scholarly journals An Investigation into the Significant Causes of Disputes in the Sri Lankan Construction Industry

10.29007/vbwk ◽  
2020 ◽  
Author(s):  
Vajira Edirisinghe ◽  
Dianne Marsh ◽  
Fiona Borthwick ◽  
Alison Cotgrave

Disputes in construction projects affect not only delay in construction progress but also its cost and potentially its quality. The construction industry of Sri Lanka contributes significantly to its economy and the cost of construction disputes can influence its economic welfare. It is important to understand the significant disputes in the Sri Lankan construction industry in order to mitigate this cost. A qualitative descriptive study has been conducted through semi-structured questionnaires analyzed using a thematic approach. The sample comprised of 10-construction industry professionals all involved in the dispute resolution process. The literature identified 7 main dispute causes as being owner related, contractor related, project related, design related, contract related, human behavior related and consultant related. The interviews identified sub themes from each, which were then ranked in order to identify those that were most significant. It was found that many of the sub themes were inter related and that one cause could be the creation of another. The lack of appropriate communication between parties and lack of team spirit were identified as the genesis of disputes in the Sri Lankan construction industry. The next stage of this research is to identify the dispute resolution methods specific to Sri Lanka in order to develop a framework for cost optimization of dispute resolution methods that link specifically with the causes of dispute as identified in this study.

1995 ◽  
Vol 22 (1) ◽  
pp. 15-22 ◽  
Author(s):  
Francis T. Hartman ◽  
George F. Jergeas

Alternative dispute resolution methods remain an area of interest and study because of the continued increase in the incidence of disputes, be they claims or litigation. Practice in the industry tends to stimulate litigation if negotiation of claims is unsuccessful. At variance with this is the declared preference of construction industry practitioners for mediation over arbitration and for arbitration over litigation. Mediation has had a high success rate when used in construction dispute resolution. The cost of mediation is significantly lower than litigation or arbitration. The probability of the parties to the dispute being able to work together effectively after the dispute has been resolved is higher, and the dispute can be resolved more quickly than by arbitration or litigation. This paper presents the findings of a study undertaken to identify a better process for construction contracting. An essential part of the new process is the use of proactive mediation. Proactive mediation is the use of a mediator prior to a dispute arising to help identify and address potential problems before they become difficult or unsolvable issues. The proposed methodology has been tested through a process which obtained the input of over 60 senior industry practitioners. Key words: mediation, construction management, contracts, claims, cost reduction, alternate dispute resolution, risk management.


2021 ◽  
Author(s):  
K.G.A.S Waidyasekara ◽  
◽  
K.I. Ridmika ◽  
N.M.G.H. Sandagomika ◽  
A.N Konara ◽  
...  

The construction industry, which is a labour intensive and skill development of the industry would yield both economic and social returns to the national economy. Among other occupational categories, there is a significant demand for the plant and equipment (P&E) operators in the construction industry. Nevertheless, limited numbers of research are available on the said area. Hence, the aim of this paper is to investigate the status of P&E operators in Sri Lankan building construction projects. Accordingly, this study encompassed a qualitative research approach, and six semi-structured expert interviews were conducted as the data collection tool. The study revealed that mainly two categories of P&E as moveable and immovable and further identified subcategories under each. Based on the results, occupational map was developed for the P&E operators in building construction projects in Sri Lanka. Furthermore, the study revealed that technical and mechanical skills as an essential input for an efficient P& E operator. Moreover, the paper discussed issues with P & E operators. Accordingly, inconsistency, taking long leave, poor health conditions, less experience, and less motivation were identified as prominent issues.


2020 ◽  
Author(s):  
NIRUSIKA RAJENTHIRAN ◽  
◽  
H.A.S MADHUWANTHI ◽  
D.M.P.P DISSANAYAKE ◽  
D.C. SIRIMEWAN ◽  
...  

Significant issues affecting the success of construction projects due to globalisation is the establishment of a multicultural project team. Presently, China has emerged as one of Sri Lanka's main sources of foreign and commercial loans in an environment, where the island is seeking to rebuild and modernise infrastructure. However, the involvement of multi-cultural project teams often present unique challenges due to cross-cultural interactions, thereby, creating conflicts through construction projects, makes the conflict unavoidable. Therefore, this study was attempting to identify the cross-cultural dimensions and cross-cultural orientations in cross-cultural teamwork of Chinese contractors in construction projects in Sri Lanka. A qualitative approach was followed in this study in which multiple case study was selected as the most appropriate method for the research. Accordingly, semi-structured interviews were conducted among the selected four (4) respondents from each case to collect the data. Captured data was analysed by the manual content analysis method. An empirical investigation has been validated communication, leadership, trust, collectivism, team selection, uncertainty, team development and management as the common cross-cultural dimensions for all the three cases. This study added new cross-cultural dimensions to the literature in the context of Sri Lankan construction industry namely, coordination, harmony and customs with specific cross-cultural orientations. The study can be further developed to investigate strategies to manage intragroup conflicts occurs in cross-cultural teamwork of Sri Lankans and Chinese professionals in the Sri Lankan construction industry.


2021 ◽  
Vol 2 (4) ◽  
Author(s):  
Mansur Hamma-adama ◽  
◽  
Abdul-Basit Sa’eed Ahmad ◽  

Construction Industry is evolving amid the fourth industrial revolution. Transportation, commerce, manufacturing and many other industries ripened the current technological advancement and are striving to utilise every development in the IT sector. The procurement of construction works is known to be very conventional and backward in the adoption of digitalisation. The construction industry's procurement and supply chain are blamed for the most inflated cost of construction projects, mainly attributed to a lack of transparency and trust between the industry stakeholders. This research explores the challenges of E-procurement adoption in the industry and identifies the potential opportunities for its usage. This investigation's data are acquired through interviews, and the data are analysed using qualitative content analysis. This study reveals compounding challenges (i.e., corruption and lack of commitment) that lead to the failure of such efforts in Nigeria and the potential prospects (i.e., transparency and efficiency). This study is essential in developing a more effective and transparent process of procurement so that the Nigerian construction industry is not be left behind in the fast-digitalising markets.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
G.P.P.S. Perera ◽  
T.M.M.P. Tennakoon ◽  
Udayangani Kulatunga ◽  
Himal Suranga Jayasena ◽  
M.K.C.S. Wijewickrama

PurposeThe purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both procurement selection factors and existing procurement systems.Design/methodology/approachAn abductive research stance is followed in this empirical study. Procurement selection factors were selected through a critical literature review which was followed by a quantitative questionnaire survey. The collected data were analysed using descriptive statistical analysis and relative important index.FindingsThe critical literature review outlined 46 procurement selection factors, out of which 26 factors were very important in steel building procurement selection. Short construction period and higher constructability of design are ranked at the top with the highest priority rating factors. Management-oriented procurement system was selected as the most appropriate procurement system for steel building constructions within the Sri Lankan context.Research limitations/implicationsThe study is limited to widely use three procurement systems in Sri Lankan construction industry. Yet, the process followed in selecting the most appropriate procurement system could be applied for other contexts. The implications of the study are mainly identifying management-oriented procurement as the most suitable procurement method for steel building construction in Sri Lanka.Practical implicationsThe systematic procedure of procurement method selection for steel building construction may use in the Sri Lankan construction industry to limit the resource loss due to wrong selection of procurement.Originality/valueA study which critically and comprehensively presenting a procurement selection process for steel building construction is not recorded in Sri Lanka prior to this study.


Author(s):  
Ulrike Quapp ◽  
Klaus Holschemacher

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.


Author(s):  
Rita Awwad ◽  
Stephanie Atallah ◽  
Carol Menassa

The high cost incurred by the resolution of conflicts is largely affected by the existing adversarial nature of the construction industry along with the use of non-efficient dispute resolution methods in construction projects. This paper studies opinion dynamics in the negotiation of construction disputes while trying to understand the behavior and extremism of each contractual party. The developed model uses an agent-based approach to show how each agent’s attitude can influence the negotiation process when solving a dispute. It can also be used to highlight the importance of alternative dispute resolution (ADR) methods and the use of a mediator in helping parties initiate negotiation and decrease the number of negotiation cycles needed to converge. The results showed that negotiation is not only affected by the attitude and character of the agents involved but it is also influenced by the delivery method of the project and the level of intensity of each agent. It was found that when the project is delivered through an Integrated Project Delivery (IPD) method, parties are more flexible and cooperative and will reach agreement within few negotiation cycles.


Author(s):  
Sarah Aboul Fotouh ◽  
A. Samer Ezeldin

As the construction industry grows year by year, optimization of resources is becoming essential to reduce their required number, their costs and as a consequence the total cost of the project. Project managers have to face problems regarding management of cost, time, and available resources for single projects. What is more challenging is to optimize the available resources for multiple projects, which would result in appreciable savings. Most of the companies in the construction industry commonly optimize the resources for single project. However, with the presence of several mega projects in many developing countries running at the same time, there is a need for a model to enhance the efficiency of available resources among multiple simultaneous projects. This paper discusses a numerical model of cost optimization and allocation of up to nine resources for up to three projects for a given company, taking into consideration the transportation of resources from one project to another and the cost of unused resources. The model was developed using a genetic algorithm, and it is used on the identified critical resources. It calculates the cost of each resource, minimizes the cost of extra resources, cost of unused resources, and generates the schedule of each project within a selected overall program.


2008 ◽  
Vol 35 (3) ◽  
pp. 225-235 ◽  
Author(s):  
Sangchul Kim ◽  
Chanjeong Park ◽  
Sangyoub Lee ◽  
Jaeho Son

As a project control technique concept that provides a quantitative measure of schedule and cost information, the earned value (EV) model can evaluate work progress by identifying the potential delay and the cost overruns in a project, which is useful for controlling projects. The construction industry in Korea does not put this concept into practice, however, because it is poorly understood and because the construction practices in Korea are different from those in other industrialized countries. Most important is the fact that almost all the construction projects in Korea are controlled in accordance with the budget breakdown structure (BBS), which is less detailed than the cost breakdown structure (CBS), while those in the USA are managed through schedule control on the basis of the work breakdown structure (WBS). This is because most of the construction projects in Korea are generally contracted at a fixed price. This being the case, once the contract is awarded, the clients are no longer concerned with the cost of the project. This current construction practice based on the BBS rather than on the WBS has brought forth a limitation in terms of the use of the existing EV model in the domestic market. In this study, the EV model, which is suitable for the domestic market, is demonstrated. An integrated model of the WBS and CBS is then developed based on the modified work-packaging model. Finally, the developed model is integrated into the project management system (PMS) to verify its suitability and efficiency.


Author(s):  
Ajit Ambekar

Productivity is important in construction. Construction productivity is a significant part of production for construction projects. In the construction industry, many external and internal factors are never constant and difficult to predict. This factor leads to a constant change in productivity. It is necessary to make sure that the reduction of construction productivity does not affect the plan and work schedule and does not cause delays. The consequences of these delays can lead to serious loss of money. In addition, significant costs can be saved if productivity is improved, as the same work can be done with less labor, thereby reducing the total cost of construction.


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