CONFLICTS AND DISPUTES ARE INEVITABLEConflict is defined as the behavior due to which people differ in their feelings, thoughts and/or actions. Collins (1995) states that conflict is “a serious disagreement and argument about something important” and also “a serious difference between two or more beliefs, ideas or interests” (cf. Kumaraswamy, 1997, p. 96) . Generally, conflicts are considered to be the underlying cause of disputes. In other words, disputes are a manifestation of deep-rooted conflict. A dispute is defined as “a class or type of conflict that manifests itself in distinct and justifiable issues.” It involves disagreement over issues that can be resolved through negotiation, mediation, or third-party judgment” (Brown and Marriot 1993, cf. Yates 2003, p.1). Many authors have proposed different theories and guidelines to differentiate the terms “conflict” and “dispute”. But some practitioners are still not able to recognize the difference between the terms. In fact, they use the terms interchangeably, even though the terms are very different (Gebken II, 2006). A practical distinction is made by John Burton who differentiates the two terms on temporal bases and conflicting issues. According to Burton, disputes are short-term disagreements that are negotiable, that is, a solution can be found that meets the interests of both parties. On the other hand, conflicts are long-term, deep-rooted, non-negotiable issues. Human needs for security, recognition and identity are always conflicting and non-negotiable issues. These conflicts often escalate until they become intractable conflicts. Both terms can be used independently and can be connected. According to Douglas...... middle of article...... an altruistic or competitive attitude and a different perception of fairness on the part of different people involved in business projects are responsible for disputes, but those -these can be resolved by appropriate means. management of time, coat and quality factor. Semple (1994; cf. Cheung and Yiu, 2006) suggested that what made a project open to litigation were the provision in contracts, restricted access of individuals, scope of work and acceleration of work due to unavoidable delays. Contracts and unforeseeable events are very closely linked to the origin of disputes. It can be said that a project involves a large amount of uncertainties during its life cycle and the task of planning for these uncertainties in contracts has laid the foundation for disputes. This may be due to failure to address the sources of contract uncertainties..