Abstract
Claims and disputes occur frequently in the construction industry between different contracting parties, mainly the owner, the designer and the contractor. Consequently, valuable time and a significant amount of money are lost. The United Arab Emirates (UAE) construction industry, one of the most vibrant sectors globally, is experiencing a high level of construction disputes and claims. This paper aims to identify and assess the major causes of disputes in the UAE and weigh the effectiveness of the methods used for their avoidance and resolution. The sources of disputes, and their avoidance/resolution methods, were identified through a comprehensive literature review. A survey was then developed and sent to 150 construction professionals. Fifty-four responses were received and analyzed. The results show that the top five sources of disputes in the UAE are variations initiated by the owner, obtaining permit/approval from the municipality and other governmental authorities, material change and approval during the construction phase, the slowness of the owner in decision-making, and the short time available during the design phase. As for the avoidance and the resolution method, the most effective method was found to be negotiation.
Highlights
Disputes are common in the construction industry
Disputes have a devastating effect on construction projects, as they may result in cost overruns, delays, and loss of productivity
The major causes and leading methods of mitigation are identified from the available literature and publications. These findings provided the basis of a survey instrument conducted among the construction industry professionals in United Arab Emirates (UAE)
Summary
Disputes are common in the construction industry. Disputes arise due to disagreements between any of the contracting parties. Disputes have a devastating effect on construction projects, as they may result in cost overruns, delays, and loss of productivity. It is vital to understand the causes of disputes to complete a construction project within cost and time [1]. Construction disputes impact project objectives and strain relationships between contracting parties [2]. Conflicts disrupt the flow of work, resulting in additional costs, delays, and other negative impacts [5]. These problems might lead to construction claims and disputes. Disputes mainly arise from claims resulting from differing site conditions, delays, design errors or changes, acceleration or suspension of work, construction failures, and additional or deleted work [7]. Mitropoulos and Howell [8] suggested that the main factors that influence disputes are project uncertainty, opportunistic behavior, and contractual problems
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