ANALYSIS OF THE CONTRACTUAL CAUSES OF CONFLICTS IN EGYPTION CONSTRUCTION PROJECTS.

Document Type : Original Article

Authors

1 Projects Manager, Projects and Construction Sector - National Bank of Egypt, Cairo, Egypt,

2 Department of Civil Engineering, Faculty of Engineering, Shoubra, Benha

3 Department of Civil Engineering, Faculty of Engineering, Al-Azhar University, Cairo, Egypt

Abstract

Conflicts in construction contracts are frequent in Egypt and worldwide. These Conflicts can have severe negative impacts, such as delays, cost overruns, low quality, and disputes. Therefore, this research aims to identify and analyze the contractual causes of conflicts (CCC) and their effect on Egyptian construction projects to avoid/reduce the contractual disputes. A list of the CCC was determined from literature review, then revised and purged with construction experts through interviews. The resulting list includes four contractual main causes of conflict (CMCC) and thirty contractual sub-causes of conflicts (CSCC) in Egypt. Subsequently, a structured questionnaire survey was prepared and distributed among Egyptian construction stakeholders. The Global Weights (GW) of these causes were calculated and the top ten CSCC that have the highest values of GW were determined. Statistical analysis was carried out using a chi-square test. The test results indicated that there was an association only between the project role and unclear and improper risk allocation. Two real-life cases study was thoroughly analyzed and compared to the most important CMCC and the CSCC to verify the developed questionnaire results. Finally, recommendations to effectively reduce CCC in Egyptian construction projects were presented to be implemented by project stakeholders. In addition, to alleviate contractual conflicts, we propose that Tier 1 Contractors should have certified contract administrators for all projects. Such certification should be given by the Egyptian Syndicate of Engineers for qualified engineers based on their education and level of experience. This legal body should also formulate a streamlined and fast dispute resolution process. Further, regular audits should be conducted to ensure that design offices are conducting their duties as designated. Civil law Organizations should review the construction contracts tacking into their consideration the previous disputes that discussed in Cairo Regional Centre for International Commercial Arbitration in Egypt.
 
 
Special Issue of AEIC 2024 (Civil Engineering  Session)

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