Effectiveness of Alternative Dispute Resolution Strategies in Construction Contracts

Abstract

Construction contracts are very prone to disputes. This can be attributed to the high complexity, large volumes of documents, and high participation of different project stakeholders involved in the contract and execution. Therefore, the study was aimed at evaluating the effectiveness of alternative dispute resolution (ADR) strategies in construction contracts with a view of identifying the strategy mostly used and the benefits derived from them. The study utilized a well-structured questionnaire instrument in the survey research design adopted. A total of 120 construction professionals were selected from the study area. The study used statistical tools of percentages, mean score, and Pearson bivariate correlation tests. The result showed that construction professionals were mostly aware of Negotiation, Arbitration, and conciliation methods in the ADR process. Most construction professionals ascertained the effectiveness of ADR strategies in terms of its likelihood and increased in the speed of settlement, conflict is resolved peacefully, and practical solutions are tailored to parties' interests and needs. The study recommended the need to increase awareness about ADR practices to construction practices to forestall the significant litigation cases in courtrooms.