Abstract
One of the most important issues in dispute resolution is deciding which method or methods are most appropriate for a particular dispute. The purpose of this study is to identify appropriate dispute resolution methods based on the source of construction disputes to help contractors and owners to choose the most effective resolution method for the disputes. Previous studies addressing appropriate dispute resolution methods have compared various methods, but this research paid attention that different problems require different solutions and takes its point of departure by introducing appropriate dispute resolution methods based on their sources thus increasing the quality and effectiveness of the dispute resolution process. Qualitative data were collected using semi-structured interviews with 30 experts from five construction groups in Iran by applying a purposive sampling method. Qualitative content analysis and inductive approach were used to analyze the data. Furthermore, Maxqda software was used to manage and organize complete interview transcripts and facilitate the data analysis process. This research has identified four main sources of disputes in the construction industry namely; contractual, owner behavioral, contractor behavioral, and uncertainty sources. The research finding suggests that the selection of appropriate dispute resolution based on the type of disputes could enhance success in resolving disputes, perhaps without having to resort to Arbitration.
Similar content being viewed by others
Notes
In Iran, this is the Management and Planning Organization.
References
AAA (2004) Glossary of dispute resolution terms. American Arbitration Association, New York
Acharya NK, Dai Lee Y, Man Im H (2006) Conflicting factors in construction projects: korean perspective. Eng Constr Archit Manag 13(6):543–566. https://doi.org/10.1108/09699980610712364
ASFE. (1988). Alternative dispute resolution for the construction industry. Associated soil and foundation engineers published by the association of engineering firms practicing in the geosciences. Silver Springs, MD: Author
Barnett RS (1997) Alternate dispute resolution: a growth industry. Build Des Constr 38(3):44
Berman GS (1995) Facilitated negotiation: an effective ADR technique. Dispute Resolut J 50:18–18
Braun J (1998) Arbitration-promises made, promises broken. Public Manag 80:9–11
Brooker P, Lavers A (1997) Perceptions of alternative dispute resolution as constraints upon its use in the UK construction industry. Constr Manag Econ 15(6):519–526
Brown HJ, Marriott AL (2018) ADR principles and practice. Sweet & Maxwell, London
Brunet EJ, Craver CB (2001) Alternative dispute resolution: the advocate’s perspective. Lexis Nexis Matthew Bender, New York
Carmichael DG (2002) Disputes and international projects. CRC Press
Chaphalkar NB, Patil SK (2012) Decision support system for dispute resolution in construction contracts. KSCE J Civ Eng 16(4):499–504. https://doi.org/10.1007/s12205-012-1303-4
Chaphalkar NB, Iyer KC, Patil SK (2015) Prediction of outcome of construction dispute claims using multilayer perceptron neural network model. Int J Proj Manag 33(8):1827–1835. https://doi.org/10.1016/j.ijproman.2015.09.002
Cheung SO, Pang KHY (2012) Anatomy of construction disputes. J Constr Eng Manag 139(1):15–23. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000532
Cheung S, Tam C, Ndekugri I, Harris F (2000) Factors affecting clients’ project dispute resolution satisfaction in Hong Kong. Constr Manag Econ 18(3):281–294
Chong HY, Rosli MZ (2009) The behaviour of dispute resolution methods in Malaysian construction industry. In: Industrial engineering and engineering management, 2009. IEEM 2009. IEEE international conference on (pp. 643–647). IEEE. doi: https://doi.org/10.1109/IEEM.2009.5373253
CII (1995) Dispute prevention and resolution techniques in the construction industry. Prepared by the dispute prevention and resolution research team, Construction industry institute, research summary 23–1, The University of Texas at Austin, Texas
Colosi, T. (1999). A core model of negotiation. Negotiation Readings, Exercises, and Cases, 313–319.
Coulson R (1986) Business Arbitration–what you need to know. American Arbitration Association, New York
Cox RK (1997) Managing change orders and claims. J Manag Eng 13(1):24–29. https://doi.org/10.1061/(ASCE)0742-597X(1997)13:1(24)
Cronin-Harris C (1995) Mainstreaming: systematizing corporate use of ADR. Alb L Rev 59:847
Currie OA, Robey RG (1988) Winning strategies in construction negotiations, Arbitration, and litigation. Constr Contracts Litig 911–960
Cushman RF, Carter JD, Gorman PJ, Coppi DF (2001) Construction disputes: representing the contractor. Aspen Publishers Online
Dawson B (2007) Scope for improvement: a survey of pressure points in Australian construction and infrastructure projects. Blake Dawson Waldron Lawyers, Sydney
DiDonato L (1993) Alternate methods to resolve contract disputes: Approaches to effective prevention. Am Assoc Cost Eng
Diekmann JE, Nelson MC (1985) Construction claims: frequency and severity. J Constr Eng Manag 111:74–81
Ellison SD, Miller DW (1995) Beyond ADR: working toward synergistic strategic partnership. J Manag Eng 11(6):44–54. https://doi.org/10.1061/(ASCE)0742-597X(1995)11:6(44)
Erdis E, Ozdemir SA (2013) Analysis of technical specification-based disputes in construction industry. KSCE J Civ Eng 17(7):1541–1550. https://doi.org/10.1007/s12205-013-0016-7
Fenn P, Davies E, O’Shea M (1998) Dispute resolution and conflict management in construction: an international review. Routledge, Taylor & Francis
Gad GM (2012) Effect of culture, risk, and trust on the selection of dispute resolution methods in international construction contracts. Grad Theses Dissertations 1232
Gad GM, Shane JS (2017) Culture-risk-trust model for dispute-resolution method selection in international construction contracts. J Leg Aff Dispute Resolut Eng Const 9(4):
Gillie P, Goetz P, Muller F, Feinberg KR (1991) Using mediation to resolve construction disputes. Altern Dispute Resolut Constr Ind 153–210
Glasner K (2000) Contract disputes: the role of ADR. Dispute Resolut J 55(3):50
Groton JP (1997) ADR in the Construction Industry. Dispute Resolut J 52:48–57
Groton JP, Blumenfeld A, Ratterman D (2005) How to keep your project out of litigation, Arbitration, and even mediation. In: CII annual conference-leadership of tomorrow: Bridging the Gap Grapevine, Texas
Harmon KM (2003) Resolution of construction disputes: a review of current methodologies. Leadersh Manag Eng 3(4):187–201. https://doi.org/10.1061/(ASCE)(2003)3:4(187)
Hartman F, Snelgrove P (1996) Risk allocation in lump-sum contracts-concept of latent dispute. J Constr Eng Manag 122(3):291–296
Hasheminasab S, Mortaheb M (2014) Causes of common and frequent claims in oil, gas and petrochemical projects of Iran. KSCE J Civ Eng 18(5):1270–1278. https://doi.org/10.1007/s12205-014-0422-5
Hibberd P, Newman P (1999) ADR and adjudication in construction disputes. Wiley-Blackwell, New Jersey
Hoctor D (1989) Techniques for resolution of major construction contract disputes. Public Works Fortn 123(9):26–30
Jahren CT, Dammeier BF (1990) Investigation into construction disputes. J Manag Eng 6(1):39–46
Keil JH (1999) “Hybrid ADR” in the construction industry. Dispute Resolut J 54(3):14–22
Kumaraswamy MM (1997) Common categories and causes of construction claims. Constr Law J 13:21–34
Kumaraswamy MM, Yogeswaran K (1998) Significant sources of construction claims. Int Constr Law Rev 15:144–160
LTSF (2013) The ninth annual report of the LTSF. Litigation trends survey findings. Fulbright and jaworski L.L.pp. From: www.fulbright.com
Lu W, Zhang L, Pan J (2015) Identification and analyses of hidden transaction costs in project dispute resolutions. Int J Proj Manag 33(3):711–718. https://doi.org/10.1016/j.ijproman.2014.08.009
Lyons J (1985) Arbitration: the slower, more expensive alternative?. Am Law 107
Macneil IR (1974) Restatement (second) of contracts and presentiation. Va Law Rev. https://doi.org/10.2307/1072414
Menassa CC (2009) Quantitative framework to evaluate alternative dispute resolution investments in architecture engineering and construction projects using option and real option theory. ProQuest LLC. 789 east eisenhower parkway, PO Box 1346, Ann Arbor, MI 48106
Mitkus S, Mitkus T (2014) Causes of conflicts in a construction industry: a communicational approach. Procedia-Social Behav Sci 110:777–786. https://doi.org/10.1016/j.sbspro.2013.12.922
Mitropoulos P, Howell G (2001) Model for understanding, preventing, and resolving project disputes. J Constr Eng Manag 127(3):223–231. https://doi.org/10.1061/(ASCE)(2001)127:3(223)
Mohd Danuri MS, Hussain SM, Suhaimi M, Mustaffa NE, Jaafar MS (2010) Growth of dispute avoidance procedure in the construction industry: a revisit and new perspectives. Const LJ 26(5):347–361
Mohd Danuri MS, Mohd Ishan Z, Mustaffa NE, Abd-Karim SB, Mohamed O, A-Rahmin , RA (2015) Dispute avoidance procedure: observing the influence of legal culture towards a workable legal system. Pertan J Soc Sci Humanit 23(2):509–535
MPO (2000) Aeinnâmehe ravesh kâre shurâye fani ostân [Procedural Regulations for Technical Council of Provinces]. Circular No.102/1315-51/213, 31 May 2000. Management and Planning Organization, Tehran
MPO (2007) Nezâmeh fani v egrâye kashvar [Country Technical and executive system], Circular No.ه 3497ت/42339-11 July 2006. Management and Planning Organization Tehran. http://tec.mporg.ir/Portal/View/Page.aspx?PageId=24cddfab-d2f8-4ff9-a473-2176d7a24686
Nelson S (2003) Advanced legal concepts-CE 395U.3 class notes. University of Texas at Austin, Austin, TX
Neuman WL (2005) Social research methods: quantitative and qualitative approaches, vol 13. Allyn and Bacon, Boston
Ock JH, Han SH (2003) Lessons learned from rigid conflict resolution in an organization: construction conflict case study. J Manag Eng 19(2):83–89
Ojiako U, Chipulu M, Marshall A, Williams T (2017) An examination of the ‘rule of law’and ‘justice’implications in online dispute resolution in construction projects. Int J Proj Manag 36:301–316
Omoto T, Kobayashi K, Onishi M (2002) Bargaining model of construction dispute resolution. In: Systems, man and cybernetics, 2002 IEEE international conference on Vol. 7, pp. 6-pp. IEEE
Park CY, Han SH, Lee KW, Lee YM (2017) Analyzing drivers of conflict in energy infrastructure projects: empirical case study of natural gas pipeline sectors. Sustainability 9(11):2031. https://doi.org/10.3390/su9112031
Pena-Mora F, Sosa CE, McCone DS (2003) Introduction to construction dispute resolution. Prentice Hall. https://doi.org/10.7916/D8CZ3CTJ
Peña-Mora F, Tamaki T (2001) Effect of delivery systems on collaborative negotiations for large-scale infrastructure projects. J Manag Eng 17(2):105–121
Qu Y, Cheung SO (2013) Experimental evaluation of logrolling as an effective mediating tactic in construction project management. Int J Proj Manag 31(5):775–790. https://doi.org/10.1016/j.ijproman.2012.05.003
Reuben RC (1996) Lawyer turns peacemaker. ABAJ 82:54
Richter IE (2000) The project neutral: neutralizing risk, maintaining relationships and watching the bottom line. Constr Bus Rev 8(2):52–54
Ross D (n.d.) Construction disputes resolution. From http://www.layngross.com
Rubin RA, Fairweather V, Guy SD (1999) Construction claims: prevention and resolution. Wiley, New Jersey
Saeb A (2019) Enhancement of dispute resolution mechanism in the iranian construction industry. Doctoral thesis. University of Malaya
Saeb A, Mohameda O, Danuri MM, Zakariac N (2018) Critical factors for selecting a neutral to support alternative dispute resolution methods in the construction industry. Civ Eng J 4(1):11–23
Saeb A, Mohamed O, Danuri MSM, Zakaria N (2018b) Development of alternative dispute resolution in the Iranian construction industry. Malays Constr Res J (MCRJ) 25
Sander FE, Rozdeiczer L (2006) Matching cases and dispute resolution procedures: detailed analysis leading to a mediation-centered approach. Harv Negot L Rev 11:1
Saunders MN, Saunders M, Lewis P, Thornhill A (2011) Research methods for business students, 5/e. Pearson Education India, Delhi
Shadbolt RA (1999) Resolution of construction disputes by disputes review boards. Int Constr Law Rev 16:101–111
Shin KCK (2000) Identification of critical dispute characteristics (CDCs) during construction project operations (Doctoral dissertation, Georgia Institute of Technology)
Song X (2013) The application of insurance as a risk management tool for alternative dispute resolution (ADR) implementation in construction disputes (Doctoral dissertation, Columbia University)
Sourdin TM (2006) Legislating for alternative dispute resolution: a guide for government policy makers and legal drafters
Steen RH, MacPherson RJ (2000) Resolving construction disputes out of court through ADR. J Prop Manag 65(5):58–58
Stipanowich T (1987) Arbitration and the multiparty dispute: the search for workable solutions. Iowa Law Rev 72:473
Storskrubb E (2016) Alternative dispute resolution in the EU: regulatory challenges. Euro Rev Priv Law 24(1):7–31
Sykes J (1996) Claims and disputes in construction. Constr Law J 12(1):3–13
Thomas HR, Smith GR, Mellott RE (1994) Interpretation of construction contracts. J Constr Eng Manag 120(2):321–336
Thompson PJ, Sanders SR (1998) Peer-reviewed paper: partnering continuum. J Manag Eng 14(5):73–78. https://doi.org/10.1061/(ASCE)0742-597X(1998)14:5(73)
Trantina TL (2003) An attorney's guide to alternative dispute resolution (ADR):" ADR 1.01"
Treacy TB (1995) Use of alternative dispute resolution in the construction industry. J Manag Eng 11(1):58–63. https://doi.org/10.1061/(ASCE)0742-597X(1995)11:1(58)
Trochim WM, Donnelly JP (2001) Research methods knowledge base. http://www.socialresearchmethods.net/kb/sampnon.php
Vidogah W, Ndekugri I (1998) Improving the management of claims on construction contracts: consultant’s perspective. Constr Manag Econ 16(3):363–372
Vorster MC (1993) Dispute prevention and resolution. Construction Industry Institute
Ware SJ (2001) Alternative dispute resolution (Contributions in American History). West Group. ISBN
Williamson O (1979) Transaction cost economics: the governance of contractual relations. J Law Econ 22(2):233–261
Xinhua H (2010). A framework of dispute avoidance and resolution of construction project management. Paper presented at the management and service science (MASS), 24–26 Aug 2010 international conference on. doi: https://doi.org/10.1109/ICMSS.2010.5577879
Yousefi S (2009) Attitude-based strategic and tactical negotiations for conflict resolution in (Doctoral dissertation, University of Waterloo)
Yousefi S, Hipel KW, Hegazy T (2010) Attitude-based strategic negotiation for conflict management in construction projects. Proj Manag J 41(4):99–107
Zack JG (1995) Practical dispute management. Cost Engineering-Morgantown 37(12):55–60
Zack JG (1997) Claims prevention: offense versus defense. Cost Engineering-Morgantown 39(7):23–27
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Saeb, A., Mohd Danuri, M.S. & Mohamed, O. Selecting the Appropriate Method for Resolving Construction Disputes in Iran. Iran J Sci Technol Trans Civ Eng 45, 2017–2033 (2021). https://doi.org/10.1007/s40996-020-00553-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s40996-020-00553-z