Alternative Dispute Resolution | Dispute Resolution Method | ADR Method





Alternative Dispute Resolution & Dispute Resolution in Construction

Alternative Dispute Resolution | ADR Method

Non - Adversarial Dispute Resolution Methods

Negotiation

Alternative dispute resolution

Advantage and disadvantage of negotiation

Advantages of Negotiation

Easy and fast settlement

No involvement of third party

More confidential, inexpensive

High degree of party control

Voluntary process

Disadvantages of Negotiation

Negotiators should be experienced

Can be used as stalling tactic

Requires Competence

No guarantee for trustworthiness of any parties

None-binding

Mediation

Advantages of Mediation

Confidential, cost effective

Participation is typically voluntary

Speedy settlement

using as dispute avoidance mechanism

Disadvantages of Mediation

Non-binding

Expenses to third party

No guarantee that settlement will be reached

Strong-willed mediator can exercise much control

Conciliation

Advantage of Conciliation

Confidential, cost effective

Advisory aspect by third party

Speedy settlement, Voluntary

Using as dispute avoidance mechanism

Disadvantages of Conciliation

Non-binding

Expenses to third party

No guarantee that settlement will be reached

Strong-willed mediator can exercise much control

Adversarial Dispute Resolution Methods

Arbitration

Advantage of Arbitration

Enforceable under foreign courts

Privacy, legally binding

Quick, Technically capable

Disadvantages of Arbitration

Takes more time and more expensive compared to other alternative dispute resolution methods

methods Power of third party

Involuntary

Adjudication

Alternative dispute resolution

Advantage of Adjudication

Privacy

Faster than arbitration

Binding decision

Decision can be used in consequent proceeding

Disadvantages of Adjudication

More Expensive

Award is provisional

Power of third party

Involuntary

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tags;

alternative dispute resolution,

adjudication

negotiation

advantage and disadvantage of negotiation dispute resolution method adr method

dispute settlement

alternative dispute resolution tags;

orincludes non-adversarial and adversarial dispute resolution methods.Generally construction projects are with high difficulty, complex and uncertainty, dispute are commonly occurred in the project between the stakeholders, parties.Therefore,is essentially required to settle the dispute. At the inception stage of a project, project related contract document should be created with the dispute resolution method with the related contract forms.Progressive dispute resolutions tend to minimize uncertainty and improve working relationships. Ultimately, it leads towards success of the project. Resolution is commonly divided into Litigation and Alternative Dispute Resolution (ADR). ADR defines the procedures ofother than by litigation.This method is mainly focusing on dispute resolved with no intention of finding for court's support. Therefore, it is an alternative to the system of court. It is needed for each and every dispute to be resolved in an effective manner. The alternative dispute resolution (ADR) method includes non-adversarial and adversarial dispute resolution methods by having more advantages than litigation, which mentioned below,Non - Adversarial Dispute Resolution Methods :- Negotiation, Mediation and ConciliationAdversarial Dispute Resolution Methods :- Arbitration and AdjudicationIt is an informal method for resolving dispute. Participants in this negotiation process are the parties in the contract and their nominated negotiators. Once parties try to resolve a dispute by negotiation, it is not sure that the procedure will affect in a resolution. The negotiators and their parties should deal face to face with each other. In a successful negotiation, the negotiators and their parties reach a resolution of the dispute, according to the parties benefits. The advantage and disadvantages of negotiation are given below,In this mediation process, the parties who involved in the contract select an independent third party known as mediator, to aid them to to come to a settlement of the dispute. As the mediator shouldn't represent the favor of either party. The mediator act as facilitator, who supports the parties find out the strengths and weaknesses of their cases and support them to frame and transmit settlement offers.When the disputants fail in agreeable settlement, the mediator will give non-binding recommendations. The advantage and disadvantages of mediation are given below,It is an informal method, which is similar to mediation, and it is accompanied with designated a neutral third party by contract parties to dispute known as conciliator. But conciliator has active participation in the discussion process between contract parties, giving views on the cases put ahead appropriately and there will be no private meetings are conducted between individual parties and conciliator regarding to dispute cases. The advantage and disadvantages of conciliation are given below,It is a formal method, it is the process where the parties brings up disputes arising in the progression of a contract to a nominated third party (known as Arbitrator) to be resolved. Where reference to arbitration is in writing, the process is run by the several Arbitration Acts. The Acts need Arbitration to be supported in a legal manner, and at the decision of a hearing the Arbitration must deliver reasons for any award prepared. The conclusion of the Arbitrator in relation to conclusions of fact is decisive; there is no way to appeal. On the other hand, appeals can be through the courts on points of law, however, only with the approval of the court hearing the appeal. The advantage and disadvantages of arbitration are given below,It is most successfulmethod. It is a form of time-limited fast-track arbitration and legal process that targets to offer a fast dispute resolution with the participation of the agreed neutral third party (known as Adjudicator) who will offer chances to obtain wide-ranging information and to participate in group discussions and creates a temporarily binding decision for disputes related to the contract. Any party in construction contract has right to have a dispute resolution decided by adjudicator. The adjudicator is a subject matter expert and may be single or panel and considers the opinions of both parties and inspects facts to make a decision. It is established to allow disputes to be resolved on an interim basis more quickly and more cost effectively. The advantage and disadvantages of adjudication are given below,