Use of negotiation as a dispute resolution method for MEP subcontracts in Sri Lanka

Abstract

The construction industry frequently encounters disputes, especially in MEP subcontracts, due to discrepancies between parties, lack of coordination, design discrepancies, and contradictions between forms. The study aims to assess the efficiency of negotiation as a dispute-resolution mechanism for MEP subcontracts, rather than resorting to alternative dispute-resolution approaches such as arbitration and litigation, which are costly, time-intensive, and harmful to business relationships. To accomplish the research objectives, a comprehensive literature review was undertaken to gather insights from textbooks and prior research, followed by a questionnaire survey targeting professionals involved in Sri Lankan MEP subcontract projects. The collected data were analysed using quantitative methods, including the Relative Importance Index (RII), to identify key trends, challenges, and outcomes in negotiation practices. The findings reveal that negotiation is an effective means of resolving disputes in MEP subcontracts in Sri Lanka, rather than relying on other dispute resolution methods. The study further highlights specific benefits of negotiation, including preserving trust and collaboration, reducing project disruptions, saving time and costs, and enabling customised solutions tailored to project-specific needs. Ultimately, the study identifies the types of disputes in MEP subcontracts, causes of the conflicts, use of negotiation in MEP subcontracts, assesses the challenges and opportunities of implementing negotiation in MEP subcontracts in Sri Lanka and provides recommendations to enhance the effectiveness of negotiation.