Performance Prediction of Construction Projects Based on the Causes of Claims: A System Dynamics Approach

Abstract

Conflict in human relations is unavoidable; therefore, it can occur in construction projects that are full of many human relationships. These conflicts can lead to claims if interlocutors do not agree. The main result of the claims is the delay and overrun of costs in construction projects. Additionally, poor management of claims affects the success of construction projects and their budget and schedule. Moreover, controlling claims ensures the successful completion of construction projects and minimizes delays and disputes. This study sought to improve the project performance by ranking the causes of claims and examining their impacts on Key Performance Indicators (KPI) using the combined AHP-TOPSIS (Analytic Hierarchy Process-Technique for Order of Preference by Similarity to Ideal Solution) method. Given that construction projects are constantly evolving and becoming more complex and have many linear and nonlinear relationships and structures, these projects can be considered as a kind of system dynamics. The system dynamics have been used for nearly four decades to analyze and improve the performance of construction projects. This study attempted to provide a model with a system dynamics approach to predict the performance of construction projects based on the reasons for the claim. In this model, the most important performance indicators, interactions between them, and the relationship of these indicators with the reasons for claiming were simulated. The results showed that delays are the most important reasons for making claims, and they have a great impact on the KPIs such as scheduling, sustainability, customer satisfaction, quality, and team satisfaction, respectively. In the modeling and simulation discussion in this study, the proposed model simulated the dependencies between the KPIs of construction projects and their changes over time and provides a better understanding of how performance indicators interact with each other. Additionally, it can be used as a basis for simulating different management policies to find the best solution to prevent and correct the negative effects of poor performance.

Claim Management and Dispute Resolution in the Construction Industry: Current Research Trends Using Novel Technologies

“…Thus, claims can have significant impacts on a project's performance success or failure. Hence, it is imperative to determine causes of claims and to mitigate them efficiently as well as to improve the project performance so that the projects can be completed in the scheduled cost and time [7,27]. In fact, this research team has recently completed research that pioneers by simultaneously examining experts' views on the frequency of occurrence of causes related to contractual claims and their perceived effect on the final project's time, total cost, and quality [10].…”

“…According to Mishmish and El-Sayegh [6], "a claim can be defined as a request for compensation for damages incurred by any party to the contract" and can refer to either a time extension or money reimbursement. In case a claim is made by one party and rejected by the other, then this situation results in a dispute [2,7], which needs to be resolved in order for the construction process to resume. Hence, claim submission and rejection can be seen as the start of dispute evolution [5].…”

Assessment of interorganisational conflict in building refurbishment projects using EFA and PLS-SEM

“…Disagreement over basic responsibilities (Narh et al 2015;Noori et al 2021), how to achieve the project's goals (Harmon, 2003a(Harmon, , 2003bKerzner 2013) and task expectations (You et al 2018) can provide fertile ground for IOC in construction projects. Moreover, disagreement over the interference by other project members in their works (Cao et al 2020); the final cost, duration and quality (Noori et al 2021;Ansari et al 2022); and ethical standards of behaviour (Noori et al 2021) are the roots causes of IOC in construction and BR projects. Table 2 shows the factors contributing to IOC in BR projects.…”

“…Disagreement over basic responsibilities Noori et al (2021) and Narh et al (2015) Disagreement on how to achieve the project's goals Ali et al (2014), Kerzner (2013) and Harmon (2003aHarmon ( , 2003b Disagreement over task expectations You et al (2018) and Vaux and Kirk (2014) Disagreement over the interference of other project members in their works Cao et al (2020), Bekele (2015) and Moura and Teixeira (2010) Disagreement over ethical standards of behaviour Noori et al (2021), Lumineau et al (2015) and Kang (2004) Disagreement over the final cost, duration and quality Ansari et al (2022), Khahro and Ali (2014) and Noori et al (2021) were chosen because they are the organisations that are actively involved in the projects. After identifying and selecting the respondents, Web-based questionnaires were sent to 1,050 construction firms and 733 architectural firms, requesting them to identify and ask managers involved in refurbishment projects to complete the questionnaires.…”

Claim Management and Dispute Resolution in the Construction Industry: Current Research Trends Using Novel Technologies

“…According to Mishmish and El-Sayegh [6], a claim can be defined as a request for compensation for damages incurred by any party to the contract and can refer to either a time extension or money reimbursement. In case a claim is made by one party and rejected by the other, then this situation results in a dispute [2,7], which needs to be resolved in order for the construction process to resume. Therefore, the submission and rejection of a claim can be seen as the start of dispute evolution [5].…”