Multihybrid Dispute Resolution Framework for Projects of Downstream Sector of Petroleum Industry

Abstract

Disputes are inevitable in construction projects, and planning to manage them is considered as a significant problem of project contract management. In this knowledge area of project management, there are two distinguishable subjects: diverse types of disputes and different methods for addressing them. The main purpose of the current investigation is to recognize the most frequent disputes in projects of the downstream sector of the petroleum industry and the early assignment of the most appropriate alternative dispute resolution (ADR) methods to them in the precontract phase. For this purpose, available dispute resolution methods were investigated and some alternatives were selected. Concurrently, and based on the expert judgment, various types of disputes in these projects were categorized, and a dispute breakdown structure (DBS) is proposed. Finally, by mapping resolution options with potential disputes using the Delphi process, a multihybrid framework was developed for resolving disputes in the downstream sector of the petroleum industry in an appropriate and optimum way. This framework which should be translated to the contract legal language in practice and subsequently be inserted into construction agreement as a clause, potentially can be customized for various types of projects.