Influence of Perceived Fairness on Contractors’ Potential to Dispute: Moderating Effect of Engineering Ethics

Abstract

The relationship between the perceived fairness of administering projects’ claims and contractors’ reduced potential to disputes is probably missing in published literature in the context of engineering ethics. In the current research, the moderating effect of engineering ethics is explored in relationship between perceived fairness and contractors’ reduced potential to dispute. The data are gathered from 90 contract administrators in the construction industry of Pakistan. The results depict that decision outcome fairness, procedural fairness, quality of treatment experienced, and control indicate a significantly positive effect on the contractors’ reduced potential to disputes. Additionally, engineering ethics positively moderated the relationship between the quality of treatment experienced and contractors’ reduced potential to disputes. These results can guide project management teams to diminish the contractors’ perceptions concerning construction claims and disputes.