A study on conflicts and disputes arising in the modular integrated construction projects in Hong Kong

Abstract

Modular Integrated Construction (MiC) is an emerging construction technology in Hong Kong and is becoming a hot topic in recent years. This new construction method has been promoted by the Government due to its numerous benefits, including enhancing project safety and productivity, minimising construction time and cost, as well as mitigating the existing problems in the local construction industry (e.g. labour shortage). However, there are also limitations and risks to adopting the MiC method in Hong Kong, such as the uncertainties of MiC module logistics and lack of experience and expertise. They should not be overlooked since they might give rise to conflicts and disputes that impede project progress and incur extra expenses, running counter to the original goal of promoting MiC. Plenty of existing studies analyse the causation of construction conflicts and disputes, yet none of them addresses the unique sources of conflicts and disputes that occurred in MiC projects in the context of Hong Kong. Hence, the objectives of this study are to investigate the causation of conflicts and disputes and the methods and styles of conflict management and disputes resolution in MiC projects. First, the most common and significant sources/causes of conflicts and disputes arising in Hong Kong’s MiC projects in comparison with those in conventional projects were identified, followed by proposing corresponding preventive, mitigation and remedial measures. It has been discovered that the construction practitioners’ inexperience, issues arising from particular contract arrangements/terms and peculiar MiC processes, insufficiency of preliminary works, as well as the current developer-dominated phenomena and ongoing pandemic situation, constitute the most significant and common MiC-specific sources of conflicts and disputes in Hong Kong. Then, the commonly used methods and cultural uniqueness/styles of conflict management and dispute resolution, especially in MiC projects in Hong Kong, were evaluated. Less hostile, costly and time-consuming methods such as negotiation and commercial settlement are favoured by the construction practitioners. A dispute resolution advisor/arbitrator is hired widely in large-scale public MiC projects. Moreover, Hong Kong Chinese construction practitioners tend to compromise and focus on working relationships not only due to their embedded cultural mindsets but also for the sake of the project and business interests under the fierce competition in Hong Kong construction industry. This study adds to the body of knowledge by increasing the local construction practitioners’ and the Government’s understanding of MiC-specific conflicts and disputes in a bid to help them develop efficient approaches to manage and resolve them. It is hoped that this study will help minimise the occurrences of conflicts and disputes in MiC projects and boost the public confidence in adopting MiC technology.