Impact of Disputes on Engineering Projects Cost

Abstract

Disputes are common in the construction industry due to their relationship with many different industries and specializations and the complexity of the construction process, Conflict also occurs through accidents (injury), mismanagement, human error, disagreement or lack of communication between the contracting parties, Disputes affect the cash flow of the company, if not addressed and resolved in a timely manner, become very time consuming and costly. Objective: This research aims to assess the impact of disputes on project cost, to reduce conflict between contracting parties that can develop into a dispute. Methodology: The study was divided into two frameworks, the theoretical framework includes a comprehensive study on the stages of project implementation from the feasibility study stage to the delivery stage, disputes, their causes, types, ways to avoid them, claims, costs, pricing requirements, types of costs and estimates, while the second framework, which is the practical framework, in which a questionnaire containing research questions and hypotheses was prepared Data was analyzed computerized used statistical package for social science version 22 andpresented through tables and figures. Results: the most important results of this study ,lack of a sufficient feasibility study for projects,as well as engineering work is not carried out in standard ways according to the technical terms and conditions, lack of sufficient considerations for the variables that can occur during the implementation period, there is a significant impact when signing contracts without referring to the legal departments, and failure to sign the contract with subcontractors is a reason for theemergence of problems in the project stages. Conclusion: Based on the results, this study concluded that engineers are not familiar with laws regulating the profession, lack of adequate feasibility study for the project, bad planning and lack of mechanisms to check the quality of engineering works. Recommendations: this study recommend the need to use modern scientific methods, scheduling and planning programs before starting the project and documenting work during the project stages, Protection the rights of all parties, prices set in US dollars, reviewing all laws of taxes, duties and customs on construction companies, and more studies should be conducted tofill the gaps in this study.