Construction industry is expanding by leaps and bounds, so are the sizes of organizations. Experts have focused on understanding and identifying a suitable organization structure that matches the needs of the construction industry. The need for a functional organization structure that is more flexible and can tackle the challenges of competitive industry led to adoption of Matrix Management. Considered as one of the ideal structures for effective control of decentralized units, it allows organizations to be more flexible and adaptive to trends. However, Matrix organizations have also been associated with attributes of ambiguity, confusion and inefficiency due to conflicts between various functional roles. The objective of this paper is to understand and identify the reasons of conflicts between various functional units within an organization. The proposed model attempts to identify the sources of conflict in early stages. It is a preliminary study that aims to develop a tool that aids top management in identifying potential conflict areas and supports in making critical decisions.