Dispute resolution management for international construction projects in China

Abstract

PurposeUnfamiliar with the Chinese culture and ways of doing business, foreign architects/engineers/contractors (AEC) firms will encounter differences with the local parties. With reference to the characteristics of Chinese culture on disputes, this paper studies the problem areas of dispute and of resolving disputes in international construction projects in China. The objectives are to: examine the fundamentals of Chinese culture and ways of doing business; examine the characteristics of international projects and investigate any differences in the dispute problems arising from China International Projects; identify the most popular dispute resolution mechanism(s) for international projects in China; and recommend possible ways to reduce and resolve disputes of these projects.Design/methodology/approachAfter literature review, a questionnaire was designed for face‐to‐face interviews with 40 practitioners to collect their opinions.FindingsThe results show that the problem areas giving rise to disputes are mainly related to contractual matters. To reflect the characteristics of international projects in China, cultural and legal matters are also found to be the sources of problem. Arbitration is the most popular method, after negotiation, for resolving disputes in international construction projects in China.Research limitations/implicationsThe number of interviewees in this study could be improved and further study could include experts in Mainland China.Originality/valueThere is not much literature on dispute resolution management for international construction projects in China, with particular reference to cultural differences. This paper offers an invaluable reference for those foreign AEC firms interested in joining international projects in China.