AN INVESTIGATION INTO THE EXTENT OF USE OF DISPUTE RESOLUTION TECHNIQUES IN CONSTRUCTION PROJECTS

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AN INVESTIGATION INTO THE EXTENT OF USE OF DISPUTE RESOLUTION TECHNIQUES IN CONSTRUCTION PROJECTS

 

ABSTRACT

Construction projects are increasingly becoming complex, resulting in complex contract documents. Complex construction can likewise result in complex disputes. Disputes are inevitable in construction projects which predominantly arise from complexity and magnitude of works, multiple prime contracting parties, poorly prepared and/ or executed contract documents, inadequate planning, financial issues and communication problems. Depending on the nature of the relationship between the parties involved in the disputes and the circumstances under which the dispute is evolved, different methods of dispute resolution techniques may be preferable. The objective of this study is to identify the cause of dispute, to identify the existing practice of dispute resolution techniques in construction projects, to evaluate the prevailing dispute handling methods and recommend the most appropriate method. The method adopted for the study was through questionnaire survey where the target respondents were clients, consultants and contractors. Based on the analysed data, there are disputes caused by the clients, consultants and contractors which are capable of resulting to loss of reputation and sour relationship between the stakeholders and also loss of profit and business viability. Negotiation was observed as the most appropriate method of dispute resolution in construction projects in Nigeria as it non time consuming, cost effective and restores business relationship. From the findings it can be concluded that construction disputes are a cause of concern in every project and the solution to this problem is to avoid and cautiously manage them for smooth running of construction process.

 

TABLE OF CONTENTS

TITLE PAGE ………………………………………………………………………………………………….                      i

DECLARATION ……………………………………………………………………………………………                       ii

CERTIFICATION ………………………………………………………………………………………….                        iii

DEDICATION ……………………………………………………………………………………………….                       iv

ACKONOWLEDMENT…………………………………………………………………………………..                        v-vi

ABSTRACT ……………………………………………………………………………………………………                      vii

TABLE OF CONTENTS …………………………………………………………………………………..                      viii-xi

LIST OF TABLES ……………………………………………………………………………………………                      xii

CHAPTER ONE

1.1       BACKGROUND TO THE STUDY…………………………………………………………                        1-3

1.2       STATEMENT OF THE RESEARCH PROBLEM ……………………………………..                        3

1.3       JUSTIFICATION FOR THE STUDY………………………………………………………                        4

1.4       AIM AND OBJECTIVES ……………………………………………………………………..                        4

1.5       SCOPE AND LIMITATION …………………………………………………………………                        4

CHAPTER TWO

2.1       THE CONSTRUCTION PROCESS ………………………………………………………..                        5-6

2.2       DISPUTES IN THE CONSTRUCTION INDUSTRY ………………………………….                       6

2.2.1    Introduction     ………………………………………………………………………….                       6-7

2.3       DEFINITION OF DISPUTE …………………………………………………………………             7-8

2.4       CAUSES OF DISPUTE IN THE INDUSTRY ………………………………………….             8-12

2.4.1 The Contract Conditions  ………………………………………………………………                       12-15

2.4.2 The Design Deficiency ………………………………………………………………….                      15-18

2.4.3 The Construction Process  ……………………………………………………………..                      19

2.4.4 The Consumer Reaction  ………………………………………………………………..                     20-21

2.4.5 Time …………………………………………………………………………………………….                    22

2.5     THE IMPACT OF CONSTRUCTION DISPUTES ON THE PROJECT…………              22-23

2.6       CONSTRUCTION DISPUTES RESOLUTION TECHNIQUES ………………….                        23

2.6.1    INTRODUCTION ……………………………………………………………………             23-25

2.6.2    LITIGATION …………………………………………………………………………..                        25-27

2.6.3    ARBITRATION ……………………………………………………………………….                        27-28

2.6.3.1 Arbitration Rules under the ACA ……………………………………..                        28-29

2.6.3.2 Composition of Arbitral Tribunal ……………………………………..                       29-30

2.6.3.3 Jurisdiction of an Arbitral Tribunal ……………………………………                       30

2.6.3.4 Challenge to the Jurisdiction of an Arbitral Tribunal …………..                        31

2.6.3.5 Grounds for Setting Aside an Arbitral Award …………………….                        31-33

2.6.4    CONCILIATION ………………………………………………………………………                       33-35

2.6.4.1 Commencement ……………………………………………………………….                     35

2.6.4.2 Conciliators ……………………………………………………………………..                    35

2.6.4.3 Institutional Assistance …………………………………………………….                      35-36

2.6.4.4 Stages in Conciliation ……………………………………………………….                     36-37

2.6.4.5 Legal Effect and Role of the Parties ………………………………….                      37

2.6.4.6 Conciliator’s Procedure ……………………………………………………..                     37

2.6.4.7 Disclosure and Confidentiality …………………………………………..                     37-38

2.6.4.8 Conciliation and the Limitation Period ……………………………….                       38-39

2.6.5    MEDIATION …………………………………………………………………………….                      39-40

2.6.5.1 Phases of a mediation  ………………………………………………………                     40-41

2.6.5.2 Mediator’s tasks ……………………………………………………………….                     41-42

2.6.6    NEGOTIATION ……………………………………………………………………………                 42-44

2.6.6.1 Steps (Techniques) in Negotiating ………………………………………                      44-45

2.6.7    MINI-TRIAL ……………………………………………………………………………..                     45-46

2.6.7.1 Commencement ………………………………………………………………..                    46-47

2.6.7.2 Characteristics of a Mini-Trial ……………………………………………                    47-48

2.6.8    EXPERT DETERMINATION ………………………………………………………                      48-49

2.6.9    ADJUDICATION …………………………………………………………………….                        50-51

2.6.10  DISPUTE REVIEW BOARD ……………………………………………………..                        52-54

2.6.11  EARLY NEUTRAL EVALUATION (ENE) ………………………………….                        54-55

2.6.12  RENT – A- JUDGE …………………………………………………………………..                        55

 

CHAPTER THREE

3.1       INTRODUCTION ……………………………………………………………………………….                        56

3.2       DATA COLLECTION………………………………………………………………………………..                 56

3.3       SURVEY METHOD…………………………………………………………………………….                        56-58

3.4       SAMPLE FRAME ……………………………………………………………………………….                        58

CHAPTER FOUR

DATA ANALYSIS:     PRESENTATION AND INTERPRETATION

4.0       INTRODUCTION ……………………………………………………………………………….                        59

4.1       DEMOGRAPHIC VARIABLES ANALYSIS …………………………………………..                        59-64

4.2       ANALYSIS AND DISCUSSIONS …………………………………………………………                        65

4.2.1    Causes of Construction Disputes………………………………………………..             65-66

4.2.2 The Most Appropriate Technique of resolving Construction Disputes….                        66

CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1       INTRODUCTION ……………………………………………………………………………..             67

5.2       CONCLUSIONS  ……………………………………………………………………………….             67-68

5.3       RECOMMENDATIONS ……………………………………………………………………..             68-69

REFERENCES ……………………………………………………………………………………………..             70-72

APPENDIX …………………………………………………………………………………………………..                        73-76

 

 

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AN INVESTIGATION INTO THE EXTENT OF USE OF DISPUTE RESOLUTION TECHNIQUES IN CONSTRUCTION PROJECTS

 

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