DECISION SUPPORTING FLOW CHART FOR DISPUTE RESOLUTION

Abstract

Construction projects usually are susceptible to conflicts because of their complexity. Additionally, the involvement of different stakeholders pursuing different aims and implementing them by different means, often results in disputable situations that must be solved. The existence of several dispute resolution procedures with various advantages and disadvantages makes it difficult to select the most suitable one for solving the particular conflict. Not every method seems appropriate for resolution of each type of dispute. Litigation may take a long time and incurs substantial cost. However, conflict parties seldom choose alternative dispute resolution (ADR) procedures such as adjudication, mediation and conciliation. Based on literature research and the analysis of several surveys, the authors identified a massive knowledge deficit of construction industry regarding the details of ADR procedures. The authors conclude that deeper knowledge about pros and cons of the various dispute resolution methods can help construction companies with their decision for a suitable way of conflict settlement. The paper provides information about a decision supporting chart for choosing the appropriate dispute resolution measure. That decision supporting tool, developed by the authors, primarily shall assist smaller and mid-size construction companies, normally not having easy access to legal advice, in deciding for a dispute resolution strategy.