CHAPTER 2

2.0 LITERATURE REVIEW

2.1 INTRODUCTION
This section will explore previous studies published on the topic and their relevance to the
present research. It examines the literature on the causes of disputes in construction projects in
Nigeria. It examined the Nigerian construction industry including it significance and Growth
trends, It examined the challenges that impacts the occurrence of disputes in construction
projects in Nigeria. It explores various categories of disputes, case studies in Nigeria and
Analytical Network process of disputes.
This chapter will also examine legal and regulatory environment related to construction projects
in Nigeria and the various Dispute resolution Methods, including it impacts and various types of
dispute resolution mechanism.
2.2 THE CONSTRUCTION INDUSTRY
The construction industry refers to the sector that encompasses the planning, Design,
Development and execution of buildings, infrastructure and other physical structures. (De-Graft
J. O et al, 2021). The building and construction industry is one of the most important sectors of
any given economy. The significance of this industry is often measured by considering its impact
on the economy through quantities such as its contribution to the Gross Domestic Product (GDP)
and the amount of employment it creates. (Muhammad A. M et al,2021).
DIVISION OF THE CONSTRUCTION INDUSTRY
The construction industry is divided into two major groups:
 The formal
 The informal
The formal sector, for which no accurate and reliable data is available on, comprises of the
simple residential buildings and similar structures built by private citizens and constructed
through the efforts of gangs of artisans and labor, hired mainly using the multiple primes method
of construction, i.e., owner supervised construction. The government has almost insignificant
influence on the operations of this sector and receives little or no revenue thorough taxes; hence,
it is very difficult to obtain reliable statistical data about this sector.(Elijah F.B et al, 2020)
The informal sector of the construction industry, for which all the data available is derived from,
constitute all the major companies, which are legally registered in the country and carry out
organized construction projects with a combination of both highly skilled expatriates and
laborers. This sector operates under set rules and regulations, including adherence to national
laws on employment, procurement, and tendering. Also, the government is aware of all the
activities of this sector and collects frequent taxes from the companies.(Elijah F.B, Cynthia C.W,
Riza Y.S, 2020)
2.2.1 THE CONSTRUCTION INDUSTRY IN NIGERIA
This section attempts to situate the Nigerian construction industry within the national economy
and highlights its contributions to the overall economy of the country. The construction industry
is considered by some economists as a leading driver of economic development in a
country(Sanusi A.D, 2007). This is basically due to the fact that almost all other sectors of the
economy in one way or another depend solely on the products and services of the construction
industry in order to carry out their operations. For example, it would be impossible for the
manufacturing industry to thrive without appropriate buildings and infrastructure such as
manufacturing plants, roads linking raw materials and manufacturing plants, office buildings,
etc., all products of the construction industry.(Sanusi A.D, 2007)

In Nigeria, the construction industry was the dominant contributor to Nigeria’s GDP from the
post-independence years in the 1960s to the 1980s, accounting for 70 per cent of the GDP
(Planning Committee on the National construction policy, 1989).

However, the industry has been bedeviled by a combination of low demand and consistent low
productivity and poor performance since the decline of the national economy started at the end of
the 1980s (Aniekwu, 1995; Okuwoga 1998; Adeyemi et al, 2005). This has reduced its
contribution to the national economy to a mere 1 percent of the GDP in 2002 (AfDB/OECD,
2004).
In 2005, the industry grew at an impressive rate of 12.1%, which was more than double the
average growth of the overall economy (5.6%). (Business Monitor International group) estimated
that the industry had grown at a impressive rate of over 20% between 2006 and 2007.
The size of the Nigerian construction industry is very small relative to the total global
construction industry. The value of global construction today is estimated to be about $12 trillion
(Statista Research Department, 2022). With only a total value of about $3.15bn in 2008, the
Nigerian construction industry makes up only about 0.2% of the global total and grew by 3.9% in
2022, after a 7.7% decline in 2021 (Dhananjay Sharma, economic Global Data analyst, 2022)
Despite this, it is by far the highest among all other West African countries. However, the
industry's growth rate has been very impressive over the last few years and is well above the
global industry average growth rate. The GDP from construction in Nigeria increased to
₦749763.39 in the first quarter of 2023 from ₦729456.27 in the fourth quarter of 2022.(National
Bereau of statistics, 2023)
2.2.2 PROFESSIONAL BODIES INVOLVED IN THE CONSTRUCTION INDUSTRY IN
NIGERIA.
FEDERATION OF CONSTRUCTION INDUSTRY (FOCI)
The Federation of Construction Industry in Nigeria (FOCI), previously known as the Federation
of Building and Civil Engineering Contractors (FOBACEC), is an organization that includes the
majority of the prominent construction firms in Nigeria. Established in 1954 by seven
international construction companies, FOCI was founded in response to the need for these
companies to collaborate and exert a more substantial influence on the development of the
industry. This initiative was taken during a period of uncertainty concerning Nigeria's future, as
pressure mounted on the British government to relinquish its control over the nation, which
eventually occurred in 1960. After some time, the leadership of the original group recognized the
necessity of enhancing their collective strength to amplify their impact. This realization led them
to embrace the idea of admitting new members, particularly domestic ones, to their ranks.
Consequently, FOCI expanded its membership to include various other companies. Presently, the
organization boasts a membership exceeding 200 entities, with the majority being local
businesses (FOCI, 2004). Although FOCI still faces challenges in attaining its objectives, its
member companies encompass the largest players in the Nigerian construction sector. It is
estimated that approximately 60% of the country's total capital investments are managed by
FOCI's member companies. (FOCI, 2004).
TRADE UNIONS
The Nigerian Labor Congress, NLC, functions as the central organization encompassing various
unions in the country. Its primary purpose is to safeguard, uphold, and advocate for the rights,
welfare, and concerns of workers, retirees, trade unions, and to propel the advancement of a fair,
democratic, transparent, and prosperous Nigeria, while also championing the working class
(NLC). Under the umbrella of the NLC, numerous unions cater to specific sectors within the
economy. Noteworthy among these are the National Union of Civil Engineering, Construction,
Furniture and Wood Workers, the Steel & Engineering Workers Union of Nigeria (SEWUN),
and the Nigeria Welders Association, all of which pertain to the construction workforce. These
unions play a vital role in safeguarding the interests of both laborers and their employers. They
offer support during critical situations that may arise during work, including legal actions. For
instance, in 2006, a tragic incident occurred at a construction site in Abuja when a crane
malfunction resulted in the death of six workers. Remarkably, due to a pre-existing Collective
Agreement between the company and the National Union of Civil Engineering, Construction,
Furniture and Wood Workers (NLC), there were no violent protests or legal disputes. This
underscores the significance of these unions in preventing and resolving such emergencies.(
Sanusi Dantata, 2007)
COUNCIL FOR THE REGULATION OF ENGINEERING IN NIGERIA, COREN
The Council for the Regulation of Engineering in Nigeria, commonly referred to as COREN,
serves as the governing entity responsible for overseeing and directing the "education and
execution of engineering practices within Nigeria. It also enforces the registration of all
individuals engaged in engineering disciplines, including Engineers, Engineering Technologists,
Engineering Technicians, and Engineering Craftsmen, as well as consulting firms seeking to
partake in the field of engineering" (COREN, 2003). The essential role played by COREN in the
construction sector cannot be overstated, as it holds the responsibility of maintaining rigorous
quality standards across the nation's construction endeavors. However, despite the pivotal role
COREN plays, there exists a significant challenge due to inadequate resources, preventing the
complete prevention of unlicensed individuals from conducting engineering tasks. As a result,
numerous workers continue to engage in these activities without possessing the necessary
licenses. To rectify this situation, it is imperative for the government to allocate sufficient
resources to empower this agency in effectively fulfilling its obligations. This strategic allocation
of resources will facilitate the agency's ability to carry out its functions diligently, ultimately
contributing to the advancement of the construction industry. (Sanusi Dantata, 2007).
NIGERIA INSTITUTE OF QUANTITY SURVEYORS (NIQS)
NIQS functions as the governing authority for all Quantity Surveyors in Nigeria. Its origins trace
back to certain professionals who underwent training and practical experience in the United
Kingdom before returning to Nigeria to establish an independent entity parallel to the Royal
Institution of Chartered Surveyors in the UK. The core objective of NIQS is twofold: firstly, to
cultivate top-notch surveyors on a global scale, while concurrently upholding and elevating the
benchmarks within the field; secondly, to furnish clients with high-caliber services.(Godspower
ugadu)
NIGERIA INSTITUTE OF BUILDERS (NIOB)
The Nigerian Institute of Building serves as the authoritative organization for Builders and
individuals on the verge of entering the Building Profession. Its roots can be traced to a precursor
entity known as the Builders' Society, established in 1834 by a group of influential Builders in
London. This original entity underwent a name change in 1884, becoming the Institute of
Builders. In 1965, it was rebranded as the Institute of Building (IOB). The organization received
a royal charter, leading to its subsequent transformation into "The Chartered Institute of
Building" (CIOB) in 1980.(Niobnat.com)
QUANTITY SURVEYING REGISTRATION BOARD OF NIGERIA (QSRBN)
The Quantity Surveyors Registration Board of Nigeria (QSRBN) holds a pivotal role as the
authoritative regulatory body overseeing the profession and operational aspects of quantity
surveying within the Nigerian context. Established under the legal framework of Decree No. 31
on December 5, 1986, the foundation of QSRBN's authority has been further solidified and
codified in the subsequent legal compendium, the CAP Q1 Laws of the Federation of Nigeria
(LFN) 2004 (qsrbn.gov.ng). This board is entrusted with the responsibility of upholding the
standards, ethics, and quality of the quantity surveying discipline across Nigeria. It serves as the
custodian of the profession, ensuring that practitioners adhere to rigorous professional and
technical standards. Through its regulatory initiatives, the QSRBN contributes to the
maintenance of integrity, competence, and credibility within the quantity surveying field.
ASSOCIATION OF CONSULTING ENGINEERS, NIGERIA (ACEN)
The inception of the Association of Consulting Engineers Nigeria (ACEN) dates back to the
year 1972, a significant milestone that was further solidified with its official registration in 1979
(FIDIC.org) With a clear and resolute objective, ACEN has been at the forefront of fostering the
evolution of Consulting Engineering practices within the Nigerian context. At its core, ACEN's
primary mission revolves around the advancement and development of Consulting Engineering
in Nigeria. This is achieved through the strategic mobilization and collaboration of private sector
Engineering Consultants. By bringing together these diverse and skilled professionals, ACEN
strives to create a unified platform that drives the Consulting Engineering sub-sector of the built
environment forward.
NIGERIA INSTITUTE OF ARCHITECTS (NIA)
The Nigerian Institute of Architects (NIA) serves as a principal organization for architects
primarily within the country of Nigeria.(Guardians newspaper, 2022). The concept of
establishing an autonomous professional association for architects in Nigeria was initially
conceptualized and driven by three architects. In the year 1958, a study group consisting of eight
members was assembled to meticulously strategize the creation of the Institute. This extensive
planning process eventually led to the formal establishment of the Nigerian Institute of
Architects (NIA), which was officially inaugurated on April 1, 1960.(punchnewspaper, 2021).
Architects Registration Council of Nigeria (ARCON)
The Architects (Registration, Etc) Act, known as Cap A19 in The Laws of the Federation of
Nigeria 2004 (formerly Decree No 10 of 1969), grants the Council the authority to establish
standards and regulate both the education and profession of architecture in Nigeria. The Council
has effectively fulfilled its national responsibilities by effectively addressing these mandates,
often working hand in hand with other relevant stakeholders.(https://aboutarcon/document).

2.2.3 PARTIES INVOLVED IN THE CONSTRUCTION PROJECTS IN NIGERIA.

In the dynamic landscape of construction projects in Nigeria, a wide array of parties and
professionals come together, each playing a crucial and distinct role in the realization of these
ambitious endeavors.
From the ambitious visionaries who initiate and commission the projects to the diligent design
teams that bring forth innovative blueprints, and the skilled contractors who translate concepts
into tangible structures, to the vigilant project managers overseeing every intricate detail, the
collective efforts of these parties pave the way for the nation's infrastructure development.
STAKEHOLDERS

Clients, design team, contractors and project managers are examples of stakeholders that are
major participants in many construction projects. (Olander S. Stakeholder Impact Analysis in
Construction Project Management. Construction Management and Economics 2007) describes
“stakeholders as any group or individual who can affect, or is affected by, the achievement of a
corporation’s purpose”.

This is quite a broad definition and can be refined by incorporating the aspect of contributing to
or participating in decision making and activities as well as benefiting or being disadvantaged
from the outcomes of decisions. There is a contribution to wealth creating activities and therefore
being a potential beneficiary or risk bearer throughout the project. Consequently, a stakeholder
may be defined as an individual or group that has a vested interest or share in an undertaking.
This may include some aspect of rights or ownership. There is both a direct and indirect
reciprocal relationship between a stakeholder and an organisation or project; as each has the
ability to affect and in return be affected by the activities of the other.

Stakeholder influence can be either beneficial in nature or conversely threaten the success of a
venture (Chinyio E, Olomolaiye P, editors. Construction Stakeholder Management. Oxford:
Wiley-Blackwell; 2010, Bourne L. Walker DHT. Visualizing Stakeholder Influence – Two
Australian Examples. Project Management Journal 2006).

There are numerous stakeholders and participants involved in a construction undertaking. The
list of possible stakeholders is extensive and can encompass owners, managers and users of
facilities, project managers, designers, shareholders, legal authorities, employees, sub-
contractors, suppliers, service providers, competitors, financial establishments, insurance
companies, media organisations, neighbours and community representatives, the general public,
government establishments, visitors, regional development agencies, the natural environment,
pressure groups and civic institutions.

These stakeholders may be categorised as internal or external. Project owners or clients are an
internal stakeholder and have overall managerial responsibility and power the project owner may
be a consortium which may delegate management responsibility. They are often linked to a
financial stake; and organisations or individuals who have a contractual relationship with the
project owner. Local communities, government, potential users, regulators, environment groups
and the media are external stakeholders. They may have varying attitudes towards a development
and may also seek to influence a project through campaigning and political lobbying, regulation
or direct action. The importance of stakeholder engagement together with the correlation of
stakeholder vision and goals has been well established in the literature.
CLIENT
In this instance, the construction client means the entity that, at its own expense, initiates
building, construction, or infrastructure projects (in accordance with PBL: the Swedish Building
and Planning Act). The construction client is also the entity that interprets and translates an
organisation’s needs, expectations and wishes to set requirements and conditions within building
and construction projects. However, the concept of a construction client is ill defined as it is
merely set meaning by the client’s actions related with initiating building or operating a physical
facility.
Clients use a facility as a means for conducting the business or service; thus, the facility is an
instrument or a technology for meeting a purpose and this actually gives buildings a secondary
interest to the client. In addition, the difference among clients (and users) when it comes to
qualifications, institutional settings, discretionary powers etc. point towards a strategic overlook
that will identify and possible even encourage multiplicity, divergence and heterogeneity rather
than homogeneity, including aspects of the diverse characteristics of national construction
business systems.( Boyd & Chinyio (2006) Understanding the construction Client, Blackwell
Publishing, UK).
DESIGN TEAM
The Design team however consist of
1. The Architect
2. The engineers
3. Quantity surveyors
4. Builders/ construction manager
ARCHITECT
The architects create fresh architectural designs for new construction and propose modification
for existing projects. Architects utilize their specialized construction expertise and advanced
drawing abilities to develop designs for new buildings, renovations, and redevelopment ventures.
Their primary goal is to create functional, secure, eco-friendly, and visually appealing structures.
Throughout the construction process, architects remain engaged, adjusting their plans to
accommodate budget limitations, environmental considerations, and client preferences. They
collaborate closely with various construction experts, including quantity surveyors and building
services engineers, as part of the overall project design team. (Mark Gorgolewski, 2017)
The architect or architectural team is responsible for the design stage of the project. The architect
will take an idea the owner has and if that idea is feasible, create a design around it. Different
types of architects may specialize in different types of projects. Some architects specialize in
specific types of buildings, while others specialize in a subset of the project itself. For example,
on a single project, you may have an architect who is designing the physical structure for the
project and a second landscape architect that is responsible for designing the exterior portion of
the project. Architecture is both an art and a science. (Kirt Gilliland, 2019)
THE ENGINEERS
Engineers play a crucial role as vital members of the design team, contributing their expertise in
various specialized fields such as geotechnical, structural, electrical, mechanical, and more. They
conduct thorough analyses and calculations to arrive at the most optimal design solutions for
specific buildings. Once the design is determined, they create essential documentation, including
drawings, specifications, and schedules, which are integral to the overall project. These
documents aid the quantity surveyor in preparing bills of quantities and costing, while assisting
the client in assessing the project's compliance with statutory requirements.(Kamryn Froehle et
Al, 2022)
Throughout the project execution, engineers periodically visit the site for inspections, ensuring
that the construction aligns with their engineering drawings, schedules, and specifications. They
remain readily available to adapt or redesign their specific components if the need arises. Some
projects may even necessitate the presence of resident engineers on-site during the building
process.
I. The structural engineers
Structural engineers, as trained experts, hold the critical role of ensuring the integrity and safety
of the structures integral to our daily routines – the likes of bridges and towering edifices. Their
mandate encompasses ensuring that these structures remain secure, stable, and impervious to
collapse under the influence of external forces. This pivotal task is accomplished through the
adept application of their technical acumen.(Mostafa El mogy, 2019).
The process of structurally designing a building can be categorized into three distinct phases:
load estimation, structural analysis, and design.Tailored to suit the specific purpose of the
building, established norms and construction regulations are employed to approximate the
building's weight. Additionally, factors such as snow, wind, and seismic loads exerted upon the
structures are considered as integral components of this estimation process.(Mostafa El mogy,
2019)
II. The MECHANICAL ENGINEERS
A mechanical engineer is a skilled professional who employs principles from physics,
mathematics, and materials science to craft, evaluate, fabricate, and uphold mechanical systems.
These systems could encompass machinery, mechanical devices, engines, or mechanical
equipment that finds utility across diverse industries ranging from aerospace and automotive to
construction and manufacturing. Leveraging their knowledge in mechanical contraptions,
thermodynamics, and mechanics, mechanical engineers design effective, operational, and secure
mechanical frameworks that cater to the requirements of their clients or employers. Additionally,
they might collaborate closely with other experts like electrical engineers and civil engineers to
guarantee the seamless integration and functioning of all building elements.
(blackidgereseaech.com)
In the construction industry, the mechanical engineer is responsible for the HAVAC and
plumbing design and also responsible for fire protection and Energy efficiency.
(blacridgeresearch.com)
III. THE ELECTRICAL ENGINEERS
Typically, an electrical engineer's role involves creating high-voltage equipment like wiring
systems, generators, and lighting systems. However, within construction, their responsibilities
expand, especially on-site. For both residential and commercial buildings, while certain elements
remain visible, most electrical components are concealed using access doors. In industrial
settings, electrical systems are more apparent due to the absence of hidden features like drywalls.
At construction sites, electrical site engineers are responsible for overseeing projects, addressing
issues, and ensuring work aligns with specifications. They manage both project and engineering
tasks, from designing plans to supervising contractors. Electrical engineers also guarantee that
work adheres to local and national electrical codes.(Kiran Daware, 2020).

THE QUANTITY SURVEYOR

Due of their knowledge of construction costs, a client will frequently visit a quantity surveyor or
cost expert early on in the consultation process. As soon as the brief is agreed upon, he creates a
cost plan, estimates the cost from rough sketches, and performs basic cost checks throughout the
design process so that, should the client's budget be exceeded, the designers can reasonably
consider each component of the building project separately and combine costs as needed while
staying within the project's overall budget.(Prince Agyekum, 2013)
A quantity surveyor's next responsibility after receiving designer's drawings is to generate a Bill
of Quantities (B.O.Q) in accordance with the most recent Standard Method of Measurement
(SMM), provided that the client has approved the costs and scheme. The quantity surveyor's
responsibilities include this crucial component; thus, accuracy must be ensured with considerable
care. The quality and accuracy of the bill of quantities depends entirely on the drawings,
schedules, and specifications that were used in its creation.The quantity surveyor has the chance
to double-check dimensions and offer suggestions for substitute materials while preparing the
bills of quantities. The quantity surveyor also recommends the best type of contract to utilize to
the client.(Prince Agyekum, 2013)
The quantity surveyor will undoubtedly work closely with the other consultants on the project to
draft the contract documentation. The quantity surveyor's priced bill of quantities must be
submitted and opened at the same time as those of the contractors who are tendering when tender
documents are sent to contracts. The quantity surveyor must review all the tenders for accuracy
and consistency in pricing, among other things, after they have been opened and recorded in
front of the other consultants, the tendering contractors, and the project manager client
representative. This is done to make sure the contractors didn't make any significant mistakes
that could lead to complications in the future.(Prince Agyekum, 2013)
Following that, the quantity surveyor should draft a tender report on the contractor's bids for the
Contractor Selection Meeting to review. The quantity surveyor will perform interim valuations,
value variations, determine the amount of direct loss and/or expense suffered by the contractor,
agree on variations with the contractor, create the statement of retentions, and perform other
tasks during the building stage. All of these should be completed in collaboration with the
contractor's quantity surveyor, who should be permitted access to the site whenever physical
measurements are being made.(Prince Agyekum, 2013)
The quantity surveyor must perform his job totally impartially and without showing any favor to
either party in order to foster peace in his capacity as a project cost manager. The quantity
surveyor has a fiduciary duty to make sure that the contractor makes an adequate profit for the
job completed and that the client receives value for his money. After the building phase is
finished, the quantity surveyor should work with the project manager to negotiate any additional
costs with the contractor. The final account must be prepared by the quantity surveyor with the
aid of the contractor's invoices and other supporting documentation.(Prince Agyekum, 2013)
THE CONTRACTOR
A contractor in the construction industry is an organization (or occasionally a person) that the
client hires to complete the work necessary to complete a project.(letsbuild, 2018)
However, contractors don't usually possess the skills or trades required to finish all construction
work by themselves. Because of this, they are also in charge of selecting subcontractors who can
finish specific project components. Typically, a construction project will involve a sizable
number of subcontractors.(letsbuild, 2018)
It should go without saying that a contractor's role has numerous levels because they are in
charge of a variety of individuals and duties.(letsbuild,2018)
Application for building permits, property security, provision of on-site (temporary) facilities,
handling of generated trash, administration of on-site staff, site surveying; site engineering;
schedule monitoring; a contractor is mostly responsible for all of these activities.(letsbuild,2018)
It follows that a general contractor is also responsible for the caliber of the job that is provided to
the client. But in any event, everyone participating in a building project should always put safety
first.(letsbuild, 2018)
THE SUBCONTRACTOR
A subcontractor is a person or, in many situations, a firm who agrees to carry out all or a portion
of the duties under another person's contract.Simply said, a subcontractor's task is to carry out the
project for which they have been hired by the main contractor. It is the subcontractor's
responsibility to carry out the work in accordance with the instructions because it is frequently a
specialized operation, like electrical or HVAC. A general contractor, prime contractor, or main
contractor will hire a subcontractor (or subcontractor) to complete a specific task as part of the
overall project. The subcontractor will typically be paid for the services they give to the project.
(Official journal of the European Union, 2023)
TYPES OF SUBCONTRACTOR
DOMESTIC SUBCONTRACTOR
A subcontractor who enters into a contract with the principal contractor to supply or fix any
products or materials or to carry out work that is a component of the principal contract. In
essence, the principal contractor employs this subcontractor(Official journal of the European
Union, 2023)
NOMINATED SUBCONTRACTOR
According to some contracts, the architect or supervising officer may reserve the authority to
decide which subcontractors receive final approval. The primary contractor is allowed to profit
from the usage of designated subcontractors on the construction site, but is still required to
provide "attendance" (typically, the availability of water, power, bathrooms, and other services to
allow the designated subcontractor to perform his duties). In actuality, the subcontractor and
client enter into a direct contractual connection when nominated subcontractors are appointed.
(Official journal of the European Union, 2023)
NAMED SUBCONTRACTOR
A subcontractor who enters into a contract with the principal contractor to provide or fix any
materials or goods or to carry out work that is a part of the principal contract is effectively the
same as a domestic subcontractor. In essence, the principal contractor employs this
subcontractor.(Official journal of the European Union, 2023)
2.3 DISPUTES IN CONSTRUCTION PROJECTS IN NIGERIA.
2.3.1 MEANING OF DISPUTE
There is confusion among construction professionals about the differences between conflict and
dispute, and these terms have been used interchangeably especially in the construction industry
(Acharya et al., 2006).
A dispute is by definition a disagreement or conflict between two parties about a subject (Barry
and Leite 2015). Disputes occur when members of the project team disagree or argue. Members
of the project team may disagree, quarrel, or debate with the project leaders. Given the inherent
unique variances in people, such occurrences are both common and unavoidable. Disputes on
project concerns, such as expenses, roles and duties, project scope, project deliverables, project
team selection, and other components relating to the project, are what lead to disputes. (Barry
and Leite 2015)
The main causes of construction disputes include variation, extension of time, payment, quality
of technical specifications, availability of information, administration and management,
excessive client expectations, and determination. (Kumara swamy and Yogeswaran)
Conflicts may occur as a result of a lack of resources such time, money, labor, materials, and/or
equipment (Kathleen, 2003a). According to Smith, disputes and disputes are a persistent issue in
the construction industry. Conflict can hinder communication, lead to the breakdown of
relationships in both the personal and professional spheres, and reduce productivity. Conflict
heightens tension and takes the team's focus off the task at hand. If disputes aren't addressed
properly, they may cause project delays, low team morale, higher project expenses, and, most
importantly, ruin long-term business relationships (Cheung & Suen)
Any group or organization may experience disputes and disagreements because of varying
ideologies and perspectives. The project team tends to disagree on many matters that impact the
project, which can lead to disagreements that have an adverse effect on the project's success as a
whole. In order to ensure that projects are successfully completed, project managers must devise
plans for resolving disagreements within the project team (How to avoid disputes and build
better, 2018).
2.3.2 CATEGORIES OF DISPUTES.
There has been a lot of research done to identify the reasons why disputes arise in the
construction sector. To provide a broad overview of the factors that contribute to building
disputes, a literature analysis has been done. The analysis of several studies from various nations
reveals that the claim is the primary source of dispute in the construction sector. (Global
Construction Disputes Report, 2014-2017).
Several problems that cannot be resolved by the project participants come up throughout its
execution. These problems often involve a contractor asking for a time extension, payment for
increased expenses, or
occasionally both.
'Claim' is the term used to describe
such requests made by the contractor.
The problem is resolved if the owner
agrees with the contractor's request
and gives him a time extension, payment for excess costs, or both. However, if the owner
disagrees with the contractor's assertion and there are discrepancies in the interpretations, the
matter becomes a dispute (Cheung SO, Henry CHS, Tsun-Ip L, 2002).

Source:
Risk, conflict, claim and dispute continuum model, Source: Acharya, et al.
LFigure 1 makes it very evident that dispute and dispute management are crucial components of
construction management.
In the construction industry, there are various factors that can lead to construction disputes
among parties in a construction project.
It is necessary to pinpoint the root causes of disputes in Nigeria building projects in order to
lessen the detrimental effects that claims and disputes have on ongoing projects. Seven main
categories are used to analyze and classify the determined causes . These key factors are
enumerated, classified, and a table is made that includes all the typical reasons why disputes may
arise in the Nigeria construction project.
The causes of disputes are categorized into several broad categories based on their nature and
mode of their occurrence (Emre Cakmak , Pinar Irlayici Cakmak, 2013; Aryal S and Dahal RK,
2018).
These categories include
 Owner related
 Contractor related
 Design and contract related
 Consultant related
 Human behavior related
 Project Related
 Material, Labor & Equipment Related
  External factor

OWNER RELATED: Any construction project's increased complexity makes it exceedingly

challenging to avoid making even minor mistakes that trigger owner claims and legal conflicts.
Similar to this, unrealistic expectations, delays in payments from the owner side, etc. are the
primary causes of disputes in every construction project from the owner side (Sagar Soni,
Mukesh Pandey 2017). One of the main reasons for conflicts and disputes is payment delays
(Egwunatum, Anumudu, eze 2020)
The main reasons for disputes in a construction project, according to Soniet al. (2017), include
irrational expectations, client payment delays, client-initiated changes, changes to the project's
scope, late site possession, and irrational expectations.
CONTRACTOR RELATED: One of the many elements that greatly affects whether a building
project is successful or fails is the contractor. Conflict and disputes in construction projects
should be rare if the contractor's management and administrative procedures are effective. (Sagar
Soni, Mukesh Pandey 2017).
A contractor's poor choice could result in a serious issue like Most contractors underprice the
tender because they want to see how much extra work they can extract from the workers. They
underpriced the job without fully understanding the design or specifications, and when the
project was being carried out, they might not have been able to satisfy the standards, which led to
future difficulties and disagreements (Jaffar N., A.h. Abdul Tharim, and M.n. Shuib, 2011)
Soniet al. (2017), there are a lot of factors that contribute to disputes from the contractor's
perspective, including delays in the progress of the job, time extensions, financial failure of the
contractor, technical insufficiency of the contractor, tendering, quality of work, etc. One of the
many elements that significantly affects whether a building project is successful or unsuccessful
is the contractor.
choosing the wrong contractors can lead to serious problems including underpricing the tender
due to a lack of understanding of the design, specification, and standards anticipated of the
project (Tharim and Shuib,2011)
CONTRACT AND DESIGN RELATED: The usage of confusing terminology and terms with
dual meanings in contract papers are just two examples of the many terms that are used in
contracts. The fundamental benefit of utilizing bespoken terms is that they allow participants to
profit from their use.(sonnet al, 2017)
When the project is finished, these bespoken terms are presented in their second meaning, which
allows for the maximization of profits. Conflicts and disputes in the construction sector arise as a
result of this profit-making process. Conflicts can arise in active construction projects due to a
variety of factors, including the lack of knowledge.(Ashok & Patil, 2014).
CONSULTANT RELATED: There are many reasons for the error in design, including "lack of
knowledge of consultant" and "excessive quantity of work." Since design, drawing,
specifications, etc. fall under the category of consultant related, if there are any minor errors in
drawing and design then as a result of it the whole project gets affected by introducing delay in
the project which lead to conflicts and dispute.( Sagar Soni, Mukesh Pandey 2017).
HUMAN BEHAVIOUR RELATED: Elements from third parties and human behavior are
separated into variables that can be controlled and those that cannot. (Jaffer, Tharim, and Shuib,
2011), are those that can be manipulated in any way. Human-related problems such participant
divisiveness, inadequate communication, and participant misunderstandings are among them. On
the other hand, uncontrollable elements are those that are tied to outside parties, like
unanticipated or unpredictable events, protests, and weather conditions. Although they can be
avoided, they cannot be entirely under control. It follows that disputes and conflicts over it are
unavoidable.
PROJECT RELATED:site conditions and unforeseen changes are factors that can bring about
disputes in construction projects. (Emre Cakmak &Pinar Irlayici Cakmak b, 2013). Due to
changes in the soil, subsurface conditions, unanticipated structures, and impediments, the site
could have various characteristics which can lead to disputes (Amila Garnage, 2020).

MATERIAL, LABOUR & EQUIPMENT RELATED:Quality of material Price, fluctuation

of Construction Materials, Government Regulations Shortage in material Shortage of Labor
supply, Labor productivity and Equipment availability and failure can also bring about disputes
in construction projects (Aryal S et al, 2018)
EXTERNAL FACTORS: weather, legal and economic factors and fragmented structure of the
sector are also factors which can lead to disputes in construction projects(Emre Cakmak &Pinar
Irlayici Cakmak b, 2013).
Categories of disputes Causes of disputes
OWNER RELATED variations initiated by the owner
change of scope
late giving of possession
acceleration
unrealistic expectations
payment delays
CONTRACTOR RELATED delays in work progress
time extensions
tendering
quality of works
Inadequate investigation before bidding
Site management
Failure to plan & execute the changes of works
Construction methods
Mistakes during construction stage
Inexperienced contractor
Lack of understanding & agreement in
 contract document
Financial Difficulties
Exceptionally Low Bid
DESIGN RELATED & CONTRACT design errors
RELATED inadequate / incomplete specifications
quality of design
availability of information
Change orders
Mistakes and discrepancies in contract
document Inappropriate overall organizational
structure linking to the project
Lack of communication between the parties
CONSULTANT RELATED Poor Contract management & Supervision
Preparation and approval of drawings
Frequent Changes in orders & Designs
Incompleteness of drawing and specification
Variations due to design errors
Waiting time for approval of tests and
inspection
HUMAN BEHAVIOUR RELATED adversarial / controversial culture
lack of communication
lack of team spirit
PROJECT RELATED site conditions
unforeseen changes
Due to changes in the soil, subsurface
conditions
unanticipated structures and impediments

MATERIAL, EQUIPMENT & LABOUR Quality of material Price

RELATED fluctuation of Construction Materials
Government Regulations Shortage in material
Shortage of Labor supply
Labor productivity
Equipment availability and failure
EXTERNAL FACTORS Weather.
legal and economic factors.
fragmented structure of the sector.
Table 2.1

Source: Emre cakmak, Pinar Irlayici Cakmak

Aryal S, Darha RK
2.4 CHALLENGES THAT MAY IMPACT THE OCCURENCES OF DISPUTES IN
CONSTRUCTION PROJECTS IN NIGERIA
 Inadequate planning and Design: Poor planning and design can lead to scope changes and
conflicts between project stakeholders ( Ayodeji, E.O., & Ajayi, C.A. (2014).)
 Funding and Financial Issues: Insufficient funding or financial mismanagement can result
in project delay and disputes between clients, contractors and subcontractors.
 Ineffective Contractual Agreements: Ambiguities in contracts, unfair risk allocation, and
lack of clarity in contractual terms can lead to misunderstandings and disagreements
during the projects lifestyle. (Aje, I.O., & Oke, A.E. (2015).
 Regulatory and Legal challenges: Inconsistent or unclear regulatory frameworks and the
slow pace of legal resolution can contribute to disputes in construction projects (Alade,
T.T., & Ogunade A.O. (2016).)
 Political AND Socioeconomic Factors: Political instability and socioeconomic issues can
impact the construction industry, affecting projects timelines and leading to disputes
(Ayo-Vaughan, E.A., Ayo-Vaughan, T.E., & Agumba, J.N.(2014).

2.5 CONSTRUCTION CONTRACTS

2.5.1 CONSTRUCTION CONTRACTS
Construction contracts are complex legal papers that bind many project stakeholders, including
Owners, Designers, Construction Managers, and Contractors, in order to complete a project or
program. The supply chain management, which is a subset of procurement management, can be
thought of as including these contracts.(Ihab M. H. Saad, Ph.D., PMP, 2020).
The most common standard forms of construction contract in Nigeria are: the Joint Contract
Tribunal (JCT) standard form of contract (without quantities), 2005 Edition; the standard form of
building contract in Nigeria, 1990 (SFBCN); the International Federation of Consulting
Engineers Contract (FIDIC), otherwise known as “The FIDIC conditions of contract for
construction for building and engineering works designed by the employer, 1999 Edition”; the
general conditions of contract for the procurement of works, 2011 (GCC); and the Federal
Ministry of Works standard conditions of contract (Road works), 1999 Edition (FMOWC).
(Patrick Abuka, Sunday Edwards, Esq).
2.5.2 THE JOINT CONTRACT TRIBUNAL (JCT) STANDARD FORM OF CONTRACT
Seven member organizations that jointly represent a wide range of interests in the building and
construction sectors make up the Joint Contracts Tribunal (JCT). JCT creates standard contract
templates, instructions, and other types of standard paperwork for use in various industries. JCT
wants the contracts it creates and publishes to show a fair distribution of risk among the
contracting parties. (James Ladner, 2023)
The most commonly used main contracts in the current JCT suite are
 JCT Design & Build Contract 2016 (DB);
 JCT Intermediate Building Contract 2016 (IC);
 JCT Intermediate Building Contract with Contractor’s Design 2016 (ICD);
 JCT Standard Building Contract with Quantities 2016 (SBC/Q);
 JCT Standard Building Contract with Approximate Quantities 2016 (SBC/AQ);
 JCT Standard Building Contract without Quantities 2016 (SBC/XQ);
 JCT Minor Works Building Contract 2016 (MW); and
 JCT Minor Works Building Contract with Contractor’s Design 2016 (MWD).
i. JCT DESIGN & BUILD CONTRACT 2016(DB)
A common form in the JCT collection is the DB contract. It is frequently utilized for huge,
intricate construction projects like office buildings, large commercial/mixed-use developments,
and sports stadiums. Both the public and private sectors make use of it.
The DB contract is a "lump sum" contract, where the price for the work is agreed upon in
advance by reference to the agreed scope of the work and is only adjustable by reference to a
number of predefined circumstances that allow a contractor entitlement to additional payment or
loss and expense (Relevant Matters" - covering variations to the work as well as, when compared
to the list of "Relevant Events", a shorter, finite list of delay events that, in general, are beyond
the control of the contractor. (James ladner, 2023).
ii. JCT STANDARD BUILDING CONTRACT (SBC)
Under an SBC, a contractor may not always be involved in any aspect of the design, despite the
fact that it is sometimes referred to as a "traditional" contract.
Drawings and bills of quantities created by or on behalf of the employer and provided to the
contractor will normally be used to describe the works. Bills of quantities are essentially lists of
the items that will be required for construction, along with their descriptions and the necessary
amounts, and they serve as the basis for payment.
JCT publishes three forms of SBC:
SBC/Q: Like the DB, this contract is for a lump sum payment. Here, bills of quantities from the
employer are given to the contractor to specify the scope and caliber of the job (which is used to
determine the lump sum).
SBC/XQ: Once more, this is a lump sum agreement. The SBC-XQ differs from the SBC-Q in
that the employer here provides the contractor with a specification or work schedules to
adequately define the scope and quality of the work but no bills of quantity; as a result, the
contractor quotes prices based on its assessment of the cost of the works based on this
information).
SBC/AQ: This agreement is for measurements. Here, the employer offers sketches and rough
bills of quantities, and the contractor is asked to submit a bid for an amount that represents an
estimate of the expected cost of the job. Once the work is finished, this initial estimate is revised
to represent a final sum using a remeasurement and value of the work accomplished. The cost of
delivering the works may cause the price to increase or decrease. As mentioned above, the
pricing will also alter to reflect the effects of "Relevant Matters".
2.5.3 THE STANDARD FORM OF BUILDING CONTRACT IN NIGERIA(1990); SFBCN
The standard form of building contract in Nigeria have three major contracts which include
 Lump sum
 Cost reimbursement
 Unit cost
LUMP SUM CONTRACT
In a lump sum agreement, also known as a stipulated amount agreement, the project owner lays
out certain requirements for the job, and the contractor offers a set cost for the undertaking.
Before the contractor can set a price, these contracts demand that the owner complete the
project's plans, drawings, specifications, and timetable. The contractor then produces a quote
after estimating the expenses of the supplies, tools, labor, and indirect costs like overhead and
profit margin.
If the project’s final costs are lower than the contactor’s estimate, then their profit increases. If
the estimate is too low, the contractor’s bottom line suffers. However, the project owner’s
finances are unaffected in either scenario.
What does "lump sum" in a contract actually mean? Despite the term's "lump-sum" designation,
this phrase relates to the project's pricing rather than the methods of payment. Payment is
frequently made in installments under these arrangements. This can happen either as project
milestones are reached or in predictable intervals (like monthly). (Joseph Clancey, 2021)
COST REINBURSEMENT
Any finished work must be paid for by the buyer under a cost-reimbursement contract. These
expenses could be direct or indirect. Once the project is complete or on a date specified in the
contract, the final price is decided. Most of the time, the vendor offers a cost estimate that aids in
calculating the project's overall budget. Normally, the prime contractor is not allowed to go
beyond this budget without consent. (Ironcladapp)
Cost reimbursement agreements can take many different shapes, including:
Cost contracts: The agreement solely calls for payment of the project's real costs. There are no
extra costs.
Contracts with a cost-sharing component: The contractor consents to take on and split some of
the contract costs. The customer will then pay back a percentage of the contractor's costs to them.
Cost-plus-fixed-fee (CPFF) contracts: Under these agreements, the contractor is compensated
in addition to a set charge. This price is agreed at the time the contract is signed and is fixed
regardless of the project's cost. If the work originally specified in the agreement changes as the
project progresses, revisions may be necessary.
Contracts with a cost-plus-incentive-fee (CPIF): In addition to compensation, the contractor is
paid an adjustable fee. The charge is based on a formula intended to reward reduced expenses,
and the adjustment is based on specified targets.
Contracts with a cost-plus-award-fee (CPAF): The contractor will be paid a set amount with
the possibility of receiving more money. Based on an evaluation of the contractor's performance
on the project, this is said.
Contracts that are cost-plus-percent-of-cost (CPPC): In these contracts, the seller is
compensated for all expenditures as well as an additional portion of them.

UNIT COST CONTRACT

Under a unit price contract, a contractor is paid for the actual quantity of each line item
performed as measured in the field during construction. Each unit price includes all labor,
material, equipment, overhead, and profit attributable to that scope of work. Unit price contracts
are commonly used on Public works projects, Engineering projects and Horizontal construction,
such as roads. (Thomson Reuters, 2023).

2.5.4 THE INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

CONTRACT (FIDIC)
Otherwise known as “The FIDIC conditions of contract for construction for building and
engineering works designed by the employer, 1999 Edition”
FIDIC is a French language acronym for Fédération Internationale Des Ingénieurs-Conseils,
which means the international federation of consulting engineers. It was started in 1913 by the
trio of France, Belgium and Switzerland. The United Kingdom joined the Federation in 1949.
FIDIC is headquartered in Switzerland and now boasts of membership from over 60 different
countries. (Koko Udom, 2014).
The FIDIC suite offers contract templates that may be used for nearly every AECO project, and
their efficacy has been proven over the years on numerous projects all over the world. They
encompass all of the crucial elements that must be specified and agreed upon before a building
project is started, and they are created to be fair to all parties involved.(thinkproject.com, 2023)
With regard to the fact that, in essence, building any project around the world has as its
foundation the same main principles (leaving aside the technical and geographical specificities),
the primary goal of FIDIC was to create standard contracts that may be used for a variety of
construction and installation projects. These standard contracts reflect documents that balance
the interests of both parties and are the result of decades of experience in construction and
installation projects.(Dr. Daniel MOREANU, 2015).
2.5.5 THE GENERAL CONDITIONS OF CONTRACT FOR THE PROCUREMENT OF
WORKS, 2011 (GCC)
The General Conditions of Contract for the Procurement of Works, 2011 (GCC 2011) is a
standard set of contract conditions for the procurement of construction works. It is typically used
in the engineering and construction industry to govern the contractual relationship between the
employer (client) and the contractor. The GCC 2011 was published by the International
Federation of Consulting Engineers (FIDIC), an organization that sets international standards for
the construction industry.
The GCC 2011 is part of a suite of FIDIC contracts that also includes the Red Book (Conditions
of Contract for Construction), the Yellow Book (Conditions of Contract for Plant and Design-
Build), and the Silver Book (Conditions of Contract for EPC/Turnkey Projects). (FIDIC).
2.6 DISPUTE RESOLUTION MECHANISM
2.6.1 METHOD OF CONSTRUCTION DISPUTE RESOLUTION
Construction disagreement issues have an effect on all parties involved and may result in an
unfair method of project delivery, such as decreased margins, increased costs, or even decreased
quality and/or level of service. The building team resolves conflicts of a small type swiftly,
fairly, and pleasantly. But occasionally, more important matters are contested. When this occurs,
the project manager should use all reasonable efforts to negotiate a fair resolution. If it doesn't
work, one or more of the available dispute resolution methods, such as mediation, adjudication,
arbitration, and litigation, will have to be used. (IAN M Elenberg, Dispute Resolution in
Construction Management).
Only three distinct processes—negotiation, mediation or conciliation, and an adjudicative
process—are recognized by the RICS (Royal Institution of Chartered Surveyors) as the three
pillars of dispute resolution, upon which all other techniques are based.( RICS (2012) Conflict
Avoidance and Dispute Resolution in Construction.)
2.6.2 ARBRITATION
Arbitration is a method of dispute resolution in which parties involved in a legal conflict agree to
submit their dispute to one or more neutral third parties known as arbitrators. These arbitrators
are selected by the parties or through an arbitration institution. The arbitrators listen to both sides
of the dispute, consider the evidence presented, and then make a binding decision, known as an
arbitration award, which resolves the conflict.(Sujal and patel, 2017)
 Arbitration is a method of dispute resolution that focuses on the parties' legal rights, with the
exception that the principle of privacy is upheld and outsiders are not allowed unless with the
approval of the parties and the arbitrator to be present during the hearing. (Sujal and patel, 2017).
Arbitration is an alternative to traditional court litigation and is often used to resolve commercial,
international, labor, and consumer disputes. It is preferred by some parties because it can be
faster, more cost-effective, and less formal than going through the court system. Moreover, it
allows the parties to have more control over the selection of the decision-makers and the
procedural rules.(Anumudu A. 2023)
The benefits of arbitration include privacy, confidentiality, cost effectiveness, quick resolution,
flexibility, finality, and, specifically with regard to construction contracts, the arbitrator's
authority to access, review, and amend the certificates of the architects, engineers, and architects'
and engineers' decisions. (Anumudu A. 2023).
TYPES OF ARBITRATION
 Binding Arbitration: The arbitrator's decision is final and legally enforceable, much like a
court judgment.
 Non-Binding Arbitration: The arbitrator's decision is advisory, and the parties can choose
to accept or reject it, opting for another dispute resolution method if unsatisfied.
 Ad Hoc Arbitration: Parties arrange the arbitration process themselves, without involving
any specific arbitration institution.
 Institutional Arbitration: The arbitration is conducted under the rules and procedures of a
recognized arbitration institution, such as the International Chamber of Commerce (ICC)
or the American Arbitration Association (AAA).
THE ARBITRATION PROCESS
File a Claim: Initiating arbitration occurs when a claimant submits a statement
detailing relevant facts and requested remedies. (Finra.org, 2023)
Answer a Claim: In response to an arbitration claim, a respondent submits an answer
outlining pertinent facts and potential defenses against the statement of claim.
(Finra.org, 2023)
Arbitrator Selection: The process of choosing arbitrators involves providing parties
with lists of possible arbitrators, from which they select a panel to preside over their
case.(Finra.org, 2023)
Prehearing Conferences: Before the hearing, arbitrators and parties hold telephonic
meetings to arrange hearing dates and address preliminary matters.(Finra.org, 2023)
Discovery: Discovery refers to the sharing of documents and information in
preparation for the hearing.(Finra.org, 2023)
 Hearings: Parties and arbitrators convene in person to conduct a hearing, during which
arguments and evidence supporting their respective positions are presented.(Finra.org,
2023)
Decision & Awards: Following the hearing's conclusion, arbitrators deliberate the
case's facts and issue a written decision known as an award.(Finra.org, 2023)
2.6.3 NEGOTIATION
According to Sujal and Patel (2017), this is a typical method of resolving disputes in which the
parties to the issue, or their representatives, make an effort to do so without the assistance of a
neutral third party. They added that everyone participating has secretly and confidentially agreed
to the process, which is voluntary and unstructured. Direct negotiation has the qualities that make
it effective, such as avoiding picking sides in a dispute and pursuing solutions that meet the
needs and interests of both parties. However, the effectiveness of the negotiating process
depends on the parties' capacity to communicate with one another during the entire process.
(Sujal and patel, 2017)
TYPES OF NEGOTIATION
Distributive Negotiation: Positional or hard-bargaining negotiation is another name for it. It
usually involves a single subject and frequently results in one party leaving with a larger portion
of the pie (typically financial) than the other. A divorce case where one party walks away with
the house, both cars, alimony, and the 401(k), and the other party walks away with their frequent
flier miles could serve as an illustration of this.(B. Jordan, 2022)
Integrative Negotiation: This is the more amenable of the two negotiation styles, frequently
referred to as win-win. Other names for this kind of negotiation are merit-based, interest-based,
and principled negotiation. This basically means that everyone leaves happy and with roughly
equal portions of the pie. Additionally, rather of focusing on a single problem, integrative
negotiation typically has several moving pieces. The negotiation of a contract after employing a
new employee could serve as an illustration of this. Maybe you bargain a different wage with
them so that you can give them more paid time off. (B. Jordan, 2022)
KEY PRINCIPLES IN NEGOTIATION
Interests over Positions: Focus on underlying needs and interests rather than rigid stances.
BATNA (Best Alternative to a Negotiated Agreement): Assessing the best course of action if no
agreement is reached. It is a combination of negotiation skill and negotiation strategy. That is,
being able to determine a negotiator's BATNA is a crucial skill for crafting optimal approaches
during the negotiation process. (GUHAN SUBRAMANIAN, 2023)
Reservation Price: The lowest or highest acceptable offer for each party in the negotiation.
ZOPA (Zone of Possible Agreement): The range within which an agreement can be reached,
given the parties' reservation prices. the zone of possible agreement or bargaining range is seen
as a region in which two or more parties engaged in negotiation might discover shared
understanding. It's within this region that parties frequently make concessions and reach an
agreement. (Clay halton, 2021)
2.6.4 MEDIATION

In this procedure, the opposing parties request that the mediator, a third party who is impartial,
try to mediate a settlement. Therefore, negotiation between the two parties to the conflict is
involved in mediation as a form of dispute resolution, with the mediator acting as the facilitator.
(Sujal & Patel, 2017). In contrast to arbitration or litigation, where the arbitrator or the judge
would explain the parties' legal rights in the form of an award or a judgment, a mediator does not
make decisions on behalf of the parties. As a result, before a mediator can decide whether the
parties and their problems are in the right or wrong, the parties must come to a compromise that
is at least partially acceptable to them. (Anumudu, 2023)
MEDIATION STYLES
Facilitative Mediation:This approach is extensively instructed and applied in the present day.
The mediator aids the parties by posing inquiries, concurrently acknowledging and standardizing
their differing perspectives. In facilitative mediation, the mediator refrains from providing
suggestions or personal counsel. The mediator's task is to guide the process, leaving the parties
entirely responsible for the final result. (Junaita Range 2023)
Evaluative Mediation: The mediator may provide opinions on the strengths and weaknesses of
each party's case to facilitate settlement discussions. Originating from court-ordered mediation,
this approach was derived and structured after the customary resolutions overseen by judges. It
emphasizes the legal entitlements of the involved parties rather than notions of "fairness". An
evaluative mediator generally holds individual sessions with each party and their respective
lawyer. Evaluative mediation typically involves a thorough assessment of specific points when
deciding whether to proceed with legal action, which is why a significant number of evaluative
mediators are legal professionals.( Junaita Range 2023)
Transformative Mediation: Shares similarities with facilitative mediation. Just like in
facilitative mediation, the parties retain authority over the result, and the mediator's role is to
facilitate reaching that resolution. Transformative mediation aims not solely at a decision, but at
establishing a framework through which both parties can potentially learn, evolve, or undergo a
shift in their thinking or behavior due to the mediation process.(Junaita Range, 2023)
MEDIATION PROCESS
Initiating Phase: The mediator begins by introducing all participants, outlining mediation goals
and rules, and encouraging collaborative efforts towards resolution. (Cara O'Neill, 2023)
Presentation Phase: Each party provides an account of the dispute, its impacts, both financial and
non-financial. The mediator might also discuss potential solutions. During this, one party speaks
without interruption.(Cara O'Neill, 2023)
Collective Discussion: The mediator prompts participants to directly address the opening
statements, aiding in further clarifying the issues if both parties are receptive.(Cara O'Neill,
2023)

Private Meetings: Separate sessions are held where each party meets privately with the mediator.
The mediator assesses each side's positions, discusses strengths and weaknesses, and facilitates
the exchange of offers. These confidential meetings form the core of the mediation process.(Cara
O'Neill, 2023)

Collaborative Bargaining: Following private sessions, the mediator may reunite the parties for
direct negotiation, although this is uncommon. Typically, parties are reconvened only when a
settlement is reached or the mediation time concludes.(Cara O'Neill, 2023)

Conclusion: If an agreement is reached, the mediator may summarize key provisions in writing
and request signatures from both parties. In case of no agreement, the mediator assists parties in
deciding whether future meetings or phone negotiations are worthwhile.(Cara O'Neill, 2023)

2.6.5 ADJUDICATION
According to Sujal and Patel (2017), arbitration clauses in construction contracts are strategically
drafted to be most effective when they come into play after the completion or purported
completion of the construction work. This approach is motivated by the adversarial nature of the
arbitral procedure, which could potentially interfere with the ongoing construction process.
While there may be some merit to this reasoning, it does not necessarily mean that certain issues
should wait until the end of the project before being addressed and resolved. (Sujal and patel,
2017)
One of the contentious issues in construction contracts is the retention of certificates and the
deposit of retention funds in a separate bank account. For the contractor, these issues can have a
significant negative impact on cash flow. Waiting until the end of the project to resolve these
matters through arbitration might not be the most practical or fair approach.
Instead, the authors suggest that adjudication can serve as a useful alternative dispute resolution
tool for settling construction-related conflicts. Adjudication is a process where an independent
third party, often an expert in the construction field, reviews the issues in dispute and provides a
swift and provisional decision. The aim is to facilitate quick resolution and maintain the
construction project's momentum.(ODACC, 2023)
ADJUDICATION PROCESS
Initiation: The process starts when the claimant submits a written notice of adjudication,
containing pertinent details about the dispute and the involved parties. (Dheeraj Vaidy, 2023)
Appointment of Adjudicator: Upon receiving the notice, the government designates an
adjudicator within one week. The adjudicator, who may be a judge or magistrate selected by the
Adjudicator Nominating Body (ANB), is chosen. (Wallstreet team,Dheera V. 2023)
Acknowledgment Notice: The adjudicator shows their agreement to oversee the case by
delivering an acknowledgment notice. (Wallstreet team,Dheera V. 2023)
Referral Notification: Promptly after the adjudicator's appointment, the claimant issues a referral
notice, within a seven-day timeframe from the initial notice. This document outlines the referring
party's claims and details, and a copy is sent to the opposing party. (Wallstreet team,Dheera V.
2023)
Response from Respondent: When the responding party receives the referral notice, they can
reply within seven days, conveying their response in writing to the adjudicator. The process can
extend up to 14 days if necessary. (Wallstreet team,Dheera V. 2023)
Decision by Adjudicator: The adjudicator evaluates the evidence and information presented by
both parties and delivers a decision. This step is completed within a maximum of 28 days from
the referral notice's service. Yet, if both parties agree, the adjudicator may extend proceedings by
another 14 days. The final decision is announced after this additional duration. (Wallstreet
team,Dheera V. 2023)
2.6.6 CONCILIATION
Sujal and Patel (2017) assert that the terms "conciliation" and "mediation" are interchangeable.
Conciliation comprises a type of shuttle diplomacy in which a neutral third party helps a
resolution by listening to both sides of the problem. Additionally, he does not meet alone with
any of them as is typical during mediation. Instead, he runs formal conciliation court hearings
where all dialogue takes place in front of the legal representatives and counsel for each party.
After considering all court procedures, the conciliator submits the recommended resolution in
writing

CONCILIATION STYLES
Labor Conciliation: Used to resolve labor disputes between employees and employers.
Consumer Conciliation: Assists in resolving disputes between consumers and businesses.
International Conciliation: Helps resolve cross-border disputes between countries or
multinational corporations.
.
CONCILIATION PROCESS
Introduction: The conciliator explains the conciliation process, establishes ground rules, and
ensures that all parties understand their roles.
Statement of Issues: Each party presents their perspective on the dispute and identifies their
interests and concerns.
Exploration of Solutions: The conciliator works with the parties to brainstorm potential solutions
and options for settlement.
Negotiation: The parties engage in direct negotiation, seeking to reach a mutually acceptable
agreement.
Proposed Settlement: The conciliator may propose a settlement based on the discussions and
negotiations.
Agreement: If the parties reach an agreement, the terms are documented in a written settlement
agreement.
2.6.7 LITIGATION
Litigation is a method of resolving disputes that focuses on the legal rights of the parties and may
require a face-to-face confrontation between them. (Anumudu A. 2023)
It is comparable to doing the laundry in front of others (Sujal and Patel, 2017). Given the
adversarial nature of the (common rule) litigation process, this is in large part inescapable if one
resorts to lawsuit.
PARTIES INVOLVED
Plaintiff: The party initiating the lawsuit and seeking a legal remedy.
Defendant: The party against whom the lawsuit is filed and who must respond to the claims.
CIVIL LITIGATION VS. CRIMINAL LITIGATION:
Civil Litigation: Involves disputes between individuals, businesses, or organizations seeking
monetary damages or specific performance of a contractual obligation.
Criminal Litigation: Involves cases brought by the government against an individual or entity
accused of violating criminal laws, potentially leading to imprisonment or fines.
LITIGATION PROCESS
a) Pleadings: The formal written statements filed by each party that outline their claims,
defenses, and the factual and legal basis of their case.
b) Discovery: The process of gathering evidence through methods like depositions,
interrogatories, requests for documents, and requests for admissions.
c) Pre-Trial Motions: Requests made to the court before the trial to resolve legal issues or
limit the scope of the case.
 d) Trial: The presentation of evidence, examination of witnesses, and legal arguments to the
judge or jury to determine liability and damages (if applicable).
e) Verdict or Judgment: The decision reached by the judge or jury based on the evidence
presented at trial.
f) Appeal: If one or both parties are dissatisfied with the trial outcome, they may seek a
review of the decision through the appellate court system.
ADVANTAGES OF LITIGATION:
Legal Process: Litigation ensures disputes are resolved according to established legal principles.
Binding Judgment: The court's judgment is legally binding and enforceable.
Adversarial Process: Litigation allows each party to present their case and evidence before an
impartial judge or jury.
DISADVANTAGES OF LITIGATION:
Time-Consuming: Litigation can be a lengthy process, taking months or even years to reach a
final resolution.
Costly: Legal fees, court expenses, and other associated costs can be substantial.
Publicity: Litigation is a public process, potentially exposing sensitive information.