Competence as a Key Factor in Causal Mechanisms of Construction Disputes

Abstract

Construction disputes appear ubiquitous in megaprojects, but, they are undesirable due to their negative consequences which include project cost escalation and project delays. Reducing, or better still eliminating, disputes in projects is a desirable indicator of project performance. Much of the previous research on construction disputes has focused on identifying general sources of construction disputes and has tended to deal with immediate causes and ignored root causes of construction disputes. Better understanding of construction disputes can be achieved by understanding the entire causation mechanism of construction disputes right from the root cause through to the immediate cause. Such an understanding will facilitate efficient approaches to managing disputes. In this paper we present research undertaken to elucidate root causes of important disputes in one case study of a megaproject in a developing country. Secondary data including project reports, contract documents, minutes of meetings, and project communications were collected and analyzed using inductive thematic analysis. Using the concept of a mechanism, we reveal a root cause of construction disputes, namely, limited competence of internal project stakeholders. Hence, we put a spotlight on the need to improve competence of construction professionals in the areas of construction contracts, procurement management, contract administration, and project governance. We argue that focus on the preceding areas of competence and deployment of these competences throughout the lifecycle of megaprojects will reduce disputes and improve project performance. This paper highlights the mechanism through which significant disputes arose in an infrastructure megaproject. It promotes the idea that avoidance/elimination of the root cause of the dispute can mitigate dispute occurrence and improve overall project performance. The study reveals lack of competence among project delivery stakeholders especially the client, consultant, and contractor as a root cause of construction disputes. The paper demonstrates that improved project performance can be achieved with increased competence of internal project stakeholders not only in the early stages of the project but throughout the project lifecycle.