Abstract:
Disputes free subcontract is a key to success of modern construction industry which
largely depends on subcontracting. Since this effort has to be made on the expense of
time and cost, which can be used otherwise to add more value to the project, it is vital
to decide an effective mechanism to mitigate subcontract disputes. Considering the need
for addressing this fact, this paper aims to investigate causes of subcontract disputes
and effective prevention measures. Mixed approach was followed in order to achieve the
aim of the study. Thus, a preliminary survey was conducted to validate literature findings
and a questionnaire survey was carried out with contractor and subcontractor
representatives to identify causes of subcontract disputes and prevention measures. The
findings of the preliminary survey were analysed using content analysis technique and
data captured through questionnaire survey was evaluated using relative important
index and weighted mean. Incompleteness of the contract was identified as the primary
reason of disputes in subcontracts. Further, financial issues, risks and uncertainties,
collaborative conflicts, opportunistic behaviours of contracting parties and wrong
practices also have a significant impact on occurrence of disputes. Proper contract
management and proper site management which includes scheduling and effective
project management practices were identified as the most effective prevention measures.
The contract administrators should identify the things they should necessarily address
in the contract and project managers in dispute prevention regards should consider time
and cost constraints to prioritize effective prevention measures.
