A study of the causes and resolution of disputes in the Nigerian construction industry

Abstract

The construction industry worldwide is dispute-prone due to the complex and
fragmented nature of the industry and the adversarial relationships that traditionally
exist between project participants. The aim of the study was to highlight the state of
dispute management in the Nigerian construction industry. A questionnaire survey of
industry participants provided data on the incidence and management of disputes.
Analysis of the data using percentage score and severity index methods with the
Statistical Package for Social Sciences (SPSS) showed that disputes occurred very often
due mainly to clients’ payment delays and contractors’ contractual claims. Adjudication
is the most commonly used method of dispute resolution and mini-trial the least. The
results also showed that arbitration and litigation are still popular while adjudication and
negotiation are the only ADR methods in common use. Widespread use of the other
ADR methods is hindered mostly by a general lack of awareness of their existence and
unfamiliarity with their workings among stakeholders in the industry.