Decisional Uncertainties in Construction Projects as a Cause of Disputes and Their Formal Legal Interpretation by the Courts: Review of Legal Cases in the United Kingdom

Abstract

Disputes are an expected, common, and well-documented part of the construction industry worldwide. This is attributable to the interwoven interactions of disparate parties in construction projects. Disagreement with resolutions provided by existing arbitration and adjudication systems pushes some disputes to litigation. This study investigates 48 litigious cases filed in the Technology and Construction Court (TCC), which is under the ultimate jurisdiction of the Senior Courts of England and Wales, to identify core reasons for escalation to litigation. The 6 observed types of dispute were delay, defect, payment, termination, negligence, and performance, with defect the most common, involved in 17 cases. Decision uncertainty (substantive, strategic, and institutional) about the respective parties is an observably consistent contributor to disputes. Parties exhibit opportunistic behavior catering to self-interest whenever contracts are insufficiently provisioned. Deliberate or genuine misinterpretation is observed in conjunction with contractual ambiguity. This study identifies critical points regarding how courts perceive contractual provisions. Additionally, it identifies statute law in reference to the acts and statutes prevalent in England and Wales that courts commonly adhere to. Construction solicitors need to be mindful of these observations while drafting contracts in order to prevent future disputes.

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