Management of Disputes Related to Contractor’s Liability: Differing Site Conditions in Design–Build Projects

AbstractThe design-build (DB) procurement method, commonly used in construction, often faces disputes over claims related to differing site conditions (DSC), which are unforeseen and unpredictable risks encountered during the construction process. Thus, this research aims to manage the contractual disputes related to the contractor’s liability under DSC in DB projects. An extensive literature survey, followed by three case studies, a document review, and expert interviews, helped gather information. DB contractors’ nonperformance of DSC precautions, such as verifying employer-provided data and conducting thorough site investigations before bidding, can primarily be attributed to negligence, unawareness, and constraints in terms of cost and time for conducting comprehensive site investigations. Effective DSC dispute management involves contractual parameters like evaluation techniques and risk responsibilities and technical aspects such as detailed site investigations and expert analysis of potential risks. Win-win DSC dispute management benefits employer and contractor. Practical ApplicationsThis research is based on managing disputes related to DSC, focusing on the contractor’s liability and its impact on design-build projects. The finding reveals the contractor’s liability and the level of fulfilment of the contractor’s liability for DSC, common disputes under the contractor’s liability for DSC and suitable contractual and technical parameters to manage the disputes, underscoring the importance of managing DSC disputes in practical scenarios. This study is beneficial to industry professionals to systematically handle the disputes related to DSC in DB contracts, offering a new perspective on dispute management. Construction industry practitioners can leverage these findings to dispute management, enhancing sustainability in their works. The study provides actionable recommendations for construction industry practitioners. By integrating these research outcomes, stakeholders can overcome challenges in DSCs, contributing to more informed and effective practices in dispute management. This study advances our understanding of managing disputes related to the contractor’s liability in differing site conditions in design-build projects. It highlights its practical relevance, offering a foundation for further innovation and application in real-world contexts.