© 2018 IJRARJuly2018, Volume 5, Issue 3www.ijrar.

org (E-ISSN 2348-1269, P- ISSN 2349-5138)

EVALUATION OF FACTORS CAUSING

DISPUTE IN CONSTRUCTION PROJECTS”
1
Namita Bhoir, 1Nainesh Bhoir, 1Swapnali Kamble, 2 Prof. Nitin Rane
1
UG Student, 2Research Scholar
1
Department of Civil Engineering,
1
Universal College Of Engineering, Vasai (Mumbai), Asia 2PHCET, Panvel
________________________________________________________________________________________________________

Abstract : Dispute is concerned in each business, and also the construction industry is not any exception. There are varieties of
issues within the construction industry in Asian country that are attributed to varied dispute factors. This study is based on data
collected from different sites in Mumbai, Thane and Bhiwandi region. This study is more classified into varied classes i.e.;
contractor, sub-contractor, owner, labour, designer and project manager. The causes of dispute in construction contracts end up in
damaging the connection between the parties excluding the time and price overruns. The main focus of the current analysis is to
spot factors that influence the graceful completion of a project and develop a dispute resolution model. The results of this study
show the contribution of assorted factors moving the graceful completion of the project. So as to investigate the various factors
causing disputes, the analysis has been done. Which in turn helps in getting the results of good performance and the overall
disputes causing delay in construction projects to greater extent on the site? Because of this study the issues visage by contractors,
sub-contractors, owner, design and labour in Asian construction sites like operating conditions, the amenities/services,
earnings/payments, transport facility, working hours and medical facility for serious additionally as minor injuries, safety etc. that
reciprocally affects the project length are addressed during this case study and also the solutions for this has been analyzed
through software system.

Index Terms–Dispute in Asian Construction Industry, Dispute Factors, Uncertainties, Dispute Resolution
________________________________________________________________________________________________________
I. INTRODUCTION
Most of the project management problems that impact a project arise from associated uncertainties. Disputes are one in all the
most factors that stop the eminent completion of the development project. Hence, it’s necessary to remember of the causes of
disputes so as to finish the development project within the desired time, budget and quality.
There are varieties of issues within the construction industry in Asian country that are attributed to varied factors. The disputes
could also be between the shopper and also the contractor, the most contractors and sub-contractor over payment, performance of
the contract, delay and disruption of works, style changes, worth step-up, quality of labor etc. Most disputes are resolved by
negotiation between the acquiring parties while not the involvement of third party. The consulting designer and engineer resolve
most disputes that may arise throughout the progress of the work on web site.
Project schedules are delayed, leading to cost and stricken by poor accomplishment Conflict is increasing, leading to
proceeding and arbitration. On the premise of the interaction with business consultants, the factors are classified and listed below
varied classes. This paper aims at victimizing as a tool in assessing the dispute and understanding the importance level of dispute
factors within the swish completion of the project.

II. LITERATURE REVIEW

1. N. B. Chaphalkar, K.C.Iyer, Smita K. Patil.
Prediction Of Outcome Of Construction Dispute Claims Victimization Multilayer Perceptron Neural Network Model
In this paper they had concluded that the study known sixteen intrinsic factors that influence the choice creating of the arbitrators
in partitioning the claims associated with variation in Asian construction contracts. In this study they have explores the
feasibleness of victimization the Neural Network model for the prediction of the result of disputes associated with variation. For
this Many check runs were conducted by varied the coaching parameters. It absolutely was discovered that the MLP network gave
higher results as compared to GFF. This framework can offer a more cost-effective solution to dispute resolution than existing
strategies. Constant methodology may be swollen for the resolution of the development disputes arising out of different dispute
prone claims and once totally developed; the planned disputes model could also be consulted by Contractors, Owners, or
intermediary to facilitate their decision-making method.

2. S. O. Cheung, C.M. Tam, And F.C. Harris.

Project Dispute Resolution Satisfaction Classification Through Neural Network
They suggested that classification through MLP may be a handy and helpful modeling tool to separate comes in accordance with
their DRS. within the MLP model developed; project-specific variables were indicated because the most discriminating variables

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once every sort of variable was thought of severally. However, the utilization of project-specific factors alone couldn't give a
satisfactory generalization. the ultimate model, when variable reduction and network refinements, concerned all four varieties of
variable, occurring with the wide accepted read that construction dispute resolution is complicated and its success depends on
each manageable (typically process-specific variables) and un- manageable (typically environment-specific variables) factors.
Improvement within the network ensuing from screening input variables illustrated the importance of eliminating redundant
variables to information classification accuracy once unseen examples are applied. The ultimate MLP model network created a
100 percent correct testing result
For Adverse DRS comes within the unseen sample, that is vitally necessary in having associate degree correct during this respect.
Additionally, the network additionally known the foremost discriminating
Factor to be the degree of style changes occurring within the project. Additionally expected was the shortening of the project life
cycle and also the: increased trend in unilateral shifting of disputes towards the contractors. Shopper changes of mind give ample
chance for contractors to recoup losses.

3. Hariharan Subramanyan, Priyadarshan H. Sawant And Vandana Bhatta

Construction Project Disputes Assessment: Development Of Model Supported Investigation Of Opinion Of Construction
Project Consultants From Asian Country.
They said that in the Asian construction sector, issues begin with the origination of the come. The preconstruction, execution, and
post construction designing in several cases are found to be fantastic wherever comes suffer from schedule connected disputes
and associated disputes of price escalation resulting in dispute. There is requirement of unified construction law in {Asian
country/Asian nation} and every one who contracts in Asian country are to be ruled by the Asian Contract Act 1872. With varied
factors influencing the graceful.
Completion of the project, there exists ample scope to develop a far better disputes mitigation methodology. The study results are
reduced into 2 teams for simplification and higher understanding the primary cluster covers owner, contractor, project manager,
finance, and resource specific disputes, and also the second cluster covers disputes referring to project-, architect/consultant-,
external environment-, and contract-clause-specific factors. The study results indicate that the (owner, contractor, consultant,
project manager, finance-, and resource specific) disputes specific to the primary cluster are found to be 10.5 to 12.0% with a
customary deviation but 1.66.
With the percentage vary and associated deviation nearer, it's over that the danger related to the previous factors are additional or
less of constant level, and that they may be moderately foretold. Those factors that are inevitable may be managed by applicable
contract provisions. Whereas the PC parceling of second cluster, i.e., disputes referring to project-, architect/ consultant-, external-
environment-, and contract-clause-specific factors vary from nine.5 to 13%, a bigger vary than factors of the primary cluster with
variance up to as high as three.3 indicate a large variation creating it tough to predict their prevalence in a very project. The
primary cluster of disputes factors, though varied in their uncertainties, may be effectively handled, and disputes may be
controlled by existing provisions in contracts. The knowledgeable interviews recommend that a planned approach in handling
project- and external environment- specific disputes plus a correct contract administration will mitigate overall disputes to a
bigger extent within the Asian construction industry. The findings are confirmed by the project disputes associated with varied
comes that were mentioned antecedently. The study is anticipated to deliver recommendations to project managers concerning
disputes assessment methodology and disputes response strategy.

4. Nitin Rane, Mr. Sampras Lopes, Mr. Aakash Raval, Mr. Dion Rumao, Mr. Pranay Thakur.
Study Of Effects Of Labour Productivity On Construction Comes.
According to them on the basis of study of labour productivity they have concluded that:
• The development company isn't creating provision of any electricity or sanitation facility to the development labourers.
• Wherever the sites have sanitary and medical facilities there it's of getting substandard quality.
• There's restricted provision of drinking water.
• The operating hours of the development labourers varied significantly.
• Accident relief equipment’s like helmets, hand gloves and shoes, safety belts, protection eye wear etc. aren't created out there for
construction employees for the safety purpose.
• No vacation structure is found in majority of the development sites.
• The operating hours of the development labourers varied significantly.
• There's nobody to seem when children’s of labourers, they continue wandering on web site missing correct education, care.
• Most of labourers lack coaching.
• Less safety awareness eye indicates that the living conditions are thus poor and also the labourers are staying in tin sheeted
homes.

5. Payal Dugane, Dr. Shrikant Charhate.

Arbitration: A Case Study within the Construction Industry
As per their research they have suggested that in arbitration, construction disputes are resolved by the Dispute Review Board
(DRB) or several of the techniques accustomed analyses the development dispute. As dispute arises attributable to several factors
like miscommunication among the parties, associated with the fabric price then on. Arbitration is predicated on the party of self-
reliance, self-direction, self-direction. Each arbitration agreement presupposes an explicit delineation of whimsical tasks. Each
arbitration dispute may be a derogation of corresponding judicial competences and needs to be understood strictly. Tribunals
fastidiously watch the boundaries of their competency, since such a transgression could result in the annulment of the mediation
award, or to difficulties within the method of its recognition and social control. During this study, Cranach test accustomed check

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the responsibility or internal consistency of form. The responsibility was acceptable for the asker. From the railway project
arbitration information, we will plainly see that the length needed for arbitration method was additional that ultimately ends up in
delay of the project to beat the difficulty change Act 2015 was introduced to chop the length.

6. Roozbeh Kangari.
Construction Documentation In Arbitration
He concluded that the arbitrators perceive the effects of poor project documentation on the arbitration process, and what advice
arbitrators would give construction professionals to help them properly gather, organize, and record project information before a
dispute arises. A survey questionnaire was conducted in two phases.
In the survey, arbitrators were asked to compare the veracity of written documentation with oral presentation to highlight how a
document, prepared in the ordinary course of building a project, would weigh in the arbitrator's consideration. The results indicate
three distinct views: Of the arbitrators surveyed, 35% indicated that, all else being equal, they favored document-based evidence
over testimony; 39% favored the testimony of a first-hand witness over a dated document; and the remaining 26% maintained that
it depended on the situation. When arbitrators were asked to describe how expert testimony supports document-based evidence, a
significant percentage.

From the above literature it can be concluded that the dispute regarding contractors , operating firms, were disputes are likely to
occur, which when not resolved in timely manner, it becomes very expensive. Later on questionnaire will be used to find the
impact of those parameters on project completion which in turn helps in identification of key factors which can be avoided in any
projects.
Additionally expected was the shortening of the project life cycle and also the: increased trend in unilateral shifting of disputes
towards the contractors. Completion of the project, there exists ample scope to develop a far better disputes mitigation
methodology. Constant methodology may be swollen for the resolution of the development disputes arising out of different
dispute prone claims and once totally developed; the planned Dispute model could also be consulted by Contractors, Owners, or
intermediary to facilitate their decision-making method.

This study identifies the factors inflicting disputes at construction sites and to check more and analyze the specific impact of
disputes on construction industry. As this study is disbursed in Thane-Bhiwandi-Mulund cities it should be applicable in different
similar cities. Thus during this study the survey was collected in close native areas to outline the factors inflicting disputes. This
study has been proceed more on the premise of primary information obtained from labors additionally as contractor, owner,
design etc. review and to spot their issues.

METHODOLOGY:
The first step is to go to the positioning and establish the matter and on the premise of it, deciding the objectives. The preliminary
insight of the topic information for the study has been collected through a literature review followed by the utilization of form
survey targeted by; contractor, sub- contractor, owner, labor, designer and project manager. The literature review was collected
through the international journal paper, construction management and engineering journals. During this stage, the factors
causative to the dispute/conflicts and their impact on work schedule in construction industry were studied. On the basis of
literature study, the assorted dispute that arises on site and delays the activities was derived. To spot the disputes, the primary step
was to go to {the site, the location, the positioning} and establish the matter by interacting with completely different authorities
acting on site like labors, contractors, design etc. When account the factors causative to disputes, the form with questionnaires
was prepared. The information concerning operating conditions of individual, operating hours, the amenities/services, the
earnings/payments, transport facility and medical facility for serious additionally as minor injuries etc. The survey was disbursed
by Linkert scale. The information was collected from completely different sites of high-rise construction in Thane-Bhiwandi-
Mulund. Variety of sites was visited to induce additional information. When collection needed variety of samples, information
analysis was done to induce completely different factors contribute to disputes. These factors were then analyzed to seek out
however they affects on completely different aspects of project. The information from this survey was analyzed and also the
necessary factors were studied and mentioned more in details.

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DATA ANALYSIS OF DISPUTE RESOLUTION

For the analysis of disputes we have collected the data from five different construction sites of
multi-storyed building in Mumbai-Thane-Bhiwandi city. Now for the analysis, the method used is
known as the linkert scale method. In linkert scale method, a rating of 1-5 has been adopted i.e.
1.Very Poor 2.Poor 3)Medium (4)Good (5)Very Good. The following table shows the average
analysis of total disputes on site and It’s further explained with the help of Graphical representation.

OPTION :- (1)VERY POOR (2)POOR (3)MEDIUM (4)GOOD (5)VERY GOOD

DEGREE
SR SITE SITE SITE SITE SITE
TYPES OF DISPUTE OF
NO 1 2 3 4 5
DISPUTES

A. CONTRACTOR AND SUB-CONTRACTOR

Mobilization of materials on site by
1 4 4 4 4 4 4
contractor
Site management and supervision by
2 4 3 4 4 5 4
contractor
3 sub-contractor's work strength 4 4 4 4 4 4
4 Frequent change of sub-contractors 3 3 5 1 4 3.2
Qualification/ Experience of the
5 4 5 5 4 5 4.6
contractor.
Avg. 3.96
% 79.2
B ARCHITECT
Data collection and survey before design
1 5 4 4 5 5 4.6
by
Architect/ consultant.
2 The details in drawing by Architect 5 4 4 5 4 4.4
Avg. 4.5
% 90
C OWNER
Revising and approving design document
1 5 3 4 2 4 3.6
by owner
2 Payments by owner 4 3 4 3 5 3.8
owner expecting a high degree of
3 efficiency and economy 5 3 4 3 4 3.8

Changes made by owner during

4 4 2 5 4 3 3.6
construction
Avg. 3.7
% 74
D PROJECT MANAGER
1 Project manager technical capability 5 4 5 4 4 4.4
Use of appropriate planning tools and
2 5 4 5 4 5 4.6
techniques by project manager
3 Negative attitude of project manager 4 2 3 3 5 3.4
Changes of project manager leaving the
4 4 2 4 2 4 3.2
project
Tools and Techniques - Use of competent
5 heavy equipment’s to avoid failure of 5 4 5 3 4 4.2
equipment
System of communication among project
6 4 4 5 3 3 3.8
team

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Avg. 3.933333
% 78.66667
E RESOURCES
1 Selection of material and equipment’s 5 4 5 3 5 4.4
2 Material delivery on site by Vendor 4 3 5 4 3 3.8
3 Changes in Material types 4 3 5 2 4 3.6
4 Selection of Material 4 3 4 3 5 3.8
5 Equipment’s Breakdown on site 3 3 3 2 4 3
6 Shortage of equipment’s 4 2 3 3 2 2.8
7 Unrealistic price variation in Material 4 2 4 3 4 3.4
8 Shortage of Labours 4 3 3 3 3 3.2
9 Labours strikes 4 2 4 4 4 3.6
Avg. 3.511111
% 70.22222
F OTHERS

1 4 1 4 4 4 3.4
Location uniqueness- Strong winds,
Severe climatic variation, Hilly terrain
Exposure to Accidents-such as High Rise
2 building. 4 2 4 5 3 3.6

Profitability disputes- to achieve the

3 reasonable Profit targets. 5 3 4 4 4 4

Political support for the project changes

4 because of change in Political 3 2 4 3 3 3
Environment
Avg. 3.5
% 70

Table No. 1

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RESULTS

Fig.1 Analysis Of Contractors And Sub Contractors Disputes Fig.7 Analysis Of Architecture’s Disputes

Fig.8 Analysis Of Owner’s Disputes Fig.9 Analysis Of Project Manager’s Disputes

Fig.10 Analysis Of Resources Disputes Fig.11 Analysis Of Other Disputes

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Final Graph Showing Good Performance And Overall Disputes

Fig.12 Average Analysis Total Disputes

CONCLUSION

In the construction sector, problems start with the inception of the projects. The preconstruction, execution, and post-construction
planning in many cases are found to be unrealistic where projects suffer from schedule related disputes and associated disputes of
cost escalation leading to dispute. There is a requirement of unified construction law in Asian countries and all contracts in Asia
are governed by the Asian Contract Act 1872. With various factors influencing the smooth completion of the project, there exists
sufficient scope to develop a better disputes mitigation methodology. The study results are reduced into various groups for
simplification and better understanding. The first group covers contractor/sub-contractor, architect/consultant, owner, project
manager, resource specific disputes, and other disputes. The study results indicate that the disputes of (contractor/sub-contractor
20.8%, Architect/consultant 10%, owner 26%, project manager 21.33%, resource specific disputes 29.78% and others 30%) are
found to be 22.99%. With the percentage range it is concluded that the disputes associated with the previous factors are more or
less of the same level, and they can be reasonably predicted. Those factors that are predictable can be managed by appropriate
contract provisions.

ACKNOWLEDGEMENT

We feel immense pleasure in expressing our propounded regards and deep sense of gratitude to our project “Evaluation Of
Factors Causing Dispute In Construction Projects” under the guidance of Prof. Nitin Rane. We are thankful for his constructive
criticism, constant encouragements and especially for creating in us the spirit of independent thinking. His keen interest and
untiring assistance enabled us to complete this project.

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