Tackling the impacts of Covid-19 on construction projects: an exploration of contractual dispute avoidance measures adopted by construction firms

Abstract

This study explores the measures that construction businesses are putting in place to mitigate the risks of litigation associated with potential contract breaches due to COVID-19. Field study and survey research was used to accumulate data for the preliminary study phase, whose results were used in the construction of the research questionnaire to elicit responses for the qualitative study phase. Using descriptive statistics, exploratory factor analysis and reliability analysis, data from the quantitative research study phase was analysed to reveal the top and underlying strategies adopted by the construction firms in avoiding contractual disputes. These adopted strategies include maintaining good relationship with contractual partners, quick report of any potential for dispute, collaboration with contractual parties for goodwill, early decision on site closure and studying of contractual terms for notice period information. Following the discussion on the underlying measures, the top-rated adopted strategies were identified and discussed in the paper. This study provides an opportunity to learn from the measures adopted by construction firms in avoiding contractual disputes precipitated by the Covid-19 pandemic. This will aid the companies in minimizing risks, reduce spending and uncertainties in order to focus attention on maintaining existing contractual relationships to secure future businesses.