Pre-Contract Measures to Avoid Potential Disputes in the New Zealand Construction Industry.

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Title: Pre-Contract Measures to Avoid Potential Disputes in the New Zealand Construction Industry.
Authors: Silva, Pramod Malaka1 pramodmalaka94@gmail.com, Domingo, Niluka1 n.d.domingo@massey.ac.nz, Naseem Ameer Ali, Noushad Ali1 n.a.n.ameerali@massey.ac.nz
Source: Construction Economics & Building. Jul2025, Vol. 25 Issue 2, p235-252. 18p.
Subjects: Construction industry, Subcontracting, Risk management in business, Conflict management, Business communication
Geographic Terms: New Zealand
Abstract: The New Zealand (NZ) construction industry suffers from negative implications of disputes in construction projects, similar to other countries. Hence, the importance of avoiding disputes has become a vital topic to discuss and research. Avoiding disputes in construction projects has always been challenging, with limited research on this topic. Notably, no studies have explored potential pre-contract measures to prevent disputes in the New Zealand construction industry. To address this research gap, this study was designed, and it is limited only to construction projects in NZ that followed the traditional procurement path. Fourteen professionals in the NZ construction industry with significant experience and knowledge in construction disputes were interviewed, and the gathered data were analyzed qualitatively. A total of 84 pre-contract measures to avoid potential construction-related disputes were identified under five themes (themes of causes of disputes). The most responsible party/parties and most applicable pre-contract stage/s for each dispute avoidance step are also presented. The clarity of communication, risk management, proper documentation and standardization, review and continuous improvements, and collaboration are the main underlying characteristics of the identified avoidance measures. Among the identified dispute avoidance measures, respondents emphasized clear scope documentation and expectation management meetings as the most significant. The proposed measures could help principals, tenderers, and consultants in New Zealand to minimize potential disputes. Additionally, this study opens avenues for further research into dispute avoidance strategies for other procurement methods (other than the traditional procurement path) and practical approaches to clearly document the construction scope. [ABSTRACT FROM AUTHOR]
Copyright of Construction Economics & Building is the property of University of Technology, Sydney and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Pre-Contract Measures to Avoid Potential Disputes in the New Zealand Construction Industry.
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  Data: <searchLink fieldCode="AR" term="%22Silva%2C+Pramod+Malaka%22">Silva, Pramod Malaka</searchLink><relatesTo>1</relatesTo><i> pramodmalaka94@gmail.com</i><br /><searchLink fieldCode="AR" term="%22Domingo%2C+Niluka%22">Domingo, Niluka</searchLink><relatesTo>1</relatesTo><i> n.d.domingo@massey.ac.nz</i><br /><searchLink fieldCode="AR" term="%22Naseem+Ameer+Ali%2C+Noushad+Ali%22">Naseem Ameer Ali, Noushad Ali</searchLink><relatesTo>1</relatesTo><i> n.a.n.ameerali@massey.ac.nz</i>
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  Data: <searchLink fieldCode="JN" term="%22Construction+Economics+%26+Building%22">Construction Economics & Building</searchLink>. Jul2025, Vol. 25 Issue 2, p235-252. 18p.
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  Data: <searchLink fieldCode="DE" term="%22Construction+industry%22">Construction industry</searchLink><br /><searchLink fieldCode="DE" term="%22Subcontracting%22">Subcontracting</searchLink><br /><searchLink fieldCode="DE" term="%22Risk+management+in+business%22">Risk management in business</searchLink><br /><searchLink fieldCode="DE" term="%22Conflict+management%22">Conflict management</searchLink><br /><searchLink fieldCode="DE" term="%22Business+communication%22">Business communication</searchLink>
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  Data: The New Zealand (NZ) construction industry suffers from negative implications of disputes in construction projects, similar to other countries. Hence, the importance of avoiding disputes has become a vital topic to discuss and research. Avoiding disputes in construction projects has always been challenging, with limited research on this topic. Notably, no studies have explored potential pre-contract measures to prevent disputes in the New Zealand construction industry. To address this research gap, this study was designed, and it is limited only to construction projects in NZ that followed the traditional procurement path. Fourteen professionals in the NZ construction industry with significant experience and knowledge in construction disputes were interviewed, and the gathered data were analyzed qualitatively. A total of 84 pre-contract measures to avoid potential construction-related disputes were identified under five themes (themes of causes of disputes). The most responsible party/parties and most applicable pre-contract stage/s for each dispute avoidance step are also presented. The clarity of communication, risk management, proper documentation and standardization, review and continuous improvements, and collaboration are the main underlying characteristics of the identified avoidance measures. Among the identified dispute avoidance measures, respondents emphasized clear scope documentation and expectation management meetings as the most significant. The proposed measures could help principals, tenderers, and consultants in New Zealand to minimize potential disputes. Additionally, this study opens avenues for further research into dispute avoidance strategies for other procurement methods (other than the traditional procurement path) and practical approaches to clearly document the construction scope. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Construction Economics & Building is the property of University of Technology, Sydney and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Value: 10.5130/AJCEB.v25i2.9259
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        Text: English
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        PageCount: 18
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      – SubjectFull: Construction industry
        Type: general
      – SubjectFull: Subcontracting
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      – SubjectFull: Risk management in business
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      – SubjectFull: Conflict management
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      – SubjectFull: Business communication
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      – SubjectFull: New Zealand
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      – TitleFull: Pre-Contract Measures to Avoid Potential Disputes in the New Zealand Construction Industry.
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            – D: 01
              M: 07
              Text: Jul2025
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              Y: 2025
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