Data-Driven Analysis of Construction Bidding Stage–Related Causes of Disputes
Publication: Journal of Management in Engineering
Volume 39, Issue 5
Abstract
Construction bidding is a complex process that involves several potential risks and uncertainties for all the stakeholders involved. Such complexities, risks, and uncertainties, if uncontrolled, can lead to the rise of claims, conflicts, and disputes during the course of a project. Even though a substantial amount of knowledge has been acquired about construction disputes and their causation, there is a lack of research that examines the causes of disputes associated with the bidding phase of projects. This study addresses this knowledge gap within the context of infrastructure projects. In investigating and analyzing the causation of disputes related to the bidding stage, the authors implemented a multistep research methodology that incorporated data collection, network analysis (NA), spectral clustering, and association rule analysis (ARA). Based on a manual content analysis of 94 legal cases, the authors identified a comprehensive list of 27 causes of disputes associated with the bidding stage of infrastructure projects. The NA results indicated that the major common causes leading to disputes in infrastructure projects comprise inaccurate cost estimates, inappropriate tender documents, nonproper or untimely notification of errors in a submitted bid, nonproper or untimely notification of errors in tender documents, and noncompliance with Request for Proposals’ (RFP) requirements. Upon categorizing and clustering the causes of disputes, the ARA results revealed that the most critical associations are related to differing site conditions, errors in submitted bids, unbalanced bidding, errors in cost estimates, and errors in tender documents. This study promotes an in-depth understanding of the causes of disputes associated with the bidding phase within the context of infrastructure projects, which should better enable the establishment of proactive plans and practices to control these causes as well as mitigate the occurrence of their associated disputes during project execution.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
This research was carried out through the funding of the Graduate Assistance in Areas of National Need (GAANN) Fellowship Program (P200A180066) at Missouri University of Science and Technology provided by the US Department of Education. To this end, the authors are deeply thankful for the financial support.
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Information & Authors
Information
Published In
Journal of Management in Engineering
Volume 39 • Issue 5 • September 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Dec 20, 2022
Accepted: Apr 6, 2023
Published online: Jun 6, 2023
Published in print: Sep 1, 2023
Discussion open until: Nov 6, 2023
ASCE Technical Topics:
- Bids
- Business management
- Construction engineering
- Construction management
- Contracts and subcontracts
- Data analysis
- Disaster risk management
- Dispute resolution
- Engineering fundamentals
- Errors (statistics)
- Infrastructure
- Legal affairs
- Mathematics
- Methodology (by type)
- Practice and Profession
- Project management
- Research methods (by type)
- Risk management
- Statistics
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