Reconciling Divergent Approaches to Construction Claims: Good Faith, Collaboration, and Power Dynamics

This paper investigates the fundamental divergence in how construction claims are perceived and managed across various global regions, specifically contrasting established Western markets (e.g., the UK and Europe) with diverse contexts in Asia and the Middle East. While claims in Western construction are often viewed as a legitimate process for commercial adjustment and risk allocation within a collaborative framework, in many other regions, the preference for contractual purity is often tempered by relationship priorities, and claims are frequently perceived as an adversarial act or a disruptive challenge This often leads to reluctance from contractors to pursue valid entitlements due to underlying power imbalances (e.g., gap-eul relationship in South Korea) and fears of commercial repercussions.


The paper argues that these contrasting perceptions significantly impact the practical application and effectiveness of "good faith" principles and the fostering of genuinely collaborative construction environments. This study examines how factors such as cultural power distance, uncertainty avoidance, and dominant client-centric contracting practices can undermine explicit or implicit duties of good faith and cooperation in practice. It also explores how concepts like good faith and collaborative principles are reflected within the legal and contractual frameworks across these regions, including comparisons between common law and civil law approaches.
 

To gain empirical insights into these real-world dynamics, the research employs a survey methodology targeting construction professionals (contractors, law firms, claims consultants, clients) with multi-regional project experience. The survey focuses on their practical perceptions of claims, adherence to contractual provisions versus relationship priorities, the influence of power dynamics, and the role of trust in claims management across the specified regions. This blend of empirical data from industry professionals and comparative legal analysis aims to provide a comprehensive understanding of the complex interplay between law, culture, and power in international construction claims.

Author
Thomas Yun, Trowers & Hamlins LLP
Publication year
2025