Review of impact of judicial interference to enhance Construction arbitration in Sri Lanka

Abstract

The basic characteristics of built environment activities are complexity and disputability in its own nature. This complexity drives most of the construction projects and contracts towards disputes between parties. Construction contracts in the industry are more complex than all other type of business contracts by its nature. This complexity itself has paved the path for disagreements between parties of such contracts. Although disputes are common in Sri Lankan construction industry as elsewhere in the world, dispute resolution mechanisms are not admired in Sri Lanka. The litigation process is the traditional mode of dispute resolution, drawbacks of litigation process have opened up the ‘Alternative Dispute Resolution’ (ADR) methods. Literature based on the process of Arbitration in Sri Lanka and other countries reveal that using Arbitration as an alternative method to the court system will be more beneficial than court litigation. It is evident that there would be a high possibility to ensure the efficacy of the process of Arbitration by minimising the interference of the judiciary. At present Arbitration as an ADR method does not efficiently resolve the disputes. This research examines the usage of Arbitration as an ADR method to resolve the construction disputes instead of traditional litigation. However, the current arbitration method and its practice hinders the advantages by irregular judicial interferences which prolong its efficiency. The aim of this research is to recommend effective amendments for current Arbitration practice in Sri Lanka by reviewing the impact of judicial interference. This research proposes a well-planned Arbitration method which can avoid pitfalls in the current legal regime of the Arbitration practice in Sri Lanka. Further it seeks to suggest positive amendments for the Act to avoid loopholes and minimise the challenging grounds of arbitral awards.