Special features, experiences and new trends in arbitration in the construction industry of Sri Lanka

Abstract

In Sri Lanka, Alternative Dispute Resolution (ADR) methods such as negotiation, conciliation, mediation, adjudication and arbitration can be identified as preferable alternatives for replacing traditional litigation as they would be more effective in time and cost. Arbitration is a voluntary procedure available as an ADR method to litigation. The main feature of arbitration is that it is consensual in nature and private in character. Arbitration Act of Sri Lanka No 11 of 1995 stated that arbitration principles and contents are based on UNCITRAL Model Law. At present, many parties to construction disputes have no interest in pursuing for arbitration. Therefore, professionals should take collective measures to increase the effectiveness of arbitration. With the increase in construction activity after 30 years of civil war the construction industry of Sri Lanka needs a fast and cost effective dispute resolution method. The aim of this research is to critically evaluate the arbitration method, its experiences and new trends as an ADR method in the construction industry of Sri Lanka, and suggest improvements to its practice in order to make arbitration procedure more effective. The research is to develop arbitration as an effective and efficient ADR method in the Sri Lankan construction industry.Literature review for the research was carried out together with the survey. The questionnaire survey was used among construction industry professionals. Accordingly, data collection was selected only from experienced professionals in the industry. This research is limited to the arbitration in the construction industry of Sri Lanka.