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CASE STUDIES ON DISPUTE RESOLUTION IN CONSTRUCTION PROJECTS FOR

FRAMING AN EXPERT SOLUTION

Article  in  International Journal of Recent Technology and Engineering · May 2019

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 International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8, Issue-1 May 2019

Case Studies on Dispute Resolutions in

Construction Projects for Framing an Expert
Solution
B. Hemanth Sai Kalyan, A. Arokia Prakash

 are the versions of both the parties involved, on what factors

Abstract: Disputes in construction industry are reoccurring the judgment given are influenced and how the solution is
and are inevitable. Disputes and conflicts take a lot of time to beneficial for the project, etc. can be identified[6].
solve and therefore the construction process is put on hold until The need for Alternate Dispute Resolution (ADR) is very
the problem is sorted out. Legal system is burdened with many much required. This is nothing but an alternative way to
cases resulting in the delay of judgment. Disputes between solve a problem. This should be in such a way that there
owners and contractors can be developed due to several reasons
should be a quick, efficient and reasonable solution is
such as the nature of the work, its complexity, magnitude and
found.[7]
many others. There have been instances where the industry
personnel were instructed to follow certain steps for There are other ways of solving a dispute apart from
minimization of disputes such as keeping a check of the contract litigation such as negotiation, mediation, arbitration etc. but
documents from time to time etc. Even after these things the under what criteria should a particular method be used is
disputes have not been able to see a solution. The objective of this ambiguous. Expert system arrives at a solution for this.
paper was to provide a solution to this problem in the form of an Expert system is nothing but a tool which can be utilized for
expert system which can reduce and quicken the dispute acquiring solutions with minimal human interference. The
settlement procedures. For this research case studies have been expert system leads the way through the problem, helping to
carried out on legal cases for which judgment has been categorize the nature of the problem and finally arrive at a
pronounced and thus obtaining an idea about the causes of the solution for it.[8]
dispute and the factors influencing the judgment process. The objective of this study is to find the causes of the disputes
Furthermore an expert system has been provided with
and the factors affecting the decision making. By these
alternative dispute resolution techniques other than litigation.
considerations, a prototype of an expert system is framed
Keywords: Causes, Contract, Dispute resolution, Expert which gives us the best possible way to come out of a dispute
system, Judgment, Performance.
II. METHODOLOGY
I. INTRODUCTION
A. Data collection
The diversity in the construction industry is of opinions,
For this project case studies on the litigated cases are done.
knowledge, different work process, different talents etc. This
This gives an idea of the proceedings in the dispute
is an indication that not everyone in the industry are on the
resolution through legal point of view. Legal perspective is
same page and this results in differences or conflicts[1]. Also
taken for the reason that it takes into consideration both
the disputes are not solved easily and are dragged
versions of both the parties involved in the dispute.
unnecessarily which not only makes it a time taking process
Frequent visits to The High Court of Judicature at Hyderabad
but also by the end of it the credibility of the solution is
lost[2]. The arrivals of disputes, though known to everyone in for the States of Andhra Pradesh and Telangana have been
the industry, knowledge of the causes of disputes is very made to get the documents of the resolved cases. The full case
limited and there are no proper measures to counter them[3]. hearing is needed to have a clear understanding of the
The need for a detailed and systematic classification of process involved in the judgment and the factors which
causes of disputes is very much required[4]. influence the judgment. Also the versions of both parties can
In Indian scenario the most common way to resolve a dispute be studied which will help us understand the problems faced
is to go to the court of law. This is not entirely a wrong step by them in depth.
but given the condition of the Indian Judicial System is
strangled in thousands of cases over the years[5]. The table gives a brief idea of the case studies done.
Case studies on the legal disputes creates a wider perspective
of what are the causes for the ignition of the disputes, what

Revised Manuscript Received on May 21, 2019.

B. Hemanth Sai Kalyan, Department of Civil Engineering, SRM Institute
of Science & Technology, Kattankulathur, Kancheepuram District, Tamil
Nadu, India.
A Arokia Prakash, Assistant Professor, Department of Civil Engineering,
SRM Institute of Science & Technology, Kattankulathur, Kancheepuram
District, Tamil Nadu, India.

Published By:
Blue Eyes Intelligence Engineering
Retrieval Number A3688058119/19©BEIESP 476 & Sciences Publication
 Case Studies on Dispute Resolutions in Construction Projects for Framing an Expert Solution

Time
Causes
S.No Case Details Judgment Taken
Categorized
to Solve
Exemption from
Performance, No evidence to prove against insurance claim. So, 12
1 compensating insured
Insurance amount has to be compensated. years
amount.
The said contract norms are required to be satisfied
Challenging the 6
2 Contractual for awarding of contract which is not done. So no fault
contract norms months
in the contract.
Performance, The arbitrator was found to accuse the contractor for
Challenging the award Payment, other’s mistake. The bills were not cleared also 3
3
of the arbitrator. Arbitrational, evidence for faulty construction is there. Hence years
Contractual arbitral award is wrong.
Denial of payment Performance,
The reasons stated are sham and no evidence to 5
4 stating poor quality of Arbitrational,
produce. Payment has to be done within one month. years
material. Payment
When arbitration had to be done it hasn’t, resulting
Challenging lower Performance,
in delay and losses. The quality of materials is also 2
5 court’s decision for the Arbitrational,
poor. Therefore work should be continued with quality years
benefit of the project. Contractual
material
There was involvement of middle men in the
Compensation for the Compensation, compensation process resulting in deficient payment. 15
6
land taken is very less Land Acquisition The order is to fulfill the payments and only then years
carryon with the construction in the acquired land
Poor quality Evidence shows involvement of corruption in this
Performance,
construction either to be case. The option is given to the sufferer weather to 10
7 compensation,
compensated or pay back make repairs or get back the full amount which in both years
Payment
the full amount. cases the contractor has to pay.
Performance, No need for arbitration because there is no breach in
Petition about need for
8 Arbitrational, the contract documents in the first place. The quality is 1 year
arbitration.
Contractual also up to the mark.
Performance, Arbitration has taken place. The findings are not
Challenging poor 2
9 Arbitrational, there to justify poor performance. Hence the payments
performance claim years
Payment have to be rightfully done.
The contract documents are not clear which allows
Challenging the Performance,
the contractor to not plead guilty. The quality of work 10
10 payments done citing poor Payment,
performed is not up to the mark but the contractor years
performance. Contractual
cannot be blamed for this
Contending the Various parameters are required to be satisfied for
4
11 unreasonable restrictions Contractual awarding a contract which are of utmost importance.
months
for awarding a contract. Hence no fault.
Though the quality of construction is poor in this
case, the court feels that it is the mistake of the
Petition about poor
Performance, petitioner to identify the said poor quality during the
construction quality and 3
12 compensation, initial stages of the construction itself and also the
the compensation to be years
Payment contract period has been passed which means that the
paid for the same.
defendant is in no way responsible for the payment of
compensation.
There is no evidence placed before the Court to
Petition about poor
Performance, show that the overhead tank had been built with low 11
13 construction quality and
compensation quality materials. As such, the writ petition is liable to months
reconstruction
be dismissed. Hence, it is dismissed.

Published By:
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Retrieval Number A3688058119/19©BEIESP 477 & Sciences Publication
 International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8, Issue-1 May 2019

Petition about The allegations made by the petitioner had not been
Performance,
objections on the award substantiated with sufficient records. Further, there is
Payment, 8
14 given by the arbitrator. no evidence placed before this Court to show that the
Arbitrational, years
arbitrator was at fault. Hence, it is dismissed.
Contractual
Respondent and the arbitrator produced enough
Performance, evidence which make sure that the respondent receives
Petition against arbitral
Payment, the money as put by the arbitrator and the petitioner is 6
15 award to be paid to the
Arbitrational, liable to pay even the interest on the money which years
contractor.
Contractual pertains to escalation of costs.

The work to be carried out is of public importance

Claim against rejection Performance, 5
16 and thus it cannot be awarded to someone with less
of contract. Contractual months
expertise. Hence appeal is dismissed.
As long as the construction is being done with valid
Petition against local permit and in the absence of statutory prohibitory
Contractual,
17 authorities for obstructing orders, police should give assistance and protection. 1 year
Illegal
the construction. The local authorities can proceed with appropriate
orders of the prevention of it.
There is no merit in this petition as the petitioner
Land acquired for by
Compensation, has a private interest as his land is subject matter of
pass road is being used for 4
18 Land Acquisition, acquisition for the construction of by pass. Whereas
construction of fly over. months
Contractual that proposal has been shelved permanently and there
This has to be stopped.
is enough evidence to prove that.
As per the agreement between the parties the
Feud over construction Performance, construction was to be done on the first floor only.
6
19 of first floor which is Payment, Thus the complaint of the respondent that some
years
against the contract Contractual additional works have to be executed above the agreed
terms. Hence the appeal is dismissed.
There has not been any action taken even after the
Demolition of notices were given against the illegal construction. By
Compensation,
20 unauthorized construction lapse of time, the construction stood impliedly 1 year
Contractual, Illegal
and compensation for it. compounded and legalized. Hence the demolition of
the construction is fair.
There is enough evidence that the construction was
Petition challenging the
started 40 years ago and by that time no violation of
21 legality of the Illegal 1 year
building rules was done. So, illegal construction is a
construction.
false acquisition.
Construction workers being used as drivers which
Usage of workers
Contractual, are against Construction workers welfare fund act and 5
22 illegally and depriving
Illegal, Payment thus they have to be utilized for their respected work years
payment to them.
only.
Construction was Land Initially the land taken for the proposed
4
23 shifted to other place with Acquisition, construction falls under forest land. Hence the place
months
no proper reasoning. Contractual has been shifted. No fault is found.
Since the initial amount has been paid for the said
Refund of amount due
plot, the contractual changes which happened later 11
24 to changes in the plot Contractual
amount has to be refunded irrespective of the previous years
allotment
confirmations.
Construction in the
Land The said construction is only a temporary one which
land given on rental basis 15
25 Acquisition, does not damage the land. There is no evidence to
which affects the fertility years
Contractual, Illegal prove it either. Hence dismissed.
of the land.

Published By:
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Retrieval Number A3688058119/19©BEIESP 478 & Sciences Publication
 Case Studies on Dispute Resolutions in Construction Projects for Framing an Expert Solution

Delay caused increase in prices which cannot be

Payment issues because afforded by the buyer. Hence the construction to be
26 Payment 1 year
of delay incurred. handed over to the buyer as per initial fixed price or
compensated accordingly with interest.
Flats delivered with Reasons given by contractor for justifying the delay
Performance, 3
27 long delays and flaws. are not convincing. The buyers must be compensated
Payment years
Compensation demanded. for the delay at the rate of 12% p.a.
Flats delivered with Reasons given by contractor for justifying the delay
Performance, 4
28 long delays. are not convincing. The buyers must be compensated
Payment years
Compensation demanded for the delay at the rate of 15% p.a.
The government authority responsible for the
Construction of Performance,
construction of houses has no justifications regarding 2
29 substandard houses, with Payment,
delay. Therefore the compensation for the same has to years
delays. Compensation
be paid.
Inordinate delays in
Delays without reason. Housing delivery of
construction of houses. Performance, 2
30 possession made conditional on payment of additional
The quality of Payment years
prices. Unfair trade practice of increase is unjustified.
construction is poor.
Petition about poor Material found short during technical examination
Performance,
construction quality and of work. Balance work done is not up to the mark. 10
31 Payment,
the compensation to be Hence the compensation for the construction has to be years
Compensation
paid for the same. paid.
Bleach of contract with The performance has not been corrected even after
Performance,
respect to poor quality of repeated complaints. Arbitrational award is not 27
32 Arbitrational,
work. Arbitral award mentioned in contract. Therefore judgment is revised years
Contractual
questionable. and presented in favor of buyers.
Bleach of contract with The quality of work done is not according to the
Performance,
respect to poor quality of contractual norms. Arbitration done is not satisfactory 8
33 Arbitrational,
work. Arbitral award and also breaking the contract. Hence work has to be months
Contractual
questionable. redone.
Surrender of poor The poor quality of construction is noticed and
quality house. Performance, responsibility for which is taken by the authority. But
4
34 Compensation for usage Payment, for the time period of staying in the house payment in
years
of such house for a period Compensation the form of rents has to be paid. Hence the petition is
of three years. partly allowed.
The construction of the
There is no evidence regarding poor quality
houses in the society is of
construction. Also tests carried out in the later part by 3
35 very low quality and thus Performance
agency appointed by the court also stated the same. years
compensation being
Therefore it is a false allegation
demanded.

Compensation 10
From the case studies a clear understanding of what are the Arbitration 9
main causes which are the responsible for the arrival of a
dispute are the case studies a clear understanding of what are Illegal 5
the main causes which are the responsible for the arrival of a Land Acquisition 4
dispute are of disputes from the cases studies, shown below in Insurance 1
the table are the rankings of most frequent causes.
From the 35 case studies done, 23 of them are performance
Table 2: Ranking of Causes
related issues which include poor quality of work, poor
material quality, etc. Followed by contractual related and
Occurrence
Causes payment issues, occurred for 19 times and 16times
(No/of times)
respectively. Some of the cases are inter related which each
Performance 23 other which is a combination
Contractual 19 of two or more causes.
Payment 16

Published By:
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Retrieval Number A3688058119/19©BEIESP 479 & Sciences Publication
 International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8, Issue-1 May 2019

It can be understood that it is in most often times an influencing the disputes resolutions as observed from the
amalgamation of different causes which are both legal case studies are also considered while framing of the
inter-related and intra-related amongst each other and thus is expert system.
suggests that no particular cause is individually responsible This is advantages because it gives an alternative solution to
for a dispute. the issue depending on its nature and the factors considered
are also inclusive of whose side the mistake is. These will not
B. Statistical Analysis of Data Using SPSS Software. only let helps in identifying the mistakes happening in the
first place but also gives a better understanding of the case as
Statistical Package for Social-Sciences-SPSS22.0 is used it proceeds, so that the decision to be taken will have a correct
in this study. Table 3 shows the means (frequency) and of and precise solution.
each cause. C. Prototype of The Expert System
Table 3: Means of causes The proposed prototype shows the categorization of disputes
and the possible solution. However it only projects the best
Causes Mean possible way to solve a particular dispute but it doesn’t
Performance 0.6571 actually solve the dispute by itself.
Compensation 0.2857 Figures 2, 3 and 4 show the expert system for the
Arbitration 0.2571 performance cause. The characteristics of a particular
Land Acquisition 0.1143 problem are identified through the flow chart which narrows
Insurance 0.0286 down to the solution.
Figure 5 depicts the expert system for the rest of the causes
Payment 0.4571
and their possible solutions of alternative dispute resolution
Contractual 0.5429
techniques.
Illegal 0.2286

III. RESULTS & DISCUSSIONS

A. Preliminary Observations

From the case studies and the software analysis, the

observation is that among all the causes, performance
stands first with the highest mean value of 0.6571.
Figure 1 is the pie chart representation of the causes.

Fig 1: Causes of Disputes

B. Expert System
From the obtained results and the observations from the
judicial point of view, the expert system has been framed
with respect to its convenience, ease of understanding and
Fig 2: Categorization of performance (Work)
the problem solving capacity. This system has importance to
its name in the form of an expert system because of its ability
to solve the disputes with minimal human interference.
The process of framing of expert system involved the inputs
of legal advisors from esteemed construction firms along
with the opinions of the people in industry with vast
experience. The problem solving capacity of each of the
advised solution is also taken into account. Factors

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 Case Studies on Dispute Resolutions in Construction Projects for Framing an Expert Solution

Fig 3: Categorization of Performance (Material, Design)

Fig 4: Categorization of Performance (Delay)

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 International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8, Issue-1 May 2019

Fig 5: Expert System for other causes (I)

Fig 6: Expert System for other causes (II)

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 Case Studies on Dispute Resolutions in Construction Projects for Framing an Expert Solution

Resolut. Eng. Constr., vol. 1, no. 1, p. 18, 2009.

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can always be used. AUTHORS PROFILE

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