Abstract:
The construction industry in Sri Lanka covers a complex and comprehensive field of activities. Disputes
might arise at any point during the construction process. Dispute resolution systems are changed with
the interaction of the parties. Arbitration is a voluntary procedure available as an alternative
resolution to litigation, however not enforceable as the means of settling disputes except where the
parties have entered into an arbitration agreement. Construction claims tend to be of the most
technical nature - intensive and multifaceted than most other commercial disputes. The desirable
features of arbitration are fast, inexpensive, fair, simple, flexibility, confidentiality, minimum delay. Sri
Lanka Arbitration Act No. 11 of 1995 stated arbitration principles and UNCITRAL Model Law.
However, there is a necessity to reviewing and improving of the arbitration practice periodically in
order to minimise the cost and complexity of the procedure.
This research is ultimately aims to assess significant attributes of arbitration in construction industry of
Sri Lanka. This paper reports on findings gained from the literature review and preliminary survey
conducted to explore the current status of arbitration as an alternative dispute resolution method in Sri
Lankan construction industry. Current findings indicate that the construction professionals have
minimum level of satisfaction on the current arbitration practice; however, they believe that arbitration
is an effective mechanism for dispute resolution. The results of this study enabled to gain an
understanding on the current arbitration practice and its significance and offer suggestions to improve
current arbitration practices in the Sri Lankan construction industry.
Citation:
Abeynayake, M. & Weddikkara, C. (2012). Arbitration as an alternative dispute resolution method in the construction industry of Sri Lanka. In S. Senaratne & Y.G. Sandanayake (Eds.), Global challenges in construction industry (pp. 23-31). Ceylon Institute of Builders. https://ciobwcs.com/downloads/WCS2012-Proceedings.pdf