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  1. Surveys
  2. 2015
  3. February
  4. C
  5. Construction Disputes in the Middle East
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Exit Survey
 
Introduction
This survey aims at identifying the most frequent types of construction claims, and evaluating the effectiveness of the most commonly used dispute resolution techniques in the Middle East region.

It will take approximately 10 minutes to complete the questionnaire. Your participation in this study is completely voluntary, if you feel uncomfortable answering any questions, you can skip to the next one at any point. 

To your concern, the data collected is strictly confidential and will be reported only in the aggregate. The responses of this survey will be compiled and analyzed as a whole; individual respondents will not be identified.
Thank you very much for your time and support. Please start with the survey now by clicking on the Continue button below.
 
 
 
Part I.  Please reply to the following questions
 
 
 
Your professional experience?
 
Architect/ Engineer
 
Contractor
 
Developer
 
Expert Determinator
 
Projects Director
 
Contracts Administrator/Claims Advisor
 
Arbitrator/Adjudicator/Mediator
 
Lawyer
 
College Professor
 
Subcontractor
 
 
 
Number of service years in your profession
 
Less than 5 years
 
5 – 10 years
 
10 – 15 years
 
15 – 30 years
 
Above 30 years
 
 
 
Is the company you work in based in the Middle East region?
 
Yes, based in the Middle East
 
No, International Company
 
Question not applicable
 
 
 
Countries of operation in the Middle East: Location of the company's construction sites (Select all that apply)
 
Bahrain
 
Jordan
 
Saudi Arabia
 
Cyprus
 
Kuwait
 
Syria
 
Egypt
 
Lebanon
 
Turkey
 
Iraq
 
Oman
 
United Arab Emirates
 
Iran
 
Palestine
 
Yemen
 
Qatar
 
Israel

 
 
 
Type of company you work in:
 
Civil Contracting: General
 
Civil Contracting: Heavy Industries
 
Civil Contracting: Infrastructure
 
Real Estate: Landlords and Developers
 
Engineering Consulting Services
 
Architectural Services
 
Project Management
 
None of the above. Please Specify:
 
 
 
 
The number of times you have entered into disputes/ been on dispute cases?
 
Less than 5 times
 
5 to 10 times
 
10 to 20 times
 
20 and above
 
 
What is the percentage of disputes (you were part of / happened to be sitting on its resolution committee) that were solved through:
0 to 25 % 25 to 50 % 50 to 75 % More than 75 %
A. Amicable settlement
B. Arbitration
C. Litigation
 
 
 
Minimum time range taken for dispute resolution (days)
   
 
 
Maximum time range taken for dispute resolution (months)
   
 
 
 
Most of the time a dispute gets resolved in:
 
Less than 1 year
 
1-2 years
 
2-3 years
 
3-4 years
 
4- 5 years
 
> 5 years
 
 
 
Is there a claim threshold amount at which you decide to forego negotiations and resort to arbitration/ litigation?
 
No
 
Yes. Threshold is (USD)
 
 
 
 
How is the value above which you decide to forego negotiations and resort to arbitration/ litigation value determined?
 
Based on claim type
 
Fixed value
 
% of project cost
 
Other. Specify
 
 
 
 
Use of Alternative Dispute Resolution in the Middle East:
 
Dispute Preventive Methods
Are you aware of the method?[,]Have you ever used the mentioned method?[,]
Yes No
Yes No
Negotiation
Partnering
Risk Allocation
 
Rate the efficiency of these methods:
Not efficientVery Efficient
0 1 2 3 4 5 6 7 8 9 10
Negotiation
Partnering
Risk Allocation
 
 
Alternative Dispute Resolution Methods
Are you aware of the method?[,]Have you ever used the mentioned method?[,]
YesNo
Yes No
Early Non-binding Neutral Evaluation
Mediation
Dispute Resolution Boards
 
Rate the efficiency of the below methods : (Option 1)
Not Efficient Somewhat Efficient Average Efficient Very Efficient
Early neutral Evaluation
Mediation
Dispute Resolution Boards
 
 
 
Why do you think the above mentioned ADR methods are not as common as arbitration/litigation in the Middle East region.
(Select all that apply)
 
Additional cost incurred
 
Lack of awareness about these methods
 
Lack of belief in their efficiency
 
Lack of expertise in the Middle East
 
People are satisfied with the use of Litigation and Arbitration
 
All of the above
 
None of the above. Specify
 

 
 
 
In your opinion, dispute preventive methods (such as Negotiations, Risk Allocation, Partnering, etc.) should be used in which of the following cases:
(Select all that apply)
 
In a project with high risks and uncertainty
 
When a party of the project is a government related entity
 
When a party of the project is international
 
When there is more than one contractor in the project
 
In all projects
 
In large scale projects (with contract amount greater than a certain value)
 
Other. Specify
 

 
 
 
After negotiations fail, do you resort to a single dispute resolution method for all projects?
 
Yes
 
No
 
 
 
What is this method used on all projects?
 
Arbitration
 
Litigation
 
Mediation
 
Other. Specify:
 
 
 
 
How do you usually choose the dispute resolution method to use on a project?
 
According to the type of project and its requirements
 
According to the type of risks involved in the project
 
By following the standard method in the contract used (Example: FIDIC contracts: Arbitration)
 
Identity/ Nationality of the opposing part

 
 
Approximate the use of the below project delivery methods in the Middle East region:
0 to 25% 25 to 50% 50% to 75% More than 75 %
Design-bid-build
Design-build
Turnkey
Construction Management
 
 
 
How does having a government/state entity or ruling family as a contract party affect the dispute resolution process?
 
Disputes are resolved mostly by negotiations because of the difference in powers
 
An representative of the employer (usually the architect/ engineer) is more involved which creates an obstacle to reaching a fair settlement
 
Resolution is usually unfair to contractors

 
 
 
What are the standard contract conditions most typically used in your country of operation?
 
FIDIC (International Federation of Consulting Engineers) general conditions of contract
 
AIA (American Institute of Architects) general conditions of contract
 
ICE (Institution of Civil Engineers) general conditions of contract
 
Other, Please Specify:
 
 
 
 
Part II. In this section rank the expressions provided under the questions on the scale provided below:
 
 
Specify the most common causes of disputes in the Middle East region:
Strongly Disagree Disagree Neutral Agree Strongly Agree N/A
Amending the standard contract conditions shifting most of the risk to the contractor
Contradictory and inaccurate information in the contract documents
A failure to properly administer the contract
Unprofessional documentation by the management
Inadequate or incomplete technical plans/specifications
Variations initiated by the owner/consultant (additive/deductive)
Failure to make interim awards on extensions of time and compensation by the owner
Owner not respecting contract obligations
Lack of proper communication between the contractor and the client
Contractor not respecting contract obligations
Legislation and regulations are always being modified (leading to changes in material prices and other unexpected circumstances)
Unbalanced bidding , underestimation and incompetence of contractors
Dispute caused by the economic decline and reduction of finance and funding
Impact of local cultures and social values in the settlement of conflicts
 
 
Other. Please Specify:
   
 
 
Most important factors to take into consideration when choosing a dispute resolution method:
Strongly Disagree Disagree Neutral Agree Strongly Agree
Preserving confidentiality
Maintaining a good relationship between the parties
Flexibility of implementation
Enforceability of the method
Time to reach a settlement
Presence of a ruling family/government/public entity as an opposing contract party
Avoiding third party interference in the process
Degree of formality between parties
Cost of implementing the method
Method that is more suitable in the local law system
Complexity of dispute/ defends
Appropriate method for cultural differences between parties
Appropriate method for differing legal systems between parties
 
 
Other. Please specify:
   
 
 
Specify the frequency of use of the below Dispute Resolution Methods in the Middle East region:
Never Rarely Sometimes Often All of the Time
International Arbitration
Local Arbitration
Ad hoc Arbitration (Arbitration not administered by others where parties make manage the whole process)
Litigation
Mediation
Negotiation
Dispute Resolution Boards (Board of impartial experts assigned at the beginning of a project to follow its progress to resolve disputes as soon as they occur)
Partnering
 
 
Rate the satisfaction level with respect to the following statements
Strongly Disagree Disagree Neutral Agree Strongly Agree
The arbitration award is commonly not satisfactory for one of the parties and is appealed in court
The contractor’s preference is taken into consideration when choosing the dispute resolution method to use
Direct communication between the owner and the contractor (without the assistance of the architect/ engineer) would yield a faster agreement
In your opinion the current dispute resolution approaches used in the countries you operate in need to be changed and modified
Arbitration is enforceable in the country you operate in
 
 
It is important to provide these factors in the conduction of international arbitration
Strongly Disagree Disagree Neutral Agree Strongly Agree
Holding hearings in English
Allowing registration of international practitioners
Limiting grounds for right of appeal
 
 
Cases when courts don’t approve foreign arbitration awards are mostly because:
Strongly Disagree Disagree Neutral Agree Strongly Agree
The awards contradict with the Shariah principles
Lack of political will to enforce foreign awards
Lack of legislative platforms to support arbitration and the enforcement of foreign awards
Judicial system’s inexperience and lack of understanding of international arbitration
Arbitrators’ general lack of understanding of local laws and culture when delivering an international award which is likely to be enforced in a Middle Eastern country
Among the modifications carried out by project owners on standard contract conditions are clauses that increase the Contractor’s risk and relax the Employer’s responsibilities
 
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