EXAMINING THE EFFECT OF CONFLICT ON CONSTRUCTION PROJECTS: A CASE STUDY OF BIRIM MUNICIPAL ASSEMBLY

ABSTRACT 

Over the years, the construction industry of Ghana has witnessed continuous conflicts on project execution. The success of every construction project depends largely on how effective conflicts are well managed. This study sought to examine the impact of conflicts on construction projects using Birim Municipal Assembly as the case study. The target population involves contractors, employees of construction firms, clients and consultants. Purposive and convenience sampling techniques were employed in selecting sample size of 113, out of which 102 responded. Questionnaire served as the main data collection instrument adopted and results were analysed using descriptive and inferential statistics. The study found that among the causes of conflict on construction projects at Birim Municipal Assembly was the issue of inability of clients to honour payments to contractors. The existence of poor and ineffective channels of communication on projects makes information dissemination and utilisation very difficult. Key effect of conflicts on construction project was interruptions and occasionally suspension of the whole construction works.  The occurrence of unresolved conflicts has led to delays attracting time and cost overruns which affect negatively profit margins of contractors and increase overall cost of projects. Negotiation and mediation were widely adopted strategies to deal with conflicts on projects. Despite the introduction of these systems, much has not been achieved in the quest to minimize conflicts on projects. It is incumbent on all parties to a project to ensure adequate and smooth flow of information, timely delivery of funds to contractors and effective conflict management tools suitable for resolving disputes as they occur based on any given circumstance.