Comparative Analysis of Adjudication and Arbitration Methods in Sri Lankan Construction

Abstract

Construction claims are more technical intensive and multifaceted than other commercial disputes. The construction industry needs a fast and cost effective method for dispute resolution. Although the area of dispute resolution has been widely discussed and heavily researched, few studies have been conducted with respect to this research area in the Sri Lankan context. The aim of this study is to compare and contrast adjudication and arbitration methods use in Sri Lankan construction industry. To accomplish this aim, a literature survey would be conducted to find out available dispute resolution methods and the extent to which research has been carried out on arbitration and adjudication method. The developed questionnaire would be used to gather primary data from the professionals and the collected data would be analyzed using of statistical tools. Further, factors that can be used to compare arbitration and adjudication methods are presented in the latter part of the literature review. Semi structured interviews were carried out using the factors identified from literature review. The results of this research enable researchers to gain a better understanding on the current adjudication and arbitration methods, recognize significance of critical factors and suggestions for the development of adjudication and arbitration methods in the construction industry of Sri Lanka. The findings of this research indicate that the professionals who involve in the construction industry have overall average level of satisfaction on the current practice of adjudication and arbitration, however they believe that adjudication is an effective mechanism for dispute resolution rather than arbitration. It further revealed that the modernised 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.