Examination of Major Causes of Disputes and Dispute Resolution Methods Used in the Indian Construction Industry

This study examines major causes of disputes in the Indian construction industry, such as finance and payment issues, poor work quality, and extra items, as well as common dispute resolution methods like arbitration, negotiation, mediation and litigation. Among this arbitration is widely preferred for its efficiency and confidentiality. The study uses questionnaires to identify and rank these factors, noting that conflicts are inevitable and can cause delays, financial losses, and damage to reputation if not managed effectively. It suggests that while arbitration is a preferred method, new mechanisms are needed for the Indian context. The Indian construction Industry, characterized by its complexity and involvement of multiple stakeholders, is highly susceptible to disputes. These conflicts often arise from factors such as delayed payments, design changes, poor communication, contractual ambiguities and project delays. Such disputes not only affect project cost and time but also hinder overall industry productivity and stakeholders’ relationships. understanding the root causes of disputes and adopting effective resolution methods can help enhance project performance, promote fairness, and ensure smoother execution of construction projects in India.