EVALUATION OF FACTORS CAUSING DISPUTE IN CONSTRUCTION CONTRACTS IN ONDO STATE, NIGERIA

Abstract

The aim of this research is to evaluate the factors influencing construction contract project disputes between clients and contractors in Ondo State, Nigeria. Twenty - eight (28) factors were identified through review of relevant literature and grouped into eight (8) categories. In line with these findings a structured questionnaire survey approach was used as a primary tool for data collection. One hundred(100) copies of questionnaire were randomly distributed which include; 30 to clients/owners, 30 to civil engineers, 30 to main and sub-contractors and 10 to other stakeholders such as Architects, Builders and Quantity Surveyors. 80 (80%) questionnaire were returned out of which 77 (77%) was used as follows; 27(35.1%) from owners, 26(33.7%) from engineers, 20(26%) from contractors and 4(5.2%) from others as respondents. The responses of the respondents 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 Ondo State, Nigeria. Also as a secondary data, records on construction contract dispute between client and contractor in Ondo state were obtained from the Ondo State Ministry of Works and Ondo State High Court of Justice, Akure. The records were analyzed and compared with the primary data. The outcome of the analysis of the respondents’ responses showed that, factors such as, “The Contractor purposely works below the specified standard” and “The Client delays progress payment after work done” ranked the most severe factors, with severity index (I) value of 82.6%. Furthermore, from the secondary data, the records obtained itemized Poor Performance by the contractor, Non-payment by the client, Lack of Resumption after mobilization, as leading factors influencing construction contract dispute in Ondo State. When the primary and secondary data were compared, the two most important factors influencing construction contract dispute between client and contractors in Ondo state, Nigeria are Poor Performance on construction project by the contractor and Non-payment by the client as and at when due. 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.