Effectiveness and preference of arbitration in Sri Lankan construction industry : a professional perspective

Abstract

Construction is one of the major economic activities where physical process of completing a building or infrastructure include the steps of planning, designing, and funding. Presence of disputes in construction industry is a common phenomenon. Dispute means an argument or disagreement between two individuals or groups. One of the major causes of project failures in the construction industry is increasing disputes. Therefore, determining appropriate methods and factors affecting dispute resolution is extremely important. The aim of this study is assessing the preference of arbitration and the effectiveness of arbitration in Sri Lankan construction industry with professional perspective under four objectives of, observe the importance of arbitration as a method used in dispute resolution in Sri Lankan construction industry; identify important constraints that affect the preference of arbitration in local construction industry; evaluate leading critical constraints against the preference of arbitration using a statistical method, determine preference and effectiveness of arbitration as a method of ADR(Alternative Dispute Resolutions ), by professional in local construction industry. From the literature review flexibility, cost, willingness, time and binding decision, are identified as affected critical constraints for the Preference and Effectiveness of Arbitration in Construction Industry. The analysis was done on those critical constraints to determine whether the constraints identified have a relationship with the preference and effectiveness of Arbitration. This study was done based on professional perspective. This study applies quantitative research technique. The random sample consisted of 93 participants. A distinctive questionnaire was designed in and the feedbacks of participants have been plotted in 5 points Likert Scale. Through outcomes of the questionnaire, it was identified and determined that employees preferred arbitration to settle disputes that happen in real life. Hypothesis testing was conducted to discover the relationship between five critical constraints to the preference of arbitration in construction industry of Sri Lanka. From hypothesis testing it was recognized that the constraints identified in conceptual framework have a positive and a strong relationship with preference and effectiveness of Arbitration.