Pathways of Construction Dispute Formation in China: A DEMATEL, AISM, and MICMAC-Based Approach

Construction disputes, often triggered by a variety of interconnected factors, are widely recognized as a significant challenge within the construction industry, frequently leading to substantial delays and cost overruns. This study aims to clarify the formation path of construction disputes in China. Using judgments published by the Supreme Court of China and arbitration cases published by the arbitration commission as the primary data source, the research employs text-mining techniques and expert interviews to identify the key influencing factors of these disputes. The study utilizes the decision-making trial and evaluation laboratory (DEMATEL) model to rank the causal relationships and the influence magnitude of each factor. Then, the adversarial interpretive structural modeling (AISM) model is applied to establish a hierarchical structure of these factors, providing a comprehensive discussion on the formation path of construction disputes. To validate the analysis, the Matrices Impacts Croises-Multiplication Appliance Classement (MICMAC) model is used to assess the dependence and driving force of the causal factors. The findings reveal that contractual imperfections, poor communication, and the transaction structure does not align with market demand, which are the most fundamental causes of disputes in China’s construction sector, while claims emerge as the most direct trigger. The study underscores that construction disputes arise from multiple factors rather than a single issue, offering critical insights for industry stakeholders to mitigate dispute occurrences effectively. Finally, using a novel integrated approach to study the formation pathways of construction disputes supplements the existing body of knowledge and helps minimize the occurrence of construction disputes. All parties involved in construction projects can benefit from the study’s findings by understanding the importance of contracts, communication, and the alignment of transaction structures with market demand.