Contractual Governance for Dispute Resolution and Construction Sustainability: Case Studies from China

Abstract

Disputes may disturb construction projects and stakeholders, and they may cause tremendous losses that hinder the sustainable development of construction. Therefore, contractual governance is significant in construction projects as a crucial method of dispute management. However, the interrelation of contract and dispute management has not been studied theoretically and comprehensively. In this regard, this paper aimed to propose a framework for dispute governance, including governance structures (GSs), governance mechanisms (GMs) and an additional conceptual model, by using a literature analysis method. The results suggest that dispute structures based on owner-centered (OC), owner- and supervisor-decentralized (OSD) and additional independent representatives (AIRs) are often used. Each kind of GS can be applied in a specified project. On the other hand, we considered that GSs could be divided into an external GS and an internal GS, which played different roles in motivation mechanisms. In addition, a conceptual model was developed through literature analysis. Case studies were presented to investigate the relationship between the GS and GM. Then, specified GMs were identified from case studies of Chinese construction contracts. Current research can provide valuable information allowing for contract drafters and managers to realize the sustainable development of projects.