Causal Modeling of Disputes in Construction Projects

Abstract

Construction disputes can be instigated by several factors that are interrelated. Past studies on dispute causal factors mainly focused on examining individual factors without revealing their interdependencies. Thus, this study aims to establish a dispute causal model and identify the interrelationships among the different dispute causes. To achieve this, 14 common causal factors were identified through a literature survey and subsequently verified through a pilot study. Further, by gathering 82 experts’ opinions through a questionnaire survey and using interpretative structural modeling (ISM), a dispute causal model was developed. The developed model portrays a six-level hierarchy among the identified factors. The “ambiguous language of a contract document” emerged as the trigger for the other factors and was positioned at the bottom of the ISM hierarchy. The factor “project cost overrun,” which is highly controlled and influenced by the other factors, emerged at the top of the hierarchy. An impact “matrix cross-reference multiplication applied to a classification” (MICMAC) analysis classified and quantified each factor on the basis of its dependence and influence on the other causal factors. The findings from this study will help construction professionals focus on the significant causal factor(s) responsible for triggering other causal factors, and ultimately help in reducing construction disputes.