Investigation of FIDIC Clauses and Causes of Disputes in Construction Projects Performance in West Bank
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Date
2018
Authors
Ayat, Sawaftah
Sleman, Leen
Abbadi, Yazan
Ahmad, Zaid
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Abstract
International Federation of Consultant Engineers (FIDIC) organization arose to establish regulations and roles in form of model contracts. The primary objective of the research was to investigate the suitability of FIDIC standard forms in the Palestinian construction industry in terms of minimizing contractual disputes.
A questionnaire was written to investigate the implementation of FIDIC in construction projects in the West Bank. The questionnaire consists of three parts: (1) Respondent general information; (2) FIDIC clauses that are usually utilized in construction projects and have impact on project performance; and finally the causes of conflicts and disputes among parties (owners, designers, and contractors). The questionnaire has been distributed to owners, contractors, and consultants. After that, it has been analyzed using SPSS software.
The objectives of this study have been achieved through studying thirty four questionnaires have been distributed with 81.25% response rate. Among the responses, there have been thirteen contractors, two owners, seven consultants, and four working in municipalities. The results prove that the most FIDIC clauses that have the utmost dealing with construction project performance related to (1) general obligations; (2) certificates and payment; and (3) suspension of work. The results also reveal that the utmost causes of disputes that happen frequently were related to (1) the tender documents and drawings; (2) donor countries guidance; and (3) material specifications and career ethics.
The results of this study recommended contract parties to apply the FIDIC clauses precisely especially the clauses related to finance, time, and the relation between these clauses because delay will affect finance and vice versa. To enhance the chances of a claimed success, contractors submitting claims must closely follow the steps stipulated in the contract conditions, provide a breakdown of alleged additional costs and time, and present sufficient documentation. The results also shows that the haste of preparing contract documents, the conflict between contract documents, errors in quantity surveying and variation of orders might lead to great disputes in the upcoming project. Therefore, it is recommended in case of delay, the party who is responsible for a delay must be determined before agreement on any contribution of the delay