Dispute resolution methods adopted by contractors during COVID-19 in Eastern Cape South Africa: A Case Study

Abstract

Over the past months, the socioeconomic consequences of the ravaging COVID-19 pandemic reverberated through and affected all segments of life. The construction industry is not left out. The severe impacts of COVID-19 have not only witnessed tragic human losses but have also caused colossal devastating implications for construction procurement and general contract condition. The study examined the dispute resolution methods adopted by contractors in Eastern Cape, South Africa, during the COVID-19 experience to determine their appropriateness and effectiveness. The study employed a snowballing, purposive, non-probability sampling technique with a mixed research design driven by respondents' participatory action. Twelve senior personnel were interviewed, while questionnaires were administered to 30 referred employees on the sites. XLSTAT statistical software and thematic analysis were used for the aggregated questionnaire and qualitative respondents' interviews in drawing inferences. The results revealed that an interest-based rather than a right-based approach are two sides of a coin that can make or mar the wheel of progress in arriving at an amicable agreement to contract terms in construction. The need for re-negotiation in billing, which is at variance with the various construction claim, cannot be over-emphasised. At the same time, the intuitive assertions of negotiation, mediation, and conciliation were used in resolving unforeseen delays, claims, and added costs due to disruptions of COVID-19. The study's main contribution lies in mastering and deploying appropriate dispute resolution methods in project execution. The study is of utmost importance in planning, restoring, and deriving optimal societal benefits from conflict management amidst the adverse effect of Covid -19 on any construction project. Keywords: Conciliation, Construction dispute, COVID-19; Mediation, Negotiation

Full text

JCBM (2022) 5(2). 54-67
Dispute resolution methods adopted by contractors during COVID-19 in Eastern Cape
South Africa: A Case Study
O. T. Amoo
1
, Y. Lukman2 and N. Musa3
1,2Walter Sisulu University, Mthatha, South Africa.
3Obafemi Awolowo University, Ile-Ife, Nigeria
Received 14 April 2022; received in revised form 12 June 2022 and 08 September 2022; accepted 23 October 2022
https://doi.org/10.15641/jcbm.5.2.1209
Abstract
Over the past months, the socioeconomic consequences of the ravaging COVID-19 pandemic reverberated through and
affected all segments of life. The construction industry is not left out. The severe impacts of COVID-19 have not only
witnessed tragic human losses but have also caused colossal devastating implications for construction procurement and
general contract condition. The study examined the dispute resolution methods adopted by contractors in Eastern Cape, South
Africa, during the COVID-19 experience to determine their appropriateness and effectiveness. The study employed a
snowballing, purposive, non-probability sampling technique with a mixed research design driven by respondents'
participatory action. Twelve senior personnel were interviewed, while questionnaires were administered to 30 referred
employees on the sites. XLSTAT statistical software and thematic analysis were used for the aggregated questionnaire and
qualitative respondents' interviews in drawing inferences. The results revealed that an interest-based rather than a right-based
approach are two sides of a coin that can make or mar the wheel of progress in arriving at an amicable agreement to contract
terms in construction. The need for re-negotiation in billing, which is at variance with the various construction claim, cannot
be over-emphasised. At the same time, the intuitive assertions of negotiation, mediation, and conciliation were used in
resolving unforeseen delays, claims, and added costs due to disruptions of COVID-19. The study's main contribution lies in
mastering and deploying appropriate dispute resolution methods in project execution. The study is of utmost importance in
planning, restoring, and deriving optimal societal benefit from conflict management amidst the adverse effect of Covid -19
on any construction project.
Keywords: Conciliation, Construction dispute, COVID-19; mediation, negotiation
1. Introduction
Several countries have slowly started to emerge from
one of the most severe lockdowns in the world due to
COVID-19, which might not go away too soon. The South
African construction industry is one of the industries that
was severely affected not only by the national lockdown
but also by unforeseen circumstances on construction
sites ranging from late material delivery, difficulty in
work implementation, and project time completion
elongation to sudden retrenchment of the casual
construction workers who sourced their livelihood from
the sectorial activities. Experts have said South Africa is
likely to witness still the 5th wave of infections going by
the records of the fully vaccinated people at 30,559,431
out of the estimated mid-year population of 60.14 million
1
Corresponding Author
Email address: ejire36@gmail.com
people (Stats SA, 2021). The newly reported cases of
1,094 infections as of Monday 14 February 2022, brought
the total reported cases to 3,642,905 of death toll
increased to 97,250 (+257) with a recovery rate of 96.3%
for a balance of 37,406 active cases in circulation (SA-
Official COVID-19 portal). Both the past occurrence and
the new Covid -19 variants seem like a mirage to some
industries to abide by the five-level COVID-19 alert
system introduced to manage the gradual easing of the
restrictions. The stringent regulations include remote
working, reduced commuting, and observed social
distancing as part of measures to curb the spread of the
disease (Bodenstein et al., 2020). These measures have
drastically transformed many industries and business
University of Cape Town
Journal of Construction Business and Management
http://journals.uct.ac.za/index.php/jcbm

Amoo O. T.et al. / Journal of Construction Business and Management (2022) 5(2). 54-67
55
working landscapes to adapt to new measures. For the
construction industry, this presents a plethora of
opportunities and challenges in alternative dispute
resolution for the client and the construction team in
reaching an amicable compromise middle position.
Critical infrastructure, such as bridges, ports, rail, and
roads, are key competitive economic development of a
nation. Many researchers have asserted that infrastructure
development can create new employment opportunities
both directly and indirectly, attracting investment. It
provides the necessary stimulus for economic growth
(Agénor and Moreno-Dodson, 2006; Bhattacharya et al.
2015; Yu, 2017). However, the impaired irregularity
arising from the unforeseen COVID-19 pandemic has
caused conflict and disparity between the initial
guidelines for the project completion timeline and the
client's assumed contractual sum (Johnson and Babu,
2020). Other contending issues are payment modality,
work quality assurance, material delivery to the site, and
workers' safety during the pandemic (Alsharef et al.
2021). These emerging issues affect the client who had
budgeted a contractual sum for the completion of the
project and the contractors who could result from working
quality compromise in standards and poor-quality
infrastructure delivered in other to maximise gain. These
circumstances posed risks and justified deviation from the
basic rule in theoretical conciliation and expert
assessment in bringing amicable resolution. This brings
the need for arbitrators to mediate and decide on different
cost awards, which the Movement Control Order (MCO)
has brought to the varying construction site works.
Moreso, in this era of different driven political
interests in South Africa, where the government
representative agent proclaimed additional unauthorised
jobs, deviation from contracts award sum as jointly agreed
with the contractors' legal officer, chief executive officer,
and financial representative of the government in
determining the overall project cost. Most contractors are
suspicious of carrying out additional work, even if
necessary. Thus, there must be a revised procedure step in
authorisation before contractors can claim variation in the
total contractual sum with the application of the relevant
contractual clause. COVID-19 has exposed the
inadequacy of the established norms in project execution.
COVID-19 may have affected many projects;
however, one primary process the pandemic may have
unveiled to the universe is the similarity increase in the
amount of time construction professionals spend handling
disputes. The global construction sector has found over
40% of professionals reporting disputes since the onset of
the COVID-19 crisis (King et al. 2021; Ogunnusi et al.,
2021). Construction conflicts and delays have had a wide
range of effects on global productivity (Johnson and
Babu, 2020). Among its leading impacts are: -
overrunning costs, extensions in stalling time, delays in
the delivery of projects, and a potential loss of business
viability (Salami et al. 2021). Although several
construction projects have come under severe threat
within a short period of the lockdown, many are still
basking in the euphoria of recovery from the outbreak.
Also, every project has its desired outcome and
subsequent challenges the pandemic has brought into the
construction industry where ongoing construction site
works are at variance to the different degrees and stages
of work (Alfadil et al. 2022; Harris and Moss, 2020). It is
noteworthy to assess the impacts of the COVID-19
lockdown, and gradual easing on construction sites vis a
vis due to unforeseen delays, the need for additional
claims, and added incurred costs as postmortem derivative
of COVID-19 hazard.
Among the arising argument is the work quality
assurance, material delivery to site, time to project
completion, need for additional claims, and additional
elongated work, to who bears the cost/risk. Other
emerging issues for further discussion and re-negotiation
include logistics for workers' safety under the pandemic
without jeopardising the standard quality of work
requirement.
The recourse to no casualty and enforcing the "force
majeure" in risk claims has not helped resolve the other
emanating disputes (Lai, 2020). Project managers' daily
tasks include leading project-related decisions and
actions. A manager's actions and inactions have a direct
impact on projects. One of the difficulties that a Project
Manager mainly faces is decision-making. Some
decisions may seem trivial, but they can determine a
project's success or failure. The devotion of the project
team is one of the decisive elements in project success or
failure. Lack of teamwork and project members'
dedication can cause problems. A project can be lost due
to poor project team selection and a lack of desire among
the team members. In this regard, a project manager
should learn how to use the social exchange, motivation,
and equity theories to boost productivity in common
decision-making issues on construction sites (Lukman et
al. 2022). Thus, the conception, design, and
implementation of contractors' action for identifying both
protective and risk factors affecting project execution in
an unforeseen natural setting and the client's
understanding of contractors' exposure to danger relates
to timely project completion and how these affect cost
incident rates signpost the contribution of this manuscript.
This study aims to appraise the extent to which the
various dispute resolution methods contractors adopted
during COVID -19 experience in a South African
construction site. It sheds more light on contract budget
optimisation, which advanced misconception concerning
force majeure or frustration as a dispute resolution cluster
term for settling and managing disputes amid the COVID
-19 Era. Furthermore, the study emphasises the role of
participatory action research (PAR) philosophy that
"individuals are more motivated when involved in the
decision-making process about their workplace"
(Whitehead and McNiff, 2006). Six (6) Contractors and
the Employer (Government of South Africa) were used in
this study, supported by Tellis (1997). Tellis argued that
using multiple case studies allows an in-depth exploration
of cases within identified cases. Also, Baxter and Jack
(2008) posit that this approach enables a researcher to
forecast similar outcomes between cases and could also
predict different outcomes based on a theory.
2. Theoretical background and Related work
A background review of related work shows that the
COVID-19 pandemic has been explored from the

Amoo O. T.et al. / Journal of Construction Business and Management (2022) 5(2). 54-67
56
perspectives of epidemiology, infectionlogy,
immunology, and virology (Chan et al. 2005; Ruiz
Estrada et al. 2019; Harris and Moss, 2020; Diallo and
Bordea, 2021)). Epidemics and pandemics are, at the
same time, the factors affecting individuals but the social
relationships among them, the societies, and
organisational structure. The emergence of the COVID-
19 pandemic outbreak has unveiled a new dimension in
society. It continues to put the construction industry into
socioeconomic, technical, and legal systems
consideration at an unprecedented dispute rate (Ivanov,
2021; Alfadil et al., 2022). Even though dispute resolution
may not be uncommon across the construction industry,
the astounding increase during the COVID-19 pandemic
is a cause for concern (Alsharef et al. 2021).
In addition, the measure is taken to contain the
viruses such as quarantine, self-isolation, and restrictions
on human and vehicular movements have a far-reaching
effect on the ability of contractors to finish the project on
time and within budget (Alsharef et al. 2021). In addition,
a measure taken to contain the viruses, such as quarantine,
self-isolation, and restrictions on human and vehicular
movements, have a far-reaching effect on the ability of
contractors to finish the project on time and within budget
(Alsharef et al. 2021).
Maiketso and Maritz (2012) have postulated
adjudication as the most popular alternative dispute
resolution method in the South African and global
construction industries (;Van der Merwe, 2010;
Bvumbwe and Thwala, 2011; Alfadil et al., 2022 ).
However, Povey et al. (2005) and Brett (2007) argued
negotiation is the cheapest and most effective way to
resolve disputes on sites. This method engages worried
parties and often promotes meaningful dialogue
engagement. However, some have reasoned about its
effectiveness in dispute resolution in the construction
industry based on the circumstances and peculiarity of the
project (Baffour-Awuah et al. 2011; Abeynayake, 2015;
Mazani et al. 2019; Ogunnusi et al. 2021; King et al.
2021). Adopting any particular method could be tasking
and demanding in a completely new environment like
COVID-19 in delivering resilient infrastructure while
boosting the industry growth process.
Having raised some of the above critiques, there
seems to be no specific or exclusive best method for
resolving disputes on construction sites; instead, there are
various ways to resolve disputes in the construction
industry. Thus, there is a need to appraise the extent to
which the contractors could adopt the different dispute
resolution methods during COVID -19 experience.
Most of the research efforts on dispute resolution over
the past decade have been aimed at improving public
discourse on conflict management; for example, Yussof
et al. (2020), Butteriss et al. (2001), Harrison and Wendorf
Muhamad (2018), and Hodgson et al. (2018). Most of
these studies simulate the impacts of a deliberate breach
of contract and arouse public interest in shoddy
substantial services delivery work. However, the recent
COVID -19 outbreak has stripped the construction
industry of service delivery-in, paying greater interest to
technical details, especially in underground infrastructure,
which had stripped the embedded structure of the required
maintenance.
Emerging research suggests that negotiators with a
primarily cooperative style are more successful than hard
bargains at reaching novel solutions that improve
everyone's outcomes (Caputo, 2016; Low, 2020; Harrison
and Wendorf Muhamad, 2018; Iyiola and Rjoub, 2020).
Most of the studies on conflict management had addressed
dispute resolution based on the precautionary principle
and segmented phased practice, not stating the roles,
rights, obligations, and remedies for the Employer,
Contractor, and Subcontractor amidst conflicting
disagreement during the COVID-19 pandemic.
Furthermore, the absence of research on the lack of social
cohesion (virtual meetings, online interactions) impacts
the construction industry towards impacting the teamwork
spirit required for the timely completion of a project call
for action and practical demonstration of real work
required by experts toward prompt defect correction
under unforeseen circumstances. Thus, dispute resolution
mechanisms are intended as suitors in small or large
works either of short or long duration to resolve conflicts,
more especially on components of costs (Barsky, 2016).
Looking at rules for the conduct of arbitrations (the
Arbitration Act 42 of 1965), justice, fairness, and equity
are tri-part pillars upon which social exchange theory in
dispute resolution mechanism is based (Cortez and
Johnston, 2020; Etim and Okudero, 2019). Social
exchange theory presents two yardsticks of comparison.
The theory underpins the case study approach adopted in
assessing a given outcome, whether in a difficult situation
or under normal circumstances. This scenario is also
known as game theory. Game theory entails the
intersection of mutual knowledge through willingness,
learning, and autonomous collaboration of the people as
the engine of problem-solving in an organisation
(Zomorodian et al. 2017). The game theory
conceptualisation in dispute resolution has helped make
negotiations more structured by bringing both parties on
the same page (Beltran, 2020). Therefore, to understand
the application of justice in an unforeseen circumstance
like COVID-19, it is imperative to dissect and
conceptualise the social exchange theory in link with the
equity theory (Bayat et al. 2019). A negotiator's adaption
of these concepts brings clarity to the entire process. It
ensures the political will of all parties to enforce the
agreed terms while still preserving their respective
interests (Beltran, 2020). It provides a rationale for
achieving both the physical and economic robustness
required for development in a goal-oriented industry
(Bayat et al. 2019). Many dispute-resolution mechanisms
among dissatisfied experts in project management require
the game theory concept of giving and taking (Liu et al.
2017). The individual's compromise in dispute resolution
depends on their expectation which is determined by the
prior experience of past events. Although, the worried
parties believe that the fairness of the negotiators
determines the outcome of the service recovery initiative
(Jeong et al. 2019; De Filippi et al. 2020).
Thus, this study highlights major dispute resolution
strategies useful for COVID-19 pandemic-affected
projects in Eastern Cape, South Africa, to determine their
appropriateness and effectiveness. The six selected
construction sites shed more light and advanced
misconceptions concerning force majeure or frustration as

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57
a dispute resolution cluster term for settling and managing
disputes amid the Covid -19 Era. The study appraised the
various dispute resolution mechanisms and determined
their appropriateness and effectiveness using deductive
reasoning in project management to mitigate unforeseen
delays, disruptions, and unnecessary additional costs.
3. Research Methods
The research adopted the snowball sampling method. It is
often relevant when participants of a study are difficult to
locate, or constrained by time, cost, or convenience of
collecting the data (Emerson, 2015). In the sampling
method, a researcher collects data from a few people
(participants) whom they can find, then ask the same
people (participants) to recommend where potential
participants may be found or people to whom such
participants relate (Mitchell and Education, 2018;
Sharma, 2017). The nature of this research, which
requires the insights of experts from the construction
industry and pandemic scientists who are well-grounded
in assessing impacts on construction sites, would give
credence to the subject matter. Also, in action research,
the research is conducted with the intent to improve
researchers' practice and design a practicable line of
action; while implementing this design (Ngwenya, 2018).
Hence, action research is a societal process that
interrogates the nexus between people and their
immediate society. It recognises the significance of
perceiving society as a unit of identification (Ngwenya,
2018). Adopting the mixed design gives credence to the
approach employed, whereby qualitative and quantitative
methods were utilised to gather relevant data (Little et al.,
2011, Onwuegbuzie et al., 2009).
The online structured interviews were conducted with
senior personnel via zoom scheduled meetings for the
selected company representatives. This was followed up
with a recorded telephone interview. Before this, the
researcher obtained permission to record and transcribe
the interview sessions. Twelve senior personnel were
interviewed, while questionnaires were administered to
30 referred employees on the sites in drawing inferences.
The engagement of these stakeholders helps give an in-
depth understanding of maneuvering COVID-19 impacts
on construction cost, quality, and time to projection
completion.
Quantitative data consists of numerical data, which
can be quantified, while qualitative data help affirm and
clarify the quantitative collected data. The triangulation
method was used to justify the acceptable opinion where
the qualitative and quantitative responses are in opposing
positions. The triangulation technique uses multiple data
collection methods to increase the observation's reliability
(Tellis, 1997; Bush, 2012). This was used due to some
findings that require the personal assessment of the
information collected from respondents. Also, it offers
sufficient statistical indices for the reliability and validity
of the data collected. The research used the questionnaire
distributed and the interview schedule to test the
hypothesis that sought to affirm/negate the assertion that
COVID-19 impacts the overall cost and time to project
completion, irrespective of the lockdown stages.
3.1 Sampling Design and Procedure
To guide the inquiry into the impact of COVID-19 on a
construction site, the design of the interview and the
questionnaire was done in such a way that it elucidates
useful information from respondents. It has six basic
information headings: demographic information, the
initial and aftermost COVID -19 impact on the cost; time
variation responses to project completion, which dispute
resolution mechanism they are aware of, and which one
they believe ameliorated the arising conflict best while
stating other advert effects for unforeseen circumstances.
Furthermore, the validity of the research instrument was
underpinned by ensuring that the questions posed were
not at variance with the study’ s aim and objectives.
The content of the questionnaire instrument used was
structured in the modified Likert fashion on a 5-point
scale ranging from Strongly Agree (SA), Agree (A),
Neutral (N), Disagree (D), to Strongly Disagree (SD).
Participants were then instructed to respond to their
degree of agreement with the statements contained in the
instrument. These questions were sufficient in confirming
the respondent's response to the interview conducted.
Furthermore, all forms of ambiguity were avoided while
explaining the aim of the research to the selected
stakeholders. To communicate effectively, the researcher
tried to explain in English to senior personnel, who later
referred the researcher to other community members after
assisting by translating it into IsiXhosa, which was the
mother tongue of this locality. Such translation into
IsiXhosa increased their level of comprehension of the
project and helped maintain the researcher's aim.
Based on Mason (2017), Building Information
Modelling (BIM) has enabled architecture, engineering,
and construction professionals to improve collaboration,
reduce errors and ultimately deliver better projects. It has
justified added benefits for infrastructure projects and
opened new opportunities for construction engineering
professionals. However, the Movement Control Order
(MCO) has imposed restrictions on humans and the
delivery of goods to the construction site.
This had hindered mutual joint construction
professionals' assessment and input to quality delivery of
the projects. Thus, the research design adopted a snowball
sampling approach where relevant stakeholders and
experts in project management and the construction
industry were consulted. The contacted individuals were
briefed about the process and likely questions before the
commencement of the interview. Also, permission was
sought by the researcher to audio-record and transcribe
the interview sessions conducted. The action-based
philosophy was employed in the selection of the
construction sites' participants. This enables a more
precise and accurate analysis of a community's reality.
The triangulation method was used to validate the
hypothesis from the qualitative and quantitative research
strands.
Using the Chinyio and Olomolaiye (2009) influence
grid model as depicted in Figure 1, the research design
process considered the participating company
representatives and the government negotiating
stakeholders in examining the choice and role of selected
stakeholders determining the relevant dispute resolution

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58
mechanism, types, and range in examining the different
cases in question. The involvement of stakeholders
chosen enables an easy-to-follow procedural step based
on Pryor's (2015) criteria where the current knowledge of
trends in dispute resolution, the different types, and the
range was employed to examine the different cases in
question-based in Table 1 stakeholder engagement
(inform, consult involve and empower) to systematic
name potential stakeholders who were to be involved in
the project.
Table 1: Stakeholder engagement
Inform
Consult
Involve
Empower
Project participation
goal
To provide balanced
and objective
information to assist
stakeholders in
understanding the
project's drivers,
alternatives,
opportunities,
solutions, and
progress.
To obtain
stakeholder
feedback on
issues, analysis,
alternatives,
and/or decisions.
Work directly with
stakeholders
throughout the
process to ensure that
their concerns and
aspirations are
consistently
understood and
considered.
To place final
decision-making
in the hands of
stakeholders
Promise to project
stakeholders
We will keep you
informed about the
project’s progress.
We will keep you
informed, listen to
and acknowledge
your concerns,
and provide
feedback on how
your input
influenced the
decision.
We will work with
you to ensure that
your issues and ideas
are directly reflected
in the alternatives
developed. We’ll
also provide
feedback on how
your input influenced
the decision.
We will
implement what
you decide.
Example techniques
for engagement and
consultation
Newsletters/email,
intranet, presentations
Focus groups,
surveys, online
forums
Workshops, polls,
email feedback,
document sharing
Project papers,
steering group
meetings, formal
approvals
Source: International Association for Public Participation (2014)
The names of potential stakeholders were written out for
each category identified above. The comprehensive list is
comprised of these categories: beneficiaries, municipality
employees, members of the ruling party, engineers,
artisans, and health professionals. A representative was
chosen for each category as a potential head who was
served the questionnaire and later called for confirmation.
A review followed this to ensure no potential stakeholder
has been omitted from the list.
The engagement of these stakeholders and site managers
was used to explore how the national lockdown and its
aftermath impacted the construction site (Pryor, 2015).
Furthermore, the stakeholders were engaged using the
model designed by the International Association for
Public Participation (2014), cited in Quick and Bryson
(2022). This is illustrated in Table 1.
4. Data collection and analysis
Table 2 presents the expert demographic data analysis for
the interview, while Table 3 depicts respondents' feedback
collation among the six contractors in assessing COVID-
19 impacts during the Movement Restriction Order
(MRO). Table 4 summarises the respondent’s interview
feedback on the impacts of COVID-19 in executing the
project.
The coefficient of variability (CV), expressed as the
percentage ratio of the standard deviation to the mean
measures the dispersion of a probability distribution
(Martinez-Pons, 2013). The range value of 0.26 to 0.61
depicts a fair sample representation for the different
construction work. A minimum of two personnel were
interviewed per site. The respondents' experiences ranged
from 3 to 20 years, while amongst these 12 interviewees,
3 were company directors, 2 were senior managers, and
the rest (7) were site Engineers/representatives. Most
respondents had more than three years of work experience
whom the researchers considered fit for the study. Also,
to strengthen the data validity, the saturation of the
qualitative data collected was verified. This ensured no
new information or opinions were obtained amongst the
different respondents, which often resulted in the
emergence of vital information.
Using a subjective judgement in selecting the
participant and a purposive sampling criterion in choosing
the "typical case" studies. Five people were administered
the questionnaire in each case study to obtain
participants'(independent) views and experiences.
Amongst the 30 questionnaires dispatched within A, B,
C.D, E, and F sites, 20 were fully completed, and ten were
voided. The 20 respondents translate to a 67 percent
response rate with a confidence level of 95%.

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Table 2. Respondent Years of experience and the resulting feedback
Company
Label
Years of
Experience
Project
construction
type
Completion
Time Before
COVID-19
(Yrs)
Expected
completion
Time After
COVID-19
(Yrs)
Project Cost
Before
MRO
(Million
Rands)
Expected
projected Cost
After MRO
(Million
Rands)
A
6
Roads
2
3
30.50
40.00
40.00
B
11
Housing
4
5
70.00
C
22
Housing
4
5
65.00
95.00
D
10
Water
infrastructure
rehabilitation
2
3
25.00
35.00
E
3
Building
rehabilitation.
4
6
25.00
30.00
F
17
Building
Construction
3
4
44.00
51.80
Mean
11.5
3.17
4.33
38.25
47.63
Std. Dev.
6.40
0.90
1.11
13.92
29.26
CV
0.56
0.28
0.26
0.36
0.61
Key: Std. Dev. = Standard Deviation; CV = Coefficient of Variability
A reliability coefficient of 0.60 for the Cronbach's
alpha score of six (6) for all the items that constituted the
questionnaire depicted acceptable reliability for a newly
developed construct. The analysis in Table 3 shows that
most of the responses were synonymous across the sites.
There were high levels of disagreement in the summary
of the cost and time impacts of the COVID-19 lockdown
assessment. Still, a sizeable portion of respondents did
allege over-bearing implications for cost and time, while
the quantity of material delivery to the site was a
significant issue. A chi-square cross-tabulation sectional
analysis across the Table helps to know which variables
are statistically significant in assessing the national
lockdown and its aftermath impacts on the construction
site. The results show that most statements (the column
marked p-value) are significantly at higher levels of
agreement. A P-value less than 0.05 signify a substantial
contribution and vice visa. In all, the contractor's response
impact ranges from material delivery delay, work know-
how implementation, and project time to completion
elongation and sudden retrenchment of the casual
construction worker who found their daily livelihood
from the sectorial activities.
Furthermore, the aggregated respondent interview
responses to the telephonic interview conducted were
summarised in Table 4. The response shows variant
causes of dispute, irrational changes in work schedules,
and sometimes unrationed cost claims by contractors,
despite the government's limited resources to meet the
rising various project requirements.
Many respondents said that COVID-19 has caused
them to re-evaluate their existing contractual sum. The
inability and failure of the client to intervene in a timely
and effective way resulted in many disputes arising.
Among the most-cited cause of disputes is non-
compliance to initial prescripts and improper
understanding of the contract law and licenses, even
though large percentages of the respondents were aware
of contract terms and obligations. This is consistent with
findings by Barsky (2016), Bayat et al. (2019), and
Alsharef et al. (2021) argue that future dispute resolution
for an unforeseen event like COVID-19 should emphasise
the need for re-negotiation in billing, which is at variance
with the various construction claims.
Table 5 highlights the bottleneck impacts of COVID-
19 found in the traditional workflow and relates solutions
to address each one of the emanating challenges in
reciprocating the construction company's best solution
response to arising conflict.
All contacted contractors stated additional costs and
project time elongation due to the pandemic. To explain
the role of stakeholder, mediator, and negotiator, in
alignment with the construction company workforce
matrix, time to completion, and rescheduling budget
compromised. The inter-relationship in dispute resolution
mechanism demands the integration of different
stakeholders whose impact can be evaluated using the
'Influence grid' model as depicted by Chinyio and
Olomolaiye's (2009) influence grid model in Figure 1.
Figure 1: Influence grid model (adopted from Chinyio
and Olomolaiye, 2009)

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60
Table 3: Respondents’ size to questionnaires among the six contractors’ site
Statement Description
SD
D
N
A
SA
Chi-square-
value
There is variation in procurement costs during
the COVID-19 lockdown
4
4
4
3
5
0.000
There is variation in time to project
completion after the COVID-19 lockdown
5
5
4
3
3
0.000
There is variation in total contractual sum and
expected project sum during and after the
COVID-19 lockdown
4
4
3
4
5
0.000
The work schedule guarantees workers’ safety
and minimum risk-bearing in the workforce
during the COVID-19 lockdown
4
5
4
2
5
0.000
Overhead and the indirect cost was
sufficiently affected during the lockdown
4
2
5
4
5
0.000
Which approach works best for you during
the lockdown-interest-base or right-based
approach?
3
4
3
5
5
0.000
Key: SD = Strongly Disagree; D = Disagree; N = Neutral; A = Agree; SA = Strongly Disagree
The subsequent section relates to how the influence grid
model can be used to resolve disputes based on the
technical causes, impacts, and re-evaluation claims by the
government agency in executing the project.
This four-levelled quadrant served as a determinant
towards ascertaining stakeholders' level of engagement' in
the construction and execution of the project. The first
category in the quadrant was stakeholders classified as
‘High influence/ high interest’. This set of stakeholders
was fully involved, and thus they reciprocated
accordingly (Mgemane, 2012). The second classification
was those classified as ‘High influence/lower interest’.
With consideration of their disinterest, limited
consultations were made with them. However, this
category of stakeholders was still consulted as they were
highly influential citizens in the rural community (Bourne
and Walker, 2005). The third category was the 'Low
influence/high-interest group. This set of stakeholders
was resourceful and played an essential role in mobilising
and engaging other project beneficiaries. Their active
participation instigated some community members who
were previously not interested in the project (Fassin,
2009). Lastly, the group was classified as ‘Low influence/
low interest’.
Although this group of stakeholders barely played any
contributory role, they were occasionally updated with
relevant information. Thus, based on this precept, these
classified sets of stakeholders were engaged at different
levels and had differing inputs bringing clarity in
achieving the project aim with a high level of satisfaction
among beneficiaries.
5. Application of conflict resolution amongst the
stakeholders
The construction of the various facilities was facilitated
using the following steps supported by Siyongwana and
Mayekiso (2011).
- Negotiation
- Mediation and conciliation
- Expert assessment
- Adjudication
- Litigation
- Building bridges
The intervention of a middleman brings a value chain
transition to a more collective community bargaining and
professionalism in tolerating each other. The series of
negotiations were considered useful mainly because the
project manager involved these four qualities – wisdom,
fairness, stability, and efficiency. A previous win-lose
situation was converted into a win-win bargain (Bal et al.
2013). Mediation and conciliation were also used amongst
disagreeing stakeholders, which eventually was resolved
after a month. As regards disputes regarding the
quantification and valuation of work done at the site, the
opinion of a structural engineer and quantity surveyor was
consulted; hence through their expertise, they gave sound
and justifiable reasons why the increased bill should be
honoured regarding the construction work done at the site
location. Adjudication and litigation were also exercised
when a community member intended to sue one of the
stakeholders. Amicable settlement of casual workers'
wages and salary was resolved through part payment,
food subsidies, and promised to note later when financial
institutions open to reduce the social poverty and
inequality caused by COVID-19.

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61
Table 4: Respondent’s feedback summary.
Question
Respondents /feedback
Highlight some of the Covid -19 impacts you notice on
your sites.
Field changes, prolonged procurement delivery,
project delays, and potential claim issues.
Which methods are most effective in resolving time-to-
project completion in construction disputes?
answered (in order): party-to-party negotiation;
mediation; and, finally, arbitration.
Is there any discrepancy in the contractual sum/expected
contract sum? And if so, do you subscript to follow the
dispute resolution administrative process mentioned in
the contract?
Parties’ ability to adhere to contractual notice
requirements as well as the dispute resolution
administrative process in the contract
List common causes of disputes you know
arising/affecting workers' safety.
– owner-directed changes and errors and/or
omissions in the contract documents.
Are you familiar with the overhead and indirect cost
impacts on contract terms and obligations?
intimately knowing the contract terms and
obligations,
Which approach will you suggest works best for
managing a future unforeseen event like COVID-19?
Interest-based approach or right-based approach
Both approaches work well if well-coordinated
and completed expeditiously; likewise, the
importance of timely design documentation and
dynamic work scheduling
Table 5: Company label technical issues and bottlenecks related impact of COVID-19
Company label and work type
Major Bottlenecks Encountered
Solutions
A-Road
Necessary equipment movement to the side resulted
in the delay in the filtered bed construction to repair
the base and sub-based layered in the road section
for water seepage control.
Negotiation
B-Hous1
The resilience of semi-labourers to indulge in
menial work and access to in-house changes to the
schedule of work and work re-evaluation.
Negotiation
C-Hous2
Traditional use of manual adjustment in retrofitting
several workers to report and lack of platform for
communication.
Mediation
D- Water
Underground leakages control without the mobile
app to state precise GIS location and for cost
wastage estimation.
Mediation
E-Building
Fewer participants in stakeholders’ meetings
conducted during weekdays as compared to
weekends.
Conciliation
F- Building construction
Advises and strategies for communicating with the
community members were lacking, culminating in
some material missing or stolen on site.
Conciliation

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6. Results discussion
Testing the formulated hypothesis: HO1: There is no
significant difference between the national lockdown and
its aftermath impacts on the construction site.
The employed online questionnaire distribution and
the posed interview schedule were used to test the
hypothesis that affirmed/negated the assertion that
COVID-19 impacts the overall cost and time to project
completion, irrespective of the lockdown stages. Both the
qualitative and quantitative methods substantiate the
significance associated with the subject matter in
assessing the impacts before and after movement
restrictions and on contractors' payment. Respondent
response affirmed a positive/significant level of
effectiveness in the cost and time, irrespective of the
lockdown period or stage. The probability value for the
Chi-square test (0.000) is less than 0.05 (5% level of
significance), which negates the hypothesis assertion that
there is no significant difference between the national
lockdown and its aftermath impacts on the construction
site but concludes that the arising dispute call for claims
and a fair negotiation strategy in achieving an amicable
settlement that meets the different stakeholder and
company needs irrespective of their different projects'
execution.
A general discussion on the analysis of the results was
validated with qualitative inferences supported by the
literature review. The responses obtained from the
questions show litigation was not listed as the top
effective method of resolving disputes on construction
sites. Some contractors' response to the additional cost
claim shows the difference in site, while claims on time to
project completion was minimal. Although. The
stakeholder response shows that workers' safety was at
minimum risk compared to realistic options for an out-of-
court settlement. Both the initial contractual sum and the
expected project cost have not been complied with,
irrespective of the contractual obligations required from
the client. However, like criticisms made by participants
in Site B, C, and E., their responses do attest that there is
an increased dispute rate, but the response rate has not
been accorded the urgency required. Cortez and Johnston
(2020) further mention that mutual representation of
needs promotes fairness and justice in satisfactory work
done by both parties, while the failure to understand the
impacts of the MCO and/or comply with contractual
obligations represents the more significant cause of
disputes.
6.1 Categorised themes discussion
The data obtained from the annotated ABCDEF sites'
respondents through the questionnaires and interviews
were captured and categorised into a set of themes in line
with the aim and objectives of this study. In a further
attempt to unravel the above six themes, an effort was
made to further group them into two general themes:
negative consequences and positive consequences, in
exploring the different dispute resolution mechanisms for
the project's success. The negative impacts denote time to
project completion with varying opinions due to
miscellaneous logistics as per consideration for workers'
safety during the COVID-19 pandemic. Thus, the positive
consequences highlight work quality assurance both in
quantity, and quality of material delivery to the site, new
payment modality, and additional indirect cost incurred
due to delay in project time to completion.
6.2 Procurement modality conflicts resolution among
the Stakeholders
Among the aftermath of COVID-19 disruption of work
are disputes which emanated due to inadequate or lack of
priority set-up in regulating procurement of construction
goods/materials while still maintaining standard quality in
the procurement delivery. Furthermore, a series of
conflicts arose among stakeholders regarding who should
bear the risk among the contending construction workers.
Thus, causing an ideological clash between the consulting
engineer (senior) and other construction fraternity
workers (junior) on whom overtime claims are awarded.
In contrast, a percentage overhead cost is awarded to the
professional staff.
Conflicts of interest among stakeholders in resolving
the bottleneck of separating construction procurement
from the general procurement acts of government are all
emerging gaps to be dealt with in this era of COVID-19.
The influence of money-bag politicians to capitalise on
sub-standard contract execution and design guidance
aberration for their selfish campaign propaganda in the
electioneering process are emerging issues that conflict
resolution diplomats must pay recourse to. Since there
was no agreement amongst either party, the problem was
later dealt with in a court of law. Furthermore, the well-
detailed contract document averted a series of disputes. A
poor or incomprehensive contract document may have
resulted in a conflict between the structural engineer and
the project manager (Bal et al. 2014).
• Time to project completion
According to Mohammed et al. (2018), many successful
projects should meet not only the required quality output
standards but also be cognizant of the budget and time
constraints. Both the clients and the contractor commit to
an agreed time term in satisfying their demands and needs.
More often than not, disputes occur due to irregular
contract terms and conditions, which can lead to unabated
litigation due to divergent alternative views in meeting the
overall organisational and individual contractor goals.
The resolution mechanism organ examines all positive
and negative side-effects characterising the bone of
contention before arriving at a timely resolution
mechanism that appeals to all.
• Contraction sum and Expected project cost dispute
resolution.
COVID-19 presents the construction industry with the
challenge of disrupting strategies for planning,
coordinating, and executing various projects, from the
initial conceptual cost to the addition of expected indirect
project cost to completion variables. To achieve a
desirable dispute outcome, negotiation and mediation
provide a useful, structured approach to resolving disputes

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63
in the construction site's situation, as supported by Xu et
al. (2018). The mediator arranged or called for a meeting
in which all parties involved can come together through
conflict management stages not limited to preparation,
discussion, clarification of goals, readiness towards a
Win-Win outcome, compromise agreement, and
implementation of the agreed line of action. Though, the
execution of the negotiation process is dependent on many
determinant factors, such as the mediator's personality,
skills, and education level capacity. These chosen design
paths may lead to diverse views before arriving at
amicable solutions.
• Worker safety and minimum risk guarantee
Stakeholder engagement enhances efficiency and
effectiveness while implementing the construction
project. Since the engagement of stakeholders permits the
involvement of other parties' commitment to facilitating
transparent decision-making, the involvement of
stakeholders was no doubt significant in the construction
project as their participation had some advantages. The
stakeholder involvement in the project was predominantly
two sets of individuals. On one side were technocrats,
experts, and political authorities; on the other were
community members who were the beneficiaries of the
intended project (Bal et al., 2014). The decision on the
project's minimum risk and sustainability stakeholders
was premised upon the stakeholder's view, which
recommended that stakeholders be involved at the
project's inception. Such early involvement will create a
sense of ownership of the project, enhance commitment
amongst involved parties, increase expertise, and
contribute intuitive knowledge towards making sense of
belonging in the community.
• Overhead and indirect cost resolution
The middleman ensures value for money, work quality
satisfaction, personal ego elimination, and inadequate
compromise scandal for both the contractor and the client
with minimal loss. It proves saving chances for the
contractors, which are more likely to continue the work
with the other party in the future without rancour (Jiang
and Zhao, 2019). The overhead and indirect costs incurred
are usually embedded in the miscellaneous, but this does
not arise. Thus, the intervention of a mediator provides a
note to take this risk from the contract sum without the
need for negotiation or an arbitration panel.
An announced end of COVID -19 restrictions will
mean no more laws on social distancing; No curfews or
gathering limits; No mask mandates, and zero limits on
social gatherings. This slogan of social distancing is a
stylish way of dogging work, and casual workers take
time to maximise their daily wages. Likewise, the
arbitration process takes longer appointments fixing all in
the name to avoid being infected by the diseases. All these
increase the overhead cost and, invariably, the time
construction professionals spend handling disputes.
• Building bridges through an interest-based
approach and right-based approach
According to Oghenechuko and Godbless (2018), the
interest-based approach seeks parties to bargain and a
negotiating process by identifying the individual shared
interests rather than dwelling much on their log of claims,
while the right-based approach conversely shares the
mutual understanding from the other side with a series of
rules to guide the conversation. The negotiator leans
toward co-operational altitude in achieving an amicable
resolution, which tends to reach a satisfactory process of
getting the desired results. Cooperation has been a pointer
in the avoidance mechanism before negotiation efforts by
the parties. However, the mediator's task is constrained by
some drawbacks when mistrust, emotional barriers, and
concerned parties are compelled to participate, thereby
shifting the focus from the real issues to an unwillingness
to negotiate in the dispute when payment is involved. The
egoism tendency to participate cannot be compelled
except when ordered by Court.
The unique experience gained with negotiation,
arbitration, and mediation under the interest-based and
right-based approaches help in bargaining and bringing
professionalism in tolerating each other. Negotiation after
fracas or disagreement makes the work remain to stand.
Still, it harms and deters the value gain, thereby rendering
the work quality not to appease a common goal (Iyiola and
Rjoub, 2020). However, the three main dimensions of
negotiation (procedural, interactional, and distributive
justice) are not independent. Procedural negotiation refers
to the fairness of the process used to address the different
party's complaints or problems. In a distributive
negotiation, the parties are only looking for their gain. In
contrast, integrative negotiation is more difficult because
the concern is about the relationship's sustainability with
the other person.
The legal process dealing with construction disputes is
usually tailored to answering why there should be a
process and how the process should be applied (Chukkol,
2021). It viewed dispute resolution from three
perspectives: power, rights, and interests. The legal
perspective seeks redress in a law Court. The arbitration
court process tends to ensure that the concerned parties
should be in control of how to deal with the dispute
instead of only bystanders in control. The arbitrator
dwells on different scales of costs and elongates the case
process, which is later reviewed by the courts to award
costs. Although the recourse to out-of-court settlement is
with minimal cost while disaffection on some of the
arising irregularity caused by COVID-19 is resolved
gradually, this line of action entails continuous
engagement, dialogue, and involvement of other
stakeholders for this non-confrontational approach in
determining the management of the crises.
On the other hand, the pros of arbitration enjoy the
confidentiality and finality of the Court. The likelihood of
a future relationship may jeopardise with your opposing
party, except if an experienced mediator was protracted,
then an amicable resolution may not lead to total failure
(Caputo, 2016). Mediations tend to be quicker than
litigation, but if an agreement is not made, both parties
may have to waste their time fulfilling the agreement.

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64
Though litigation or arbitration may not be cost-effective,
it is usually the last option in dispute resolution caused by
Covid -19.
• Misconceptions about Force Majeure
The construction industry must also be aware of the
serious consequences concerning the assertion of force
majeure or frustration in a contract. Controversial
arguments exist about whether the coronavirus outbreak
has frustrated the contract or caused an anticipatory
breach regarding project completion time, material
delivery logistics, new working environment, and
additional costs incurred (Lai, 2020). Either of these legal
rights claims may amount to a breach of the contract. On
the contrary, the inclusion of frustration is generally more
severer than a force majeure clause insertion. Frustration
may result in the contract automatically being forfeited or
discharged by the law court (Casady and Baxter, 2020). It
can suddenly change the face of the contract rather than
suspending performance. The parties affected by force
majeure "shall give written notice to the other party
immediately upon the occurrence of a Force majeure
event, and if the said event is of such a nature that it will:
"Result in the impossibility of performance of an
obligation going to the root of the particular contract, the
party not so affected (: the other party") shall be entitled,
upon receipt of notice of the Force majeure event, to
terminate further performance of the agreement.
The COVID-19 pandemic has undoubtedly affected
construction companies whose parties construct the
negotiation power and ability to read the government
argument as matters were resolved through a consultative
meeting in defining the issues or receiving force majeure
claims—this bargaining strategy help to resolve the
conflict through proper communication and
understanding of the situation. The negotiation modality
approach requires changing emotive supply and demand
needs into a customise and refined based on empathy,
understanding, and invoking a claim of frustration or
force Majeure.
7. Charting way forward
The exploration of the game theory concept will serve as
an expert solution in the avoidance of conflict and
resolving many of the controversies resulting in the
dispute caused by the pandemic in the already weak
construction industry. The study cases suggest internal
restrictions have been removed or downgraded to
'recommend' where robot technology could be deployed
to deliver essential materials, providing advanced relief in
managing time to complete the different building projects.
Also, mastering the act of mediation, negotiation, and
reconciliation techniques are evolving innovative means
that have not been exhausted in dispute resolution. The
distinct roles of negotiators can be compelling if
collaborating, compromising, and accommodating what is
right are avoided, all in the name of self-ego and personal
aggrandisement. Hence, Low (2020) advocates
mediation, negotiation, and reconciliation as promising
tools for resolving and minimising construction disputes
toward their successful execution.
Social responsibility and sustainable development are
concepts whose integration during COVID-19 has led to
significant progress in how the construction industry
perceives dispute resolution through arbitration and
litigation operations mechanisms in project management.
It is not only about policies or steps taken to meet legal
redress requirements but also about social equality, justice
and accountability, bearing in mind the links between
service delivery decline and improved policy in support
of poverty alleviation and the well-being of workers are
paramount.
Covid -19 has compelled contractors and other
stakeholders (the bricklayer, welder, carpenter, clerk of
work, and labourer) to work under a stringent strange
environment that calls for collaboration among the
various parties concerning their wages and compensation.
Each artisan could compromise and accommodate each
other in the interest of the work.
The invocation of a force majeure claim with the
advent of coronavirus may not constitute part of its
concept assumed in the contract's general conditions,
intended to fulfill and used in arbitration among the
dissatisfied experts in project management. As a general
matter of fact, the client representative and the contractors
must seek legal advice before a force majeure event or a
contract has been frustrated to enjoy the immunity to
continue the project instead of being discharged. Thus, the
design action steps of the research could be deployed by
contractors in consultation with the government (client)
stakeholders in reaching an amicable solution.
8. Conclusion and Recommendation
Regardless of the issues facing the contracted
construction projects, this study has explored multi-tier
dispute resolution mechanisms not limited to arbitration
and mediating adjudication but to other emerging
contractors' adopted dispute methods. The study explores
different approaches to construction disputes in the
context of the COVID-19 pandemic experience in a South
African environment. Using an action research approach
where a mixed method was used in showcasing the
different styles of negotiations to serve as a managerial
intervention in the planning and coordination of the
project. The study has provided a broad overview of
contractors' adopted dispute resolution methods of
mediating adjudication during an unforeseen situation like
the COVID-19 pandemic.
Furthermore, the study has shed more light on why
successful projects require careful upfront planning to
achieve timely project completion within budget while
still giving the client the best value for the expended
money. The COVID-19/pandemic has exposed pricing as
a significant contract dispute in the supply and demand
chain networks. Thus, unlocking new funding options to
measure work as emerging lessons learned in COVID-19.
This will go a long way to curb the discrepancy witnessed
towards a peaceful dispute resolution for the construction
industry.
The study has highlighted the role of negotiation,
mediation, and arbitration rather than litigation as a viable
future scenario in resolving conflict. Thus, a successful
negotiation is about constant engagement and discussion

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65
to reach an amicable agreement, compromise to excuse a
party's non-performance, or justify the termination of the
contract. The study reinvigorates the need for: - clear
contract language, better design drawings in the hope of
unforeseen, risk management training, dynamic processes
in project schedule documentation, and the need for
proper communication as an effective tool for dispute
avoidance and resolution in the post-COVID. The study
recommends further constructive and robust discourse
within the arbitration system to appease the contractors
and clients where mediators and negotiators failed to
resolve the disputes.
Limitations of the study
This study did not consider the projects on a case-by-case
basis based on the contract term, facts, and circumstances
but on a lump case. Also, the adopted mixed methods are
time-consuming, costly, and could be subjected to biased
from interviewers. Furthermore, the study did not
consider the interdisciplinary nature of the different
projects. Subsequence studies may take broader and
similar projects in the same geographical location for key
consideration of different styles of negotiations.
Conflict of interest
No conflict of interest was presented.
Acknowledgements
The financial assistance of the National Research
Foundation (NRF) through Walter Sisulu University
towards this research outcome is hereby acknowledged.
‘‘Opinions expressed, and conclusions arrived at, are
those of the author and are not necessarily to be attributed
to the NRF.'' Likewise, the detailed, constructive
comments and suggestions from an anonymous reviewer
have considerably improved the presentation of the paper.
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