An Exploratory Study of Dispute Resolution Methods in the South African Construction Industry

This study assessed the dispute resolution methods used in the South African construction industry. Arbitration, adjudication and mediation are the most frequently used dispute resolution methods in the construction industry. A literature review focused on arbitration, adjudication and mediation in the construction industry. Closed-ended and open-ended questionnaires as well as interviews were conducted among the senior construction participants who included architects, quantity surveyors, construction managers, project managers and attorneys. The questionnaires were completed by 70 construction participants. The research concluded that for alternative dispute resolution (ADR) to be effective in solving disputes in the local construction industry, mediators, arbitrators and adjudicators with knowledge of the construction industry should be appointed. In terms of its characteristics, ADR should be the best option to resolve construction disputes. However, it is not being fully utilised due to the characteristics of dispute resolution itself and the absence of an appropriate framework to guide the disputing parties on the overall process. The literature review on the ADR developments and their effectiveness focused only on South Africa. This study provides a basis for using ADR effectively in the construction industry. The findings are of value for clients, contractors and consultants.