Critical analysis of alternative dispute resolution methods used in Sri Lankan construction industry

Abstract

Construction disputes are of highly technical in nature and in fact intensive and multifaceted than other commercial disputes. The litigation method is the traditional way of dispute resolution and drawbacks of litigation have opened up the ‘Alternative Dispute Resolution’ (ADR) methods. The desirable features of ADR methods are fast, inexpensive, flexibility, confidentiality, minimum delay. This research attempts to address the issues and conflicting areas of ADR methods in the Sri Lankan construction industry. Attempts have been made to identify and analyse problematic areas which are highly influencing the ADR methods. The aim of this research is to evaluate ADR methods and suggest improvements to the ADR methods in the Sri Lankan construction industry. This research is the result of surveys that were conducted to understand the experiences and usages of ADR methods. Two rounds of Delphi method surveys were conducted in order to identify problematic areas of ADR methods. Fifteen problematic areas and twelve potential improvements of ADR methods were identified during the Delphi survey round one. They were prioritised during Delphi method survey round two. Semi-structured interviews were used to get the extended view of the panel on top eight issues which were ranked in Delphi round two. A pivotal conclusion of this research is that the stakeholders in the construction industry prefer “negotiation” method. Usages and awareness about negotiation were highly appreciated by the construction industry professionals. Professionals had a low level of satisfaction on the current practice of arbitration. Overall expectation of the construction industry by application of ADR methods is to provide best solutions within a minimal time and without damaging the reputation of involved parties. It was revealed that construction industry expects quick remedy than the less cost solution. It further revealed that the stair-step model of dispute resolution strategy is the best. The research further makes recommendations in order to make ADR methods more effective and efficient.