Dispute Resolution in the Construction Industry

Not all disputes can be avoided. Indeed, an industry as large and complex as construction will undoubtedly generate disputes. New processes such as risk management and partnering are being developed in an attempt to tackle the causes of conflict, but the UK construction industry is still regarded as claims-orientated and a fertile ground for conflict and dispute. Construction disputes are caused by project uncertainties, problems in the process, or people issues. Uncertainties which are not dealt with by the project participants on a day-to-day basis can evolve into protracted disagreements, claims and disputes. This process of disputing is fuelled by entrenched positions, lack of communication and clashes of personality. Dissatisfaction with litigation and arbitration has led to the development of alternative dispute resolution (ADR) methods which embrace the use of a neutral third party in pursuit of a 'business solution'. There are, however, conflicting reports on the success of ADR in the construction industry. Few industry participants appear to have had actual experiences of ADR and there is little empirical data on UK experiences.
Most published texts on dispute resolution deal with just one technique, however this essential new guide provides an overview of the array of dispute resolution techniques available. It provides definitions and an explanation of the processes, and an insight into the views of the industry players. The report draws on DETR-funded research including the largest ever survey of UK construction disputing. This presents a review of the current status and future development of dispute resolution in the industry. Using case studies and quotes from the survey data, the report looks at the reasons behind the conflicts and compares the different dispute resolution techniques, including the new 'alternative' approaches of mediation and more specialised techniques such as expert determination, but, most importantly it explores the perceptions of those involved in the process. Consideration is given to how disputes can be managed more effectively through the selection of the most appropriate techniques. This report, which avoids technical jargon and lengthy explanations is aimed specifically at lawyers, contractors, consultants, architects and surveyors.