STUDY OF CONSTRUCTION DISPUTES & IT’s RESOLUTION THROUGH ARBITRATION FOR AHMEDABAD CITY OF GUJARAT STATE OF INDIA

STUDY OF CONSTRUCTION DISPUTES & IT’s
RESOLUTION THROUGH ARBITRATION FOR
AHMEDABAD CITY OF GUJARAT STATE OF INDIA
By
SHAH ABHISHEK SHAILESH
(130080714018)
Guided by: Dr. RAJIV BHATT
Associate Professor,
Civil Engineering Department
A.D.Patel Institute of Technology
New VallabhVidyanagar, Gujarat
Co Guided by: Prof. J.J.BHAVSAR
Associate Professor and PG Coordinator (M.E - C.E.M),
B.V.M. Engineering College,
VallabhVidyanagar, Gujarat
A Thesis Submitted to
Gujarat Technological University
in Partial Fulfillment of the Requirements for
The Degree of Master of Engineering in
Construction Engineering & Management
MAY - 2015
BIRLA VISHVAKARMA MAHAVIDYALAYA ENGINEERING COLLEGE
VALLABH VIDYANAGAR

i
CERTIFICATE
This is to certify that research work embodied in this thesis entitled “STUDY OF
CONSTRUCTION DISPUTES & IT’s RESOLUTION THROUGH
ARBITRATION FOR AHMEDABAD CITY OF GUJARAT STATE OF
INDIA” was carried out by SHAH ABHISHEK SHAILESH (130080714018)
studying at Birla Vishvakarma Mahavidyalaya (BVM) Engineering College (008) for
partial fulfillment of Master of Engineering degree Construction Engineering and
Management to be awardedby Gujarat Technological University. This researchwork
has beencarriedout under our guidance and supervision and it is up to my satisfaction.
Date: / / 2015
Place:
Dr. RAJIV BHATT
Associate Professor
Prof. J.J.BHAVSAR
Associate Professor and PG
Coordinator (M.E C.E.M),
B.V.M. Engineering College,
Prof. (Dr) L. B. ZALA
Professor and Head
B.V.M. Engineering College
VallabhVidyanagar
Dr. F. S. UMRIGAR
Principal
VallabhVidyanagar
Seal of Institute

ii
COMPLIANCE CERTIFICATE
CONSTRUCTION DISPUTES & IT’s RESOLUTION THROUGH ARBITRATION
FOR AHMEDABAD CITY OF GUJARAT STATE OF INDIA” was carried out by
Mr. Abhishek. S. Shah (Enrollment No. 13008071418) studying at BIRLA
VISHVAKARMA MAHAVIDYALAYA – 008 for partial fulfillment of Master of
Technology degree to be awarded by Gujarat Technological University. He has
compiled to the comments given by Dissertation phase – I as well as mid semester
Thesis Reviewer to my satisfaction.
Date: / /2015
Place:
ABHISHEK S SHAH
PG Scholar
ME (CEM), Civil Engineering
Department
BVM Engineering College
Vallabh Vidhyanagar, Gujarat
Dr. RAJIV BHATT
Associate Professor
PROF. (Dr) L. B. ZALA
Professor and Head
DR. F. S. UMRIGAR
Principal
Vallabh Vidhyanagar,
Gujarat

iii
PAPER PUBLICATION CERTIFICATE
INDIA” carried out by SHAH ABHISHEK SHAILESH (Enrollment No.
130080714018) studying at Birla Vishvakarma Mahavidyalaya (BVM) Engineering
College (008) for partial fulfillment of Master of Engineering degree to be awarded
by Gujarat Technological University, has published article entitled “RANKING OF
“CAUSES OF DISPUTES” AND “USE OF DISPUTE RESOLUTION
METHODS” FOR CONSTRUCTION INDUSTRY IN GUJARAT” for
publication by the National Conference “Recent Research & Development In Core
Discipline Of Engineering” at Vadodara Institute of Engineering during 25th
and 26th
April 2015.
Date: / /2015
Place:
ABHISHEK S SHAH
PG Scholar
ME (CEM), Civil Engineering
Department
BVM Engineering College
Vallabh Vidhyanagar, Gujarat
Dr. RAJIV BHATT
Associate Professor
PROF. (Dr) L. B. ZALA
Professor and Head
DR. F. S. UMRIGAR
Principal
Vallabh Vidhyanagar,
Gujarat
(Seal of the Institute)

iv
THESIS APPROVAL CERTIFICATE
INDIA” carried out by SHAH ABHISHEK SHAILESH Enrollment
No.130080714018 studying at Birla Vishvakarma Mahavidyalaya (BVM)
Engineering College (008) is approved for the degree of Master of Engineering with
specialization of Construction Engineering and Management by Gujarat
Technological University.
Date: / /2015
Place:
Name: Name:

v
DECLERATION OF ORIGINALITY
I hereby certify that I am the sole author of this thesis and that neither any part of this
thesis nor the whole of the thesis has been submitted for a degree to any other
University or Institution.
I certify that, to the best of my knowledge, my thesis does not infringe upon anyone’s
copyright nor violate any proprietaryrights and that any ideas,techniques, quotations,
or any other material from the work of other people included in my thesis, published
or otherwise, are fully acknowledged in accordance with the standard referencing
practices. Furthermore, to the extent that I have included copyrighted material that
surpasses the bounds of fair dealing within the meaning of the Indian Copyright Act,
I certify that I have obtained a written permission from the copyright owner(s) to
include such material(s) in my thesis and have included copies of such copyright
clearances to my appendix.
I declare that this is a true copyof my thesis, including any final revisions,as approved
by my thesis review committee.
Date: / / 2015
Place:
130080714018
Dr. RAJIV B BHATT
COLLEGE CODE: 001

vi
ACKNOWLEDGEMENT
I am very much thankful to Mr. F.S.Umrigar Principal, BVM Engineering College
& Mr. L.B.Zala Head of the Civil Engineering Department, for having permitted
me to carry out this Dissertation work in my area of interest.
I wish to express my deep sense of gratitude to my Guide,
Dr. Rajiv. B. Bhatt (Associate Professor, Civil Engineering Department,
A.D.Patel Institute of Technology) and Co-guide Mr. J.J.Bhavsar (PG co-
ordinator, BVM Engineering College) for his able guidance and useful suggestions,
which helped me a lot in completing the Dissertation work, in time. A great many
thanks to all other respected faculty members and the whole Institution of BVM
Engineering College.
I would also thank Mr. Akalkotkar Sir (H.O.D of Construction Project
Management branch of PG course at GANPAT University, Kherva) for their very
helpful guidance throughout my thesis work.
I would also like to thank Arbitrators Mr. D.V.Patel and Mr. A.T.Doshi for their great
support and help during the thesis work.
I would alsolike to thanks all the respondents of the survey workwho has contributed
their time and effort and gave their valuable responses.
ABHISHEK.S.SHAH
130080714018
M.E. – CONSTRUCTION ENGINEERING AND MANAGEMENT,
BVM ENGINEERING COLLEGE,
V.V.NAGAR,
GUJARAT

vii
TABLE OF CONTENTS
Sr. No. Table of Content Page
No.
Certificate i
Compliance Certificate ii
Paper Publication Certificate iii
Thesis Approval Certificate iv
Declaration of Originality v
Acknowledgement vi
Table of Content vii
List of Figure x
List of Table xii
List of Abbreviations xvi
Abstract xvii
CHAPTER – 1 ( INTRODUCTION ) 1 - 3
1.0 Background 1
1.1 Problem statement 2
1.2 Objectives 2
1.3 Need for the study 3
1.4 Scope of the work 3
CHAPTER - 2 ( LITERATURE REVIEW ) 5 - 35
2.0 Introduction 4
2.1 Background 5

viii
2.1.1 Conflict 5
2.1.2 Claims 5
2.1.3 Dispute 5
2.1.4 Change 6
2.1.5 Constructive change 6
2.1.6 Change order 6
2.1.7 Dispute conflict concept 7
2.1.8 Conflict management 7
2.2 Literature review of researchpaper and its summary 8
2.2.1 Factors affecting disputes given by different authors in previous
studies
16
2.2.2 Overall findings of Global Construction Dispute 2014 18
2.2.3 Rank to the Dispute causes in Global 18
2.2.4 Rank to Alternative Dispute Resolution Method 18
2.2.5 Rank to the Dispute causes in ASIA 19
2.2.6 Rank to the Dispute causes in US 19
2.2.7 Rank to the Dispute causes in UK 20
2.2.8 Rank to the Dispute causes in Middle East 20
2.3 Data required for making claims 20
2.4 Types of construction disputes 21
2.5 List of Causes of claims 21
2.6 Most frequent causes of claims 23
2.6.1 Payment related claims 24
2.6.2 Change claims 24
2.6.3 Delay claims, 24
2.6.4 Extra work claims 25
2.6.5 Contact claims 25
2.6.6 Different pricing and measuring claims 25
2.6.7 Different site condition Claims 25
2.6.8 Acceleration claims 25
2.6.9 Damage claims 26
2.6.10 Contract termination claims 26
2.7 Claim settlement methods 26

ix
2.7.1 Negotiation 29
2.7.2 Mediation 29
2.7.3 Conciliation 29
2.7.4 Mini trial 30
2.7.5 Adjudication 30
2.7.6 Arbitration 30
2.7.7 Litigation 31
2.8 Supporting documents for the claims 31
2.9 Clauses in Tender to Avoid or Settle Claims 33
CHAPTER-3 ( RESEARCH METHODOLOGY ) 36 - 40
3.1 Introduction 36
3.2 Data Collection Method 36
3.2.1 Desk Study 36
3.3 Questionnaire Design 36
3.4 Data Analysis Method 37
3.4.1 Weighted Average Method 37
3.4.2 Relative Importance Index Method 38
3.4.3 Spearman Rank Correlation Coefficient 38
3.5 Sample Size 39
CHAPTER – 4 ( DATA COLLECTION & ANALYSIS) 41 - 55
4.0 Introduction 41
4.1 Data Collection 41
4.2 List of Respondents 42
4.3 Data Analysis 44
4.4 Overall ranking by all in General 45
4.4.1 Rank to Causes of Construction Dispute 45
4.4.2 Rank to Impact of Construction Dispute 46
4.4.3 Rank to Dispute Resolution Method 46
4.5 Rank by Individual 47
4.5.1 To causes of Construction Dispute 47
4.5.2 To Impact of Construction Dispute 48

x
4.5.3 To Dispute Resolution Method Used 49
4.6 Spearman’s Rank Correlation Method 50
4.6.1 Spearman’s Rank Correlation for Causes of Construction
Dispute
50
4.6.1.1 Between Architect and Contractor 50
4.6.1.2 Between Architect and Developer 51
4.6.1.3 Between Contractor and Developer 52
4.6.2 Spearman’s Rank Correlation for Impact of Construction
Dispute
53
4.6.3 Spearman’s Rank Correlation for Dispute Resolution Method
Used
54
CHAPTER – 5 ( RESULTS AND DISCUSIONS ) 56 – 71
5.0 Introduction 56
5.1 Comparison of Rank of Each Category by All Individual 56
5.1.1 Rank to Causes of Construction Dispute by All Individual 56
5.1.2 Rank to Impact of Construction Dispute by All Individual 58
5.1.3 Rank to Dispute Resolution Method by All Individual 59
5.2 Percentage and Rank to Major Causes of Dispute 60
5.2.1 Percentage and Rank to Major Causes of Dispute in General 60
5.2.2 Percentage and Rank to Major Causes of Dispute by Architect 61
5.2.3 Percentage and Rank to Major Causes of Dispute by Contractor 62
5.2.4 Percentage and Rank to Major Causes of Dispute by Developer 63
5.3 Percentage and Rank to Impact of Construction Dispute 64
5.3.1 Percentage and Rank to Impact of Construction Dispute in
General
64

xi
5.3.2 Percentage and Rank to Impact of Construction Dispute by
Architect
65
Contractor
66
Developer
67
5.4 Percentage and Rank to Dispute Resolution Method Used 68
5.4.1 Percentage and Rank to Dispute Resolution Method Used in
General
68
5.4.2 Percentage and Rank to Dispute Resolution Method Used by
Architect
69
Contractor
70
Developer
71
CHAPTER – 6 ( CASE STUDY ) 72 - 75
6.0 Introduction 72
6.1 General Details 72
6.2 Facts Agreed by both the parties 72
6.3 Reasons for Disputes 73
6.4 Claims by Claimant on Respondent 73
6.5 Issues of the Case 73
6.6 List of Supporting Documents along with Claim Submission 74
6.7 Arbitrator’s Finding and Decisions on the issues 74
6.8 Statement of Award amount 75
CHAPTER – 7 ( CONCLUSION ) 76 - 78
7.1 Conclusion 76
7.2 Recommendation 76
7.3 Future Study Scope 78
7.4 Limitations of the study 78

xii
REFERENCES 79 - 82
APPENDIX
Appendix - A : Questioner Form A1 – A4
Appendix - B : Data Collected about Causes of Construction
Dispute
B1 – B3
Appendix – C : Data Collected about Impact of Construction
Dispute
C1 – C3
Appendix - D : Data Collected about Dispute Resolution
Method Used
D1 – D3
Appendix – E : Research Paper - 1 E1 – E13
Appendix – F : Research Paper - 2 F1 – F9
Appendix – G : Research Paper Certificates G1 – G2
Appendix – H : Plagiarism Report H1 – H2
Appendix – I : Review Card and Action Taken I1 – I7

xiii
List of Figure
Sr. No. Figure Page No.
Figure-1 Claims Settlement Methods 27
Figure-2 Claims Settlements Methods 27
Figure-3 Alternative Dispute Resolution Methods 28
Figure-4
Rank by All Individual to Causes of Construction
Dispute
57
Figure-5
Rank by All Individual to Impact of Construction
Dispute
58
Figure-6 Rank by All Individual to Dispute Resolution Method 59
Figure-7 CCD Vs Its Percentage by All 60
Figure-8 CCD Vs Its Percentage by Architect 61
Figure-9 CCD Vs Its Percentage by Contractor 62
Figure-10 CCD Vs Its Percentage by Developer 63
Figure-11 ICD Vs Its Percentage by All 64
Figure-12 ICD Vs Its Percentage by Architect 65
Figure-13 ICD Vs Its Percentage by Contractor 66
Figure-14 ICD Vs Its Percentage by Developer 67
Figure-15 DRM Vs Its Percentage by All 68
Figure-16 DRM Vs Its Percentage by Architect 69
Figure-17 DRM Vs Its Percentage by Contractor 70
Figure-18 DRM Vs Its Percentage by Developer 71

xiv
List of Table
Sr. No. Table Page
No.
Table – 1 Factors affecting Dispute by different Authors 16
Table – 2 Overall findings of Global Construction Dispute 2014 18
Table – 3 Rank to the Dispute causes in Global 18
Table – 4 Rank to Alternative Dispute Resolution Method 18
Table – 5 Rank to the Dispute causes in Asia 19
Table – 6 Rank to the Dispute causes in US 19
Table – 7 Rank to the Dispute causes in UK 20
Table – 8 Rank to the Dispute causes in Middle East 20
Table – 9 Population for Survey Work 39
Table – 10 Rate of Responses 41
Table – 11 List of Respondents 42
Table – 12 Overall Rank to Causes of Construction Dispute 45
Table – 13 Overall Rank to Impact of Construction Dispute 46
Table – 14 Overall Rank to Dispute Resolution Method Used 46
Table – 15 Individual Rank to Causes of Construction Dispute 47
Table – 18 CCD – Spearman’s Rank Correlation Between Architect &
Contractor
50
Table – 19 CCD – Spearman’s Rank Correlation Between Architect &
Developer
51
Table – 20 CCD – Spearman’s Rank Correlation Between Contractor
& Developer
52
Table – 21 ICD – Spearman’s Rank Correlation Between Architect &
Contractor
53
Table – 22 ICD – Spearman’s Rank Correlation Between Architect &
Developer
53

xv
Table – 23 ICD – Spearman’s Rank Correlation Between Developer &
Contractor
54
Table – 24 DRM – Spearman’s Rank Correlation Between Architect &
Contractor
54
Table – 25 DRM – Spearman’s Rank Correlation Between Architect &
Developer
55
Table – 26 DRM – Spearman’s Rank Correlation Between Contractor
& Developer
55
Table – 27 Rank to CCD by All Individual 56
Table – 28 Rank to ICD by All Individual 58
Table – 29 Rank to DRM by All Individual 59
Table – 30 Percentage and Rank to CCD in General 60
Table – 31 Percentage and Rank to CCD by Architect 61
Table – 32 Percentage and Rank to CCD by Contractor 62
Table – 33 Percentage and Rank to CCD by Developer 63
Table – 34 Percentage and Rank to ICD in General 64
Table – 35 Percentage and Rank to ICD by Architect 65
Table – 36 Percentage and Rank to ICD by Contractor 66
Table – 37 Percentage and Rank to ICD by Developer 67
Table – 38 Percentage and Rank to DRM in General 68
Table – 39 Percentage and Rank to DRM by Architect 69
Table – 40 Percentage and Rank to DRM by Contractor 70
Table – 41 Percentage and Rank to DRM by Developer 71
Table – 42 Statement of Awarded Amount 75

xvi
List of Abbreviations
CCD Causes of Construction Dispute
ICD Impact of Construction Dispute
DRM Dispute Resolution Method

xvii
“STUDY OF CONSTRUCTION DISPUTES & IT’s
RESOLUTION THROUGH ARBITRATION FOR
AHMEDABAD CITY OF GUJARAT STATE OF INDIA”
By
(130080714018)
Guided by: DR. RAJIV BHATT
H.O.D (Civil Department)
ABSTRACT
The Indian government is investing millions of dollars every year in new facilities to
improve the infrastructure of the country. Construction projects are complex,
uncertain, have long construction periods, involve many parties, and require the
integration of different work components (Civil, Mechanical and Electrical) to work
together as a single unit. The projects require highly specializeddesigns, detailedplans
and specifications, high-risk constriction methods, effective management, skill full
supervision, and close coordination. Thus, claims are common in such projects.
Today, construction projects are the subject of more claims than in any other industry.
Claims appear to hinder the completion of construction and cause delays in delivering
projects. These claims are undesirable because they require significant time and
resources to resolve, and because they cause adversarial relationships among the
parties involved. It is therefore in the common interest of all involved parties to
prevent them, minimize them, or resolve them as amicably as possible. Identifying
common claim types and their causes is essential in devising ways and means to
minimize and hopefully avoid them in future projects.
This thesis presents the results of a pilot study of the types, and causes of construction
claims in the Construction industry.

xviii
From present study it is found that “Finance and payment issues” is having first rank
among all causes for generation of dispute. Second rank was given to “Poor work
quality” by the respondents. “Extra items” is having third rank and “Design errors” is
having fourth rank in causes of disputes. “Inclement weather” is having lowest rank.
Respondents felt that disputes in construction industry damages the reputation of both
the parties. This is found by getting first rank for “Damaging company reputation” in
Impact matters. Further, respondents have given lowest rank to “Dispute Escalation”
matter. Respondents have given first rank to “Negotiation” method for dispute
resolution and last rank is given to “Litigation” method.
The recommendations to prevent/reduce claims in construction projects are then
presented. It is expected that the study of this thesis will help construction firms to
avoid the main causes of claims and, accordingly, minimize delays and cost overruns
in construction projects.

CHAPTER 1
INTRODUCTION
PAGE NO. 01 - 03

CHAPTER – 1: INTRODUCTION
M.E CONSTRUCTION ENGINEERING AND MANAGEMENT Page 1
1.0 Background:
India is a developing country. The construction sector of India is growing rapidly.
There are many ongoing Infrastructure projects in India of Billions of Dollars where
the delay or stoppage of work due to any reason cannot be acceptable. In this rapidly
growing construction industry many times claims arise between client and
contractors.
Construction Claim can be defined as a request by either party to the contract, usually
the Contractor, for compensation for damages caused by failure of the other party to
fulfill his part of obligations as specified in the contract. The compensation is usually
in the form of the additional payment or an extension of time (EOT).
Construction claims are measured by many project participants to be one of the most
disturbing and unpleasant events of a project. Today, construction projects are the
subject matter of more claims than in any other industry. The high competition has
forced contractors to submit projects with minimum profits in order to stay in
business. In addition to their multiparty nature, projects are becoming more complex
and risky. This has placed an added burden on contractors to construct increasingly
sophisticated and risky projects with less resources and profits. Under these
circumstances, it is not surprising that the number of claims within the construction
industry continues to increase.
During the execution of a project, several issues arise that cannot be resolved among
projectparticipants. Such issues typically involve contractor requesting for either time
extension or for additional cost, or sometimes both. Such requests by the contractor
are referred as Claims.
However if the owner does not agree to the claims put out by the contractor and there
are differences in the interpretations, the issue takes the form of dispute. Claims are
becoming an inevitable and unavoidable stress in modern projects involving new
technology, specifications and high expectations from the owner.
There are many reasons for claims time, machinery, material, manpower, money,
price escalation, accident on site, change in design and many other are major reasons

for dispute between two parties which results into disputes, if the disputes are Claims
and Counterclaims.
To solve these Claims, certain dispute resolution techniques are available like
arbitration, conciliation, mediation and dispute resolution board.
1.1 Problem Statement
In any construction work there are mainly Client or Developer, Contractor, Sub-
contractors, Architects, Structure Designer, Project management consultancy (PMC)
etc. working together on the project. Many times due to delay of work, delay in
clearance of running bill, cost over-run, design errors etc can create conflict between
either two parties mentioned above, which may convert into the claims. However,
 What are the main causes that lead them into a construction dispute?
 What are the impacts of construction disputes?
 Which are the disputes resolution techniques available in construction
industry?
Above important issues needs to be studied.
1.2 Objective:
The main objective of study is...
 To find out various aspect of claims management and suggest various
measures for avoidance of claims.
 To identify and analyze the types of claims and their causes in construction
projects.
 To study Causes of Construction Dispute, their Impact and Dispute Resolution
Method Used to resolve these disputes.
 Study of the Dispute Resolution case study of any real cases.

1.3 Need for study:
Claim is essentially an outcome of loss or damage occurred. In most cases for claim,
both the engineer and contractor really start thinking about the matter after the claim
arises. They are seldom prepared in advance.
It is essential for the contractor / client to estimate the exact value of loss or damage
incurred due to the increased cost and extension of time.
Moreover it is necessary to view the current scenario in the construction industry for
the level of practice used in the claim process of the clients consultants and the
contractor and what should be done to manage claims if they arise.
In addition it is essential to study the various ways in which the claims could be
avoided and how this can be resolved even if they occur for an amicable working in a
project.
1.4 Scope of work:
It is necessary to study the various aspects of Claims Management by the Contractor,
Developer, Architect and Consultant.
It is necessary to correlate the ability of Contractor, Client and Consultant to deal with
claim process with organizational parameters like financial growth, size of the
company, financial turnover, management system and their attitude towards claims.

CHAPTER 2
LITERATURE
REVIEW
PAGE NO. 04 - 35

CHAPTER – 2: LITERATURE REVIEW
2.0 Introduction:
Since 1990’s, the concept of claim management has spread broadly among many
companies in construction sector as it works well against the clients by providing
supplementary profits to contractors. On the other hand, client’s understandable
disappointment at being enforced to release large additional payments beyond the
sums initially budgeted and assumed to be sufficient, damages the relation with the
contractor. A survey study by Semple at al. (1994) concludes that the most common
causes are increases in scopes,weather conditions, restricted access, and acceleration,
in addition to the above causes Adrian (1993) indicated relativelylow profitability of
the construction industry, changing of product delivery, and other factors like;
inadequate bid information, faulty or late owner-supplied equipment or material,
inferior quality of drawings or specifications, and stop-and-go operations. Based on
91 projects, concluded that the most crucial sources of claims are unclear or
inadequate documentation, late instructions, variations initiated by the
employer/engineer, measurement related issues, inclement weather, and time
extension assessment. The difference between how firms manage these claims,
however, can impact their profitability both in the short term and the long term.
Consequently, a good background with efficient knowledge is essential during both
interpretation and application of Claim methodology in order to reach satisfying
results, that is, knowledge is defined as one of the key elements through which an
organization can reach to success. As indicated increased globalization, changing
workforce patterns and technology has led the transition to the knowledge era in
which knowledge, not physical labour, remittances and assets, has become the most
critical resource of an organization and the fountain of organizational and personal
power. In addition to above statement, it is also crucial to be able to utilize the
gathered information and knowledge in an efficient way so that an effective claim
management strategy is determined and the claimant can take advantage of it.

2.1 Background:
2.1.1 Conflict:
“It is Serious disagreement and agreement about something important” (Collins,
1995) [4]
While Willmot and Hocker (1998) [5], provide a detailed definition of conflict as “An
expressed struggle between at least two independent parties who perceive
incompatible goals, scare resources, and interference from other achieving those
goals”.
2.1.2 Claims:
Claim is basically, a contract adjustment due to changes or additions to the original
contract.
Considering various definitions, a construction claim can be defined as ‘a request by
either party to the contract for compensation for damages caused by failure of the
other party to fulfil his part of obligations or expectations as specified in the contract.
“For the assertion of a right to money, property or remedy”(Powell- Smith and
Stephenson, 1993) [6]. While Likewise, Semple et al. (1994) [7] define a claim as “A
request for compensation for damages incurred by any party to a contract”
2.1.3 Dispute:
“Any contract question or controversy that must be settled beyond the jobsite
management” (Diekmann and Girard, 1995) [8]
Claims that remain protested after completing the claims procedure become disputes
between the contracting l parties. The dispute resolution process to be followed is
often times identified in the contract documents. Disputes may be addressed through
arbitration, alternate dispute resolution techniques or litigation.

(Source: Sigitas Mitkus and Tomas Mitkus / Procedia - Social and Behavioral Sciences 110 ( 2014 ) 777 – 786)
Sigitas Mitkus has explained that Conflicts occur if Risks are not clearly assigned,
Claims occur if Conflicts are not clearly managed and Disputes occur if Claims are
not clearly resolved.
2.1.4 Change:
A change occurs when the scope of the contract work is modified or is impacted not
due to the fault or negligence of the contractor. Changes are compensable in money
or time or both.
2.1.5 Constructive Change:
A constructive change occurs when the owner or designer 3 fails to recognize a
contractor's entitlement to a changed condition in a timely manner.
2.1.6 Change Order:
The formal contract document that modifies the original contract is known as Change
order. A Change Order is a written instruction prepared by the Architect and signed
by the Owner, Contractor and Architect, stating their agreement upon all of the
following:
1. A change in the work;
2. The amount of the adjustment in Contract Sum, if any; and
3. The extent of the adjustment in the Contract Time, if any

2.1.7 Dispute-Conflict Concept
Survey of the literature on conflicts and disputes in construction reveals confused
usage of the terms. The terms “conflict”, “dispute”, and “claim” are used
separately or in pairs and frequently without clear indication of the precise meaning
of each use. There is often lack of clarity as to whether the researcher is referring to
“claims” per se (that is claims which are resolved between the parties and do not
therefore become dispute), or to “disputes” (that is those claims which are not resolved
and escalates to disputes), or conflict that is not either appeared as claim or dispute.
Is there a difference between conflict and dispute? Some authors interchange the two
terms, others point to conceptual differences, even if they are blurred. However,
'Conflict' and 'dispute' are two distinct notions. Conflict, it is proposed, exists
wherever there is incompatibility of interest, and therefore is pandemic. Conflict can
be managed, possiblyto the extent of preventing a dispute resulting from the conflict.
Dispute is associated with distinct justifiable issues. Generally the process of dispute
resolution lends itself to third party intervention. It is concluded that effective
management of conflicts and disputes would be furthered by separating the two fields,
and particularly by applying a more stringent structuring (Peter, Michael and Edward,
1998).
John Burton (1990) has suggested that Disputes are short-term disagreements that are
relativelyeasy to resolve. Burton has referred the conflicts as Long-term, deep-rooted
problems that involve seemingly non-negotiable issues and are resistant to resolution
of the problem.
Douglas Yarn (1999) has observed that conflict is a state rather than a process. People
who have opposing interests, values, or needs are in the state of conflict, which may
be manifest, in which case it is brought forward in the form of a dispute which cannot
exist without a conflict.
As per Costantino and Merchant (1996), Conflict is the process of expressing
dissatisfaction, disagreement, or unmet expressions. Conflict is ongoing, intangible
and amorphous.

Loosemore and Djebarni (1994) has commented that whilst there is little
consensus among sociological scholars on a specific definition of conflict as a
common denominator is that for conflict to occur there must be an incompatibility of
needs and a perception by one party that this incompatibility interferes with the
attainment of that person’s needs.
In 1993 Brown and Marroit has subscribed a similar definition. “A conflict exists, in
the mind of an individual, when he/she perceives a situation of incompatibility among
objectives, whereas a dispute is a conflict of which both parties are conscious and
which is the subject toalteration between them.
Further Brown and Marriot (1993) has defined the dispute as a class or kind of
conflict, which manifest itself in distinct, justifiable issues which involves
disagreement over issues which are capable of resolution by negotiations, meditation,
or third party adjudication.
As per Brown and Marriot (1993), “An actual ‘dispute’ will not exist until a claim is
asserted by one party which is ‘disputed’ by the other”
In similar vein Fenn et al (1997) suggested that, “The Conflict exists when there is an
incompatibility of interest. When a conflict becomes irreconcilable and the
mechanisms for avoiding it are exhausted, or inadequate, techniques for resolving the
dispute are required.”
2.2 Literature review of Research Papers and its Summary:
Cakmak et al. has aimed to analyze the main causes of disputes which occur in the
construction industry. In order to reach this aim, a literature review was undertaken
by him to identify the common causes of construction disputes. In this paper there are
mainly 7 categories of construction disputes are listed down they are mainly Owner
related, Contractor related,Design related, Contract related, Human Behavior related,
Project related and lastly External factors. In each of these categories of construction
disputes there are several causes of claims are also listed down by the owner.

Love et al. has analyzed the reasons for disputes in Australian construction industry
and says that Disputes are become an endemic element of the Australian construction
industry. If they are not resolved quickly then they can escalate causing schedule
delays, lead to claims that require litigation proceedings for resolution and destroy
business relationships. Author has said that research over the last two decades has
revealedthat factors such as scope of workchanges, poor contractual documentation,
unforeseen ground conditions, and contractual ambiguities are contributors of
disputes. While this is widely known, disputes still exist over such issues. Before
disputes can be avoided an understanding of what the underlying conditions that
contributes to their occurrence needs to be determined so that mechanisms can be put
in place to prevent them from arising. In this paper the literature is examined and a
series of causal models are developed by the author to demonstrate the
interdependency between key variables that contribute to disputes. The developed
models are used to identify a number of strategies that can be adopted to reduce the
urgent occurrence of disputes in construction.
Lian et al. has said that Extension of time (EOT) has become a common construction
action in many construction projects, particularly when ordinary forms of contract is
applied; and it has been treated as an allowable delay in ordinary construction
contract. Contractor and supervising engineer often spend considerable time to verify
and evaluate the delays. A variety of techniques have been employed for such
assessments. However, the effectiveness of techniques adopted has been a critical
factor in attracting multinational organization for their participations in construction
industry inMalaysia. The purpose of the study was therefore to analyze different EOT
evaluation techniques used in Malaysia, and to probe reasons for delays in the
submission and assessment of EOT. Issues such as treatment of float time and
concurrent delay, agreed programmes, scheduling software and late payment had also
been pointed out.
During these research workauthor has sent overall 70 sets of questionnaires to several
companies includes architecture firms, consultant firms, developer, contractors and
also some government bodies.These 70 respondents were carefully chosen. Out of 70
respondents, 36 of them responded, which report for 51.4% response rate.

Conclusions and findings on the suitability of different techniques used were obtained
from the analysis of literature review and questionnaire survey from a consolidation
of practitioners. The outcome of the study provides recommendations for solution for
EOT related issues as well as improving the contractual procedures.
Edwi et al. has said that Purpose of this researchpaper is encounter differences with
the local Chinese parties with Architect/ Contractor and Developer because of the
Unfamiliar with the Chinese culture and ways of doing business, foreign. With
reference to the characteristics of Chinese culture on disputes, this paper studies the
problem areas of dispute and of resolving disputes in international construction
projects in China. The objectives are to: examine the fundamentals of Chinese culture
and ways of doing business; examine the characteristics of international projects and
investigate any differences in the dispute problems arising from China International
Projects; identify the most popular dispute resolution mechanism(s) for international
projects in China; and recommend possible ways to reduce and resolve disputes of
these projects.
After literature review,author prepared a questionnaire which was designed for face-
to-face interviews with 40 practitioners to collect their opinions.
And the results show that the problem areas giving rise to disputes are mainly related
to contractual matters. To reflect the characteristics of international projects in China,
cultural and legal matters are also found to be the sources of problem. Arbitration is
the most popular method, after negotiation, for resolving disputes in international
construction projects in China.
The limitation of the researchwas that the number of interviewees in this study could
be improved and further study could include experts in Mainland China.
Shreastha et al. has said that the Delay claims are the common occurrence in
construction projects, which are result from many issues, including differing site
conditions, access restrictions, and disputes of the contract documents. Different
analysis methods of a delayclaimcan range from scheduling to cost analysis. Methods
in use today can incur exponential costs, and can last for years on end. Using a survey,

this study collected the data regarding practices in delay claim analysis from
professionals within the construction industry. The survey emphasized the defining
qualities of a delay claim, the processes, and the requirements for resolving a claim.
The results showed that the analysis of schedules and other contract documents were
major resources when analyzing and resolving a delay claim. The top three
subcontractors who submitted the most delay claims are concrete, earthwork, and
steel.
This study determined the crucial qualities of a delay claim, their processes, and the
requirements for resolving a claim. When analyzing and resolving a delay claim, the
results showed that analysis of schedules and contract documents was a major
resource. The owners generally acknowledged the delay claim after it is submitted,
inquired about the validity, and cost of the claim.
Cheung et al. has described the Construction dispute resolution as a topical research
area. These studies typically start from dispute identification and subject matter is the
most commonly used approach. However, this approach does not take account of the
contextual factors that may in fact the true causes. This prompts the diagnostic
approach. This chapter gives an overview of these two approaches to identify
construction disputes. In addition, a third approach that draws on the concepts of
bounded rationality and opportunism is proposed. Minefields and manifestations of
opportunism in construction contracting in relation to occurrence of construction
disputes are also discussed. Accordingly, an anatomy of construction disputes is
provided.It is suggested that construction disputes are mostly contractual but can also
be speculative where people factor is a major trigger.
Sinha et al. has suggested that following are the root causes of disputes identified by
Kumaraswamy (1997) unfair risk allocation, unrealistic time/cost/quality targets by
the client, adversarial industry culture, inappropriate contract type, and unrealistic
information expectations. Proximate causes identified included: inadequate brief,
slow client responses, inaccurate design information, inaccurate design
documentation, inappropriate contract form, inadequate contract administration, and
inappropriate contractor selection.

Mitropoulos and Howell (2001) suggest that a combination of factors of uncertainty,
contractual problems and opportunistic behavior can lead to disputes.
The author has concluded that client who understands their scope should be able to
select a procurement option that best meets their needs. The requirement of contractor
involvement during the design process can improve constructability and reduce the
probability of design changes. When there is scope uncertainty and no contractor
involvement during design then the likelihood of scope changes increases, which may
increase project costs and time and lead to claims and disputes. Project scope,
contractual conditions, particularly the allocation of risk and responsibility and
procurement strategy are key elements to be considered by the organization as this
will influence their planning and resourcing and their ability to achieve project
outcomes.
Ossama et al, has discussed the appropriateness of contractual methods towards
dispute avoidance and resolution (DAR) for industrial projects in Saudi Arabia. It
focuses on the private industrial sector in the Eastern Province. A survey was
conducted using the principles of quota sampling where 93 questionnaires were
distributed to 11 owners, 59 contractors and 23 consultants. The survey consisted of
20 statements that measured the parties' attitude and opinion towards contractual
methods recommended for dispute avoidance and resolution (DAR) during the
construction phase. Respondents indicated their level of agreement on a 5-level scale.
The results reflect the appropriateness of these techniques for industrial projects. The
five contract administration methods for dispute avoidance and resolution (DAR)
covered in this study are: Allocating Fair Contract Risk, Drafting Dispute Clauses,
Team Building, Provision of a Neutral Arbitrator, and Binding Arbitration.
Zaneldin et al. has said that The United Arab Emirates (UAE) government is
investing millions of dollars every year in new facilities to improve the infrastructure
of the country. Infrastructure development has been phenomenal in view of the
relatively brief period since the country’s establishment. In view of this, the
construction industry is considered the largest single industry in UAE. Yet, it is also
very complex and the most fragmented industry as it involves multidisciplinary
participants and several stake holders. Today, construction projects are the subject of

more claims than in any other time in history. Claims appear to hinder the completion
of construction and cause delays in delivering projects. This research presents the
results of a pilot study of the types, causes, and frequency of construction claims in
the emirates of Dubai and Abu Dhabi in UAE using a questionnaire survey that was
conducted in the two emirates. The data received from the survey respondents is
analyzed and recommendations to prevent/reduce claims in construction projects are
then presented. It is expected that the findings of this research will help construction
firms avoid the main causes of claims and, accordingly, minimize delays and cost
overruns in construction projects.
Olive du Preez et al. has identified some skills which is required by professionals to
effectively apply conciliation in their daily tasks and to determine whether a basic
understanding of conciliation would improve the overall application of claims
management. It is concluded in the research paper that placing emphasis on
conciliation will add value to claims management relating to procurement and the
prevention of differences developing into disputes. The added value will also have a
positive effect on time and cost management. Though stakeholders are of the opinion
that they can rely on their inherent skills to facilitate conciliation effectively, the data
analysis suggests that the skills and attributes are lacking. Conciliation is thus
considered as a key and important element in the claims management process.
K. C. Iyer et al. has said that contract time and cost overruns are common in any
construction project which gives rise to claims and that claims mostly leads to the
construction dispute. If these disputes are not handled properly then it can consume
time and money of all parties to the contract. In these research paper author has
analyzed and study the Arbitration case for delay claims. In this paper author has
attempts to identify questions related to disputes for Indian scenario through literature
reviews, arbitration awards, court cases and discussions with professionals. In this
paper author has tried to list out questions for each reason of delay claim.
In this paper author has identifies the various delay factors which are influencing by
the decisions of arbitrators. The factors are identified as questions asked by the
arbitrators and viewed as per the thought process of arbitrators or judges. Author has
told that these questions were extracted through literature, arbitration awards, court
cases and discussions with professionals.

Ashwini Arun Salunkhe et al. has highlighted the types of construction delays due
to which project suffer time and cost overrun. Construction delay is considered to be
one of the recurring problems in the construction industry and it has an adverse effect
on project success in terms of time, cost and quality. In this paper author has studied
the factors that influence the construction process and outlines the effect of delay in
large construction projects. In this paper author has studied the performance of year
2012 with respect to ongoing and also completed projects. Author has concluded that
time and cost overrun have been a major problem in construction industry. The
reasons for time overruns as reported by various project implementing agencies are
delay in land acquisition, delay in equipment erection, inadequate mobilization by the
contractor, delay in forest clearance, fund constraints, change in scope of work,
cancellation of tender, law & order problem, delay in supply of equipment, slow
progress of civil work,escalationin cost. Author has alsoidentified the causes of delay
by Owner and Contractor.
Keval J. Shah et al. has said that it is widely accepted that a project is successful
when it is finished on time. But, due to so many reasons, large number of construction
projects fails to follow the planned schedule and hence delayed. So, careful study and
planning of each and every activity of a construction project becomes very important
in order to minimize delays. In this paper author has presented the causes of delay
occurring on an ongoing bridge construction project with respect to construction of
bridge girders of three spans of a major bridge across the river Sabarmati,
Gandhinagar, Gujaratas a case study. This study was aimed to investigate the
important causes of delay in construction of bridge girder. Activities on site with
respect to construction of girder were thoroughly observed and comparison done
between planned and as executed schedule by author. As per the author most of
reasons for delays are related with contractor’s performance such as site management,
labour productivity, and lack of expert proficiency in supervision etc. Same as delay
in drawing and delay in design come under client’s responsibility. It was evident that
consultant has a less responsibility. Some of the causes were to be addressed are
beyond the control of all the project parties such as differing site conditions,
unforeseen weather etc. As per author the overall responsibility of delay, is more
responsible to contractor.

Tomas Mitkus et al. has analyzed that the causes of conflicts due to which claims are
arising between client and contractors in the construction industry. Author has said
that analysis of articles on this topic has revealed that most of contemporary authors
refer to externally visible signs of conflicts as to the causes thereof. The authors of the
present article look at the conflict in construction in a different light – from the aspect
of communication. Author has said that construction contract agreement which
regulates the relationships between the client and the contractor is also viewed as a
product of communication. The author has said that authors hypothesize that the main
cause of conflicts in the construction industry is unsuccessful communication between
the client and the contractor. The hypothesis has been confirmed by the conducted
research studies. In addition, author has found out these two major causes for conflict
were unfair behavior of the parties to a construction contract agreement and
psychological defense mechanisms. In this paper the author has analyzed, a
construction contract agreement as a product of communication between the parties
to a construction contract agreement. Which means that the most frequent cause of
construction conflicts is unsuccessful communication between the parties to a
construction contract agreement. Other causes of conflicts in the construction industry
identified in this article include unfair behaviour of construction participants and
psychological defence mechanisms.

2.2.1 Factors affecting disputes given by different authors in previous studies:
TABLE -1 FACTORS AFFECTING DISPUTE BY DIFFERENT AUTHORS
[SOURCE: (KUMARA SWAMY, 1997)]
No Subject matters of construction disputes References
1
Change of scope
Hewit
(1991)
Change work conditions
Delay
Disruption
Acceleration
Termination
2
Ambiguous contract documents Spittler and
Jentzen
(1992)
Competitive/adversarial attitude and
Dissimilar perceptions of fairness by the participants
3
Determination of the agreement
Watts and
Scrivener
(1993)
Payment related
The site and execution of work
Time related
Final certificate and final payment
Tort related
4
Contract terms
Heath et al.
(1994)
Payments
Variations
Extensions of time
Re-nomination and
Availability of information
5
Payment
Conlin et
al(1996a, b)
Performance
Delay
Negligence
Quality and administration as headings of construction
Disputes
6 Variation due to site conditions

Variations due to client changes
Kumaraswa
my (1997)
Variations due to design errors
Unforeseen ground conditions
Ambiguities in contract documents
Interferences with utility lines
Variations due to external events
Exceptional inclement weather
Delayed design information and
Delayed site possession
7
Variations
Yates
(1998)
Ambiguities in contract documents
Inclement weather
Late issue of design information/drawings
Delayed possession of site
Delay by other contractors employed by the client (e.g.
Utility companies)
Postponement of part of the project
8
Project uncertainty
Mitropoulos
and Howell
(2001)
Contractual problems
Opportunistic behaviour,
Contractors’ financial position and
Cost of conflict and culture
9
Payment,
Brooker
(2002)
Delay
Defect/quality and
Professional negligence
10
Valuation of variations
Sheridan
(2003)
Valuation of final account and
Failure to comply with payment provisions

2.2.2 Overall findings of Global Construction Dispute 2014
TABLE-2: OVERALL FINDINGS OF GLOBAL CONSTRUCTION DISPUTE 2014
Region Dispute Values in US $ Length of Disputes in Month
2010 2011 2012 2013 2010 2011 2012 2013
MIDDLE
EAST
56.3 112.5 65 40.9 8.3 9 14.6 13.9
ASIA 64.5 53.1 39.7 41.9 11.4 12.4 14.3 14
US 64.5 10.5 9 34.3 11.4 14.4 11.9 13.7
UK 7.5 10.2 27 27.9 6.8 8.7 12.9 7.9
EUROP 33.3 35.1 25 27.5 10 11.7 6 6.5
GLOBALY 35.1 32.2 31.7 32.1 9.1 10.6 12.8 11.8
2.2.3 Rank to the Dispute causes in Global
TABLE–3: RANK TO THE DISPUTE CAUSES IN GLOBAL
SOURCE: GLOBAL CONSTRUCTION DISPUTES REPORT 2014
2013
Rank
Cause 2012
Rank
1 Failure to properly administer the contract 3
2 Failure to understand and/ or comply with its
contractual obligations by the Employer/Contractor/
Subcontractor
2
3 Incomplete design information or Employer
requirements
New
4 Failure to make interim awards on extensions of time
and compensation
4
5 Poorlydrafted or incomplete and unsubstantiated claims 1
2.2.4 Rank to Alternative Dispute Resolution Method
TABLE–4: RANK TO ALTERNATIVE DISPUTE RESOLUTION METHOD
2013
Rank
Method of Alternative Dispute Resolution 2012
Rank
1 Party to Party Negotiation 3
2 Arbitration 2
3 Adjudication 1

2.2.5 Rank to the Dispute causes in Asia
TABLE–5: RANK TO THE DISPUTE CAUSES IN ASIA
2013
Rank
Cause 2012
Rank
1 Failure to make interim awards on extensions of time and
compensation
2
2 A failure to properly administer the contract 5
3 A biased PM or Engineer -
4 An unrealistic contract completion date being defined at tender
stage
-
5 Employer imposed change -
2.2.6 Rank to the Dispute causes in US
TABLE–6: RANK TO THE DISPUTE CAUSES IN US
2013
Rank
Cause 2012
Rank
1 Errors and/ or omissions in the Contract Document 2
2 Failure to make interim awards on extensions of time and
compensation
5
3 Differing site conditions 4
4 Incomplete design information or Employer requirements (for
D&B/D&C)
-
5 A failure to properly administer the contract -

2.2.7 Rank to the Dispute causes in UK
TABLE–7: RANK TO THE DISPUTE CAUSES IN UK
2013
Rank
Cause 2012
Rank
1 Employer/ Contractor/ Subcontractor failing to understand and/ or
comply with its contractual obligations
1
2 Failure to properly administer the contract 3
3 Incomplete design information or Employer requirements (for
D&B/D&C)
-
4 Poorly drafted or incomplete and unsubstantiated claims -
5 Employer imposed change -
2.2.8 Rank to the Dispute causes in Middle East
TABLE – 8 RANK TO THE DISPUTE CAUSES IN MIDDLE EAST
2013
Rank
Cause 2012
Rank
1 A failure to properly administer the contract 1
2 Employer imposed change 3
3 Employer/ Contractor/ Subcontractor failing to understand and/ or
comply with its contractual obligations
-
4 Errors and/ or omissions in the Contract Document -
5 An unrealistic contract completion date being defined at tender
stage
-
2.3 Data required for making Claim
It is essential that for every claim, the contractor provide to the engineer
appropriately documented claims, which sets out:
 The name and brief description of the claim, that is claim identification;
 The provisions of the contract on which the claim is based (and which provide

for it to be a riskallocated to the principal requiring additional payment and/or
extension of time),
 Details any additional work undertaken or costs incurred,
 Valuation of the claim, supported by sufficient details (and proof if required),
 Details of any delay and time extension due, keep contemporary records: to
support the claim; and permit the Engineer to examine them (FIDIC Clause)
2.4 Types of construction disputes
There are several types of construction claims out of which major ones are listeddown
below after studying the research papers, journals, books and other study material
2.5 Causes of Claims:
There are many kind of conflicts occur in construction industry between the parties
which mostly converts into the claims. After taking the opinion of experts like
experienced contractor, client, Designers, Arbitrator, Professors of the construction
sector as well as after reviewing the research papers related to construction claims.
Following are the main causes of claims:
 Delay in Supply of Drawings,
 Delay in Handing over the Site,
 Delay in Supply of materials,
Delay Claims
Price Acceleration Claims
Change of work order Claims
Extra item, and Veriation Claims
Diferent Site conditionClaims
Damage Claims
Loss of profit Claims
Wrongful withholding of Deposits Claims

 Delay in Payments,
 Delay in Starting work,
 Delay in Completing the work,
 Work actually done but not measured and paid,
 Refund of maintenance deposit,
 Loss due to extra overheads on account of extension of time limit,
 Loss due to idle machinery and idle labour,
 Due to Design errors,
 Due to inadequate or incomplete specifications,
 Due to inadequate information related to design.
 Due to Inadequate bid information,
 Due to Inadequate time for bid preparation,
 Due to Change in work scope,
 Due to Changes in plans and specifications during construction,
 Due to Insufficient plans and specifications,
 Due to Extra items and Variations,
 Due to Non granting of Completion by Engineer in charge.
 Due to Partiality by the Engineer,
 Due to Unrealistic expectations,
 Due to Poor management and administration of the construction site.
 Due to Ambiguities in contract documents,
 Due to Different interpretations of the contract provisions,
 Due to Inadequate investigation of site,
 Due to Unbalanced bidding,
 Due to coating very low rates in the Tender,
 Due to Changes made or changes which occur not at the request of the owner,
 Due to Extension of time (EOT),
 Due to financial failure of the contractor,
 Due to technical inadequacy of the contractor,
 Due to Poor quality of construction work and use of wrong equipment,
 Due to Failure to follow authorized procedures,
 Due to Employers’ Lack of Construction Knowledge,
 Due to damages occur to adjacent buildings during the work,
 Due to Strikes by Workers,

 Due to Failure of parties to cooperate with each other in the performance of
the work.
 Due to Accidents,
 Due to Natural Calamity,
 Due to Increase in Material / Fuel Cost,
 Due to Court intervention,
 Due to Weather conditions,
 Due to Unforeseen ground conditions.
2.6 Most frequent causes of Claims
From the list of above claims most of the claims mostly settled down between the
parties by their mutual understanding as well as by Negotiation but some of the claims
which are frequently occurs and which may not settle create the disputes between the
parties are listed and explained below. These type of claims which do not settle and
converts into the dispute can be solvedby the Advanced Dispute Resolution Methods.
Payment Related Claims
Change of work order Claims
Delay Claims
Extra item, and Veriation Claims
ContractualClaims
Difference in Measuring Claims
Diferent Site conditionClaims
Price Acceleration Claims
Damage Claims
Contract termination Claims

2.6.1 Payment related Claims:
In the construction industry most of claims arise for the not payment or delayed
payment of running bills, Final bills, unreasonably deduction of money from bills
without any strong reason, delay in payment of security deposit, maintenance deposit
etc. as well as construction work which contractor have done, construction material
or plant which have provided,consulting services which have been provided,interest
on overdue progress payments, Contractor’s losses and additional expenses due to
work being deleted from the contract while work suspended under the protection of
the Act at the end of the contract, a claim under the Act can be made for the final
payment. However,claims under the Act are claims for the interim payments, pending
the resolution of your final entitlement under the contract.
2.6.2 Change Claims:
Almost every construction project encounters change. Whether it’s a change to the
scope of work, a revisionto the specifications, or an impact to the means and methods
of performing the work, changes can significantly impact a project’s cost and
schedule. Due to change in work scope the claim may take place between the
contractor and client. Due to change in work scope or change in design the quantity
of work may increase or decrease and if it is the work from which contractor is going
to get the maximum profit then he can claim for increased rates for performing the
work or extra money for completing the work.
2.6.3 Delay Claims
Construction delay claims, or disputes related to schedule impacts, are one of the most
common types of disputes in the construction industry. Delays should be investigated
thoroughly and carefully as the results may vary widely. Some may not affect the
whole project, that is, their impact is solelythe cost of resources working at a reduced
efficiency. These activities are considered to have float time within the programme,
and their influence on the project is limited. Whereas, some delays do impact the
project completion and accordingly their financial implications are much greater.
Completion of project within the prescribed time scale, budget and with appropriate
technical performance/quality is an important measure of a successful management
of construction project. Delay claims typically relate to unanticipated project events
and/or circumstances which extend the project and/or prevent work from being

performed as originally planned. There are many common causes for schedule delays
on a construction project. Any project faces delays and disruptions especially the
mega/complex projects of today, with many interfaces.
Delay refers to the lack of performance or the extension of time required to complete
a project that results from unexpected events. Delay may be caused by the contractor,
the owner, third parties, or by unanticipated natural or artificial site conditions.
2.6.4 Extra Work Claims
Extra workis any workthat is ordered by the owner after construction has started that
was not included in the original contract. The extra work being performed by the
contractor is a result of a clarification of the contract documents. However, the
contractor believes that he is performing extra work, while the owner believes the
work was part of original contract.
2.6.5 Contractual Claims
Contractual claims concerns matters with regard to the contract itself. This includes
any disagreement on the responsibility or liability of some parts that are not included
in the documents. The main reasonof these types of claims is poorlywritten contracts.
2.6.6 Difference in Pricing and Measuring Claims
These types of claims deal with the disagreement regarding measurements at the final
stage in the construction. Also, these claims include the differences in pricing by the
contractor and the owner of some of the materials. Also, the change and the extra
work usually create some differences in pricing.
2.6.7 Different Site Conditions Claims
A changed condition refers to some physical aspect of the project or its site that differs
materially from the indicated by the contract documents or that is of an unusual and
differs materially from the conditions ordinarily encountered.
2.6.8 Acceleration claims
Acceleration occurs when the owner requires the contractor to complete construction
of the project earlier than the time the contractor was entitled to base on a properly

adjusted schedule. Acceleration refers to the owners directing the contractor to
accelerate his performance so as complete the project at an earlier date the current
date of workadvancement will permit. It occurs when the contractor is ordered, either
directly or constructively, to speed up performance in some way. These types of
claims may occur in big projects but for residential houses, these are rare especially
nowadays where the rate of houses rental is smaller.
2.6.9 Damage Claims
Property damages may occur due to the act of the owner or due to safety related
problems. This type of claims is very rare because usually contractors have the total
responsibility for the site.
2.6.10 Contract Termination
When contract termination has occurred before the contractor has begun the work, the
contractor may be entitled to recover the loss of the expected profit, or the difference
between the contract price and the anticipated cost of the work. If the owner has
terminated the contract after the contractor has begun the work, the contractor may be
entitled to recover the loss in various ways. If the contractor has completed the work
in full compliance with the contract prior to termination, he should expect to recover
the full contract price. Recovery and liability under terminated contracts varies
widely.
2.7 Claims Settlement methods:
When the contractor discovers the problem, he should try to eliminate or avoid it. If
he cannot do so, then he should write to a letter to the owner to make a formal claim.
This is the first step in claim procedure. The problem is approached during regular
meeting s, or a special meeting may be arranged to settle or discuss this dispute. If all
that did not succeed, then mediation could be friendly way for settling the claim.
Otherwise, arbitration or litigation could be other ways to solve the claims. These
methods could be as under:

FIGURE-1: CLAIMS SETTLEMENTS METHODS
The above figure shows that to solve the claims generally Owner and Contractor use
the Negotiation method first. If the claim is not settled by Negotiation then Mediation
method is use to solve the claims by help of Mediator. If the claim is still not settled
by Mediation method then Arbitration method is use to solve the claims by help of
FIGURE-2: CLAIMS SETTLEMENTS METHODS
(Source: www.justindemerchant.com/adr-in-the-construction-context/)

Arbitrator which is appointed by the court and whose decision is enforced by law and
it is agree by both the parties. And at the last if the result of Arbitrator is not accepted
by either party of claim then the last option to resolve the claim is Litigation by the
help of court.
The figure shows that as we go from bottom to top the cost incurred in the method is
also increasing. It also shows that Mediation, Mini-trial and Adjudication is Non-
Binding while Arbitration and Litigation is Binding to both the parties.
FIGURE-3: ALTERNATIVE DISPUTE RESOLUTION METHODS
(Source:www.publicprocurementguides.treasury.gov.cy/OHS-
EN/HTML/index.html)

The above figure shows that in methods like Amicable Settlement, Mediation and
Conciliation the involvement of the parties in the decisionis higher and these methods
are Informal methods. While Arbitration, Adjudication and Litigation is Formal
method to settle the disputes and involves low degree of involvement of the different
parties in the decision.
2.7.1 Negotiation:
Direct negotiation is a common dispute resolution process in which parties
themselves, or their representatives, try to resolve the dispute without involving any
neutral third party. It is a voluntary and an unstructured process agreed by both parties,
privately and confidentially. The features that contribute to the success of direct
negotiation include avoiding taking entrenched positions in the dispute, but rather
seeking solutions, which meet the needs and interest of both parties. However, the
success of negotiation depends on interpersonal communication skills of the parties
during the entire process. Negotiation would be the first port of call when a dispute
occurs and should resolve a dispute at this stage.
2.7.2 Mediation:
Mediation is a private, quick, cheap process (compared to either arbitration or
litigation) where a third party makes possible dialogue between the parties in order
that the parties can reach their own decision that is initially non-binding. The parties
can however, agree to be bound by their final decision.
2.7.3 Conciliation:
Conciliation is a process similar to mediation except that the conciliator can express
an opinion on the merits of the case and is required to recommend a solution if the
parties fail to agree (Dighello 2000, Agarwal 2001). The power of the conciliators is
conferred by status.
In conciliation however, the third party neutral does not always meet together with
the parties. The conciliator’s role is also broader than in the mediation as it includes
advising the parties on the possible result of the dispute if it were resolved in either
arbitration or litigation.

In conciliation, the process begins with identification of the issues, then the options
for resolution are explored, the conciliator advises on likely outcome of dispute in
other forums and in light of this the options for resolution are considered; and ideally
a consensual agreement is then reached.
2.7.4 Mini-trial:
Another process involving neutral third party in a dispute is the mini-trial. In mini-
trial, the case is heard not by judge, but by the senior professional or other high-level
business people from both sides. The representative should have full settlement
authority. A third party neutral usually joins the party representative listening to the
proofs and argument, and can make any necessary decision to regulate the process.
Following the presentations, the parties’ representatives meet, with or without the
neutral, to negotiate a settlement. Frequently, the neutral will serve as a mediator
during the negotiations or be asked to offer a non-binding opinion on the potential
court outcome.
2.7.5 Adjudication:
A statutory dispute resolution method. The Construction Act (Part II of the Housing
Grants, Construction and Regeneration Act 1996) allows any party to a building
contract, subcontract or appointment to refer a dispute to an adjudicator, who must
then be appointed within seven days and must reach his decision within a further 28
days. The adjudicator's decisionis binding unless and until the dispute is resolved by
a judge or arbitrator.
2.7.6 Arbitration:
Arbitration is a process where a third party who is independent of parties, but may be
selected by them, makes an awarddetermining the dispute. The Award is binding and
can be enforced by courts.
Arbitration is the settlement of a dispute by the decisionnot of a regular and ordinary
court of law but of one or more persons chosen by parties themselves who are called
arbitrators. Thus, arbitration is out-of-court proceeding where the arbitrator acts as a
judge.

Arbitration is a dispute resolution process in which one or more neutral third parties
hear the evidence and arguments of each disputant and make a decisionfor them. The
outcome is one of a win/lose situation. The decisionof the arbitrator is legallybinding
and, often, there is no provision for appeal to a court of law. There are exceptions,
such as misconduct of the arbitrator. Rules of evidence used in arbitration depend on
the prior agreement between the parties. It may take a long time, same as for a
litigation process, and may even be more costly.
2.7.7 Litigation:
Litigation (used when all other venues failed) is a dispute resolution method that is
inquisitorial and adversarial, where by the disputant initiates legal action against the
other party by going to court (Agarwal 2001). It has a win/lose outcome and rarely
satisfies both parties (Fisher et al 1991). It is costly and results into much delay for
the disputants and may not do justice to the parties. However, the benefit of litigation
is that the court has authority to find out the “truth” from the parties and the
enforcement of the order or judgment is supported by other law enforcement agencies.
It is also used when parties have low resources and need an umpire or when they
cannot agree to other forms of dispute resolution.
2.8 Supporting Documents (Evidence) for the claim:
 Keep all bid documentation and record any pre-contractual agreements,
representations and understandings in writing and ensure they are in the contract
or can be relied upon at a later stage.
 Ensure that a fully signed written agreement is in place before commencing work
on a project. While oral agreements are generally enforceable, written ones are
easier to prove.
 Read and be familiar with all contract terms, especially the notice provisions.
Failure to provide notification of a potential claim could preclude a party from
bringing its claim.
 Keep all project correspondence. It is often helpful to organize project
correspondence according to each key party and whether the correspondence is
incoming or outgoing. For example, it is important to remember that in order to
litigate a delay claim, it is generally necessary to reconstruct the project in detail

on a daily basis.
 Record all relevant conversations and send follow up correspondence. Parties may
proceed on a project for months based on a particular representation or
understanding, only to find out later during litigation that the other party denies
everything. Where there is no response to correspondence, a court may find that a
failure to respond affirms what was said in the letter.
 Take pictures or videos at all stages of the project. Nothing can help a judge or
lawyer more to understand a problem or deficiency on a project than an illustrative
picture of it.
 Keep all plans and drawings and ensure that you have accurate records of all
amendments or addendums.
 Make sure a project diary is kept along with diaries for key personnel. Diaries
should record: 1) the weather; 2) manpower, visitors and contractors on site; 3) key
deliveries; and 4) any notable event such as problematic or hidden site conditions
or events that may cause delay or affect productivity. Ensure that entries express
facts, rather than opinions.
 Maintain an as-planned schedule and regularly update it with an as-built schedule.
There are several computer programs available to schedule and track progress. The
end product of a proper scheduling exercise is a plan that should tell a contactor or
owner what sequence work should be done in, when it should start, what work has
to be completed first, when successor activities should start, and when it should
finish. Having an accurate schedule for a project and regularly updating it will
provide a valuable tool for tracking and recording delay and the impact of that
delay.
 Record all key events, especially ones that may lead to a claim, and specifically
record: 1) when the event occurred; 2) what it was; 3) who noticed it; 4) the
projected impact it may have on cost and time; 5) whether notice was given and to
whom; and 6) response to notice.
 Record all change orders and claims for extras and when they were submitted for
approval,and separate those that are approved from those that are not. A contractor
who has failed to get approval for a change orders should always diligently express
and protest their ongoing concerns in writing. When doing so, the contractor should
adhere to the contractual notice requirements. Parties should also be aware of the
ability to give notice that they are performing under protest.

 Document the additional costs caused by an event. It is particularly important to
keep proper accounting and employee payroll records pertaining to additional
overhead and employee costs.
 Finally, contact legal counsel as early as possible. Contractual interpretation and
strategic decisions made early can greatly enhance prospects for success in a
construction
2.9 Clauses in Tender to Avoid or Settle Claims
Payment terms and running bills:
Invoice/ Bill should be sent in triplicate. [Please mention our LOI/Work Order no in
the invoice without fail]. Original invoice, Measurement Sheet Materials Test
Certificates if any should be sent to project with a copy to head office for reference.
Mode of payment of running bills:
Running Bills become payable at after deduction as per following and after approval
from management within 30 working days from the date of receipt of the bill at HO,
after deducting there from Payments shall be released for the work executed in all
respects as per BOQ, drawings and specifications.
Retention money deposit will be deducted from RA bills @ 5 % of the value of the
bill amount.
Security deposit at 5 % of the contract value exceed than tendered value.
RA bill must be submitted along with the names of the laborers employed for the
work, salaries/payment made to them, amount of P.F. deducted from the salary made
to the labours and employer’s contribution amount deposited in RPFC against each
and copy of challans for the amount deposited in RPFC office till the previous month
duly certified by project office, failing which no payment will be made for the RA bill
submitted by the Contractor.
The payment will be made to the Tenderer after completion of the work as full and
final settlement in general. However, as a special condition, intermediate payment can

be considered which will not be more than 15% of the actual work done. Other
deduction either statutory or other work reason, if any.
Earnest Money Deposit.(EMD) / Security Deposit (SD) / Retention Money
The tender must accompany Earnest money deposit only by demand Draft of
Nationalized OR HDFC/ICICI/AXIS/IDBI Bank only for the amount as stated above.
Cheque or Bank Guarantee will not be accepted. Earnest money deposit paid as above
will be refunded to unsuccessful tenderer only after finalizing of tender. Successful
tenderer has to pay full amount of Security Deposit @ 5% of the contract value
including EMD by Demand draft of Nationalized Bank /IDBI /HDFC /AXIS /ICICI
within 7 days from the date of issue of LOI. Payment against the work as well as detail
work order will be issued only after submission of Security Deposit. If you fail to pay
security deposit within 7 days from the date of LOI, order will be deemed to be
cancelled and EMD paid by you shall be forfeited.
Earnest Money Security deposit and Retention Money will not bear any interest. If
successful tenderer does not pay initial security deposit or does not commence work
as per tender / LOI/ Work Order E.M.D. paid will be liable to be forfeited. Security
deposit paid by the successful tenderer shall be liable to be forfeited by the owner, if
he does not able to carry out the work in accordance with the terms and condition of
the tender / LOI/Purchase Order/ Work Order. This will not also prejudice that owner
will complete the work at your risk and cost. Tender received without E.M.D. will be
outright rejected. No relaxation on EMD/SD for any small-scale industry shall be
considered. Security deposit will be refunded within three months after the completion
of defect liability period of Twelve Months from the date of completion of work, on
demand by Contractor.
Retention money deposit will be deducted from RA bills @ 5 % of the value of the
Contract amount, which will be releasedafter one year from completion of work. The
retention money shall be released only after receiving NOC from the Architect.
Warranty for total water proofing workto be given for 5 years period.Security Deposit
@ 5% for the water proofing work amount to be retained for warranty period.

Work Completion time Schedule.
Work Completion time is the essence of the contract and if Work Completion time is
not made as stipulated, owner shall be at liberty to procure the material at tenderer’s
Risk and cost and if thereby any extra expenditure is involved, the same shall be
debited to tenderer’s account, if owner is unable to procure the material from alternate
source in time and if corporation suffers any consequential loss, tenderer will have to
bear the same. Bank in that case will forfeit the security deposit and will also have the
right to recover the claim against party for damage incurred.
Work Completion time Penalty.
The work should be completed within stipulated time limit. If work is not completed
as per work completion time penalty will be levied@ 0.1 % of contract value per day
from the date of delaying the said work up to the maximum 10 % of contract value.
This will not absolve the contractor from the responsibilityof getting the balance work
done by client at his risk and cost through any other contractor.
Loss and Damages:
Any loss or damages or deterioration of the Building in transits shall be at the cost of
the bidders.It shall be at the discretionof the corporationto reject, damaged or spoiled
material, if so noticed. During the work, if any property of client damaged than book
value/ repair cost + 20 % of same should be recovered from bidder.
Prices:
Prices quoted by the tenderer should be firm and no price increase will be allowed to
the tenderer during the project execution.
Defect Liability Period. :
The workshould have defect liabilityperiodof 12 Months from the date of completion
/ Date of Final Bill certified by Architect.
In case of any dispute or difference of opinion in the interpretation of any of the terms
and conditions of this tender, the decision of the owner shall be final and binding to
all.

CHAPTER 3
RESEARCH
METHODOLOGY
PAGE NO. 36 - 40

CHAPTER – 3: RESEARCH METHODOLOGY
3.1 Introduction
In this chapter the work methodology or work procedure has been described in detail.
Authors have planned to carry out the work by study of claims through survey
questioner and after collecting the data the data was analyzed by two different
methods, First is Weighted Average method and Second is Relative Importance Index
method. And the results of the data were cross checked by Spearmen’s Rank
Correlation method.
3.2 Data Collection Method
There are two approaches of data collection were adopted in a study. Fieldwork
research is the primary data collection and the other one is desk study which is the
secondary data collection (Naoum, 2007).
3.2.1 Desk study
According to Naoum (2007), desk study approach also called as secondary data
collectionmethod because the data are obtained from other sources, which mean they
are not obtained first hand. Secondary information can be stored either in a statistical
or descriptive format (Naoum, 2007). Naoum (2007) defines statistical format as the
official statistics collected by the state and its agencies, and these statistics are
normally available in public libraries and in most university libraries. On the other
hand, descriptive format is to analyse and critically appraise the contents of an
archival document such as diaries, newspaper, observations, etc. (Naoum, 2007).
3.3 Questionnaire Design
In this research, quantitative research was adopted by using questionnaires to collect
the sufficient data due to the consideration for time constrain. The data has been
collected by using survey approach. The survey questionnaires have been distributed
to the clients, contractors and consultant firms by hand and through an email.
There are total of 8 questions which have been categorized into 3 sections in the
survey questionnaire. Section A (Question 1 to 5) is demographics information which
are intended to solicit respondent’s information and such information will be used to
determine the profile of respondents. The respondents are requested to answer
question pertaining the location of their company based in, the type of their

organization, their profession in construction industry, their working experience in
construction industry and the primary type of projects which they are involved in.
Along with various types of approach to scaling responses in survey research, Likert
scale approach has been adopted for the following questions in the survey’s Section
B, Section C and in the Section D. In the Likert scale approach there are basicallyfive
point method, which are: (1) Strongly disagree, (2) Disagree, (3) Neutral, (4) Agree
and (5) Strongly agree. In the Section B the opinion of respondent about the main
reasons which may arise the construction disputes is been ask, In the Section C the
opinion of respondents about the impacts that may be caused by construction disputes
is been ask, and in the Section D the opinion of respondents regarding dispute
resolution techniques which are been using in case of construction claims in
construction industry.
3.4 Data Analysis Method
In these thesis work the EXCEL software was used to calculate and analyze the
statistical data which was collected by the questionnaire survey other than that
complete statistical tests can also perform in that software. The collected data from
the questionnaire survey will be analyzed by using EXCEL software so as to carry out
the data analysis in this research.
3.4.1 WEIGHTED AVERAGE METHOD
Data of all these tables were analyzed by a weighted average was calculated for each
type of claims as follows:
Weighted Average Index = (Wi* Xi) / N;
Where, Wi is the weight assigned to the ith
option;
Xi is the number of respondents who selected the ith
option;
And N is the total number of respondents (70 in this study).

3.4.2 RII INDEX METHOD
Data of all these tables were analyzed by a RII Index was calculated for each type of
claims as follows:
RII Index = Σ W/ (A*N)
Where, W = weight given to each factor by the respondents, ranges from 1 to 5,
A = highest weight (i.e. 5 in this case) and
N = total number of respondents.
3.4.3 Spearman Rank Correlation Coefficient
 Spearman rank correlation is a non-parametric test that is used to measure the
degree of association between two variables.
 It was developed by Spearman, thus it is called the Spearman rank correlation.
 Spearman rank correlation test does not assume any assumptions about the
distribution of the data and is the appropriate correlation analysis when the
variables are measured on a scale that is at least ordinal.
 The following formula is used to calculate the Spearman rank correlation:
Where:
P= Spearman rank correlation
di= the difference between the ranks of corresponding values Xi and Yi
n= number of value in each data set
Source: http://www.statisticssolutions.com/correlation-pearson-kendall-spearman/
What does this P value mean?
The closer P is to +1 or -1, the stronger the likely correlation. A perfect positive
correlationis +1 and a perfect negative correlationis -1. If we get the value of P nearer
or equal to 1 then the result is perfect and if the value of P is nearer or equal to -1 then
the result is not perfect there might be some error in the data.

Source: http://geographyfieldwork.com/SpearmansRank.htm
3.5 Sample Size
The below formula of Creative Research Systems, 2001 was used to determine the
sample size of unlimited population:
SS = [Z2
× P × (1-P)] / C2
Where,
SS = Sample Size.
Z = Z Value (e.g. 1.96 for 95% confidence interval).
P = Percentage picking a choice, expressed as decimal, (0.50 used for sample size
needed).
C = Confidence interval (0.1)
POP = Population
SS = [1.962
× 0.5 × (1- 0.5)] / .12
= 96.04
Table – 9: Population for Survey Work
CITY
BUILDER/
DEVELOPER
CONTRACTOR/
ENGINEER
ARCHITECT
AHMEDABAD 859 663 192
Total 1714
(Source: auda.org.in)
Number of Builder / Developers, Contractors / Engineers and Architects in
Ahmedabad are taken from Ahmedabad Urban Development Authority (AUDA)
So total number of population is 1714

Correction for finite population:
POP
SS
SS
SSnew
1
1



99.90
1714
104.96
1
04.96



newSS
So, total responses to be collect are 91.

CHAPTER 4
DATA COLLECTION
AND ANALYSIS
PAGE NO. 41 - 55

CHAPTER – 4: DATA COLLECTION AND ANALYSIS
4.0 INTRODUCTION:
In this chapter author has discussed about how they have collected the
data and analyzed that data by different methods. In this chapter the
author has gave the rank to different categories of questioner survey by
Weighted Average Index and RII Index and the result is cross checked by
Spearman’s Rank correlation method.
4.1 DATA COLLECTION:
It was planned to collect the feedbacks from various stakeholders of construction
industry from Ahmedabad city of Gujarat state of India. The survey has included
Architects, Contractors and Developers. This researchwork includes use of Weighted
Average Method (W.I) and Relative Importance Index method (R.I.I).
Table - 10: Rate of Responses
Sr.
No
Respondent
Questionnaire
Distributed
Responses
Received
Percentage
of
Responses
1 Owner 52 36 69.23%
2 Contractor 38 23 60.52%
3 Architect 23 11 47.83%
Total 113 70 61.95%
4 By mail 38 0 0%
During the data collection stage, total 113 questionnaires were distributed out of
which 70 feedbacks were received back. Out of the total responses, 36 were from
Contractors, 23 from Developers, and 11 were from Architects.

4.2 LIST OF RESPONDENTS:
Table -11: List of Respondents
LIST OF RESPONDENTS
Respondent Name Category Company Name
1 Abhishek Madhu Developer Rajsyai Corp. Ltd.
2 Dilip Shah Architect Het Enterprise Ltd.
3 Bharat Chauhan Contractor Raj Contractors Ltd.
4 Sujal Parikh Consultant SPA
5 Dineshbhai Developer Vrundavan
6 Dixit Desai Architect Shyam Design
7 Praful Patel Developer Akshay Org.
8 Raghuveer Chavada Developer S&S Developer
9 Nirav Shah Developer Shyam Vandna
10 Naresh Patel Contractor
11 Dilip Amin Contractor Delta
12 Amit Gajera Contractor Vrundavan Infra.
13 Mahesh Poriya Contractor Shyam Vandna
14 Hira Bharwad Developer Vrundavan Infra.
15 Chirag Parekh Architect Creative Touch Design
16 Ankita Shah Architect Shayona Designe
17 Dhrumal Shah Contractor Ratnakar Const.
18 Vijay Savaliya Contractor Shivam Const.
19 Yogesh Patel Contractor Patel Infra.
20 Kamlesh Poriya Contractor Shyam Shradha
21 Kishor Mistry Contractor
22 Mahesh Modi Contractor Applied Engineers
23 Pankaj Poriya Contractor P & P Const.
24 Tushar Patel Architect Ved Design
25 Jaydeep Raval Contractor J & R Contractors
26 Shaeem Vora Consultant Rehman Consultancy

27 Nishit Parmar Contractor Virgo Contractors
28 Hiren Pandya Architect Hetu Architect
29 Ghanshyam Patel Developer Radhe Developers
30 Akshay Desai Developer H N Safal
31 Jesal Vora Contractor Sun Heart Tiles Pvt. Ltd.
32 Chandresh Dave Contractor
33 Ranjit Chudasma Architect
34 Amit Trivedi Contractor Narayankrupa Infra.
35 Samir Jadav Contractor Spartan Builders Pvt Ltd.
36 Manish Dhruva Consultant Multi Link Infra
37 Jayesh Shah Developer Goyal & Co.
38 Jigarbhai Developer Seventh Avenue
39 Keyur Kathariya Developer Akshar Stadiya
40 Nilay Desai Developer Vrundavan Heights
41 Hemal Shah Contractor Fraylend
42 Rahul Deliwala Architect Delta Designers
43 Pragnesh Vora Contractor Navkar Contractors
44 Prakash Tank Contractor Romix Constructions
45
Digvijay
Chudasama
Developer
Maruti Construction Pvt
Ltd.
46 Nilesh Dagli Contractor B Safal Pvt Ltd.
47 Jigneshkumar Contractor Jindal Infra Pvt Ltd.
48 Kiran Parekh Contractor Kiran Contractors
49 Ankit Makwana Contractor Manav Land Developers
50 Jagdish Bhatt Contractor
51 Shaktisinh Developer Unique Infraspace Pvt Ltd.
52 Manoj Mandaliya Developer Deep Group of Companies
53 Rajeshbhai Contractor
Sangani Infra India Pvt
Ltd.
54 Govind Patel Contractor Shayona Shikhar
55 Bhavin Jiyani Developer B.R.Developer

56 Jignesh Pawar Contractor Coffor India
57 Shailesh Shah Developer Takshshila
58 Abhijit Dixit Developer Dharmadev
59 Yash Patel Contractor
Post Tensioning Sevices
LLP
60 Amit Contractor Satyam Buildtech
61 Jatin Patel Contractor J.K.Associates
62 Nikhil Soni Contractor BRIXO
63 Praful Prajati Developer Swati
64 Aashish Patel Developer Aaryan Embassy
65 Deep Bhabhera Contractor Deep Builders Pvt Ltd.
66 Bharat Bhatt Contractor Unique Infraspace Pvt Ltd.
67 Bhaumik Vyas Developer Ozone India Ltd.
68 Nimesh Parikh Contractor
Magnanimous Infra Pvt
Ltd.
69 Shubham Bhavsar Developer Shubh Aarambh
70 Dharmesh Dave Developer D & C Developers
The above table shows the list of respondents who have spend their valuable time
and effort during the survey work
4.3 DATA ANALYSIS:
In these thesis work the EXCEL software was used to calculate and analyze the
statistical data which was collected by the questionnaire survey other than that
complete statistical tests can also perform in that software. The collected data from
the questionnaire survey will be analyzed by using EXCEL software so as to carry out
the data analysis in this research.

4.4OVERALL RANKING BY ALL IN GENERAL:
4.4.1 RANK TO CAUSES OF CONSTRUCTION DISPUTE:
Table–12: OVERALL RANK TO CAUSES OF CONSTRUCTION DISPUTE
Rank to Causes of Construction Dispute
No. Question
Wei.
Avg
Index
Wei.
Avg.
Rank
RII
Index
RII.
Rank
A Finance and Payment Issue 4.67 1 0.934 1
B Time Overrun 4.40 7 0.88 7
C Cost Overrun 4.46 6 0.891 6
D Price Escalation 3.61 14 0.723 14
E Work Change Orders 4.47 5 0.894 5
F Poor Communication 3.93 12 0.786 12
G Design Errors 4.56 4 0.911 4
H Inclement Weather 3.11 17 0.623 17
I Extra Items 4.60 3 0.92 3
J Unforeseen Site Condition 3.71 13 0.743 13
K Poor Work Quality 4.63 2 0.926 2
L Incomplete information in Tender 4.29 9 0.857 9
M
Delay in issuing Site, Drawings,
Materials
4.37 8 0.874 8
N Return of Security Deposit 3.20 16 0.64 16
O Unfair allocation of Risk 3.26 15 0.651 15
P Delay in Clients Response 4.17 11 0.834 11
Q Mistakes in Contract Document 4.23 10 0.846 10
From present study it is found that “Finance and payment issues” is having first rank
among all causes for generation of dispute. Second rank was given to “Poor work
quality” by the respondents. “Extra items” is having third rank and “Design errors” is
having fourth rank in causes of disputes. “Inclement weather” is having lowest rank.
“Return of Security Deposit” is having second lowest rank while “Unfair allocation
of Risk” is having third lowest rank.

4.4.2 RANK TO IMPACT OF CONSTRUCTION DISPUTE:
Table–13: OVERALL RANK TO IMPACT OF CONSTRUCTION DISPUTE
Rank to Impact of Construction Dispute
No. Question
Wei. Avg
Index
Wei. Avg
Rank
RII
Index
RII
Rank
1
Damaged business
relationship 4.64 2 0.929 2
2 Increased project costs 4.49 3 0.897 3
3 Project Delays 4.39 6 0.877 6
4 Undermine team spirit 3.54 7 0.709 7
5
Damaging company
reputation
4.67 1 0.934 1
6 Dispute escalation 3.37 8 0.674 8
7 Poor client satisfaction 4.41 5 0.883 5
8 Delay in project completion 4.49 4 0.897 4
Respondents felt that disputes inconstruction industry damages the reputation of both
the parties. This is found by getting first rank for “Damaging company reputation” in
Impact matters. “Damaged Business Relationship” is having second rank to Impact
of Dispute. Further, respondents have given lowest rank to “Dispute Escalation”
matter.
4.4.3 RANK TO DISPUTE RESOLUTION METHOD USED:
Table–14: OVERALL RANK TO DISPUTE RESOLUTION METHOD USED
Rank to Dispute Resolution Method Used
No. Question Index Rank Index Rank
A Adjudication 2.8 5 0.56 5
B Arbitration 1.99 6 0.4 6
C Dispute Review Board 1.4 7 0.28 7
D Expert Determination 4.37 3 0.87 3

E Litigation 1.27 8 0.25 8
F Mini-trial 3.36 4 0.67 4
G Mediation 4.53 2 0.91 2
H Negotiation 5 1 1 1
Respondents have given first rank to “Negotiation” method for dispute resolution,
second rank to “Mediation”, third to “Expert Determination” and last rank is given to
“Litigation” method, second last rank is given to “Dispute review Board”, while
“Arbitration” has secured third last rank.
4.5 RANKS BY INDIVIDUAL:
4.5.1 TO CAUSES OF CONSTRUCTION DISPUTE:
TABLE–15: INDIVIDUAL RANK TO CAUSES OF CONSTRUCTION DISPUTE
Rank given by all Individual to CCD
No. Major Causes of Dispute
Rank by
Architect
Rank by
Contractor
Rank by
Developer
1 Finance and Payment Issue 1 1 3
2 Time Overrun 7 8 2
3 Cost Overrun 6 7 1
4 Price Escalation 9 14 11
5 Work Change Orders 3 5 5
6 Poor Communication 6 12 9
7 Design Errors 2 4 4
8 Inclement Weather 11 16 14
9 Extra Items 5 3 2
10 Unforeseen Site Condition 9 13 10
11 Poor Work Quality 4 2 2
12
Incomplete information in
Tender
6 9 7
13
Delay in issuing Site,
Drawings, Materials
5 6 7

STUDY OF CONSTRUCTION DISPUTES & IT’s RESOLUTION THROUGH ARBITRATION FOR AHMEDABAD CITY OF GUJARAT STATE OF INDIA

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STUDY OF CONSTRUCTION DISPUTES & IT’s RESOLUTION THROUGH ARBITRATION FOR AHMEDABAD CITY OF GUJARAT STATE OF INDIA