CPM Case Study

TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
938 Aurora Boulevard, Cubao, Quezon City
COLLEGE OF ENGINEERING AND ARCHITECTURE

Civil Engineering Department
CE 505
Construction Methods Project Management
ROOT CAUSES OF THE CONSTRUCTION DISPUTES - A CASE STUDY
PREPARED BY:
DE GUZMAN, AVE C.
INES, NIKKA VICTORIA S.
RIMASUG, LEA PIELZEN B.
TUAZON, CHRISTINE S.
CE51FB1
SUBMITTED TO:
ENGR. DEBBIE LYN CABACUNGAN
March 12, 2019

Root Causes of the Construction Disputes - A Case Study
ABSTRACT
In this current era, construction industry has a huge impact in the economic growth of the
Philippines. The resulting product of these industry are significant for achieving the economic development
goals providing shelters, infrastructure and employment, which basically affects nearly the every aspect of
the economy. But in line with this growth the occurrence in different construction projects are complicated
which conflicts are arising resulting to construction disputes. This case study undertakes the root causes of
various construction disputes based on related studies or researches in connection with the risk allocation
and behavioral issue considered as the critical factors in emerging the occurrence of disputes.
INTRODUCTION
1.1 Conflicts and Disputes
Projects and activities in the construction industry is extremely diverse compare to other types of
industries because on the field manufacturing, products are being standardized and tested but in the
construction site the processes and method are all tentative because of alike trial and error process. With
the huge scope of works under the construction industry there’s a need for other specialists or it is
recommended to involve more people to be able to execute a certain task or goal. Multiple skills from
different sector are needed to obtain the required result. In line with this the conflicts and disputes will arise
coming from different team with diverse idea and environment.
According to a report published by Castrodes, conflict in a workplace can affect the efficiency and
establish a negative atmosphere that will result to a weak system within the organization. In addition these
disputes may result into delays and unexpectedly sometimes termination of the project.
CAUSES OF DISPUTES AND CONFLICTS
There are 5 (five) major sources or causes of disputes and conflicts as stated by Jardeleza et. al
which includes: owner-related, consultant related, third party and human behavior related and design and
contract related.
2.1 Owner Related
In a construction project, there are always been an emerging conflict between the client and the
general contractor. There are instances that the client’s standard doesn’t meet the resulting project or
product that has been executed. With the surge of complexity in a construction project it is very crucial to
escape even small errors that lead to claims by the owner which dominantly be the cause of the conflict. As
per Morales et al, several researchers conclude that delay of payment is one of foremost causes for the
conflicts and dispute. On the Construction Industry Authority of the Philippines (CIAP) Section VI: Labor,
Works and Payments Article 22: Payments, dictates the rules and provisions that will be applied if the
owner or any of the party doesn’t follow the concerted or jointly arranged deal regarding the payment.
2.2 Contractor Related
The contractors play a significant role in the accomplishment or the miscarriage of any construction
project. Moreover, the imprecise decision of the contractor may affect the carry-out of the project. When the
contractor’s negligence occur, the disputes and conflicts will probably arise. According to the CIAP Section
IX: Responsibilities and Liabilities of Contractor and of Owner in Article 33: Liens, Disputes and Arbitration,
when either of the party disagrees with the resolution of the adjudicator this must be submitted to the
arbitration.
2.3 Consultant Related
There are instances that the designer changed periodically the design and the revised design
might not be delivered or disseminate on time, thus the there are times that the design has been
implemented already. As a result the complication will arise. The conflict in design, drawing, specification
etc. falls under the category of consultant related dispute.
2.4 Third Party and Human Behavior Related
Human behavior is one of the significant causes of conflict issues in construction project because
different parties among professional are involved. As stated by Santos, adversarial attitude and dissimilar
perceptions by the team members are the main sources of construction conflict nowadays. In fact,
individual with different background, orientation and values are to work on complex issues on the project
would causes of conflict among professional. The difference in perception make the differences in level of
technical understanding or the management approach could be adopted by the others. It makes the
professional team fail to understand their responsibilities under the design team contract.
2.5 Design and Contract Related
Disputes often arise because construction project participants are not as willing to compromise.
They also have the difficulty of being able to communicate only with the general contractor, notwithstanding
that the dispute may arise with the owner. Disputes over the contract scope of work, represented by the
plans and specifications (as modified or amended), are some of the most significant areas of dispute on a
construction project. Typically occurring between the owner and the general contractor/subcontractor,
contractors and design professionals often interpret the documents differently, particularly if the description
of the work in the plans/specifications is unclear or ambiguous — or when the plans are contradictory to the
specifications. Typically, there is an implied warranty on the part of the owner that the plans/specifications
are correct, adequate, accurate, and buildable. Of course, there are always exculpatory clauses in the
contract by which the owner attempts to shift that responsibility to the contractor. The battle is often
between the implied warranty and the enforcement of the exculpatory clause.
RESOLVING THE DISPUTES AND CONFLICTS
In resolving the dispute, it is very

effective if it will be settle as early as possible
to prevent further wide and broad conflicts. As
published by Milan on his study, holding
meetings regularly with other parties might
help to lessen and minimize the conflicts and
dispute. Also a detailed project plan is a big
step for a good organization with effective
management plans.
The figure shows the conceptual

flowchart of dispute evolution and resolution
by Malak et al. The literature clearly reflects
the interrelationship between different factors.
A study of disputes has led to the study of
risks, conflicts, claims, procurement methods,
and dispute resolution methods. The figure shows a conceptual flowchart that describes the trajectory of
disputes from inception to resolution.
RECOMMENDATION
Upon analyzing and synthesizing the idea of disputes and conflicts based on the related case
studies and reviews, it is difficult to resolve the disputes that occur in a construction project but it can be
minimize by applying the behavior of being professional during the conduction of the project. Also
establishing a dispute resolution board will considered as a big help when dispute arises. The process of
resolving the conflicts and disputes can be classify as mediation, arbitration, or judicial appraisal. Proper
construction management is the sole factor to prevent and minimize the conflict and disputes.
CONCLUSION
Construction industry is booming all around the country. Different construction sites are dealing
with labor and planning, houses, condominiums and other structures. Designing and conducting a
construction project is tough. Preventing or resolving construction disputes is even more challenging.
There’s a strong need for an exhaustively elaborated plan in order for your project to be successful. A plan
that will be a valuable tool in your effort to predict and manage risk and conflicts around a project.
Sometimes, disputes are inevitable. However, they can be avoided or solved once they’ve been brought to
light. In each case, consulting an experienced attorney can prevent spending time and money down the
road.

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TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

938 Aurora Boulevard, Cubao, Quezon City

COLLEGE OF ENGINEERING AND ARCHITECTURE

ROOT CAUSES OF THE CONSTRUCTION DISPUTES - A CASE STUDY

March 12, 2019

1.1 Conflicts and Disputes

CAUSES OF DISPUTES AND CONFLICTS

2.2 Contractor Related

2.3 Consultant Related

2.4 Third Party and Human Behavior Related

RESOLVING THE DISPUTES AND CONFLICTS

In resolving the dispute, it is very

The figure shows the conceptual

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