Culture - The Hidden Factor Behind Construction Disputes

New Zealand has always been a land shaped by migration. According to the 2023 Census, nearly 29% of New Zealanders were born overseas. Our communities are made up of Māori, Pacific, Asian, European, and Middle Eastern backgrounds, often overlapping within families and workplaces. In Auckland, the country’s largest construction hub, more than half of the residents were born outside New Zealand, making it one of the most multicultural cities in the world.

That diversity is not just visible on the street, it is deeply woven into our building sites. Construction relies heavily on migrant labour. Around one in ten workers in the industry is a migrant, and on many of the large-scale projects I’ve been involved in, the proportion is far higher. On one of my recent projects, we counted workers and professionals from more than 25 different nationalities. Imagine the range of languages, traditions, and cultural expectations that came together on that site.

It was inspiring, but also challenging.

The Hidden Cultural Challenge in Disputes

When we talk about construction disputes, most people think about contracts, payment schedules, design errors, or scope changes. But beneath the legal and technical layers sits something more human: culture.

For example, in many Asian cultures, raising a dispute is not seen as standing up for yourself, it is seen as being disrespectful, confrontational, or even shameful to your own reputation and the wider relationships in the industry. In some Pacific communities, hierarchy is strong, and questioning authority figures is discouraged. For others, relationships and reputation carry far more weight than paperwork.

So, what will happen on a New Zealand construction site when these cultural values meet the hard realities of late payments, ignored variations, or safety concerns? Too often, silence. Contractors absorb the loss, avoid confrontation, and hope things will get better. But silence in construction is rarely neutral, it usually means a company edges closer to insolvency. In fact, recent data shows the construction sector recorded 187 insolvency cases in the first quarter of 2025, which is a 13% increase year-on-year. That's 62 companies per month, 2 companies per day.

I have seen talented subcontractors walk away from tens, even hundreds of thousands of dollars, simply because they didn’t feel it was appropriate to push back. Some of my clients have not been paid since 2021. When I asked why they didn’t come to me sooner, their answer was always the same: “We didn’t want to damage the relationship.” By the time they finally seeking help, it was often too late, they were hanging by a thread, on the verge of insolvency.

They genuinely believed that raising a claim would burn bridges or brand them as “difficult.” This is not about a lack of capability or intelligence, it is cultural. And unless we recognise that reality, underrepresented contractors will continue to be disproportionately harmed by disputes.

Lessons from a Multicultural Project

On that project I mentioned earlier with 25 nationalities, we had every reason to expect friction. Different working styles, communication gaps, and varying expectations about hierarchy and responsibility could have easily exploded into constant disputes.

But something different happened. From the very start of the project, the leadership team chose to address cultural differences head-on. Such as recognised the individuality of each nationality, from hanging national flags on site to learning how to greet each other in different languages and styles. On the contract side, obligations and dispute processes were explained in plain language, no jargon, no legalese. The project was openly acknowledged that what one group considered normal behaviour might feel disrespectful or unusual to another.

These small changes made a massive difference. Workers and subcontractors felt heard. Problems were raised earlier and more constructively. Instead of disputes becoming adversarial, they became conversations. Trust grew across cultural lines. The project still had its challenges, I mean, every project does, but cultural sensitivity turned what could have been a minefield of conflict into a genuinely collaborative environment.

Why Cultural Respect and Business Protection Must Work Together

The lesson I took away is this: respecting culture does not mean avoiding disputes. It means creating an environment where disputes can be raised safely, fairly, and without fear of humiliation. Business survival often depends on it.

When contractors from underrepresented communities feel confident to use the tools available to them, from clear contracts to dispute resolution, the whole industry benefits. Disputes get resolved quickly. Companies stay afloat. Relationships are preserved instead of destroyed.

And it’s not just about financial outcomes. There’s a deeper value at stake: trust. When people see that their cultural background is understood and respected, they are more likely to engage openly. They are more likely to raise concerns before they spiral. They are more likely to stay in the industry long-term, adding to the stability and resilience that New Zealand construction so desperately needs.

Practical Shifts That Help

Over the years, I’ve found a few simple but powerful practices can make the difference between silence and resolution:

• Plain language communication — stripping contracts and dispute processes of unnecessary complexity so everyone can follow. The contract should be there to serve everyone, not just lawyers.

• Safe forums for feedback — not everyone will raise issues in a crowded site meeting. Smaller, culturally sensitive channels matter.

• Acknowledging hierarchy and face — understanding when direct confrontation won’t work, and using mediators or trusted intermediaries instead.

• Early education — explaining upfront, at induction or contract stage, what rights and processes exist, in terms people can relate to.

And the best part is: none of these ideas are expensive. But they are effective.

Looking Forward

The construction industry is under enormous pressure right now, tight margins, rising liquidations, and increasing disputes. More and more small to medium companies are being pushed into insolvency, and soon we risk losing the very people who keep our projects running: the honest, hard-working contractors who are our partners of delivery every sucessful projects. Without them, this industry simply cannot function. In such an environment, cultural differences can either become fault lines that accelerate conflict or bridges that strengthen collaboration.

The difference lies in whether we choose to see culture as part of the equation.

I believe we can respect cultural values and still protect business interests. I’ve seen it happen on projects where diverse teams worked not despite their differences, but with an awareness of them. And when that balance is struck, disputes shrink, relationships thrive, and companies, especially those from underrepresented communities, get the fair chance they deserve to succeed.

In some cultures, raising a dispute feels like disrespect. In construction, it’s survival.

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I’m Emmolina May, a Quantity Surveyor, Adjudicator, and Educator who mainly works alongside underrepresented contractors and construction businesses to navigate disputes and protect what they’ve worked hard for.

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