project in the field of high-rise construction is determined. The factors preventing the reduction of administrative barriers in the high-rise construction industry are revealed.

Causes of delays in construction industry and comparative delay analysis techniques with SCL protocol

2018 ◽  
Vol 25 (4) ◽  
pp. 497-533 ◽  
Author(s):  
Parvaneh Shahsavand ◽  
Akbar Marefat ◽  
Majid Parchamijalal
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Delay Analysis ◽  
Relative Importance ◽  
Project Schedule ◽  
Content Type ◽  
Advantages And Disadvantages ◽  
Construction Law ◽  
Delay Claims ◽  
Causes Of Delays

Purpose The purpose of this paper is to reveal the main causes of delays in the projects are from the client (relative importance index (RII)=0.716), labor and equipment (RII=0.701) and contractor (RII=0.698). Hence determining the contractual responsibility of delay is the most likely source of dispute in construction projects and many techniques have been used in the courts to demonstrate the criticalities of a delay event on the project schedule. Therefore, authors try to investigate all process-based techniques of delay claims and evaluated and conformed them with principles by Society of Construction Law (SCL) protocol and Association for the Advancement of Cost Engineering International (AACEI) in order to choose the best techniques based on the specific circumstances of each project. Design/methodology/approach This section is divided into two distinct parts: refers to the methods used to assess the perceptions of clients, consultants, and contractors on the relative importance of causes of delay in construction industry; and refers to advantages and disadvantages of various techniques used to analyze delays and their conform with SCL protocol. A questionnaire was developed to assess the perceptions of clients, consultants, and contractors on the relative importance of causes of delay in Iranian construction industry. The respondents were asked to indicate their response category on 78 well-recognized construction delay factors identified by authors. Findings In total, 78 causes of delay were identified through research. The identified causes are combined into seven groups. The field survey included 58 contractors, 55 consultants, and 62 client. Data collected were analyzed by RII and Statistical Package for Social Sciences (SPSS). The authors identified main causes of delay and ten most important causes, according to Table AII, from the perspective of three major groups of participants (clients, consultants and contractors). The ranking of categories of causes of delay, according to Table I, were: client-related causes (RII=0.716); labor and equipment category causes (RII=0.701); contractor-related causes (RII=0.698); material-related causes (RII=0.690); design-related causes (RII=0.666); external causes (RII=0.662); and consultant-related causes (RII=0.662). But according to the discussions and given that determining the contractual responsibility of delay is the most likely source of dispute in construction industry and many techniques have been used in the courts to demonstrate the criticalities of a delay event on the project schedule. Originality/value All process-based techniques of delay analysis have been present in this paper and categorized in 11 groups. In order to understand the advantages and disadvantages of them by clients, contractor and consultant, a thorough review conducted to reveal the nature of techniques. In the next step, given that selecting the most appropriate technique based on constraints and specific conditions of each project is one of the most important steps to carry out a successful delay analysis. The authors conformed, all process-based techniques of delay analysis, by SCL protocol and AACEI principles. Finally, the result of this match was brought in order to choose the best technique based on the specific circumstances of each project.

Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
Influential Factors ◽  
Project Design ◽  
Content Type ◽  
Factors Affecting ◽  
Public Construction

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.

scholarly journals A review of causes of variation order in the construction of terrace housing projects in Malaysia

2019 ◽  
Vol 277 ◽  
pp. 03013
Author(s):  
Noraziah Mohammad ◽  
Zabidi Hamzah
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Extensive Literature ◽  
Time Cost ◽  
Construction Time ◽  
Building Projects ◽  
Housing Projects ◽  
Building Project

Variation order refers to any changes from the scope, plan, specification or contract document in the construction project. This changes of work is a common problem in construction projects in Malaysia. It is inevitable in any construction project and this problem can become more serious when variation order causes work progress to be impaired as a results it increased the construction time and cost that affects the construction industry in Malaysia. This paper critically review the causes of variation order in the construction industry on the double-storey terrace housing project in Malaysia. The discussions began with the construction industry in Malaysia and then related parties involved in the construction industry. The extensive local and abroad literature review on the definitions of variation order and analysis of past studies conducted on variation order and the previous study of the prediction model of variation. The extensive literature on variation order in the construction of building project may help to improve the performance in term of time, cost and quality of the construction of building projects in Malaysia.

scholarly journals The method of iterative use of the ABC-XYZ analysis in the construction industry

2019 ◽  
Vol 110 ◽  
pp. 01073 ◽  
Author(s):  
Alexander Konikov
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Digital Filtering ◽  
Energy Industry ◽  
Complex Task ◽  
Computer Tools ◽  
Advantages And Disadvantages ◽  
Design Objects ◽  
Conventional Computer ◽  
Big Data Technology

The issue of marketing in the construction industry has always remained relevant. Indeed, it is not easy to design objects so that they bring high and stable income. The paper studies a solution to the problem, based on the use of the iteration method, the ABC - XYZ analysis, and digital filtering. It is based on the well-known principle of the study of complex systems: the sequential division of a complex task into a number of simpler ones. We would like to note that the “classic” ABC - XYZ analysis gives only general results about the profits from construction projects and does not study the reasons due to which these profits are received. In contrast, the proposed tooling allows taking into account the main technical, geographical and other factors typical for profitable construction projects. One of the advantages of the considered approach is that the conventional computer tools - a spreadsheet MS Excel, is used in solution. The paper discusses the advantages and disadvantages of the proposed approach, specifies in which cases it is advisable to use this approach and where to use more powerful and expensive tools - Big Data technology. For better visualization and clarity, the elements of set theory are used in the paper. This methodology is universal, and its use in the energy industry is possible when selecting more profitable types of products.

Modeling of the harmonization method for executing a multi-unit construction project

2019 ◽  
Vol 9 (1) ◽  
pp. 282-291 ◽  
Author(s):  
Michał Tomczak
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Optimization Method ◽  
Linear Processes ◽  
Project Duration ◽  
Construction Enterprises ◽  
Non Linear ◽  
Implementation Time ◽  
Selection Of

AbstractOne of the key problems in managing the realization of a construction project is the selection of appropriate working crews and coordinating their activities in a way that ensures the highest degree of implementation of defined goals (minimizing the project duration and/or reducing downtime and related costs). Most of the existing methods of work harmonization used in construction industry allow obtaining the desired results only in relation to the organization of the processes realization in repetitive linear projects. In case of realization of non-linear construction objects or construction units, it is usually necessary to choose between the reduction of the project implementation time and maintaining the continuity of crews work on the units. It was found that there is a lack in the literature of developed method enabling harmonization of crews’ work, while minimizing the downtime at work and the duration of the entire project taking into account additional constraints, e.g. the need to not exceed the deadlines for the realization of the project stages.The article presents the concept of a multi-criteria optimization method of harmonizing the execution of non-linear processes of a multi-unit construction project in deterministic conditions. It will enable the reduction of realization time and downtimes in work, taking into account the preferences of the decision maker regarding the relevance of the optimization criteria. A mathematical model for optimizing the selection of crews and order of completion of units in multi-unit construction projects was also developed. In order to present the possibility of usage of the developed concept, an example of the optimal selection of crews and their work schedule was solved and presented. The proposed method may allow for better use of the existing production potential of construction enterprises and ensure synchronization of the crews employed during the work, especially in the case of difficulties in acquiring qualified staff in construction industry.

Developing a Model for Risk and Responsibility Management Share Amongst Stakeholders Consortium in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 639-643 ◽  
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Significant Risk ◽  
Interest Rate Risk ◽  
Extensive Literature ◽  
Productivity Cost ◽  
Management Techniques

The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk (Fischer and Jordan 1996).) . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs . The identification and design of risk is the first step of risk management. It contain the recognition of potential risk event conditions in a project and the clarification of risk responsibilities. A total of 50 risk factors on construction for stake holders (client , contractor ,consultant ) share projects were identified after conducting an extensive literature survey. A questionnaire survey was conducted from 60 project managers(20 from each category) in all three proficiencies with background experience in buildings ,road and bridges with minimum 15 years experience , to identify the most significant risk factors impact in construction projects . Interviews were conducted face to face, ensuring a 100 percent response rate. The questionnaire was amended by incorporating feedback of the experts to suit the local environments of the construction industry. The weight or rate of each risk factor gained by using a five-point Liker scale from a consolidated conceptual framework of all 50 risk factors identified from the deep literature work . The main aim of these research is to identify ,categorize and ranking common risks, exert management techniques to address those risks , effective risk management and risk status in the construction industry and to help stakeholders to take stock of their ongoing and future projects, with a focus on important risks, their management techniques and barriers to effective implementation of risk management systems.

Sign in / Sign up

Export Citation Format

Share Document