Utilization of mediation in dispute resolution : the perception of the main project stakeholders within the local construction industry

Abstract

The construction industry revolves around the general business atmosphere, where the cost of time is always on the increase. Projects are also becoming more complex in nature and liabilities associated with the construction environment are on the increase. These elements find their way into the construction contracts, where it is common for the project owner to shed the inherent risks onto the contractor. Within this environment the probability of conflict arising throughout the project is high. Conflicts that are not resolved tum into disputes. The resolution of disputes has traditionally been done by either litigation and or arbitration. Over the past years the concept of mediation has been gaining momentum. This, as a result of the positive attributes associated with this method of dispute resolution. This method is also being given the legal support both at a local level and also as expressed by the European Commission. The usefulness and success of this method of dispute resolution has ben recorded over the years by various authors and institutions in different parts of the world. The local government has also enacted the relevant laws to promote this method. This study aims to explore the main elements circulating around the systems of dispute resolution normally utilized in the local construction industry. The study shall also gain the responses from some of the main players within the industry to explore if this successful system of dispute resolution is being embraced by the local industry.