An Investigation of Disputes Resolution in the Construction Industry: The Case of Gaza-Strip

Abstract

A key factor for a successful construction industry is the fewer occurrences of disputes, which are influenced by many factors during the project life cycle. The main aim of this study is to investigate the dispute resolution in the construction industry in Gaza Strip. This study aims to investigate the causes of dispute occurrence, the degrees of usage and effectiveness of various dispute resolution methods, and the occurrence and effectiveness of dispute resolution obstacles. In addition, this study also aims to investigate the usage and effectiveness degrees of some managerial techniques that help in solving disputes and dispute avoidance techniques. The objectives of this study have been achieved through studying of seventy-two questionnaires distributed to contracting companies have valid registration in Palestinian Contractors Union (PCU). The results of analyzing 58 causes considered in the questionnaire concluded that the main causes lead to dispute are: the use of a biased contract by the owner, the contract has ambiguous provisions and financing difficulties. The results illustrates that implementing the lowest bidder system, specifications and drawings are not consistent, repeated design changes, and using private contract by the owner are considered the main causes of disputes. The study results prove that the most used and effective methods in dispute resolution are: negotiation, mediation, conciliation and arbitration. According to the study results, delegating authorities to the field staff is considered the main way that help in resolving disputes, delaying the resolution of disputes to the project end by the owner is considered the main obstacle of resolving disputes, and using a fair contract is considered the main technique to avoid dispute occurrence. The results of this study recommended using a fair contract to all parties, completeness and consistence of drawings and specifications, and accurate design to avoid dispute causes. The results recommended modifying the lowest bidder system of awarding tenders to avoid awarding works to unqualified contractors. PCU is requested to cooperate with Association of Engineers (AoE) to pay more attention to training needs of contracting companies in order to improve their performance in dispute resolution.