Ambiguity factors in construction contracts entailing conflicts

Abstract

PurposeConflicts, claims and disputes are inherent in most construction projects. Acceptable degree of commonality in the interpretation of contract provisions is critical in effective contract administration. This study aims to assess the effects of contract ambiguity factors on construction conflicts, highlighting the causes of divergent interpretations using fuzzy technique for order of preference by the similarity-to-ideal-solution (TOPSIS) method.Design/methodology/approachFuzzy TOPSIS framework with 27 ambiguity factors is constructed by conducting a comprehensive literature review, accompanied by a pilot study. Questionnaire survey is formed, and one-to-one interviews are arranged with 35 contract administration experts.FindingsThe findings indicate that (1) ambiguity due to excessive changes in the bill of quantity (BOQ) (including ambiguous provisions related to BOQ changes), (2) incomplete clauses that do not describe the scope of the intended work purely, (3) ambiguity due to excessive amendments in the scope of works (including ambiguous provisions related to scope changes), (4) ambiguous enforceability including excessive demands and (5) ambiguous goal and performance requirements are the top five ambiguity factors affecting construction conflicts.Research limitations/implicationsPresented framework is performed referring to ambiguity factors in all type of construction contracts in the general sense. However, the identified factors may vary depending on the project type, contract type, procurement method or use of standard contract forms (such as NEC, FIDIC).Originality/valueThe literature lacks the investigation of ambiguity factors in construction contracts, yet the assessment of the effects of contract ambiguity is essential to minimize conflicts.

Identifying Critical Dispute Causes in the Construction Industry: A Cross-Regional Comparative Study between China and the UK

“…Construction professionals lack the proper legal background and knowledge to interpret legalese and technical jargon, which makes the interpretation process time-consuming and fatiguing. Hence, parties often fail to specify their rights and obligations clearly in order to expedite the contract signature process (Koc and Gurgun, 2021).…”

A Multi - Criteria Decision Support Model for The Management of Construction Project Risks

“…The main purpose of this method is to select the alternative with the shortest distance to the positive ideal solution and the longest distance to the negative ideal solution. In other words, while minimizing the loss criteria in the TOPSIS method, maximizing the benefit criteria is taken into account [18,19]. However, the traditional TOPSIS method relies on exact values without considering uncertainty, but human judgments are inherently imprecise and subjective.…”

Artificial Intelligence in Knowledge Management for Construction-Specific Documents

“…Because these construction papers are complicated [42], it is critical to understand the exact client needs prior to participating. As a result, in order to effectively administer contracts, there must be an appropriate level of commonality in the interpretation of contract requirements [43].…”