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Types of Dispute Resolution Mechanisms

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30 views10 pages

Types of Dispute Resolution Mechanisms

Uploaded by

akhanyaxasha2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Types of Dispute

Resolution Mechanisms

16 July 2024
By: Dr D.M.Tshobotlwane
1. Negotiation
 Negotiation is often the first step in resolving disputes in the
construction industry.
 It involves the parties involved in the dispute sitting down and
discussing their issues in a constructive manner with the aim of
reaching a mutually acceptable solution.
 Negotiation is a flexible and informal process that allows for
creative problem-solving and can help preserve relationships
between the parties.
2. Mediation
 Mediation is a voluntary and confidential process in which a
neutral third party, known as a mediator, helps the parties
involved in the dispute to reach a resolution.
 The mediator does not impose a decision on the parties but
instead assists them in communicating effectively and exploring
possible solutions.
 Mediation is often faster and less expensive than litigation and can
result in more satisfactory outcomes for all parties involved.
3. Arbitration
 Arbitration is a more formal dispute resolution process in which
the parties agree to have their dispute resolved by a neutral third
party, known as an arbitrator.
 The arbitrator makes a binding decision based on the evidence
presented by the parties.
 Arbitration can be less time-consuming and costly than litigation,
and the parties have more control over the process and outcome.
 However, the decision of the arbitrator is final and legally binding.
 Arbitrator must act fairly and impartially between the parties
 Court can intervene if the arbitrator does not act fairly
4. Adjudication
 Adjudication is a dispute resolution process commonly used in
construction contracts.
 It involves a neutral third party, known as an adjudicator, making
a provisional decision on the dispute within a specified
timeframe.
 The decision of the adjudicator is binding on the parties unless
and until it is overturned by arbitration or litigation.
Adjudication is a quick and cost-effective way to resolve disputes
in the construction industry.
Difference arbitration and
adjudication
 Arbitration is binding and it can be a much longer and more
formal process.
 Adjudication involves the quick resolution of disputes between
parties where an adjudicator hears the outline of both sides of the
argument and makes a fast decision within 28 days.
 Often the dispute is decided on paper only.
 Arbitration reviews the dispute fully
5. Litigation
 Litigation is the most formal and adversarial dispute
resolution process in which the parties involved in the
dispute present their case before a court of law.
 Litigation can be time-consuming, expensive, and
unpredictable, and can damage relationships between the
parties.
 Sometimes more money can be spent going through the
courts than just accepting the loss (magistrate, high court,
appeal court, and constitution court)
 However, it may be necessary in cases where other dispute
resolution mechanisms have failed or are not suitable.
Conclusion
 In conclusion, dispute resolution mechanisms play a crucial role in
the construction industry of South Africa and can help parties
resolve their disputes in a timely and cost-effective manner.
 It is important for construction professionals to be aware of the
different dispute resolution mechanisms available to them and to
choose the most appropriate one based on their specific
circumstances.
 By using the right dispute resolution mechanism, parties can avoid
costly litigation, preserve relationships, and ensure successful project
outcomes.
 Thank you for your attention, and I hope you found this presentation
on dispute resolution mechanisms in the construction industry of
South Africa informative and helpful.
List of references
 Maphumulo, S. L., & Mandela, N. P. (2015). The Role of
Mediation in Resolving Disputes Among Members of a South
African Community. Journal of African Studies and Development,
7(5), 117-122.
 Blom, I., & De Visser, J. (2012). The Role of Mediation in
Resolving Labour Disputes in South Africa. African Journal on
Conflict Resolution, 12(1), 61-78.
 Nhlapo, T. l. (2013). The Use of Alternative Dispute Resolution
Mechanisms in Resolving Family Disputes in South Africa: An
Evaluative Perspective. Social Work, 49(2), 180-197.
List of references
 Cuny, B. (2011). Dispute Resolution in South Africa: An Overview
of the Legal Framework. CERIL Law Reports, 2(1), 33-49.
 Madonsela, T. (2014). The Role of the South African Human Rights
Commission in Resolving Disputes Related to Human Rights
Violations. Journal of Human Rights and Human Dignity, 2(1), 56-
68.
 Quinlan, T. K. (2016). The Use of Arbitration in Resolving
Commercial Disputes in South Africa: Challenges and
Opportunities. South African Law Journal, 34(3), 451-467.
 De Jager, J., & Mpindis, L. (2020). The Effectiveness of Judicial
Dispute Resolution Mechanisms in South Africa: A Case Study

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