Scholarly Paper Assessment of the Critical Dispute Factors in Public–Private Partnership Infrastructure Projects Murat Gunduz, Ph.D., A.M.ASCE 1 ; Khalid K. Naji, Ph.D., A.M.ASCE 2 ; and Samar Al-Sharafi 3 Abstract: Public-private partnership (PPP) projects would result in disagreements due to their intricate nature, extended duration, and the involvement of various parties. There is a gap in the literature on quantitively evaluating the most important indicators that contribute to a dispute in PPP projects. To comprehend the causes of disputes in PPP projects, a thorough review of the literature was carried out, leading to the classification of 41 factors leading to disputes into six categories. A survey was then conducted to gather data on how these factors are perceived as risks in PPP projects. This data was analyzed using two statistical methods, frequently adjusted importance index (FAII) and structural equation modeling (SEM), via confirmatory factor analysis (CFA) and exploratory structural equation modeling (ESEM). The results indicated that CFA is more reliable and valid than ESEM; consequently, only the CFA and FAII findings are considered. The study found that the most significant contributors to PPP project disputes are the construction-related factors group, followed closely by the design-related factors group. These findings can make critical contributions to avoiding time and cost overruns on PPP contracts, subsequently leading to better performance and higher efficiency. Furthermore, the models developed in this study may be useful in future research with similar objectives as they meet the criteria for goodness-of-fit. DOI: 10.1061/JLADAH.LADR-1138. © 2024 American Society of Civil Engineers. Author keywords: Public Private Partnership (PPP); Infrastructure; Dispute; Structural equation modeling (SEM); Confirmatory factor analysis (CFA); Frequency adjusted importance index (FAII); Planning; Critical construction project success factors; Key performance indicators. Introduction The public-private partnership (PPP) model is used worldwide for infrastructure development projects. It involves collaboration between the public and private sectors in financing, designing, constructing, operating, and maintaining infrastructure assets. The PPP model offers numerous benefits, such as providing a means for govern- ments to access additional financial resources for investment in in- frastructure, without immediate expenditure of public funds (Engel et al. 2010). It also increases efficiency as private sector involve- ment can bring expertise and innovation, thereby reducing costs and improving service quality (Iossa and Martimort 2015). In ad- dition, PPP contracts include obligations for the private sector to operate and maintain assets over a long period, which can help to ensure that the assets are not neglected and remain functional and beneficial throughout their lifespans (Burger and Hawkesworth 2011). Despite the benefits, PPPs are not without their challenges and potential downsides, which can include disputes between the parties involved. Disputes may arise for various reasons and can have significant negative implications, including but not limited to the following: 1. Project delays: Disputes can result in delays, leading to longer project timelines, which can, in turn, increase costs and delay the delivery of the service or infrastructure to the public (Broome and Hayes 1997). 2. Increased costs: Disputes often lead to increased costs. This can be due to legal expenses, penalties for delays, or noncompli- ance. The costs of resolving disputes can be significant and may be borne by the public sector, the private sector, or both (Ibbs 2005). 3. Damage to relationships: Disputes can damage the relation- ships between the parties involved in the PPP. This can hinder collaboration, make future negotiations more difficult, and potentially even lead to the breakdown of the partnership (Cheung et al. 2012). 4. Loss of public trust: Disputes, especially those that are highly publicized, can lead to a loss of public trust in both the govern- ment and the private sector partner. This can make it more difficult to garner support for future PPP projects (Hodge and Greve 2018). This study contributes to the body of knowledge by identifying the factors that lead to disputes in PPP projects and assessing the risks they pose to project performance. This study is the first of its type to quantitatively evaluate the impact of most important indica- tors that contribute to a dispute in PPP projects by structural equa- tion modeling (SEM). A literature review did not produce any other studies utilizing the methodology. The methodology includes a thorough literature review for identification of factors leading to disputes in PPP projects, a questionnaire survey for data sampling and observation, and the application of frequency adjusted importance index (FAII), confirmatory factor analysis (CFA) and exploratory 1 Professor, Dept. of Civil Engineering, Qatar Univ., P.O. Box 2713, Doha, Qatar (corresponding author). ORCID: https://orcid.org/0000-0003 -2602-3318. Email: mgunduz@qu.edu.qa 2 Associate Professor, Dept. of Civil Engineering, Qatar Univ., P.O. Box 2713, Doha, Qatar. Email: knaji@qu.edu.qa 3 Graduate Student, College of Engineering, Qatar Univ., P.O. Box 2713, Doha, Qatar. Email: sa1106643@student.qu.edu.qa Note. This manuscript was submitted on September 9, 2023; approved on April 4, 2024; published online on July 9, 2024. Discussion period open until December 9, 2024; separate discussions must be submitted for indi- vidual papers. This paper is part of the Journal of Legal Affairs and Dis- pute Resolution in Engineering and Construction, © ASCE, ISSN 1943- 4162. © ASCE 04524016-1 J. Leg. Aff. Dispute Resolut. Eng. Constr. J. Leg. Aff. Dispute Resolut. Eng. Constr., 2024, 16(4): 04524016 Downloaded from ascelibrary.org by Murat Gunduz on 07/10/24. Copyright ASCE. For personal use only; all rights reserved.