Quantitative analysis of construction-related legal cases in New Zealand

Abstract

The construction industry in New Zealand (NZ) plays a significant role in the country's economy. Similar to many other countries around the world, the construction industry in NZ is also prone to many disputes, which sometimes end up in courts. To investigate comprehensively about the disputes in the construction industry, several researchers have analysed court cases internationally. There is only a limited number of studies in NZ construction industry that followed court case analysis. This study has been carried out in search of quantitative aspects of 35 construction industry-related court cases in NZ. Based on the studied 35 court cases in NZ, majority of them has fallen into the area of payment issues, quality of works and variation entitlements. Poor contract understanding and administration, contractor's quality of work and poor contract arrangement have been identified as the most recurring primary causes of disputes. Further, the majority of cases that were heard before NZ courts had followed lumpsum contracts and traditional procurement route. The findings of this study is beneficial to the construction industry practitioners to avoid disputes by early identification of common issues in the industry.