EVALUATION OF FACTORS CAUSING DISPUTE IN CONSTRUCTION CONTRACTS IN ABUJA, NIGERIA

Abstract

The aim of this research is to evaluate the factors influencing construction contract project disputes between construction industry participants in Abuja, Nigeria. A structured questionnaire survey approach was used as a primary tool for data collection. Twenty - eight (28) factors were identified and grouped into eight (8) categories. One hundred (100) copies of questionnaires were randomly distributed and 87 questionnaires were returned out of which 83 were analyzed using the Relative Important Index (RII) to identify the most important factors and Severity Index (I) to determine the severity of factors influencing construction contract dispute in Abuja, Nigeria. Also as a secondary data, some records on construction contract dispute between clients (both public and private) and contractors in FCT were obtained from the Federal Ministry of Works and Federal High Court of Justice, Abuja. The records were analyzed and compared with the primary data. The outcome of the analysis show that respondents response on factors such as “The scope of work in the contract document is unclear”, “The details in the drawings are inconsistent with reality on site”, “The specifications in the contract document is unclear”, “The client delays progress payment after work done”, “Some items are missing from the contract bills”, “Some Items in the contract bills are under measured” and “The Contractor purposely works below the specified standard” with severity index (I) values of 91.1, 88.2%, 85.3%, 81.7%, 81.2%, 81.1% and 80.0% respectively were rated the most severe factors that influence construction contract dispute in Abuja, Nigeria. The secondary data obtained show the records itemized “Poor Performance by the contractor” and “Non-payment by the client” as leading factors influencing construction contract dispute in Abuja. Finally based on these findings, the study recommended efficient quality control for the contractor and prompt release of funds by the client, so as to reduce construction contract dispute between contracting parties in the construction industry in Nigeria