Abstract
The construction industry is complex, fragmented, dynamic and involves many parties in an adversarial relationship. This makes disputes almost inevitable in any construction project. This paper aims to provide a comprehensive review of the adopted methodologies in resolving disputes that arise in the construction projects. The paper evaluates and classifies the different methods of disputes resolution. A comparison was conducted between the advantages and disadvantages of each method. The paper distinguishes between the traditional method of disputes resolution; litigation and Alternative Dispute Resolution (ADR) methods such as arbitration, mediation, med/arb, mini-trial and dispute review board. In conclusion there is no best way to solve all kind of disputes in construction projects, however, a general step by step process of how disputes should be addressed is finally presented.
Highlights
The complexity of construction projects is continuously increasing which increases the complication of contracts and the disputes probability that might arise at any stage in the project lifecycle [1]
The purpose of this paper is to review the present methodologies used in the construction projects for preventing and resolving disputes
If this method is selected to resolve disputes, a neutral party should be selected by the contract parties at the start of the project. This method aims to manage and resolve disputes immediately as they arise and the decision of this process will be binding [56]. The advantage of this hybrid over other Alternative Dispute Resolution (ADR) methods is that it enhances reaching a solution during the mediation stage because both parties are unlikely to be favoured going into arbitration, which is a must in case mediation fails
Summary
The complexity of construction projects is continuously increasing which increases the complication of contracts and the disputes probability that might arise at any stage in the project lifecycle [1]. It is normally trusted that owners’ initial choices regarding the selection of delivery methods, procurement methods, and contract types influence the recurrence and seriousness of project disputes [3, 4]. In this context, the construction projects are fertile seedbed for disputes. One of the major factors of unsuccessful projects is the adversarial nature between the project parties which leads to the development of disputes Another important factor is the methodologies used for resolving these disputes when they come to the surface [8, 9]. The paper aims to present the advantages and disadvantages of the methods and to determine which one can work better for a particular situation [10]
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