Claims and disputes are common in construction projects and the costs associated with these adversarial relationships can reach up to $4–$12 billion per year. While previous studies have indicated that project delivery methods (PDMs) might impact the frequency and severity of claims and disputes in highway projects, none provided any empirical evidence to support this perception, especially as related to the claim types in different project delivery methods. To address this issue and explore the different variables that might affect claims and disputes among many other project performances metrics, this empirical study was initiated. Data were collected by distributing a questionnaire to DOTs across the transportation sector. The data were analyzed using descriptive and inferential statistics. Results showed that while PDMs, procurement, and contractual methods have no significant impact on the claim and dispute performance, PDMs can impact other factors (e.g., contractor’s performance and trust). These significant findings provide opportunities for further research in other areas such as trust and partnering, which were proven to strategically act as indirect mitigation practices on claim and dispute occurrence in construction projects. The study can also be used by practitioners to further understand the real reasons behind claims and disputes, avoid their triggers, and build a good model of trust for claim and dispute avoidance.

Disputes are common in the construction industry and lead to unnecessary cost and schedule overruns in projects. It is commonly believed that owners’ early decisions regarding the selection of delivery methods, procurement methods, and contract types affect the frequency and severity of project disputes; however, no previous study has empirically tested this hypothesis, particularly in highway public projects. Therefore, this study empirically investigated the effect of owners’ early decisions regarding project organization (i.e., delivery methods, procurement, and contract types) on performance measures (e.g., cost and schedule growth), specifically dispute performance metrics (e.g., frequency and severity of disputes), in public highway projects. A comprehensive literature review was conducted to identify factors that affect disputes in construction projects. This review was used to develop a survey instrument capturing both independent factors, including type of delivery methods [e.g., design-bid-build (DBB)], procurement methods (e.g., open bid), and contract types (e.g., lump sum), and dependent factors, including the frequency and severity of disputes as well as other project performance metrics (e.g., cost, time, and satisfaction measures). Then, the survey was distributed to procurement personnel in state DOTs across the United States. Data on 60 projects from 22 DOTs were received. The data obtained were analyzed to find any statistically significant differences between dispute frequency and severity; relevant performance metrics; and the various types of delivery methods, procurement methods, and contract types. The results of the analysis showed that in the case of project delivery methods, (1) construction management at-risk (CMR) outperformed DBB in terms of design satisfaction and construction satisfaction, (2) projects delivered using design-build (DB) had lower schedule growth compared with DBB projects, and (3) using alternative delivery methods can lead to lower cost and schedule growth. As far as the selection process was concerned, the results showed that (1) projects procured using qualifications-based selection had significantly less-severe claims (i.e., lower cost and lower severity for the largest disputes) compared with projects procured using open bid; and (2) procuring a project using best-value selection (i.e., through one-stage or two-stage requests for proposals) increases the chances of finishing a project with fewer claims, lower claim costs, and lower severity for the largest disputes. Appropriate team selection can ensure a smooth project delivery process, provide more a collaborative environment, and help achieve success. Finally, based on the study results, it can be inferred that contract types significantly affect schedule growth in highway projects. The effect of project organization decisions is presented to assist DOTs in selecting the appropriate project delivery methods, procurement methods, and contract type for their project goals and expected performance.

Over the last decade, with legislation changes and increased project complexity, some airports started using progressive design-build (DB) project delivery, a variation of the traditional DB model. This is because it allows owners to hire a designer-builder without a price commitment until reasonable design details are defined. This paper, thus, aims at investigating and presenting lessons learned in planning, procurement, contract formation, and management of progressive DB. The methodology incorporated a comprehensive literature review of major procurement, contractual, and legal issues pertinent to delivering airport projects using progressive DB. Ten overarching aspects were identified and were further investigated on a California terminal expansion project case study, encompassing two progressive DB contracts. Results show that owners select progressive DB for schedule compression and delayed locking of contract price reasons. Lessons learned encompassed moving project handover responsibility to the designer-builder, closely tracking and participating in the design development process, and vigilantly handling cost-saving provisions so as not to jeopardize project quality.

Although tremendous focus in management research is placed on new construction technologies, the social and human factors through which these technologies are implemented often are neglected. An increasing trend in construction management research is seen in soft management aspects, such as trust. This basically developed from the fact that construction projects involve individuals and their beliefs. Construction projects are based on collaboration among contracting parties to accomplish project goals. Thus, it is crucial to build teams quickly and establish good communications among team members. Trust has been determined by many studies as an excellent determinant to successful projects and crucial to building integrated project teams. The aim of this paper is to present a literature review of research on trust in construction, identify knowledge gaps, and suggest recommendations for future research. More than 50 peer-reviewed publications were reviewed through which six main lines of research were identified. Research in trust in construction seems to focus primarily on four main areas: trust types, factors affecting trust development, trust effect on project success, and relational contracting. Yet there still exists knowledge gap in areas of nonrelational agreements, North American construction markets; and project cost, risk, and contracts' relations to trust.

Changes in legislation and increases in the complexity of airport projects have led owners to expand the use of alternative project delivery methods, such as the lump-sum design-build (DB) method. The objective of this study was to investigate and present lessons learned from the use of lump-sum DB on large-scale airport projects during planning, procurement, closeout, and operations. To achieve this objective, a literature review was conducted in order to examine primary procurement, contractual, and legal issues pertinent to lump-sum DB in airport projects. A case study of a lump-sum DB central utility plant project is presented, which included construction of new maintenance facilities, replacement and construction of new piping for utility distribution, and electrical and communication systems. The lessons learned from the case study include the importance of maintaining an adequate management involvement level, which can help the design-builder avoid project delays but still protects the owner from design liabilities. Another key lesson learned is the provision of adequate training to management and staff in procurement and management of lump-sum DB projects in order to avoid potential claims. The study’s main contribution is in shedding light on the use of lump-sum DB by addressing untapped legal and contractual issues associated with large-scale airport capital programs.

The use of alternative project delivery methods has increased significantly in the last decade. In the past, airport projects were designed and constructed using the traditional design-bid-build delivery method. However, recently airport owners have been extensively using construction-manager-at-risk (CMAR), lump-sum design-build, and progressive design-build to build both landside and airside projects. As new project delivery methods are used, airports have learned lessons related to legal and contractual issues in these types of projects. The objective of this paper is to investigate and highlight legal issues that arise in medium to large CMAR airport projects during design, construction, and closeout phases. The study covers legal issues related to design, environmental permitting, contract procurement and management, construction phasing, insurance requirements, local issues and outreach, dispute resolution methods, funding, hazardous material remediation, incentives and disincentives, project closeout, and operation and maintenance of these airport projects. To achieve the objective of this study, the paper utilized a case study methodology by gathering and analyzing contract documents from airport CMAR projects, as well as interviewing the project managers and construction lawyers working on these projects. Some of the lessons learned using the CMAR method were to ensure that the Federal Aviation Authority (FAA) and local laws allow for the procurement of these types of projects, as well as understanding the fact that design and construction management in these types of projects vastly differ from the traditional method. Other lessons learned, related to insurance, environmental permitting, dispute resolutions, and project labor agreements are discussed. Recommendations stemming from these findings are also highlighted, so airport owners will be aware of legal issues that can potentially arise on airport CMAR projects.