A Delphi Study on the Effects of Culture on the Choice of Dispute Resolution Methods in International Construction Contracts

Abstract

Although international construction projects offer new markets for construction services, there are still many challenges to moving into international markets. Contractors should be aware that though the international contracts they will sign may be similar to their own local contracts, they will still include some major additional/modified clauses that address international issues. Because disputes in construction projects are inevitable, one of the very critical contract clauses in an international contract is the dispute resolution clause. The objectives of this paper are to use the Delphi method to identify factors that have an effect on the choice of dispute resolution methods (DRM) in international construction contracts and to recommend specific DRM(s) to contractors based in English-speaking countries who operate in the Middle East or Asia. A panel of 11 international DRM experts participated in this study. Although all experts agreed that culture affects the choice of DRMs in international contracts, the most recommended DRMs to use in both cultures were arbitration followed by negotiations then mediation. The least recommended DRM in the Middle East was summary jury trial and in Asia was litigation. This study can be developed further by conducting interviews with the experts participating in the study to investigate why they chose similar DRMs for both cultures. More culture clusters can be included in the study to compare the variability in the results between cultures.