Abstract
Disputes have become an inherent feature of the construction industry projects. However few research projects have focused on this niche area in South Africa. The purpose of this study was to unearth causes of disputes and their effects on construction projects and to further determine the methods that are used to settle the disputes. In order to determine the objectives of this study, semi-structured interviews were used. Thirty practitioners i.e. professionals in the construction industry were purposively invited to participate. Fourteen practitioners accepted to participate in the interviews which represented 47% response rate. The results of the interviews were analyzed using content analysis that is coding of reoccurring themes from the interviews. The study revealed nine factors that contribute to causes of disputes in construction projects namely; poor communication, poor contract documentation, suspension of work, failure to understand and correctly bid or price the work, bad weather, non-circulation of information, i.e. site instruction, distribution of drawings etc., incomplete tracing mechanism for request of information and delay in extension of time. Furthermore, the effects of disputes identified were; project delays, change in contract cost leading to cost overrun, deterioration of relationships or bad relationships leading to friction, parties do not get information on time and neglecting clients’ needs. In order to resolve the disputes the most popular method used was arbitration. However, some respondents opted to use conciliation and mediation. The practicality of the study is that organizations that enter into construction projects should be aware that they may encounter disputes in their projects; hence they should know the methods they can use to resolve them.