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Conflict seems very synonym with construction projects and leading to the impression of problems including project cost overrun, time overrun, productivity loss, loss of profit and damage in business relationships. This study focuses on the identification of different direct and indirect causes leading towards conflicts which are usually taking place in construction industry of Pakistan. The direct and indirect causes of conflicts were identified through a detailed literature review and later on, shaped in to a questionnaire to get the expert opinion. The results of this study shows that Delay in payment, Contractual claims, Public interruption, Poor communication, Differing site conditions, Lack of funds, Unclear risk allocation are the direct causes leading to the conflicts followed by the indirect causes. It is concluded that special attention should be given to these factors during the life cycle of the construction project so as to avoid conflicts.