Social conflict in projects is an uncompromising representation of differences in interests. Each project receives different claims from stakeholders based on their conditions. Project interest depends on the target level and goals to be achieved. Subsequently, the Local community surrounding the project transforms their interests based on economic, social, cultural, and environmental expectations. This study aims to reveal factors of interests between project and Local community on the occurrence of social conflict in projects. Soft System Methodology and CATWOE were used to identify root cause and factors of interests in the social conflict. Through library research and previous relevant researches, it was revealed that there are eight factors of interests which cause social conflict in projects. It is recommended that future researches should use factors in Formal System Methodology (FSM) to model the prediction of social conflict in projects based on different interests between project and Local community. The results are useful to compose the standard environment and social framework (ESF) as a “middle way interests” concept to reduce social conflict in projects. By using the correct ESF, interests and conflicts can be managed well so that the benefits can be enjoyed by the community and project itself. Finally, the results of this study can be used to formulate indices of social conflicts in construction projects.