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Prof. Khem Dallakoti

This document discusses alternative dispute resolution (ADR) in construction projects. It provides three main types of ADR: 1. Negotiation, which involves voluntary participation by the parties to resolve disputes without a third party. 2. Mediation, which uses a third party mediator to facilitate resolution but does not impose a resolution. Mediation has a high success rate and is quicker and cheaper than litigation. 3. Arbitration, where the parties agree to have a third party arbitrator impose a binding resolution on the dispute. Arbitration outcomes can be appealed through courts. ADR methods generally impose fewer costs than litigation and allow more confidentiality and control over the resolution process.
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0% found this document useful (0 votes)
84 views17 pages

Prof. Khem Dallakoti

This document discusses alternative dispute resolution (ADR) in construction projects. It provides three main types of ADR: 1. Negotiation, which involves voluntary participation by the parties to resolve disputes without a third party. 2. Mediation, which uses a third party mediator to facilitate resolution but does not impose a resolution. Mediation has a high success rate and is quicker and cheaper than litigation. 3. Arbitration, where the parties agree to have a third party arbitrator impose a binding resolution on the dispute. Arbitration outcomes can be appealed through courts. ADR methods generally impose fewer costs than litigation and allow more confidentiality and control over the resolution process.
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ADR

Prof. Khem Dallakoti


Legal and Engineering
Lawyer may understand the world of law but rarely the
engineering complications
Practical problem to persuade the judge should never
be under estimated
Expert opinion may vary – what counts is judge’s
impression or feeling from expert opinion – winning
the case might be a lottery
Conflict makes project difficult
Parties in Contract
Employer
invests money for return, cost effectiveness
Wants to build structure to meet the purpose
Wants the structure in time
Wants the quality anticipated
Contractor
Manages and works for profit
Team work
Client – consultant – Contactor
• Client should know the project and priorities
• Consultant shall be experienced/qualified and
professional
• Contractor shall be capable and equipped
ADR
Alternate Dispute Resolution
External dispute resolution ( Australia)
Tends to be an Appropriate dispute resolution-
Considers all the possible responsible options for
conflict resolution
ADR - Definition
Includes dispute resolution process and techniques
carried out outside of the government judicial process
a dispute resolution method that is not the courts.
Benefits of ADR
Imposes fewer cost than litigation
Preference for confidentiality
Greater control over the selection of the individuals
who will decide their dispute
Types of ADR
Negotiation
Mediation/Conciliation
Adjudication
Arbitration
Negotiation
Participation is voluntary
No third party who facilitates or imposes the resolution
Coaching both the parties behind the scene by a
common friend – ‘helping people help themselves’
Mediation
There is a third party called a mediator
Mediator facilitates the resolution process or sometime
suggest a resolution as ‘mediator’s proposal’
Mediator does not impose resolution to the parties
Mediation in UK synonymous to ADR
Mediation overview
Both side prepared to agree but no binding and both
select a person whom the both have confidence.
1st party – what the problems are – some points are
persuaded to rethink – be realistic about the problem
2nd party – discuss the problem – bring down their
claim to reality – mind the litigation cost etc.
Mediation - Benefits
Mediation = Reach Agreement
Reach a binding Agreement / Settlement
Let’s you get on with your life or your business
Prevents escalation of the dispute (into something worse
and probably more expensive!)
High success rate
Quick and cheap
Arbitration/Adjudication
Third party, adjudicator/arbitrator, who imposes a
resolution
Parties should earlierly agree that dispute is to be
resolved by adjudication/arbitration
Parties may appeal arbitration outcomes to courts

Other types of ADR
Case evaluation – a non binding process in which a
neutral case evaluator assesses respective positions on
how the dispute is likely to be decided by adjudicator.

Legal battle

Thank you for your kind attention

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