Dispute causation: identification of pathogenic influences in construction

Abstract

PurposeWhile a considerable amount of knowledge has been accumulated about dispute causation, disputes continue to prevail and disharmonise the process of construction with considerable cost. This paper seeks to identify the underlying pathogens that clients and contractors perceive to contribute to disputes in construction projects. The identification of pathogens can provide an ameliorated understanding of the origin of disputes and therefore enable their prevention.Design/methodology/approachCase law and focus groups with a client and contracting organisation from Western Australia are used to determine the pathogens of disputes.FindingsAnalysis of the case law findings revealed that the underlying issues that were brought to litigation were to do with points of law, namely “civil procedure”. A significant number of disputes are thus settled using alternative dispute resolution methods such as adjudication, arbitration and mediation. For clients the underlying latent conditions that resulted in a dispute were due to the nature of the task being performed (e.g. failure to detect and correct errors) and those arising from people's deliberate practices (e.g. failure to oblige by contractual requirements). For the contractor focus group the circumstances arising from the situation or environment the project was operating in were identified as the main underlying latent condition for disputes (e.g. unforeseen scope changes).Research limitations/implicationsFocus groups are only undertaken with clients and contracting groups as they were identified as the main parties involved in dispute during the analysis of litigation cases within Western Australia. Input from consultants and subcontractors may provide a more balanced perspective as to the perceived causes and costs of disputes.Originality/valueThe research has been able to provide the initial building blocks for understanding the underlying pathogens contributing to disputes. However, more empirical research is required before conclusive findings can be made, particularly with regard to the influences on subcontractors.