Understanding dispute resolution in the Middle East region from perspectives of different stakeholders

Abstract

The construction industry in the Middle East (ME) is witnessing continuous growth that attracts international contractors and investors to its large-scale projects. However, this growth is accompanied by an inevitable increase in claims and disputes, which consequently leads to significant delays and additional costs to the project. Alternative dispute resolution (ADR) methods are often used to address these conflicts, but different issues and backgrounds of stakeholders in the ME affect which ADR is used if any. In light of this, the main aim of this study is to explore dispute causes and resolution practices in the ME as perceived by the different stakeholders involved. Based on extensive literature review, a comprehensive questionnaire survey was conducted involving 177 professionals from different sectors of the ME construction industry. The responses were analyzed from three distinct perspectives, namely contractors, owners, and claim advisors. Findings revealed that contractual causes are the most common disputes in the ME region, and traditional resolution methods are continually practiced despite the recognized need for new alternatives. This research provides professionals in Middle Eastern and foreign countries with invaluable insights into construction claims’ types and dispute resolution (DR) systems in the region. Moreover, it allows the various construction stakeholders to understand and take into consideration the perceptions of others when applying risk and dispute prevention techniques.