ISEC 08


REVIEW OF CONSTRUCTION DISPUTE RESOLUTION PRACTICES IN THE MIDDLE EAST: CAUSES AND METHODS

BOUSHRA BARAKAT, RITA AWWAD, CAROL MENASSA


Abstract

The construction industry in the Middle East region is witnessing a continuous growth and is attracting international contractors and investors to its large-scale projects. However, this growth is accompanied by an inevitable increase in claims and disputes consequently leading to significant delays and additional costs. The purpose of this research is to identify the most common causes of disputes in the Middle East (ME) region, and shed the light on the most frequently used dispute resolution methods. It then goes further to briefly discuss the applicability of alternative dispute resolution methods in this region and compare the findings to the perspective of experts in the field. Findings show that disputes are mainly due to the lack of construction management expertise, as well as other contractual, cultural and legal factors. As for the most commonly used dispute resolution methods, they are identified to be negotiation, litigation and arbitration. This paper provides contractors, owners and professionals in the ME region and foreign countries with invaluable insights into construction claims’ types and dispute resolution systems in the ME region.

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