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.
Citation:
Abeynayake, M., & Weddikkara, C. (2014). Critical analysis of alternative dispute resolution methods used in Sri Lankan construction industry. In Y.G. Sandanayake, N.G. Fernando & G.I. Karunasena (Eds.), Sustainability and development in built environment: the way forward (pp. 127-137). Ceylon Institute of Builders. https://ciobwcs.com/downloads/WCS2014-Proceedings.pdf