EFFECTIVENESS OF ALTERNATIVE DISPUTE RESOLUTIONMETHODS USED IN THE HIGHWAY CONSTRUCTION PROJECTS IN SRI LANKA

Abstract

Effectiveness of dispute resolution affects immensely for success or failure of construction projects. This document consists of a literature review about alternative dispute resolution (ADR) methods including negotiation, mediation, Dispute Adjudication Board (DAB), ad-hoc adjudication, arbitration and ten critical factors affecting to effectiveness of ADR methods such as cost, speed, relationships, fairness etc. After decades of use there is no clear detailed analysis about used alternative dispute resolution in highway projects for their effectiveness and efficiency. In order to fulfil this gap, this research is conducted to evaluate effectiveness of used ADR methods regarding ten critical factors. The research methodology adapted was qualitative within multiple case studies from disputes arisen in Expressway Construction projects. The primary data collection techniques used in this study were ADR documents and semi structured interviews. Content analysis was used to analyse these documents and cross case analysis to compare cases findings to each other. The research findings revealed that ratings for critical factors fluctuate from case to case significantly. In the discussion of research findings, key attributes identify which was the cause for fluctuations. So one cannot simply say this or that factor affects most to the success and this ADR method is best way to deal with disputes. According to study it’s not fair to deal with every dispute in the same manner, so categorization of disputes concerning key attributes needed for improved efficiency of ADR methods. Guidelines developed include steps, tables and flowcharts for using ADR methods effectively. These findings and guidelines are presented in a logical, systematic and a sensible way to identify the ideal ADR method for a given dispute rather than relying on subjective decisions. It is hoped that these findings and guidelines will be useful to the stakeholders in future highway projects and can be adapted to the whole industry.