A model for evaluating the potential of litigation due to contract ambiguity in international construction projects

Yenişehirlioğlu, Ahmethan
Disputes are unavoidable due to the unique interests of the parties and the challenging, complex and oppositional nature of the industry in the construction sector. For this reason, many researchers have conducted studies on disputes and dispute resolution in construction projects. Litigation, which is the last resort of disputes, is an unwelcomed process for all parties causing loss of time, money and reputation. In this respect, both the owner and the contractor require to prevent the factors that cause disputes which may result in litigation. The aim of this study is to develop a model for evaluating the potential of litigation due to contract ambiguity in international construction projects. The model will enable the evaluation of the potential of litigation due to contract ambiguity and will assist the owner to reduce and eliminate the factors that are increasing the contract ambiguity for decreasing the litigation potential. The model developed is an instrument to be used for evaluating the effects of ambiguity to potential of litigation rather than a prediction of litigation. The ultimate model established disclosed the importance of the effect of the ambiguity in the contract and its annexes on the disputes and litigation processes. Thanks to the model developed by determining the factors that constitute ambiguity in the contract and specifying the statistically significant ones among them, an analytical relationship with relatively high prediction performance has been provided between contract ambiguity and litigation. In this study, it is revealed that the notion of ambiguity with a holistic approach should be taken into account when determining and studying the reasons for disputes. Both contractors and owners may have the opportunity to develop their own risk and contingency strategies and project management approaches in the contract preparation and bidding stages, thanks to this developed model.


Sönmez, Rifat (2017-01-01)
The bid/no bid decision is an important and complex process, and is impacted by numerous variables that are related to the contractor, project, client, competitors, tender and market conditions. Despite the complexity of bid decision making process, in the construction industry the majority of bid/no bid decisions is made informally based on experience, judgment, and perception. In this paper, a procedure based on support vector machines and backward elimination regression is presented for improving the exi...
A Case Study of Using Innovation Catcher as an Innovation Performance Assessment Framework for Housing Projects
Bilgin, Pınar; Dikmen Toker, İrem; Birgönül, Mustafa Talat (2020-11-14)
The crucial role of innovation in improving or even maintaining the strategic position and competitive advantage of construction companies in a highly competitive industry is widely acknowledged. In this sense, construction companies are spending a substantial amount of money and time on innovation activities. However, an in-depth literature review showed that available innovation assessment frameworks are not capable of revealing the outputs of these investments and capturing the actual innovation performa...
An Exploratory Study on Causes and Impacts of Variation Orders in Public-Private Partnership Projects
Ejder, Kıvanç Umut; Dikmen Toker, İrem; Birgönül, Mustafa Talat; Department of Civil Engineering (2022-2)
Variation is an inevitable and inherent factor in public-private partnerships (PPP) projects which are a result of the extensive contract duration and the dynamic environment together with a large number of stakeholders. It is common in all kinds of PPP projects and determines the time limits and projected budget of the projects. For the social and financial viability of the project, it is important to be aware of these variations and their consequences that occur during the project life cycle. One of the m...
A Causal mapping approach for the analysis of construction disputes
Tanrıverdi, Cenk; Dikmen Toker, İrem; Department of Civil Engineering (2019)
Containing various work disciplines, numerous stakeholders, and relatively extensive procedures due to its nature, disputes are frequently encountered in construction projects. The fact that disputes can have devastating effects on success of projects in terms of both time and cost to both parties involved when not dealt with care, makes a clear understanding of how and why disputes occur in construction projects an important research topic. Previous studies on this subject has mostly yielded only exhaustiv...
A comparative study of regression analysis, neural networks and case-based reasoning for early range cost estimation of mass housing projects
Karancı, Hüseyin; Sönmez, Rifat; Department of Civil Engineering (2010)
Construction cost estimating is essential for all of the stakeholders of a construction project from the beginning stage to the end. At early stages of a construction project, the design information and scope definition are very limited, hence; during conceptual (early) cost estimation, achieving high accuracy is very difficult. The level of uncertainty included in the cost estimations should be emphasized for making correct decisions throughout the dynamic stages of construction project management process,...
Citation Formats
A. Yenişehirlioğlu, “A model for evaluating the potential of litigation due to contract ambiguity in international construction projects,” M.S. - Master of Science, Middle East Technical University, 2022.