What is ADR or alternative dispute resolution in construction?
Litigation is the traditional method of resolving disputes in the construction industry. But Litigation process takes much time and cost to solve the problems. Also, the process of litigation can ruin the relationship between the parties involved in the dispute.
Arbitration is the next favourite method used to settle the conflict in the construction industry. In the arbitration process, An arbitrator(independent third party) involved in settling the disputes (Based on the given evidence arbitrator is giving a judgement to the case). Arbitration process also a long and expensive process.
Therefore the modern construction industry uses alternative dispute resolutions (ADR) methods to settle disputes. But any of these methods are not treated as formal methods.
Below are the types of Alternative dispute resolution methods used in the construction industry.
- Trade Association conciliation
- Mini Trails
- Private Trails
Alternative disputes resolution methods allow a confidential and cost-effective process to settle disputes between parties involved in a dispute. ADR was heavily promoted by CPR institute for dispute resolution. And most of the major organizations are signed CPR corporate statement which those organizations are agreed to attempt ADR before any other litigation or arbitration method.
These methods are treated as a neutral level between debate and court case. But both parties are voluntarily attending to the process. Finally, if any of the party is not agreed on the resolution given in the ADR process, they can take it to court. because either party is not bound to accept the final decision of the ADR process
In our future posts, we will be discussing above each alternative disputes resolution method as well as the arbitration and litigation method. please comment your thought below, it will help us to improve our articles. If you like this post please like it.