APPLICATION OF EFFECTIVE DISPUTES RESOLUTION IN CONSTRUCTION CONTRACTS IN RWANDA

Abstract

Purpose: As a vibrant and booming industry, the Rwanda construction industry has numerous contractual disputes that arise between different parties as projects advance with time. It is because of this that a third party will often be agreed upon by the employer and the contractor to resolve any issues or disputes that may arise. Rwanda Construction projects are becoming increasingly complex and as a result more complex contract documents are made, this in turn results in more challenging claims and disputes. Many forms of construction contracts are used in Rwanda such as FIDIC forms of contracts, World Bank, Rwanda Public Procurement Authority (RPPA) and other private forms of contracts. The aim of this study is to examine contract dispute resolution process and develop an effective approach for Rwanda.

Methodology: The approach of this study is both qualitative and quantitative as the research wants to focus on the application of effective disputes resolution in construction contracts in Rwanda especially in Kigali city.

Findings: At the first stage of construction contract preparation, every Construction project is expected to be performing as it is prepared within given time limit, estimated budget, detailed and with compliance to the client requirements. However undesirable project performance results have been reported from one project to another in various forms such as low productivity, delays, cost overrun, and poor quality as a result of variation.

Unique Contribution to Theory, Practice and Policy: Compliance with external political strategy and organization strategies was the main criteria in needs identification. There were change orders in a majority of the projects arising from change in needs during construction works. The contract development process was inefficient in many projects and led to inaccurate estimates that later negatively affected project performance.