LEGAL FRAMEWORK FOR EFFECTIVE IMPLEMENTATION OF ADR METHODS UNDER THE CONSTRUCTION INDUSTRY DEVELOPMENT ACT

Abstract

The recently enacted Construction Industry Development Act No. 33 of 2014 is for the development of the construction industry in Sri Lanka. The Act facilitates the resolution of disputes within the construction industry. There is ineffectiveness on implementation of ADR methods for the settlement of disputes. Thus, this study focuses on developing a legal framework for effective implementation of ADR methods for the settlement of disputes in accordance with the said Act. The research was initiated with a literature survey. A survey approach was implemented whereby two rounds of questionnaires were distributed and semi-structured interviews were conducted among construction professionals with more than 10 years of experience. A pilot study was conducted as a preliminary measure to design the questionnaire round one. Questionnaire survey was conducted by Delphi technique with two rounds by targeting 36 and 30 professionals in round one and two respectively. Data was analysed by taking as a percentage of the total number of respondents for questionnaire round one. For questionnaire round two, first t-test was used to identify the significant problems and potential solutions and then MWR was used to rank them. The structured interviews were analysed using content analysis. The sampling technique was a judgemental sampling. The survey results on questionnaires revealed the problematic areas related ADR methods used by the construction industry and at the said Act. The survey findings also presented potential solutions to overcome those problematic areas. In addition to the questionnaire survey, interviews were generated recommendations to the part IX - Settlement of disputes of the said Act. Through these results of the study legal framework for effective implementation of ADR methods under the Construction Industry Development Act No. 33 of 2014 was developed. This framework can be adopted to settle the dispute effectively in the Sri Lankan Construction Industry. By practicing this framework the projects can be continued without deadlock, whenever dispute is arisen.