Disputes on Construction Projects: The Role Of Procurement Methods and Payment Strategies

Abstract

This study examines the interplay between procurement methods, payment strategies and the occurrence of disputes in construction projects within South Africa. The construction sector plays a critical role in economic development; understanding these relationships is essential for improving project outcomes. The study employed a quantitative approach, utilising questionnaire surveys to gather data from 56 construction professionals. It was found that traditional procurement methods and unit price payment strategies are associated with a higher frequency of disputes, particularlynin projects related to education, water and sanitation, and power and energy sectors. The study found that 60% of respondents experienced cost overruns due to disputes, while 70% reported time overruns. Key themes identified include the impact of external factors, scope creep, and the importance of positive stakeholder relationships. Based on these findings, the study concludes that payment strategies and procurement methods indirectly impact disputes, and the more flexible the procurement method, the fewer the project disputes. Therefore, the study recommends that stakeholders adopt collaborative procurement methods, implement transparent payment strategies, and enhance ommunication among project participants to mitigate conflict and bring about positive project performance. Further research is recommended using a larger sample size to validate the findings.