The behaviour of dispute resolution methods in Malaysian construction industry

Abstract

Every project is bound to have disagreement. Alternative dispute resolution (ADR) techniques do not require full legal process and become mainstream option to traditional dispute resolutions. Yet, the actual practice of ADR is very low in the construction industry. Therefore, a comprehensive study is necessary to understand the behaviour of these dispute resolution methods. The research described in this paper discusses the philosophies and the selection factors of the dispute resolution methods. The factors are based on the attributes of the methods. Preliminary interview and questionnaire survey were conducted. The results from the data collected indicated that the contractors and developers are keen on ADR methods, however arbitration and litigation are somehow accepted and agreed by the respondents. It is concluded that selection on ADR or non-ADR is not a major issue, rather the increased efficiency and appreciation of the methods is more demanding towards the desired benefits at the end of the proceedings.