Munich Personal RePEc Archive

Disputes in Managing Projects: A Case Study of Construction Industry in Vietnam

Dang Vo, Khoa and Thanh Nguyen, Phong and Le Hoang Thuy To Nguyen, Quyen (2020): Disputes in Managing Projects: A Case Study of Construction Industry in Vietnam. Published in: Journal of Asian Finance, Economics and Business , Vol. 07, No. 08 (12 July 2020): pp. 635-644.

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Abstract

The construction industry in developing countries like Vietnam, which incorporates small and medium construction enterprises, is typically more prone to disputes and contract dispute-related lawsuits. A dispute may occur at any time in the life cycle of the project. It is sometimes solved with the intermediation of a lawyer or directly by stakeholders. Understanding the causes of disputes in a construction project not only improves the efficiency of a company but also increases the success of projects. This study was carried out using a questionnaire survey at construction projects in Ho Chi Minh City. Sample data with 117 observations were analyzed to find the disputing factors in construction projects: diversity of working style among the parties; reluctance to work; and poor teamwork. Correlation coefficient on a rank of factors between design consultant and contractor; Design consultant and project owners are positively correlated. The Exploratory Factor Analysis (EFA) analysis identified six groups of factors in construction disputes: cooperation, technology, economics, productivity, information, and behavior. The findings are useful for enterprise practice and provide participants with an overview of sources of dispute. Thus, a more complete risk management plan can be formulated, which will accelerate project progress and improve the likelihood of success.

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