Effect of Disputes on the Delivery of Construction Projects in Abuja, Nigeria.

Abstract

Studies have globally revealed that disputes are an endemic feature in the construction industry. When not properly resolved, they may escalate and ultimately require litigation proceedings, which can be extremely costly for the parties concerned because disputes cause delay in completion time of a project and increase in cost which in turns causes dissatisfaction among parties involved. This study evaluated the effect of disputes on construction projects delivery with a view to suggesting strategies for eliminating disputes in construction projects. Data were collected from selected construction firms based in Abuja through the use of structured questionnaire in which 74 copies of questionnaire were distributed and 49 retrieved. Relative Importance Index (RII) and Mean Item Score (MIS) were employed for the analysis of data. Findings from the research revealed ambiguity in the formulation of contract as the most severe cause of disputes (MIS = 4.79); extended or more complex award process was found to be the major effect of dispute in construction projects (MIS = 4.79); and understanding contractual document before proceeding into agreement was found to be the most effective strategy for controlling the effects of disputes on construction projects for improved construction project delivery (RII = 0.98). It was concluded that disputes have a significant effect on the delivery of construction projects in Abuja. It was thus recommended that parties to a contract should ensure that mechanism is put in place in order to effectively implement the identified strategies for controlling the effect of disputes to the latter so as to prevent ambiguity in the formulation of contract, poor contract administration, error in pricing or costing, and improper project scheduling by the contractor for the avoidance disputes in construction projects.