Adopting to online dispute resolution to resolve disputes in Sri Lankan construction industry

Abstract

Dispute is an outcome of a problem which emerged when the minds are not met. Disputes are unavoidable in construction industry due to its inherent characteristics. Both litigation and ADR approach is deployed to resolve disputes in Sri Lankan construction industry. With the development of information and communication technology, electronic based ADR become popular among the companies as well as the construction industry. When considering the Sri Lankan construction industry, it requires a faster and cost-effective ADR practices than before with the gradual increasing of the complexity and number of construction projects. There is therefore a pressure to accelerate the system digitalisation since the technology can also handle more complicated disputes in Sri Lankan construction industry. Hence, this research was conducted with the aim of investigating the possibility of adopting ODR to resolve disputes in Sri Lankan construction industry. Accordingly, a comprehensive literature review was conducted followed by semi-structured interviews with 15 construction industry dispute resolution experts selected through purposive sampling method under the qualitative research approach. The collected data was analysed through manual content analysis. According to the findings, adjudication, arbitration, negotiation, mediation, conciliation, expert determination and amicable settlement are the ADR practices used in Sri Lankan construction industry. However, most of the respondents were not satisfied with the current ADR process since they were unable to receive the expected outcome from them. Besides, all the respondents were aware about the ODR concept and most of them considered ODR as conducting ADR practices through online. Sri Lankan construction industry require ODR since to address increasing number of claims, cost effectiveness, quick resolution, switching to novel working arrangement and to minimise deficiencies in current mechanism. Respondents stated that ODR is highly applicable for arbitration, adjudication, DRB and pre- trials in Sri Lanka. The benefits of ODR includes virtual presence, global accessibility and convenience. Key challenges to implement ODR in Sri Lanka includes lack of awareness of ODR concept, privacy and confidentiality issues and lack of trust. Development of approachable platforms, training programs, designing trustworthy platforms are some of the strategies that can be taken to support ODR implementation in Sri Lanka. The findings of this research will assist the Sri Lankan construction industry to enhance the efficiency and effectiveness of ODR.