Methods for Modeling and Evaluating Construction Disputes: A Critical Review

Abstract

Cost and time are the targeted outcomes of any successful construction project, and disputes over these two key factors constitute a major obstacle to successful project outcomes. As escalated levels of dispute are becoming increasingly unavoidable, the construction industry is aiming to develop dispute identification strategies to reduce and eliminate them during construction. However, existing research on construction disputes appears to give more consideration to dispute resolution than it does to avoiding conflict and preventing disputes from arising in the first place. This paper aims to minimize disputes during construction by addressing the causes of disputes during the pre-construction phase. As an integral part of ongoing research, it presents the results of a thorough study encompassing a critical review of previous research on construction disputes. Several conflicts and disputes are categorized and analyzed to allow for the future determination of their direct and/or indirect links to the pre-construction phase. This review also elaborates on the different methods of research adopted in the literature and the relevant research tools utilized. The research highlights the use of fuzzy logic coupled with structural equation modeling (SEM) as a recognized and valid modeling tool in construction projects, as it models and establishes an appropriate framework for dispute modeling and evaluation. The findings of this review therefore call for a further investigation of and deep research into the relationship between the characteristics of the pre-construction phase and the types of disputes and their likelihood of taking place during the construction phase itself. These findings can be utilized to develop an operational framework for predicting dispute occurrences during construction. The paper concludes by providing a developed hybrid fuzzy-SEM model to quantify the probability of dispute occurrence in construction projects, thereby enabling project stakeholders to predict, identify, and properly manage dispute occurrences during the pre-construction phase.

Causal Mapping to Explore Emergence of Construction Disputes

“…However, they lack a clear understanding of how those causes affect or trigger each other to form a dispute that prevents practical use of these findings. Regarding construction disputes, the literature is saturated with works identifying various causes and returning exhaustive lists of factors contributing to the occurrence of disputes (e.g., Jaffar et al, 2011;El-Sayegh et al, 2020;Naji et al, 2020;Viswanathan et al, 2020). Several researchers worked on developing a clear terminology and taxonomy to investigate the emergence of disputes and to identify "pathogenic influences" for dispute causation (e.g., Ilter, 2012;Love et al, 2010).…”

“…Several researchers worked on developing a clear terminology and taxonomy to investigate the emergence of disputes and to identify "pathogenic influences" for dispute causation (e.g., Ilter, 2012;Love et al, 2010). Vari-ous researchers attempted to explore this phenomenon by adopting different methods such as process models (Mitropoulos & Howell, 2001), fuzzy fault trees Cheung & Pang, 2013), analytic hierarchy process (Acharya et al, 2006;Creed & Joon, 2009) subject matter and diagnostic approach (Cheung, 2014), analytic induction (Love et al, 2011), logistic regression (Diekmann & Girard, 1995), structural equation modelling (Molenaar et al, 2000;Naji et al, 2020), root cause analysis (Parchami Jalal et al, 2019;Arif & Saeed, 2021), cognitive mapping and system dynamic simulation modelling (Ackermann et al, 1997) and interpretive structuring modelling (ISM) (Viswanathan et al, 2020). Anatomy model by Cheung and Pang (2013) includes five levels of dispute hierarchy and systematic hierarchy model by Viswanathan et al (2020) is constructed through ISM.…”

“…,Love et al (2010),Sabri et al (2019),Viswanathan et al (2020),Naji et al (2020) Lack of involvement of inputs from all groupsMolenaar et al (2000),Love et al (2010) Insufficient financial planningMolenaar et al (2000),Ashworth (2005), El-Sayegh et al (2020) Project uncertainty Mitropoulos and Howell (2001), Cheung and Yiu (2006), Love et al (2010), Cheung and Pang (2014) Bid development/ estimating errors Yates (1999), Ashworth (2005), Cheung and Yiu (2006), Sabri et al (2019) Errors in concept design/ planning Yates (1999), Ashworth (2005), Acharya et al (2006), Waldron (2006), Sabri et al (2019), El-Sayegh et al (2020) Unfamiliarity with local conditions Chan and Suen (2005) Construction Contract Unclear scope definition Ashworth (2005), Chan and Suen (2005), Acharya et al (2006), Ilter (2012), El-Sayegh et al (2020)…”

“…,Acharya et al (2006),Adriaanse (2005),Cheung and Yiu (2006),Waldron (2006),Love et al (2010),Naji et al (2020) Public interruptions/municipality approvalsAcharya et al (2006), El-Sayegh et al (2020) Environmental issues Acharya et al (2006), El-Sayegh et al (2020) Site limitations / differing conditions Acharya ey al. (2006), Waldron (2006), Love et al (2010), El-Sayegh et al (2020) Internal Design errors by contractor Watts and Scrivener (1995) Incomplete or substandard information Yates (1999), Molenaar et al (2000), Chan and Suen (2005), Waldron (2006), Ilter (2012), El-Sayegh et al (2020) Delayed design information or drawings Hewitt (1991), Kumaraswamy (1997), Yates (1999), Adriaanse (2005), Acharya et al (2006) Nonexistence of previous similar projects (Pioneer project) Molenaar et al (2000) Design and construction complexity Molenaar et al (2000) Size (scale of project) Molenaar et al (2000) Material testing technique Acharya et al (2006) Low-quality/ defective works by contractor Adriaanse (2005), Ashworth (2005), Acharya et al (2006), Chan and Suen (2005), Love et al (2010), Sabri et al (2019)Difference in construction techniqueAcharya et al (2006) …”

“…management Molenaar et al (2000),Chan and Suen (2005),Acharya et al (2006),Ilter (2012) Employer's lack of experience with project and contract typeLove et al (2010),Molenaar et al (2000),Viswanathan et al (2020) Confusing requirements of employerAcharya et al (2006) Acceleration of works by employerHewitt (1991),Semple et al (1994),Acharya et al (2006),Naji et al (2020) Disruption of progress by employerHewitt (1991),Ashworth (2005),Cheung and Yiu (2006) Suspension of works by employer/ stoppageHewitt (1991),Watts and Scrivener (1995),Acharya et al (2006),Viswanathan et al (2020) Postponement of part of the project by employerYates (1999) Delays in approvals by employerHewitt (1991),Yates (1999), Adriaanse (2005), Acharya et al (2006), Waldron (2006), El-Sayegh et al (2020), Viswanathan et al (2020) Delays in payment by employer Hewitt (1991), Watts and Scrivener (1995), Sheridan (2003), Adriaanse (2005), Ashworth (2005), Chan and Suen (2005), Acharya et al (2006), Cheung and Yiu (2006), Love et al (2010), Naji et al (2020), Viswanathan et al (2020) Contractor Contractor's incapable management Yates (1999), Molenaar et al (2000), Chan and Suen (2005), Acharya et al (2006), Love et al (2010), El-Sayegh et al (2020), Viswanathan et al (2020) Contractor's lack of experience with project and contract type Molenaar et al (2000) Contractor's inexperience/ incompetence Molenaar et al (2000), Acharya et al (2006), Ilter (2012), Sabri et al (2019), El-Sayegh et al (2020), Viswanathan et al (2020) Contractor's familiarity with local conditions Ilter (2012) Contractor Contractor's negligence Watts and Scrivener (1995), Acharya et al (2006) Delays by contractor Hewitt (1991), Watts and Scrivener (1995), Yates (1999), Adriaanse (2005), Ashworth (2005), Acharya et al (2006), Cheung and Yiu (2006), Sabri et al (2019), Naji et al (2020), Viswanathan et al (2020) Contractor's insufficient financial resources Mitropoulos and Howell (2001), Acharya et al (2006), Love et al (2010), El-Sayegh et al (2020), Naji et al (2020) Subcontractor inefficiency/ inadequacy Ashworth (2005), Acharya et al (2006), Sabri et al (2019) Insufficient site management Ashworth (2005), Acharya et al (2006), El-Sayegh et al and Suen (2005), Acharya et al (2006), Love et al (2010), Viswanathan et al (2020) Engineer's inexperience with project typeMolenaar et al (2000),Ashworth (2005) Eng...…”