Construction disputes in small to medium enterprise’s in Ireland during recession

Abstract

Purpose This paper aims to identify the critical factors causing construction disputes in small to medium enterprises (SMEs) in Ireland during the recent recession period from 2007 to 2013. Design/methodology/approach This study used a mixed-method approach incorporating a literature review, case studies and questionnaire survey, with results analysed using exploratory (data reduction) factor analysis. Findings The results indicate seven core critical factors which result in construction disputes in SMEs in Ireland during a recession: payment and extras; physical work conditions; poor financial/legal practise; changes to the agreed scope of works; time overrun; defects; and requests for increase in speed of project and long-term defects. Research Limitations/implications With Ireland emerging from the current economic recession and the prevalence of SMEs in the construction sector, it is essential to document the core critical factors of construction disputes which emerge within this particular segment of the built environment. Practical Implications To address the adversarial nature of the construction sector and the prevalence of SMEs, it is essential to identify and document the critical factors of construction disputes within this remit. It is envisaged that the results of this research will be acknowledged, and the recommendations adopted, by construction SMEs, particularly within Ireland, as they emerge from the economic recession. Originality/value This paper fulfils a gap in knowledge with the emergence of the economic recession and the identification of critical factors of construction dispute within SMEs in the Irish construction industry.