What are common causes of construction project disputes?

Discrepancies in contract interpretation and unexpected conditions are indeed common causes of disputes in construction projects because contracts serve as the foundational agreements that outline the expectations, responsibilities, and conditions for all parties involved. When there are differing interpretations of the contract terms, it can lead to misunderstandings, disputes over deliverables, timelines, and payment structures. This can be further complicated by unexpected conditions that arise during the project, such as unforeseen site conditions, regulatory changes, or scope changes that were not accounted for in the original contract. These elements can create significant friction between contractors, owners, and other stakeholders.

In contrast, cultural differences between teams may cause communication challenges, but they are not typically the primary source of disputes. Market volatility can affect project budgets and timelines but is more of an external factor than a root cause of contract disputes. Similarly, while lack of engagement from team members or clients can lead to misunderstandings and reduce project efficiency, it does not typically escalate to disputes as directly as discrepancies in contract interpretation and unexpected conditions do.