Construction dispute and contract incompleteness in Nigeria construction industry

This study identifies that the underlying root cause of construction disputes is contract incompleteness caused by bounded rationality and uncertainty. Using the relative importance index (RII) and confirmatory factor analysis(CFA) from SEM AMOS, this study examines the occurrence likelihood and sig...

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Main Authors: Olalekan Olaolu Titus, Hamizah Liyana binti Tajul Ariffin, Kherun Nita Ali
Format: Article
Language:English
Published: Elsevier 2023-10-01
Series:Ain Shams Engineering Journal
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2090447923000424
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author Olalekan Olaolu Titus
Hamizah Liyana binti Tajul Ariffin
Kherun Nita Ali
author_facet Olalekan Olaolu Titus
Hamizah Liyana binti Tajul Ariffin
Kherun Nita Ali
author_sort Olalekan Olaolu Titus
collection DOAJ
description This study identifies that the underlying root cause of construction disputes is contract incompleteness caused by bounded rationality and uncertainty. Using the relative importance index (RII) and confirmatory factor analysis(CFA) from SEM AMOS, this study examines the occurrence likelihood and significant effect on dispute occurrence in the contract incompleteness minefield (ambiguity of contract document (AOD), deficiency of contract document (DOD), inconsistency of contract document (IOD), and defectiveness of contract document (CDD)), and the manifestation of opportunism (violation of commitment (VOC), forced renegotiation (FRC), evasion of obligations (EOB), and refusal to adapt to change (RAC)). A large-scale survey of 350 professionals from the Nigerian construction industry was conducted. The RII result of the highly ranked minefield of the manifestation of contract incompleteness shows the interrelationship between contract incompleteness and dispute occurrence. Likewise, the CFA result significantly affects contract incompleteness on dispute occurrence. Therefore, the need to minimise contract incompleteness in the Nigerian construction industry becomes a pertinent issue to reduce dispute occurrence.
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spelling doaj.art-8633eb3e11124ce2a2a2bda89996b4d32023-10-26T04:17:36ZengElsevierAin Shams Engineering Journal2090-44792023-10-011410102153Construction dispute and contract incompleteness in Nigeria construction industryOlalekan Olaolu Titus0Hamizah Liyana binti Tajul Ariffin1Kherun Nita Ali2Department of Quantity Surveying, Faculty of Built Environment & Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia; Corresponding author.Department of Quantity Surveying, Faculty of Built Environment & Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, MalaysiaDepartment of Quantity Surveying, Faculty of Built Environment & Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, MalaysiaThis study identifies that the underlying root cause of construction disputes is contract incompleteness caused by bounded rationality and uncertainty. Using the relative importance index (RII) and confirmatory factor analysis(CFA) from SEM AMOS, this study examines the occurrence likelihood and significant effect on dispute occurrence in the contract incompleteness minefield (ambiguity of contract document (AOD), deficiency of contract document (DOD), inconsistency of contract document (IOD), and defectiveness of contract document (CDD)), and the manifestation of opportunism (violation of commitment (VOC), forced renegotiation (FRC), evasion of obligations (EOB), and refusal to adapt to change (RAC)). A large-scale survey of 350 professionals from the Nigerian construction industry was conducted. The RII result of the highly ranked minefield of the manifestation of contract incompleteness shows the interrelationship between contract incompleteness and dispute occurrence. Likewise, the CFA result significantly affects contract incompleteness on dispute occurrence. Therefore, the need to minimise contract incompleteness in the Nigerian construction industry becomes a pertinent issue to reduce dispute occurrence.http://www.sciencedirect.com/science/article/pii/S2090447923000424DisputeContract incompletenessTransaction Cost Economics (TCE) Theory
spellingShingle Olalekan Olaolu Titus
Hamizah Liyana binti Tajul Ariffin
Kherun Nita Ali
Construction dispute and contract incompleteness in Nigeria construction industry
Ain Shams Engineering Journal
Dispute
Contract incompleteness
Transaction Cost Economics (TCE) Theory
title Construction dispute and contract incompleteness in Nigeria construction industry
title_full Construction dispute and contract incompleteness in Nigeria construction industry
title_fullStr Construction dispute and contract incompleteness in Nigeria construction industry
title_full_unstemmed Construction dispute and contract incompleteness in Nigeria construction industry
title_short Construction dispute and contract incompleteness in Nigeria construction industry
title_sort construction dispute and contract incompleteness in nigeria construction industry
topic Dispute
Contract incompleteness
Transaction Cost Economics (TCE) Theory
url http://www.sciencedirect.com/science/article/pii/S2090447923000424
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AT hamizahliyanabintitajulariffin constructiondisputeandcontractincompletenessinnigeriaconstructionindustry
AT kherunnitaali constructiondisputeandcontractincompletenessinnigeriaconstructionindustry