Uncovering the Root Causes of Disputes in Private-Sector Construction Projects in a Developing Country

Construction disputes are widespread and can lead to significant delays, financial losses, and damaged relationships, affecting private-sector projects. Understanding the fundamental causes of these disputes is important for effective management and mitigation. This study evaluated the causes of construction disputes in private-sector projects in Malaysia. Through an extensive literature review and a field survey involving 145 construction professionals, 25 prevalent causes were identified and prioritized based on their importance scores, which considered both their frequency of occurrence and severity. The top five critical causes identified were lack of communication, payment delays, arbitrary changes by the owner in design, changes in scope, and shortages in materials and labor supply. Additionally, seven underlying factors responsible for these causes were identified through exploratory factor analysis and validated through comparison with findings from selected countries. This study deepens the understanding of construction disputes in developing contexts and concludes with strategic recommendations to enhance project performance and promote a more collaborative, resilient construction industry.