Supply chain risk management for minimizing disputes in construction projects in Sri Lanka

Abstract

Construction projects are inherently exposed to numerous risks throughout their lifecycle due to their complexity and the involvement of multiple stakeholders. Effective supply chain risk management (SCRM) is crucial to mitigate time delays and cost overruns, which can ultimately lead to project failure if not properly addressed. Despite advances in theoretical risk management frameworks, a gap remains between theory and practice, with many practitioners relying on experience rather than systematic approaches. The aim of this research to investigate how supply chain risk management can be utilized to minimized disputes in construction projects in Sri Lanka. This dissertation employs a mixed-method research design, integrating qualitative and quantitative techniques to investigate the role of SCRM in minimizing disputes within Sri Lankan construction projects. A systematic literature review identified key supply chain risk factors and mitigation practices, while structured surveys and semi- structured interviews with industry professionals provided empirical data for validation. The findings reveal that cash flow problems, poor site management, labour shortages, and material shortages are the most critical risks, based on their high impact and likelihood scores. These risks are primarily internal and manageable within project boundaries. The research also highlights the fragmented nature of the construction supply chain and its reliance on multiple stakeholders, which contributes to vulnerabilities in operational efficiency, financial stability, legal compliance, and environmental preparedness. Proactive mitigation strategies such as effective project planning, stakeholder communication, and regular equipment maintenance are identified as the most effective in managing these risks. The dissertation concludes with practical recommendations for strengthening financial frameworks, enhancing workforce capabilities, optimizing material supply chains, and integrating environmental and regulatory risk management to improve project performance and reduce disputes in Sri Lankan construction projects.