Dispute avoidance model for Sri Lankan construction industry

Abstract

Construction disputes have become a major hindrance for the performance of construction projects. Most of the practices in construction projects have contributed to avoid disputes while serving its own purposes. It is still hard to find a construction project with no disputes due the existence of root causes for disputes. Many steps have been taken to introduce effective dispute resolution mechanisms giving more concern on cost, time and enforceability of the solution, which still contain many drawbacks in practical applications. This ways to ‘prevention is better than cure’ and thus the concept of dispute avoidance being emerged. The research therefore aims to develop a dispute avoidance model for Sri Lankan construction industry. Primarily, literature review was done in order to find the issues related to dispute and factors contributing to dispute avoidance. The review revealed that risk allocation, selection of contractors, quality of documentation, time management, and procurement method could contribute to dispute avoidance. A survey research approach was adopted and questionnaires were issues to the professionals who have experience in dispute management in Sri Lanka. The collected data was analysed statistically using t-test. The research proposed ‘Dispute Forecasting Session (DFS)’ as dispute avoidance model for Sri Lanka. The research revealed that DFS need to be carried out middle of the briefing stage, in between pre and post contract stage and beginning of post contract stage of the project. Further the research identified the participants to DFS in terms of each stage of construction project; in briefing stage client and consultant; in pre contract stage client, consultant and neutral third party; in post contract stage contractor, consultant, nominated subcontractor and neutral third party. In addition, the research participants identified the activities to be performed in each stage of projects in order to avoid deputes. Finally the research suggests to utilise the DFS dispute avoidance model which will forecast construction disputes, thereby avoiding the foreseen construction disputes in Sri Lankan construction industry.