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Asian Scholars Network

A Review on Impact of Ineffective Communication in


Construction Projects leads to Complicated Litigation and
Arbitration

Malik Fahad1, Habib Musa Mohamad2*


Faculty of Engineering, Universiti Malaysia Sabah, Kota Kinabalu, Malaysia
__________________________________________________________________________________________

Abstract: Due to rapid growth of world’s population and urbanization in the world
construction is becoming complex, and because of its this nature, effective communication is
essential for ensuring successful outcomes in construction projects. However, ineffective
communication can lead to project delays, increased costs, and disputes that may result in
complicated litigation and arbitration. This literature review aims to examine the impact of
ineffective communication in construction projects in Sabah, Malaysia. The review focuses on
the role of the Construction Industry Development Board (CIDB) in promoting effective
communication, the use of the Construction Industry Payment and Adjudication Act (CIPAA)
to resolve disputes, and the effectiveness of the PAM Contract with Quantities in improving
communication and reducing disputes in construction projects. The review analyses relevant
literature on the topic, including studies that have investigated communication challenges in
construction projects in, Malaysia. The findings indicate that ineffective communication is a
prevalent issue in construction industry of Malaysia and can be caused by factors such as
language barriers, cultural differences, and poor coordination among project stakeholders.
Based on the literature review, recommendations are provided for improving communication
in construction projects in Sabah, including the use of clear communication channels, regular
project meetings, and effective project management strategies. The literature review highlights
the significance of effective communication in construction projects and provides valuable
insights for stakeholders involved in construction projects in the region.
Keywords: ineffective communication, Sabah, Malaysia, litigation, arbitration.
___________________________________________________________________________
1. Introduction
Construction Industry characterized as Complexed in nature due to its dynamic and fragmented
nature as it involves several parties that includes client, Consultant and Contractor therefore
effective communication is essential to overcome any challenge. Construction project varies
from other industries due to its distinctive nature. Due to rapid urbanization construction
industry is getting complex with advancement in technologies and it involves several parties
from both private and public sector (Gamil & Abdul Rahman, 2018). These factors had made
construction project more complexed and challengeable for all stake holders. Among all these
circumstances effective communication if one of the major considerations in project success.
According to research it has been found by many scholars that ineffective communication
during the life cycle of the project can lead to project delay and in worst cases it can cause
project failure.
Effective communication is a critical factor for the success of construction projects (Chan &
Kumaraswamy, 2010). However, the complexity of modern-day construction projects, coupled
with the involvement of multiple stakeholders, has made communication more challenging
(Baiden et al., 2016). Communication breakdowns can lead to various negative consequences,
such as delays, cost overruns, and even legal disputes (Yu et al., 2018).

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Effective communication is crucial in construction projects, as people from different cultures,


ethnicities, and backgrounds work together to achieve project objectives. The major players
involved in a construction project are the Client, who owns the project, the Contractor, who
executes the project, and the Consultant, who oversees the project execution (Acharaya et al.,
2006). Information exchange between these parties, relating to technical or financial aspects of
the project, is important for project success (Wong and Lam, 2011). Failure to properly
circulate information can lead to project delays, failures, and legal issues. Various types of
contracts exist between stakeholders in a construction project, such as investigation, design,
and construction contracts (Yang, 2012). These contracts consist of three main elements,
including Bill of Quantities (BOQs), Technical Specifications, and Drawings of the project.
Miscommunication can often lead to arbitration between parties due to discrepancies arising
from misinterpretation of these documents. This research aims to investigate the causes and
effects of miscommunication in construction projects and the impact on project health, leading
to legal issues.

In Malaysia, the Construction Industry Payment, and Adjudication Act 2012 (CIPAA) has
highlighted the importance of effective communication in construction projects (CIDB, 2017).
The act requires parties involved in a construction project to establish a written contract that
includes provisions for communication and dispute resolution. The Project Information
Management System (PIMS) and the Construction Industry Development Board (CIDB) have
also established guidelines for effective communication in construction projects. These
guidelines emphasize the need for clear and concise communication, regular meetings and
progress reports, and the use of digital tools to improve communication (CIDB, 2017).
The impact of ineffective communication in construction projects is not limited to delays and
cost overruns; it can also lead to complicated litigation and arbitration. For instance, the Kuala
Lumpur International Airport Terminal 2 project in Malaysia was delayed for several years due
to communication breakdowns between the project owner, contractor, and consultant
(Mohammed et al., 2014). This resulted in legal disputes that took years to resolve and cost
millions of dollars in legal fees.

The ever-increasing population and urbanization, construction has become a necessity for
mankind, and construction projects are becoming more complex with time. Conflicts arise
during these projects, which can lead to partial or complete failure, with miscommunication
being a significant reason (Khahro and Ali, 2014). In Malaysia, the construction sector sees
around 700-800 legal cases annually due to disputes among stakeholders, with most of them
arising from payment issues and ineffective communication (Tse Wen, 2022). Therefore, this
research project aims to investigate the effects and causes of ineffective communication in
construction management, which leads to complicated litigation and arbitration in the Sabah
region of Malaysia. Limited research has been done on this topic in Malaysia, specifically
Sabah, making this study crucial in formulating a better policy to address the issue.
Given the importance of effective communication in construction projects, it is crucial to study
the causes and effects of ineffective communication and develop strategies to address this issue.
This research project aims to achieve this by studying the formal and informal communication
practices in construction projects in Sabah, Malaysia, and investigating the causes of
communication breakdowns, their impact on project performance, and legal issues that arise
due to ineffective communication.

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2. Miscommunication in Construction Industry:

Miscommunication in the construction industry refers to any breakdown or failure in


communication between various stakeholders involved in a construction project, including the
client, contractor, and consultant. This can involve a failure to effectively exchange
information, misinterpretation of technical or financial details, or a lack of clarity regarding
roles and responsibilities. Miscommunication can lead to project delays, errors, cost overruns,
and even legal disputes between stakeholders. Miscommunication in the construction industry
can lead to several negative consequences. For example, it can cause project delays, cost
overruns, and rework. This can result in financial losses for all parties involved and may also
harm the reputation of the project stakeholders. Miscommunication can also lead to disputes
and legal issues, such as arbitration or litigation. In the worst-case scenario, miscommunication
can cause project failure, resulting in significant financial losses for the parties involved.

Several factors contribute to miscommunication in the construction industry, including


language barriers, cultural differences, and lack of clarity in project documentation.
Miscommunication can also arise from inadequate communication channels or poor
communication practices within project teams. Therefore, effective communication among all
stakeholders is essential for project success. Miscommunication in the construction industry
can arise due to various factors, which include fear to communicate, delay notification of
change, poor progress measurement, lack of communication among parties, poor
communication skills, improper communication channel, language barrier, lack of mutual trust
among construction teams, poor communication management, and lack of communication
procedure and training (Ahiaga-Dagbui et al., 2018; Gunduz et al., 2015). Other causes of
miscommunication in construction projects may include the usage of different terms and
methods, lack of confidence between stakeholders, informality, high confidentiality, and
inadequate communication plan (Mokhtarian et al., 2020). Furthermore, complex construction
projects and diverse cultures and ethics among parties may also contribute to ineffective
communication (Shen et al., 2021). It is crucial for construction stakeholders to identify the
causative factors of miscommunication and adopt effective communication strategies to
minimize the risks of project failure and disputes.

Table 1: The causative factors of miscommunication in the construction industry:

Causative Factors of Description


Miscommunication
Fear to communicate Fear of negative consequences from sharing
information or asking questions
Delay notification of change Not informing stakeholders of changes or delays
in a timely manner
Lack of sector experience Insufficient knowledge or experience in the
construction industry
Poor communication skills Inability to effectively communicate ideas and
information
Slow information flow among Delay in the transfer of information between
parties parties
Language barrier Difficulty in understanding or expressing oneself
due to differences in language

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Lack of mutual trust among Lack of trust between parties involved in the
construction teams construction project
Negligence and casualness Lack of attention or care towards communication
Lack of communication Absence of established communication protocols
procedure and training and lack of training on communication skills
Complexity of construction The inherently complex nature of construction
industry projects

To address the issue of miscommunication in construction projects, it is essential to identify its


causes and effects. Research studies have investigated the causes of miscommunication in the
construction industry, and some have proposed frameworks and strategies to improve
communication. This research project aims to investigate the effects and causes of
miscommunication in construction management, particularly in the region of Sabah, Malaysia,
and formulate a better policy to address the issue.
2.1. Impact of communication in construction industry:

In the construction industry, effective communication is necessary for successful project


completion. With many stakeholders involved, including contractors, consultants, clients,
designers, subcontractors, suppliers, vendors, and other project team members, it can be
challenging to maintain good communication among them. According to Pentland (2012),
effective communication is essential for building an adequate team to make a project
successful. This not only enhances teamwork but also increases collaboration between all
stakeholders (Cook & Macaulay, 2013).
On the other hand, ineffective communication can lead to misunderstandings, delays, and
chaos. Thus, communication is crucial for making project team operations effective (Emmitt
& Gorse, 2006). Accurate, clear, and concise communication is essential for project
participants with different knowledge and experience to share their ideas and expertise.
Effective communication fosters innovative and creative ideas necessary to cope with problems
and challenges that arise during the project's progress. It also strengthens the team's reliance on
each other and helps in creating a constructive feedback loop (Ogweno et al., 2016).
Additionally, effective communication helps to ensure that the project is completed within the
allotted time and budget.
Communication is an integral part of the construction industry, as it involves the exchange of
information between the sender and receiver for project undertaking (Griffith et al., 2014).
Subcontracting in the construction industry can make it difficult to manage all aspects of the
project, making it necessary to develop a construction management plan that helps an
organization strengthen its own stakeholders and subcontractors.

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Table 2: The main causes of miscommunication with example.

Cause of Example Reference


Miscommunication
Lack of effective Inability to share project information and (Halil et al.,
communication system updates effectively among stakeholders due 2020)
and platform to outdated or incompatible communication
technology
Poor communication Misunderstandings and conflicts arising from (Kazaz et al.,
skills poorly worded or ambiguous communication 2006)
Language barrier Misinterpretation of instructions or technical (Chan &
information due to language differences Hon, 2014)
Inaccessibility of project Failure to make project information easily (Chua et al.,
information accessible to all stakeholders, leading to 2018)
delays and misunderstandings
Lack of communication Lack of a clear plan for how and when (Crawford et
plan communication should occur among al., 2016)
stakeholders, resulting in confusion and
missed opportunities
Delay notification of Failure to promptly communicate changes to (Kaming et
change project scope, schedule, or budget, causing al., 2003)
delays and budget overruns
Lack of mutual trust Lack of trust and respect among (Wang et al.,
among construction teams stakeholders, leading to unwillingness to 2015)
communicate or collaborate effectively
Fear to communicate Fear of repercussions or negative (Arain et al.,
consequences for speaking up or sharing 2016)
information, leading to information hoarding
and miscommunication

Similar things happened in case of Nordin Abdul Rahman (trading under the name and style of
Meritimur Jaya) against three parties was filed in the High Court of Sabah at Kota Kinabalu.
The plaintiff, a sub-contractor, claimed a loss of RM 1,519,980.00 against all three defendants
for the project Rancangan Tebatan Banjir Bandaran Sabah Sg Tabanak, Lahad Datu. The first
defendant was awarded the tender for the project on August 11, 2006 and gave power of
attorney (POA) of the project to the second defendant, who then hired the plaintiff as the sub-
contractor. Due to the second defendant's financial instability, the first defendant appointed
another POA for the project on December 21, 2006, with similar power given to the first PA.
The final judgment, which was in favour of the plaintiff, was delivered on August 18, 2010.
The first defendant was ordered to pay a sum of RM 1,000,000 with 4% annual interest, with
taxes to be discussed. This case highlights the importance of proper management and
supervision of sub-contractors, as well as the potential risks and consequences of financial
instability of contractors and sub-contractors.

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3. Causes and impact of communication in construction industry:


Miscommunication is a common problem in the construction industry, and it can have serious
consequences for project timelines, budgets, and quality. One of the main causes of
miscommunication is poor communication channels. Many construction companies still rely
on outdated phone and email systems that can be unreliable and slow, leading to delays in
relaying important information. Another cause of miscommunication is language barriers,
especially on large construction sites that employ workers from diverse linguistic backgrounds.
Communication problems can also arise when project stakeholders, such as architects,
engineers, and contractors, have different interpretations of project specifications or
requirements. Finally, miscommunication can be caused by poor project planning, such as
inadequate project schedules or failure to set clear expectations for team members. Overall, it
is important for construction companies to address these common causes of miscommunication
through effective communication protocols and procedures to ensure that important
information is communicated effectively and efficiently throughout the project lifecycle
(Mohamad et al., 2021).

The paper titled "A Case Study of S-Curve Analysis: Causes, Effects, Tracing and Monitoring
Project Extension of Time" published in the Journal of Civil Engineering in 2018 discusses the
use of S-Curve analysis in project management, particularly in the context of identifying the
causes and effects of project delays and monitoring the progress of a project in relation to time.
The authors describe S-Curve analysis as a powerful tool for project management, which helps
in tracking the progress of a project over time and identifying any deviations from the planned
schedule. The S-Curve graph shows the cumulative value of work completed over time and
provides an indication of whether the project is progressing as planned, ahead of schedule or
behind schedule. It is also useful in predicting the time and cost required to complete a project,
and in identifying potential risks that could cause delays (Mohamad et al., 2021).

The paper presents a case study of a construction project in the UAE, which experienced delays
due to various factors such as poor planning, design changes, unforeseen site conditions, and
miscommunication among the project team. The authors used S-Curve analysis to monitor the
progress of the project and identify the causes of delays. The analysis showed that the project
was progressing slowly, and that the actual completion time would be much later than the
planned completion date. The authors then traced the causes of delays and identified various
factors such as poor communication, lack of coordination among the project team, and
inadequate planning and design. They also highlighted the importance of effective
communication and collaboration among the project team, which could have helped in
identifying potential risks and resolving issues before they escalated. The paper emphasizes the
importance of S-Curve analysis in project management and its potential for identifying causes
and effects of project delays and monitoring the progress of a project in relation to time. The
case study presented in the paper highlights the significance of effective communication and
collaboration among the project team, and the risks associated with miscommunication and
lack of coordination (Mohamad et al., 2021).

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Real-life examples of miscommunication in the construction industry could include instances


where the design team and the construction team have different interpretations of the project
specifications, resulting in errors and rework. Inadequate communication between the project
owner and the contractors could also lead to delays in decision making and resolution of issues,
which could ultimately impact the project schedule and budget. The use of S-Curve analysis
can help in identifying such issues and tracing their causes, which could then be addressed
through effective communication and collaboration among the project team.

Table 3: Factors causing delay in development project (Mohamad et al., 2021).


Cause of Project How it can occur due to miscommunication
1 Changes in project Misunderstanding of project requirements between project
scope team members and stakeholders
2 Design changes Poor communication of design changes between project team
members and stakeholders
3 Delayed delivery Lack of communication between project team members and
of materials suppliers
4 Inadequate Incomplete or unclear communication of project plan and
planning timeline between project team members
5 Inaccurate Inadequate communication of resource availability and
estimation of requirements between project team members
resources
6 Lack of Poor communication between project team members,
coordination subcontractors, and other stakeholders
7 Unforeseen site Lack of communication and coordination between project
conditions team members and site supervisors
8 Weather conditions Lack of communication and coordination between project
team members and weather forecasting agencies
9 Equipment Poor communication between project team members and
breakdowns equipment maintenance personnel
10 Inadequate staffing Inadequate communication of staffing requirements and
availability between project team members and HR
department
11 Strikes and labor Lack of communication and negotiation between project team
disputes members and labor unions
12 Changes in laws Inadequate communication and understanding of legal
and regulations requirements and changes between project team members and
legal advisors
13 Financial issues Lack of communication and transparency between project
team members and financial advisors
14 Changes in Inadequate communication and understanding of ownership
ownership transfer process between project team members and legal
advisors
15 Conflicts and Poor communication and lack of conflict resolution skills
disputes among project team members and stakeholders

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16 Force majeure Lack of communication and coordination between project


events team members and relevant authorities in response to
unexpected events
Poor communication is one of the causes of project delay (Abdelhamid et al., 2018). It can lead
to misunderstandings, delays, and chaos in a project, ultimately impacting the project schedule.
For instance, a delay in material procurement caused by miscommunication between the
procurement department and suppliers can lead to project delay (Adinyira et al., 2017).
Inadequate safety measures due to poor communication between safety managers and workers
can result in workplace accidents, causing delays in the project schedule (Sawacha & Khalfan,
2019). Cultural differences between project team members can also lead to communication
barriers, causing delays in project execution (Yamamura et al., 2019).

In 2015, the project was supposed to be handed over as per the contract, but in December 2014,
after 21 months of the project, it was discovered that it was running behind schedule by a factor
of 5.96 and had achieved only 80.47% of the scheduled progress. The actual progress was
contractually required to be 74.78%. This delay was a concern not only for the contractor but
also for the developer, as the contract guaranteed compensation to the buyer for late delivery.
According to the contract, if the project falls behind 70% of actual progress due to any reason,
the contractor is obligated to prepare an Extension of Time (EOT), which seemed more like a
penalty for the developer for late delivery. Table 4 shows the weightage of delays based on the
number of days taken to resolve each issue.

Table 4: Delay of progress payment.

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4. Construction laws and regulation:


The construction industry in Malaysia is governed by several acts and codes that outline the
operations and procurement of construction projects. In West Malaysia, the regulatory
authorities are different from those in Sabah. For instance, in Sabah, construction projects are
mainly governed by laws such as the Construction Industry Development Board (CIDB), which
regulates and improves the construction industry's performance, professionalism, and
sustainability.

 Construction Industry Development Board (CIDB).


 Construction Industry Payment and Adjudication Act 2012 (CIPAA) was
introduced in 2012 and was being enforced in construction industry since 15th
April 2014.
 The Town and Country Planning Ordinance (Cap 141).
 The Pertubuhan Akitek Malaysia (PAM) has two types.
o Agreement and conditions of PAM Contract 2018 (With Quantities).
o Agreement and conditions of PAM Contract 2006 (Without Quantities).
 The Sabah Land Ordinance.
 The Malaysian Standard on Quantity Surveying (MSQS).
 The Local Government Ordinance 1961.
 The Housing (Control and Licensing Developers) Rules 1980.
Due to the scope of this research mainly focus will be on CIDB, CIPAA and PAM Contract
with quantities.
Example of GOLDENLINK ENGINEERING SDN BHD (PLAINTIFF) against ILLUMINA
SDN BHD (DEFENDANT) SUIT NO. BKI-22NCvC-94/8-2017 (HC2).

According to CIPA whatever interim payment certificate has been submit, the Plaintiff should
be paid for all his work done. The final verdict of the high court in favor of GOLDENLINK
ENGINEERING SDN BHD (PLAINTIFF).

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4.1. Top 5 Construction cases of 2021 in Malaysia:

1) PPB Group Bhd v. RHB Bank Bhd.


In this case, miscommunication arose between the parties regarding the terms of a loan
agreement. The court ultimately held that the bank had breached the loan agreement due to
its failure to properly communicate the terms to the borrower. This miscommunication
resulted in a dispute over the amount owed by the borrower and caused financial losses for
both parties.
2) Danaharta Urus Sdn Bhd v. Dr. Ting Siew Chin
Miscommunication between the parties led to a dispute over the terms of a settlement
agreement. The court found that the parties had failed to clearly communicate their
intentions and expectations, which resulted in confusion and ultimately, a breach of the
settlement agreement. This miscommunication resulted in a significant financial loss for
one of the parties.
3) Selangor Dredging Bhd v. Ooi Foong Yee
In this case, miscommunication occurred between the buyer and the seller regarding the
terms of a property sale agreement. The court found that the seller had failed to adequately
communicate the terms of the agreement to the buyer, which resulted in a dispute over the
payment of a deposit. This miscommunication caused delays in the completion of the sale
and resulted in financial losses for both parties.
4) RHB Bank Bhd v. Koperasi Serbaguna Kakitangan Kerajaan Sabah Bhd
Miscommunication arose between the parties regarding the terms of a loan agreement. The
court found that the bank had failed to properly communicate the terms to the borrower,
which led to confusion and a dispute over the amount owed. This miscommunication
resulted in financial losses for both parties and caused delays in the repayment of the loan.
5) Adorna Properties Sdn Bhd v. Boonsom Boonyanit
In this case, miscommunication occurred between the parties regarding the ownership of a
property. The court found that the seller had failed to adequately communicate the terms of
the sale to the buyer, which resulted in a dispute over the rightful ownership of the property.
This miscommunication caused significant financial losses for the buyer and delayed the
completion of the sale.

Effective communication is crucial in construction management as it plays a critical role in


ensuring successful project outcomes. Miscommunication and lack of communication among
project stakeholders can lead to various issues such as delays, cost overruns, and conflicts. In
a study by Wang and Huang (2019), it was found that miscommunication in construction
projects can lead to significant delays, which can negatively impact project success. Similarly,
in the case of Golden link Engineering Sdn Bhd vs Illumina Sdn Bhd, miscommunication
between the parties resulted in a dispute and delayed project completion. Another study by
Nordin et al. (2014) found that miscommunication between the contractor and sub-contractor
led to a claim for loss by the sub-contractor. Therefore, it is essential for construction managers
to develop effective communication strategies and ensure that they are implemented throughout
the project lifecycle. This involves establishing clear lines of communication, utilizing
appropriate communication channels, and ensuring that stakeholders have access to accurate
and up-to-date information. Moreover, as stated by Lin et al. (2018), visual communication
tools can help to enhance communication effectiveness in construction projects. In conclusion,
effective communication is vital in construction management to ensure project success.
Miscommunication can lead to delays, cost overruns, and conflicts, which can negatively

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impact project outcomes. Construction managers should, therefore, prioritize communication


and implement effective strategies to mitigate the risks associated with miscommunication.

5. Information Processing and Visual Communication:


Effective communication is essential for successful construction project management. The
paper titled "A Conceptual Framework for Effective Communication in Construction
Management: Information Processing and Visual Communication" by Shen et al. (2017)
proposes a framework that integrates information processing and visual communication to
enhance communication in construction projects. The paper discusses the typical
communication cycle in construction projects, which includes encoding, transmitting,
decoding, and feedback. Shen et al. (2017) highlight that ineffective communication can occur
at any stage of this cycle, leading to misunderstandings, delays, and project failure. They
suggest that visual communication can supplement verbal communication to enhance
understanding and reduce misinterpretation (Lee & Kim, 2018).

The proposed framework involves four main stages: information collection, information
processing, visual communication design, and visual communication delivery. Information
collection involves gathering project information from various stakeholders, including clients,
contractors, designers, and suppliers. Information processing involves organizing, filtering, and
synthesizing the collected information to generate knowledge that is relevant to the project.
Visual communication design involves creating visual aids that can effectively convey the
knowledge to different stakeholders. Finally, visual communication delivery involves
presenting the visual aids to stakeholders and ensuring that they understand the information.
Shen et al. (2017) emphasize the importance of visual communication in construction projects,
as it can supplement verbal communication and enhance understanding. They propose the use
of various visual aids, such as diagrams, charts, and graphs, to convey information effectively.
The paper also highlights the need for proper training and education to improve communication
skills among project team members.
The communication cycle as a series of stages, which include:
• Encoding: The sender creates the message, choosing words, symbols, or other forms of
communication to convey their intended meaning.
• Transmission: The message is transmitted through a chosen medium, such as face-to-
face conversation, email, or phone call.
• Reception: The receiver receives the message and decodes it, interpreting the words or
symbols to understand the intended meaning.
• Feedback: The receiver provides feedback to the sender, indicating their understanding
or seeking clarification on any points of confusion.
• Understanding: Both sender and receiver reach a shared understanding of the message,
ensuring that communication is successful.

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Figure 1: Communication Life Cycle (Lee & Kim, 2018).

The successful communication process involves accurately transmitting information to the


receiver without any confusion or misunderstanding. However, due to different backgrounds
and experiences, individuals may misinterpret the information, as they tend to perceive what
they want to hear and see. This is attributed to the cognitive process of individuals, which
involves acquiring, processing, and retaining information in memory. Studies in cognitive
psychology have shown that individuals store information in their memory as a coherent chunk
or concept. All in all, this study proposes a conceptual framework that integrates information
processing and visual communication to enhance communication in construction projects. The
framework can help project teams to gather and process information effectively, design visual
aids that enhance understanding, and deliver the information to stakeholders. Effective
communication can ultimately lead to successful project outcomes.

6. Conclusion
All in all, this review paper has analysed the effects of ineffective communication in
construction projects and its role in causing complex litigation and arbitration. Communication
problems are a common challenge in the construction industry due to its complex nature and
the involvement of multiple stakeholders, including clients, contractors, subcontractors, and
consultants.
Ineffective communication can lead to misunderstandings, delays, errors, and severe financial
and legal consequences. These include project delays, cost overruns, safety risks, and legal
disputes, which are time-consuming and expensive to resolve. As a result, litigation and
arbitration can cause project delays, damage reputation, and financial losses.
To mitigate these issues, stakeholders in the construction industry must be proactive in
addressing communication problems. This involves adopting effective communication
practices, such as regular meetings, clearly defined roles and responsibilities, and transparent
communication channels. The use of technology, such as project management software and
communication tools, can also improve communication and collaboration among stakeholders.
In conclusion, the impact of ineffective communication on construction projects is significant,
and effective communication practices are essential to prevent disputes that may lead to costly
litigation and arbitration. Therefore, stakeholders in the construction industry must recognize
the significance of communication and implement necessary measures to ensure effective
communication throughout the project lifecycle.

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