Relationship networks between variation orders and claims/disputes causes on construction project performance and stakeholder performance

Abstract

PurposeThis study aims to examine the mutual influence of causes of variation orders (VOs), claims/disputes (CDs) on project performance (PP) and stakeholder performance (SP).Design/methodology/approachFirstly, this study identifies the VOs, the CDs, criteria for measuring the PP and criteria for measuring the SP. Then, a survey questionnaire is created to collect data from stakeholders in construction projects. Using the factor analysis method, this study discovers the constructs of the VOs, CDs, PP and SP. The relationships among the constructs are then uncovered using a structural equation model.FindingsThe research findings confirm that the VOs and CDs have a direct effect on the PP, as well as the PP’s effect on SP, whereas the VOs and CDs have no effect on the SP. It is strongly recommended that critical factors such as poor management, construction method change, design/scope problems, uncontrollable objective problems, impediment problems, lack of commitment among parties and lack of experience and competence of parties should be given special attention to improve the SP.Originality/valueThe results of the study fill the gap in knowledge by examining the mutual influence of the VOs, the CDs, the PP and the SP. Discovering the mutual influence will assist managers in improving the PP and the SP.