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Identification of causes of dispute and effectiveness of resolution mechanism in Indian construction industry

By: Mohd. Farhan.
Contributor(s): Tawalare, Abhay.
Publisher: Pune NICMAR 2015Edition: Vol.30(2), Apr-Jun.Description: 27-36p.Subject(s): Construction Engineering and Management (CEM)Online resources: Click here In: NICMAR Journal of construction managementSummary: Conflict and disputes are inevitable to the construction industry. Disputes lead to the disruption of construction schedules, increased project costs, and adversely influence relationships between project participants. This paper reviews various sources of construction disputes and the methods of dispute resolutions adopted by construction industry worldwide. This paper aims to identify the causes of construction disputes in India and to evaluate the effectiveness of existing practice of disputes resolution methods in Indian construction projects. The study is based on a questionnaire survey. The data was gathered and analyzed by using mean, standard deviation and relative importance index (RII).The results show that changes of scope due to extra work, errors, defects and omissions, contract documents, difference in interpretation of the contract conditions between parties, issues regarding quality of work are critical causes of disputes and 'negotiation' is the most preferred option of dispute resolution in Indian construction industry.
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Conflict and disputes are inevitable to the construction industry. Disputes lead to the disruption of construction schedules, increased project costs, and adversely influence relationships between project participants. This paper reviews various sources of construction disputes and the methods of dispute resolutions adopted by construction industry worldwide. This paper aims to identify the causes of construction disputes in India and to evaluate the effectiveness of existing practice of disputes resolution methods in Indian construction projects. The study is based on a questionnaire survey. The data was gathered and analyzed by using mean, standard deviation and relative importance index (RII).The results show that changes of scope due to extra work, errors, defects and omissions, contract documents, difference in interpretation of the contract conditions between parties, issues regarding quality of work are critical causes of disputes and 'negotiation' is the most preferred option of dispute resolution in Indian construction industry.

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