Conflict Resolution in Construction Projects Using Nonzero-Sum Fuzzy Bimatrix Games

Abstract

The large damages that result from construction conflicts due to delays, cost overruns and decreasing productivity justify developing new models and decision support systems for resolving conflicts in large construction projects. Since most games take place in uncertain environments, the payoffs cannot be exactly assessed in many real-world problems. In these games, the uncertainty is mainly due to the inaccuracy of information and fuzzy comprehension of situations by players. In such cases, it is reasonable to model the problems as games with fuzzy payoffs. In this paper, two methodologies are proposed for conflict resolution in construction projects using nonzero-sum games with fuzzy payoffs. The first methodology transforms the original matrix game into a family of its α-cut equivalents. The second methodology introduces fuzzy goals for payoffs in order to incorporate ambiguity of player’s judgments. In this game, each player tries to maximize the degree of attainment of his fuzzy goal. The methodologies are applied to a large oil project in the Persian Gulf. The results show that the proposed methodology can be effectively used for resolving contractual conflicts between owners and contractors in a construction project.