Disputes in Managing Projects: A Case Study of Construction Industry in Vietnam

The construction industry in developing countries like Vietnam;which incorporates small and medium construction enterprises;is typically more prone to disputes and contract dispute-related lawsuits. A dispute may occur at any time in the life cycle of the project. It is sometimes solved with the intermediation of a lawyer or directly by stakeholders. Understanding the causes of disputes in a construction project not only improves the efficiency of a company but also increases the success of projects. This study was carried out using a questionnaire survey at construction projects in Ho Chi Minh City. Sample data with 117 observations were analyzed to find the disputing factors in construction projects: diversity of working style among the parties; reluctance to work; and poor teamwork. Correlation coefficient on a rank of factors between design consultant and contractor; Design consultant and project owners are positively correlated. The Exploratory Factor Analysis (EFA) analysis identified six groups of factors in construction disputes: cooperation;technology;economics;productivity;information;and behavior. The findings are useful for enterprise practice and provide participants with an overview of sources of dispute. Thus;a more complete risk management plan can be formulated;which will accelerate project progress and improve the likelihood of success.