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Diagnostic of the Claims and Disputes Between the Contractor and Owner in
Construction Project Using Narrative Analysis Approach

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International Journal of Civil Engineering and Technology (IJCIET)
Volume 9, Issue 12, December 2018, pp. 619-626, Article ID: IJCIET_09_12_068
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=12
ISSN Print: 0976-6308 and ISSN Online: 0976-6316

© IAEME Publication Scopus Indexed

DIAGNOSTIC OF THE CLAIMS AND DISPUTES

BETWEEN THE CONTRACTOR AND OWNER
IN CONSTRUCTION PROJECT USING
NARRATIVE ANALYSIS APPROACH
Faiq M. S. Al-Zwainy
Department of Civil Engineering, College of Engineering, Al-Nahrain University, Iraq,

Firas Kh. Jaber

Electrical Engineering Technical College, Middle Technical University.

Saba W. Hachem
Department of Civil Engineering, College of Engineering, Al-Nahrain University, Iraq,

ABSTRACT
Disputes and claims are a very important issue in project management because they
have a significant impact on the progress of work in construction projects. This study
aims to clarify the principles of the importance of claims and disputes in the
construction sector as well as review the most relevant studies related to this subject
through research Author, research year, research location (country), paper types,
research title, research aim, research tools and techniques and research results. There
are two main types of claim; claims during the execution of project and claims after
completion of the project. The reasons for the claims and disputes belong to the
contractor, the employer and the contract documents. The study concluded that the
main reason for the occurrence of disputes and claims is the lack of efficient
administration of contract management. This study recommends the enactment of laws,
especially the process of dispute arbitration in construction projects
Keyword: Disputes, claims, Owner, Contractor, Construction Project.
Cite this Article: Faiq M. S. Al-Zwainy, Firas Kh. Jaber and Saba W. Hachem,
Diagnostic of the Claims and Disputes Between the Contractor and Owner in
Construction Project Using Narrative Analysis Approach, International Journal of Civil
Engineering and Technology, 9(12), 2018, pp. 619–626
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=12

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 Faiq M. S. Al-Zwainy, Firas Kh. Jaber and Saba W. Hachem

1. INTRODUCTION
Most of the construction projects encounter many difficulties and problems from the stage of
preparing the drawings and designs and the preparation of the documents of the contracting
through the stage of preparation of tenders and the completion of the implementation phase,
and these difficulties are due to the nature of contractual relations between the owner and the
contractor, which depends on the quality of the enterprise and the nature of the project, and the
other projects that influence on the contractor as project consultants and supervising engineers
(Faiq et al, 2018) (Faiq, 2018) (Faiq M. S. Al-Zwainy et al, 2018). Construction projects are
particularly characterized by the length of the implementation period and the various stages
during which the economic conditions, legislation and government regulations may change.
That all these things cannot be expected or backed up at the time of signing the contract,
reflecting negatively on the management and implementation of the project and the contractual
obligations of any of the parties involved in the project and usually all leads to the emergence
of claims and disputes. The conflict between two or more parties often takes place and its
responsibilities and consequences may extend to other parties during the implementation of the
project and before it is completed in stages, which requires dealing with the dispute as soon as
possible so that it does not effect on the progress of the project and the implementation schedule
and the relationship between the parties and thus the total cost of the project.
Through the field visits to some of the courts, some construction projects in Iraq and the
Iraqia Engineers Association, the justification has been identified as adopting hasty and
unthought decisions to solve the problems of claims in construction projects. And the
hypothesis of research depends on a major axis:" There is weakness and laxity in the process
of settling disputes and claims between the employer and the contractor in construction
contracts". Therefore, the aim of this study is diagnose and determine claims and disputes
between the contractor and owner in the construction contracts in the construction project, also,
highlighting on the exploring the historical studies about claims and disputes in project
management. The importance of this study can be divided into two important aspects, providing
great scientific value to the researchers in the field of project management and the contribution
of this study to the success of control over construction projects in the field of project
management

2. CAUSES OF DISPUTES IN PROJECT MANAGEMENT

According to and Chan and Suen (2005) the dynamic nature of the construction industry makes
it uncertain and uncertain about developments and developments, especially now that
construction projects are becoming more complex. Dispute is on a dramatic rise throughout the
construction industry (Slater, 1998). According to Fenn et al. (1997) Conflicts can be managed
in construction projects by working to reduce claims and work to achieve the compatibility of
interests between the stakeholders.
Chappell, 2011 defined the claim as extra amounts and time, claimed by the contractor
outside the contract agreement, While the present study defines the claim as a claimed by one
of the parties to the contract (the owner or contractor) for appropriate compensation in terms
of time and cost due to a breach of contractual obligations by one of the parties of the contract.
Claims in construction projects are classified into two basic types: claims during project
implementation and claims after completed project. Hughes, 1992 classified the causes of the
claims into three basic groups: claims due to contract documents; claims due to contractor and
claims due to owner.
According to researchers in this study, there are very few studies on the subject of disputes
and claims between the contractor and the owner in the construction industry. The researchers

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 Diagnostic of the Claims and Disputes Between the Contractor and Owner in Construction Project
Using Narrative Analysis Approach

reviewed a number of research papers and books that represent the theoretical part of this study
on the subject of disputes and demands in construction projects. Most of the research and
studies focused on the review of the multiple and different causes of disputes and claims, there
is a common denominator of some of these disputes and claims regarding the contractor and
the owner (Cakmak and Cakmak, 2014). Semple et al. (1994) studied 24 construction projects
in Canada and found that there are six reasons for disputes and claims in construction projects:
site overhead, loss of productivity, equipment costs, premium time, loss of revenue, and
financing costs. Conducted a research study in the United Kingdom that included 438
construction projects, and found that the causes of disputes and claims are due to six main
causes: poor management, poor quality, time, neglect, poor performance and delayed cash
flows. The study indicated that the construction projects are facing the dispute between the
contractor and the owner permanently and delaying the cash flow is the main cause of the
conflict in most cases. Most of the articles dealing with disputes and claims between the owner
and the contractor have classified the causes of the conflict into several factors, the most
important of which are: cost overrun, delay, productivity, rework, failure in construction.
(Aibinu and Jagboro, 2002; Ahmed et al., 2003; Sambasivan and Soon, 2007; Kaliba et al.,
2009; and Nega, 2008).
The researcher Chan and Suen (2005) conducted an important research on disputes and
claims in construction projects in China. Twenty sources of disputes and claims were identified.
They were classified into three main groups: the legal group, the contractual group and the
cultural group, and they found that the most important problems were the delay of the
contractor's cash flows. The researcher Zaneldin (2006) studied the disputes and claims in the
United Arab Emirates using 124 projects. The study found that the main reasons for the disputes
and claims were due to variation orders and delays in payments by the owner and low price of
contract due to high competition. Bader and Assaf (2004) dealt with an important issue in
project management, namely, the failure of construction projects due to conflicts and claims
between the owner and the contractor, and found that there are 34 main reasons for disputes
and claims in construction projects in Saudi Arabia. The most important ones are negligence,
mismanagement, economic stagnation and lack of experience.

3. APPLICATION NARRATIVE ANALYSIS APPROACH IN CLAIMS

AND DISPUTES
Narrative analysis is one of the tools of scientific research sober in the field of project
management, which is a kind of quantitative analysis, as this will be based on the analysis of a
large number of previous studies on a research problem, and then explore the differences
between these studies in order to reach new facts and knowledge.
The narrative analysis methodology consists of the following steps:
1) Formulation of the research question: The research question in this study is represented
as follows: (What are the main reasons for disputes between the contractor and the owner in
the construction projects).
2) Extraction of raw data from previous studies: In this study, the researchers selected ten
research papers published in refereed journals as shown in Table 1.
3) Data organization: The researchers organized the data extracted from previous studies
based on the researcher name, the place of research, research year, research means, the title of
the research, objective research and the main results, as shown in Table 1.
4) Discuss results and facts: as seen from literature from (2005 to 2018) there were lack
researches studies the causes of dispute in construction projects, most of them were interested

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 Faiq M. S. Al-Zwainy, Firas Kh. Jaber and Saba W. Hachem

in identifying the most popular causes of dispute and analyze them in accordance to their rank,
relative importance or responsible party.

Table (1) Detail of Historical Studies

Researchers Year Country Paper Type Title of journal
1 Engineering, Construction and
Mohan M. K. 1997 Hong Kong Research Article
Architectural Management
Title Conflicts, Claims and Disputes in Construction
Categorize disputes and claims in construction projects and find their relative importance and identify
Aims
the root cause.
Tools questionnaires approach
The most important results in this study were disputes due to ambiguity in the contract documents and
Results
the existence of information related to the contract documents
Researchers Year Country Paper Type Title of journal
2 Nirmal K., Young D., and Engineering, Construction and
2006 Korea Research Article
Jung k. Architectural Management
Title Conflicting factors in construction projects: Korean perspective
Aims Diagnosis and Review of The Causes of Disputes and Claims in Construction Projects
Tools Questionnaires and face-to face interviews approach.
There are six factors that cause disputes and claims in construction projects: workplace conditions,
Results errors in designs and drawings, errors in the bill of quantities, differences in the interpretation of
contract documents, and unclear specifications.
Researchers Year Country Paper Type Title of journal
3 Nirmal K., Young D., and KSCE Journal of Civil
2006 Busan Research Article
Jung k. Engineering
Title Critical Construction Conflicting Factors Identification Using Analytical Hierarchy Process
Aims Identification of stakeholders responsible for disputes and claims in construction projects
Tools AHP (Analytical Hierarchy Process)
The study found that the owner is the first official responsible for the disputes and claims in
Results
construction projects in South Korea.
Researchers Year Country Paper Type Title of journal
4 Procedia - Social and
Cakmak, P.I., & Cakmak, E. 2014 Turkey Research Article
Behavioral Sciences
An Analysis of Causes of Disputes in the Construction Industry Using Analytical Network Process
Title
(ANP)
Aims Statistical analysis of the root causes of claims and claims in projects
Tools Analytical Network Process approach (ANP)
Results The most common conflicts in construction projects are disputes and claims related to contractors.
Researchers Year Country Paper Type Title of journal
5 Journal of King Saud
Ibrahim M. 2014 Saudi Arabia Research Article University – Engineering
Sciences
Title Micro and Macro Level of Dispute Causes in Residential Building Projects: Studies of Saudi Arabia
Aims Identify the causes of disputes and claims in residential projects in Saudi Arabia
Tools questionnaires approach
This study concluded that the most direct cause of disputes and claims is the delay in making payments
Results to the contractor and is caused by the owner. The most important indirect reason is the contractor's lack
of experience.
Researchers Year Country Paper Type Title of journal
6 Procedia Social and
Sigitas M., Tomas M. 2014 Lithuania Research Article
Behavioral Sciences

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 Diagnostic of the Claims and Disputes Between the Contractor and Owner in Construction Project
Using Narrative Analysis Approach

Title Causes of conflicts in a construction industry: a communicational approach

The authors of the present article look at the conflict in construction in a different light – from the aspect
Aims
of communication.
Tools questionnaires survey
Failed communication among stakeholders in construction projects is the main cause of conflicts and
Results
claims.
Researchers Year Country Paper Type Title of journal
7 Procedia Economics and
Nor A., Hamimah A., Azmi I. 2015 Malaysia Conference Article
Finance,
Title A Study of Construction Claim Management Problems in Malaysia
Aims The research aims to identify the problems and obstacles facing the claims of the contractors
Tools questionnaires survey
The most important results were the weak culture of the workers in the field of claims and the lack of
Results
documentation for the claim.
Researchers Year Country Paper Type Title of journal
8 Jui-Sheng C. , Shu-Chien H. , International Journal of
2016 Hong Kong Research Article
Chih-Wei L., Yu-Chen C. Project Management
Title Classifying Influential Information to Discover Rule Sets for Project Disputes and Possible Resolutions
Aims The purpose of this study is to review and resolve conflicts and claims in the public and private sectors.
Neural Networks (NN), Support Vector Machine (SVM), Bayesian Network, Classification and
Tools Regression Tree, Chi-squared Automated Interaction Detection and Quick Unbiased Efficient Statistical
Tree
Results The results of this study are conflict resolution through project manager.
Researchers Year Country Paper Type Title of journal
9 Elziny A, Mohamadien M., Ain Shams Engineering
2016 Egypt Research Article
Ibrahim H., Abdel F. Journal
Title An expert system to manage dispute resolutions in construction projects in Egypt
The purpose of this paper is to provide an expert system that can assess the overall procedures for
Aims
settling disputes in construction projects in Egypt.
Tools questionnaire
An expert system was established to identify the most important claims in construction projects and
Results
were represented in disputes of contract management and conflict situations
Researchers Year Country Paper Type Title of journal
10 Udechukwu O., Maxwell C., International Journal of
2018 UAE and UK Research Article
Alasdair M., Terry W. Project Management
An examination of the ‘rule of law’ and ‘justice’ implications in Online Dispute Resolution in
Title
construction projects
This paper examines the "justice" and "rule of law" of the use of online dispute resolution platforms as
Aims
interactive technology interfaces to resolve small conflicts in construction projects.
Tools questionnaire survey
The main results of this study are the absence of any trace of the rule of law or justice in the settlement
Results
of disputes and claims

4. DIAGNOSTIC OF THE CLAIMS AND DISPUTES IN PROJECT

MANAGEMENT
Through the study of previous studies and through the professional experience of researchers
and through the field experience in the construction projects, the causes of Claims and Disputes
were identified into four groups, the first group the claims and disputes related to the owner,
the second group the claims and disputes related to contractors, the thrid group the claims and
disputes associated with the consultants, as Shown in table 2.

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 Faiq M. S. Al-Zwainy, Firas Kh. Jaber and Saba W. Hachem

Table (2) Diagnostic of the Claims and Disputes

Owner related Contractor related
Variations in the owner's decisions
Change of project scope
Delays work
Delayed delivery of the site
Duration extension
Accelerate of the decision making
Bankruptcy of the Contractor
Irrational decisions
technical contractor efficiency Poor
delays of payment
Failure to understand contract documents
Supremacy of owner/consultant
Quality of works items
Financial failure
Local people interruptions/ protests
Owner furnished material
Delay in decision
Consultant Other Causes
Lack of communication
Site conditions
Unforeseen changes
Bad weather
Legal and economic factors
dishonourable designs
Change in laws government
Mistakes in designs
Conflicts and labour unrest
The additional works
Market Inflation
Contrast in quantities of BOQ
Public disorder
Lack of clarity of technical specifications
variation order
the security condition in construction site
Accident/safety
Interpretation of escalation/ de-escalation
Environmental hazards
Excessive correspondence

6. CONCLUSIONS AND RECOMMENDATIONS

The most important conclusions reached by the present study throuh studying the previous
studies are:
1. Disputes and claims have become an ingenious phenomenon in construction
projects
2. Lack of a culture of respect for the law between the parties of the contract
3. There is no clear methodology for resolving disputes and claims
4. The main cause of disputes and claims is the lack of efficient management of the
contract
This study recommends a set of recommendations for resolving disputes in construction
projects, as follows:
1. Holding training courses for the parties to the contract on arbitration and contracts
2. Establishing specialized centers for dispute resolution
3. Legislation the laws on the arbitration of disputes in construction projects

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 Diagnostic of the Claims and Disputes Between the Contractor and Owner in Construction Project
Using Narrative Analysis Approach

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