IMPACTS OF DISPUTE ON PROJECT COST: CONTRACTORS’ PERSPECTIVE

Abstract

This research aims to investigate impacts of construction disputes driven from particular root
causes on the project cost faced by Thai contractors. Both qualitative and quantitative research methodologies
were employed in order to achieve the study goals. Individual in-depth interview as a qualitative method was
used to comprehend dispute evolution and its impact. Factor analysis and relative importance index were
respectively used to categorize and quantify priorities. Results show that there are 17 significant root causes.
They had been grouped into 3 categories, namely “Project owners’ withholding payment and defective
construction documents”, “Contractors’ inadequate and incompetent project staff and workers”, and
“Contractors’ inefficient project management”. Ranking of each factor group was then explained according to
its important level on the impact of project cost. The category of “Project owners’ withholding payment and
defective construction documents” was found to be the most important. After that, discussion and
recommendations were asserted to eliminate, minimize, and control the non-value-added costs of the project
budget.