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

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