Disputes are bound to occur in every field of life; however, unfortunately, they are very common in the construction industry. Most construction projects are not completed without at least one or two disputes. The biggest source of dispute is that a construction project involves several stakeholders that don’t only hold different opinions but also want different outcomes from the same construction project. The different work principles, ethics, and perspectives make disputes almost inevitable. However, there is much more to disputes that professionals have tried to study over time because it is only possible to avoid disputes when you fully understand the causes. Here are some of the top causes of disputes in the construction industry. You should read more about Capital Smart City.
Changes and variations
While most of the work is clearly defined from the beginning, construction contracts leave some room for changes that the stakeholders can make without changing the entire purpose of the contract or its spirit. Variation is a term used in Construction to define changes in the quality of the work, the number of materials, and the project’s time frame. The variations may occur due to the project’s scope changes, site conditions, suspensions, delays, or accelerations. They take place due to features of the site that had not been taken into consideration from the start, errors in the planning or designing of the project, shortages of the required construction materials or delays from the supplier’s side, and lastly, changes in customer preferences.
Delays caused by contractors
There are many reasons that delays caused by contractors turn into big disputes over time. The biggest external cause is the change in weather or what is described as acts of God. Contractors can’t be prepared for unexpected weather conditions, resulting in delays. Therefore, most contracts excuse contractors for delays that have been caused due to disruptions in the weather. However, things get complicated when weather conditions that don’t directly affect the construction site become the cause of delays, for example, delays in the delivery of materials due to bad sea conditions. While these are valid arguments, customers or stakeholders are often reluctant to accept these excuses and blame the contractor for not having a backup plan. The clients and the managers usually view the reasoning from different perspectives, which sparks the fire for disputes.
Customer problems
Problems don’t only arise due to the negligence of the contractors. Sometimes the customers or clients are to blame as well. Many times, customers become the cause of disputes as their actions halt the construction project’s progress. This may occur due to poor coordination by the customer; for example, they may have promised to provide materials by a certain date, but in failing to do they push the entire schedule back. Some customers don’t plan their finances from the start and often run out of money in the middle of the project. This is a major setback for the contractor as they have invested both time and effort into the project. Lack of finances also stops the customers from approving variations that are vital for the construction project’s success. The quality of the Construction may suffer due to the limited budget of the clients, which ends up spoiling the reputation of the construction company.
Unrealistic expectation
Wanting the best from every situation is a good thing; however, clients’ expectations can be quite unrealistic sometimes. Many clients provide limited finances and bad quality materials, but they expect the construction company to build a luxurious building. The reality is that the project’s overall success will depend on the capital that you invest; hence, it is not fair for the clients to expect more than what they paid for. Invest in Lahore Smart City.
Conclusion
These are just some of the most common causes of disputes in the construction field. Each construction manager is faced with disputes that negatively affect the projects. Dealing with disputes is mentally exhausting, and it also affects the project’s profitability as it often results in lower productivity.
Author Bio:
Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.