Disputes as Risks: A Transformative Approach
Abstract
Traditional approaches to dispute resolution, such as arbitration and litigation, are often reactive, costly, and untimely. These methods often focus on contract variations, rather than addressing the root causes of disputes. In contrast, this study proactively addresses underlying issues. The purpose of this study is to analyse the effectiveness of treating potential disputes as risks to prevent conflicts in construction projects from evolving into disputes. This study highlights the negative impacts of disputes in construction projects, presents case studies in which potential disputes are treated as risks, and compares the outcomes with those of previous similar projects performed under the same scope and circumstances. By identifying potential disputes in the Risk Register and addressing them as risks or opportunities, disputes are integrated into a project’s risk management framework. By identifying potential conflicts early in the project lifecycle, this proactive approach allows teams to manage conflicts before they escalate into formal disputes, thereby avoiding costly delays and budget overruns. Case studies from the Gulf Cooperation Council (GCC) region, including those recognised as ‘Building Project of the Year’ and ‘Small Project of the Year’ at the MEED Projects Awards 2024, illustrate the practical application and effectiveness of the proposed approach.
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