Management of disputes due to COVID-19 in the Sri Lankan construction industry : contractors' perspective

Abstract

The rapid socio-economic transformations brought about by the COVID-19 pandemic adversely affected the construction industry, leading to a notable increase in disputes as unprecedented circumstances created conditions conducive to conflict. The industry, however, lacked adequate preparedness to respond, given the absence of comparable experiences in recent decades, and existing research on managing disputes in construction projects during pandemic situations remained limited. Addressing this gap, the present study investigates how disputes triggered by COVID-19 can be effectively managed within the Sri Lankan construction industry from the contractors’ perspective. A qualitative approach was adopted, involving two rounds of semi- structured expert interviews conducted using the Delphi technique, and the findings were analysed through manual content analysis. The study identified six (6) notable positive impacts and twelve (12) notable negative impacts of COVID-19 on the construction industry and further revealed twelve (12) important causes of disputes including escalation of project cost, delays in completing the contract and temporary suspension of work that emerged during the pandemic. Thirteen (13) preventive measures were categorised under each important cause. From the contractors’ perspective, the need for regulatory bodies such as CIDA to take the lead in issuing updated guidelines and revising contractual provisions, the importance of recruiting competent contract administration teams within contracting organisations, and the value of maintaining strong relationships with project stakeholders facing similar challenges were identified as suitable preventive measures for managing disputes during a pandemic. Accordingly, the study recommends strengthening contractual and regulatory frameworks, enhancing stakeholder communication, developing competent contract administration teams, investing in research and technology, and improving industry preparedness to support effective dispute management during future pandemics. As future pandemics and global disruptions become increasingly likely, this research provides essential practical and theoretical guidance to help industry stakeholders strengthen preparedness and mitigate dispute-related risks. Its insights extend beyond the COVID-19 context, contributing to enhancing the construction industry’s capacity to respond effectively to similar crises in the future.