DISPUTE RESOLUTION IN

CONSTRUCTION
Level 1 Competency

AIMS-BUDAIYA TEAM WORK

ADR – Alternate Dispute Resolution
• Method of resolving disputes without going to
court (Litigation)
• Saves time and Cost
• Maintains business relationship
• Practical solution; both parties must be wishing to
seek a settlement.
• ADR is confidential (Litigation are not)
• Big draw back is it is non binding and can be
overturned in Arbitration/Court.
ADR Main types
• Negotiation
• Mediation
• Expert Determination
• Conciliation
• Adjudication
• Mini Trial
ADR Main types
• Negotiation Simplest form, senior persons
• Mediation from both sides trying to find
the best solution with bit of
• Expert Determination give and take
• Conciliation
• Adjudication
• Mini Trial
ADR Main types
• Negotiation • The parties choose the mediator by
mutual consent.
• Mediation
• Expert Determination • Mediator attempts to move the parties
towards a constructive solution.
• Conciliation
• Adjudication • Mediator takes an active role but not
offer an opinion.
• Mini Trial
• This procedure is fast and economical
ADR Main types
• Negotiation • The parties choose the expert(s) with
relevant expertise
• Mediation
• Expert determination is neutral and flexible
• Expert Determination
• Conciliation • Expert determination is consensual

• Adjudication
• Expert determination is a confidential
• Mini Trial procedure

• The determination of an expert is binding,

unless the parties agree otherwise

• Expert determination is a flexible procedure

ADR Main types
• Negotiation • Similar to Mediation

• Mediation
• The parties choose the mediator by
• Expert Determination mutual consent.

• Conciliation
• Mediator attempts to move the parties
• Adjudication towards a constructive solution.
• Mini Trial
• Conciliator takes an active role and
OFFER AN OPINION.

• This procedure is fast and economical

 • 3rd party given decision on the Contractual rights and
duties of parties to a contract

ADR Main types • More emphasis on the independent adjudicator making a

proposal based on the parities arguments
• Is often described as a "pay first, argue later" mechanism
for resolving disputes in the construction industry.
• Negotiation • Statutory adjudication was introduced by
the (Construction Act 1996) UK
• Mediation • Adjudication is appropriate for resolving claims relating to:
• Expert Determination • Interim payments, Delay and disruption of the works,
Extensions of time for completion of the works, The
• Conciliation final account.
• Although not originally designed for complex claims, an
• Adjudication adjudication can relate to:
• Breach of contract, Termination of a contract,
• Mini Trial Professional negligence.
• Adjudicator's decisions are:
• Interim-binding, that is, they are binding until the
dispute is finally determined by legal proceedings,
arbitration or by agreement.
• Rarely successfully challenged by the losing party.
ADR Main types
• Negotiation • Mock court trial, therefore involves
Solicitors and sometimes retired judge.
• Mediation • Follows normal court proceedings
• Expert Determination • Court gives decision which is normally
binding until end of the contract
• Conciliation • This is not replacing “Adjudication” but
• Adjudication first stop to resolve the dispute
• Very rarely used in Construction industry.
• Mini Trial
If ADR didn’t workout
Conclusion
• Know how disputes arise
and take
• Communicate well
• Look for objective
solutions to
• A commercially based
settlement mediation is
the best way to handle
• Use ADR to resolve
disputes quickly. If all of
this fails, there are of
of arbitration and
litigation.