Development of a model for the selection of dispute resolution method
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Saudi Digital Library
Abstract
Disputes are common in the construction industry. Several methods exist for dispute resolution between the parties of the contract ranging from informal negotiation to legal litigation. This study addresses various dispute resolution methods and their advantages and disadvantages. Relative importance of factors considered in selecting a dispute resolution method along with the preferred method is determined by conducting a survey with twenty one (21) large contractors, twenty seven (27) eminent consultants and twenty two (22) owners (project managers representing owner organizations) in the Eastern Province of Saudi Arabia. The top most influencing factors identified were obtaining fairness, contract obligations, bindingness of the decision, cost of the process and type of dispute (majorminor). Another objective of this research was to develop an AHP (Analytical hierarchy process) based model for the systematic selection of appropriate dispute resolution method using the preferences of factors provided by the end user. An AHP-model was developed based on the results of the questionnaire survey as well as survey of the literature. Application of the model was Discussed via a hypothetical example utilizing the AHP based software, Expert-Choice. This model will serve as a tool in selection of the appropriate dispute resolution methods for the Construction Industry.