Cultural Influence on Construction Dispute Resolution

Dispute resolution in construction projects is not only influenced by legal and technical aspects, but also by cultural factors inherent in the interactions between project actors. This study aims to examine the influence of culture on construction dispute resolution in Indonesia through a qualitative approach utilizing in-depth interviews with construction and dispute resolution experts. Data were analyzed using thematic coding analysis, which resulted in three main themes: cultural values such as hierarchy, respect, and harmony; cultural differences between project actors that can trigger misunderstandings; and cultural challenges in adopting an effective and fair dispute resolution approach. Based on these findings, a feedback loop model was developed describing how the success or failure of culture-based dispute resolution influences the practices that will be chosen, between maintaining an informal approach or switching to formal mechanisms such as arbitration or litigation. This model is contextual and adaptive, representing the dynamics of dispute resolution in a multicultural environment, but remains relevant for adoption in various global contexts that have similar cultural complexities. This study contributes to a cross-disciplinary understanding of the importance of cultural sensitivity in construction dispute resolution practices.