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ALTERNATIVE DISPUTE
ESOLUTION MECHANISM
Introduction
◈ Nature of disputes within the built environment
◈ The built environment is a large industry that brings together a variety of different professionals to
work on a construction project for a given client. The complex and specialized nature of
construction projects often contributes to disputes arising between various parties playing different
roles in the project such as the client, the contractor and consultants like engineers and architects.
◈ The major causes of disputes in the built environment include:
-use of improperly drafted contracts
-financial issues and claims
-poor communication from clients, contractors and consultants
-poor management of the programme ,time and funds allocated. Inability to handle work related
stress may also lead to disputes.
Background of Alternative Dispute Resolution mechanisms
◈ Disputes must be managed and resolved effectively since development is not feasible in a
conflict situation. Alternative dispute resolution(ADR) mechanisms should therefore be
adopted by professionals in the construction industry such as architects since they play a
quasi-judicial role in project contracts.
◈ In Kenya, the ADR mechanisms were fully integrated into the legal system by the
Constitution of Kenya in the year 2010. The adoption and utilisation of ADR mechanisms
was provided for under Article 159 (2) (c) which states that " alternative forms of dispute
resolution including reconciliation, mediation, arbitration and traditional dispute resolution
mechanisms shall be promoted.''
◈ Nevertheless, the application of ADR mechanisms is limited by clause 3 of Article 159 which
states that they cannot be utilized if " (a) they contravene the Bill of Rights;(b) if they are
repugnant to justice or morality; (c) are inconsistent with the Constitution or any written law.
◈ The Alternative Dispute Resolution Bill, 2021 is an ACT of Parliament to provide for the
settlement of civil disputes by conciliation, mediation and traditional disputes resolution
mechanism; to set out the guiding principles applicable; and for connected purposes
enacted by the Parliament of Kenya.
◈ In this Act, alternative dispute resolution - refers to constitutionally compliant
mechanisms, processes and methods of dispute resolution other than judicial
determination. The ADR process covers covers the time from when steps are taken to
resolve a dispute Upton the time the parties reach an agreement or the ADR report is
drawn up.
◈ ADR mechanisms can be further classified into 3 main categories i.e
◈ -facilitative - Includes mediation; where parties are assisted into identifying issues in
dispute and in coming to an agreement about the disputes
◈ - evaluative - Includes expert appraisal or early neutral evaluation whereby the third
party is more actively involved in advising the parties about the issues and various
possible outcomes.
◈ -determinative- Such as arbitration and expert determination; after the parties have
presented their arguments and evidence of a dispute,the third party makes a
determination.
◈ Efficient and cost effective settlement of disputes through ADR saves people time and
resources which can therefore be used to carry out other development activities.
1. ARBITRATION
◈ What is arbitration?
◈ Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a
binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going
to court.
◈ Arbitration is a contract-based form of binding dispute resolution. In other words, a party’s right to refer a dispute to
arbitration depends on the existence of an agreement (the “arbitration agreement”) between them and the other
parties to the dispute that the dispute may be referred to arbitration.
◈ Commercial contracts will commonly include provision for how disputes relating to that contract are to be resolved.
If the parties choose arbitration, the arbitration agreement will generally be part of the document recording the
terms of the commercial transaction. Parties can also enter into an arbitration agreement after a dispute has arisen.
◈ In entering into an arbitration agreement, the parties agree to refer their dispute to a neutral tribunal to decide their
rights and obligations. Although sometimes described as a form of alternative dispute resolution, arbitration is not
the same as mediation or conciliation. A mediator or conciliator can only recommend outcomes and the parties can
choose whether or not to accept those recommendations. By contrast, an arbitration tribunal has the power to make
decisions that bind the parties.
◈ Arbitration is consensual - can only take place if both parties have agreed to it
◈ Arbitration is neutral - parties are able to choose such important elements as the
applicable law, language, and venue of the arbitration.
◈ Arbitration is a confidential procedure - A private mechanism for dispute resolution
whereby the law protects the confidentiality of the existence of the arbitration, any
disclosures made during that procedure, and the award.
◈ The parties choose the arbitrator(s) - the parties can select a sole arbitrator together. If
they choose to have a three-member arbitral tribunal, each party appoints one of the
arbitrators; those two persons then agree on the presiding arbitrator.
● The decision of the arbitral tribunal is final and easy to enforce - a final and binding
determination of parties' rights and obligations.
Features of Arbitration:
Arbitration Process
◈ Below we go through the steps which make up the arbitration process from the initial
agreement to appealing and enforcement.
The arbitration agreement
The arbitration agreement will determine key elements of the arbitration process. For example:
◈ • Will the tribunal comprise one person or three?
◈ • How will the arbitrators be selected?
◈ • Where will the arbitration take place and (possibly different) where will the legal
‘seat’ or place of the arbitration be?
◈ • Will the arbitration be conducted in accordance with the rules of a particular
arbitration institution or will it be ‘ad hoc’?
◈ All these factors can have a significant effect on the time and cost of the arbitration. So,
if you are considering entering into an arbitration agreement, you should ensure that
you take expert legal advice first.
◈ (Examples of major international arbitration institutions include: the London Court of
International Arbitration (LCIA), the International Chamber of Commerce (ICC), the
Singapore International Arbitration Centre, the Hong Kong International Arbitration
Centre, and the Stockholm Chamber of Commerce. There are many others, who have
varying degrees of experience in administering international disputes.)
How is an arbitration started?
◈ As arbitration is a contract-based dispute resolution mechanism, there may be steps set out in
the contract which have to be followed before you can start arbitration. These can include
holding meetings between senior people in the two organisations to attempt to resolve the
dispute or mediation.
◈ A claimant will typically start arbitration by sending a document known as a “request for
arbitration” or a “notice to arbitrate” to its opponent.
◈ If your arbitration is to be conducted in accordance with the rules of a particular arbitration
institution, that institution’s rules will typically prescribe what should be in your notice to
arbitrate. Usually, the notice includes at least a description of the issue in dispute. Also, if the
arbitration agreement stipulates that a disputing party should nominate an arbitrator, the notice
should include the identity of the individual the claimant wishes to select.
◈ The other party (or parties) will then have the opportunity to respond briefly within a set period
of time and, where appropriate, also select an arbitrator.
What happens next?
◈ The tribunal must be formally constituted – if there are to be three arbitrators in a two
party dispute, each party will typically select one arbitrator. The nominees or the arbitral
institution will select a third arbitrator to act as chair. Where there is to be one arbitrator
and/or more than two parties, the agreement or the arbitral institution’s rules will usually
set out the appropriate approach to selecting the tribunal.
◈ The issues for determination must be identified - It is not unusual for one party to
contest the tribunal’s jurisdiction to decide part or all of a particular issue.
◈ The process and timetable must be decided – these will be worked out between the
parties and the tribunal. Both should be designed to fit the requirements of the
particular dispute.
Conduct of the arbitration
◈ The arbitration will then proceed in accordance with the procedure that has been adopted.
◈ It is likely to include each party producing written submissions. Typically, these will be
supported by written witness statements and reports of technical experts, where
appropriate.
◈ It often includes the parties providing documents to the other parties and the tribunal.
These will include documents they rely upon and documents the other parties have
requested them to produce. This is often a point of contention between the parties. It is
important to take legal advice early on the probable extent of your obligations to ensure
that you can :
◈ (a) comply with them
◈ (b) manage the arbitration process as efficiently as possible.
The arbitration hearing
◈ Arbitrations usually involve one or more hearings before the tribunal, where the parties’
lawyers put forward arguments and question the other party’s witnesses and experts.
◈ Hearings can last from half a day to many weeks or even months depending on the
issues at stake.
The award
◈ After the hearing, the tribunal will produce its award. This will set out the decisions it
has reached on the issues between the parties. Unless the award is challenged, it
determines the rights and obligations of the parties.
Challenging/appealing the award
◈ The grounds on which an award can be challenged or appealed vary depending on
factors such as the terms of the arbitration agreement, the arbitral ‘seat’ and the
institutional rules. A tribunal’s findings of fact can rarely be challenged. However, if the
tribunal has not conducted itself properly, has answered questions it should not have
answered or, in some cases, made an error of law, a party can go to court to ask for
the award to be set aside or sent back to the tribunal to make its decision properly.
International arbitration enforcement
◈ One of the main attractions of arbitration is that awards can typically be enforced in
most countries worldwide without a rehearing of the issues and after following a
relatively short process. The realities of enforcement vary depending on such factors
as:
◈ The jurisdiction in which enforcement is likely to be sought
◈ The status of the party against whom enforcement is sought eg certain assets may be
immune from execution if the award is against a State
◈ Whether it is possible to take steps to ensure the other side does not get rid of its
assets to frustrate enforcement.
Advantages and Disadvantages of Arbitration
◈Advantages
◈ Efficient and Flexible - The dispute will normally be resolved much sooner. It may take
several years to procure a court trial date, while an arbitration date can usually be
obtained within a few months.
◈ Less Complicated due to simplified rules of evidence and procedure. Litigation
inevitably leads down a long path of filing papers and motions and attending court
processes such as motion hearings. The normal rules of evidence used in court may not
be strictly applied in arbitration proceedings, making it much easier to admit the
evidence. Discovery, the time-consuming and expensive procedure that involves taking
and answering interrogatories, depositions, and requests to produce documents, may
be largely reduced in arbitration.
Advantages of Arbitration
◈ Privacy - Unlike a trial, arbitration leads to a private resolution, so the information
brought up in the dispute and resolution can be kept confidential.
◈ Impartiality - The parties to the dispute usually pick the arbitrator together, so the
arbitrator will be someone that both sides have confidence will be impartial and
unbiased.
◈ Usually less expensive - Most of the time, but not always the case, arbitration is a lot less
expensive than litigation. Arbitration is often resolved much more quickly than court proceedings,
so attorney fees are reduced. Also, there are lower costs in preparing for the arbitration than
there are in preparing for a jury trial.
Disadvantages of Arbitration
◈ 1. Questionable Fairness
◈ 2. Finality: No appeals
◈ 3. Can be more expensive
◈ 4. Unpredictability: Unconventional outcomes
2. MEDIATION
◈ Mediation is a process that, together with a number of other processes, is collectively known as Alternative Dispute Resolution.
◈ it is when a neutral third party(mediator) helps two or more parties to solve a dispute or conflict by facilitating their negotiations
◈ FOUR PRINCIPLE CHARACTERISTICS OF MEDIATION
◈ 1. Accessible
◈ 2. Voluntary
◈ 3. Confidential
◈ 4. Facilitative
◈ WHEN TO USE MEDIATION
◈ • Time pressure to settle the dispute
◈ • When privacy is important
◈ • When the ongoing relationship between the parties is important
◈ TYPES OF DISPUTE SUITABLE FOR MEDIATION
◈ • Business and commercial
◈ • Partnership
◈ • Workplace
◈ • Family
◈ • Industrial and constructions
TYPES OF MEDIATION
◈ 1. FACILITATIVE MEDIATION
◈ A mediator attempts to facilitate negotiation between the parties in conflict. Rather than making
recommendations or imposing a decision, the mediator encourages the disputants to reach their own
voluntary solutions by exploring each other’s deeper interests. In this type of mediation, the mediator keeps
their own views regarding the conflict hidden.
◈ 2. EVALUATIVE MEDIATION
◈ It is when a mediator makes recommendations and suggestions and expresses their opinion. Instead of
focusing on the underlying interests primarily, they help the parties assess the legal merits of their
arguments. This kind of mediation is mostly used in court-mandated mediation, and the mediators are often
attorneys who have legal expertise in the area of the dispute.
◈ 3. TRANSFORMATIVE MEDIATION
◈ In this case, mediators focus on empowering disputants to resolve their conflict and encourage them to
recognize each other’s needs and interest. In the process, it aims to transform the parties and their
relationship through the process of acquiring the skills they need to make constructive change.
◈ SKILLS NEEDED BY MEDIATOR
◈ Negotiation skills- must be a problem solver and be able to suggest possible offers and
counter-offers to each party
◈ Be able to build trust for both parties
◈ Must maintain neutrality
◈ Maintain impartiality
◈ Facilitating the process of mediations
◈ Be able to control the process and the people
◈
◈ MEDIATOR’S ROLE
◈ Serves as a neutral facilitator
◈ Summarizes, restates and prioritizes issues in a non-judgemental manner
◈ Assist in the generation or clarification of options
◈ Evaluates options and possible consequences
◈ Enforces the ground rules
◈ Identifies areas of mutual interest
A TYPICAL MEDIATION SESSION
◈ Standard format;
◈ There will be the opening joint session, followed by private sessions between the
mediator and each party, followed by more joint sessions
◈ Mediation ends with a final joint session.
A TYPICAL MEDIATION SESSION
◈ 1. Mediator’s opening statement- so as to set stage for productive constructive dialogue and to
educate the parties about the mediation process.
◈ The opening statement should;
◈ • welcome and make introductions of both parties.
◈ • Explain the mediator’s role and authority
◈ • Review the mediation process
◈ • Define confidentiality
◈ • Deal with logistics
◈ • Get a commitment to answer questions
◈ • Establish neutrality and impartiality
◈ • Explain possibility of caucus
◈ • Establish ground rules or agreement on standards of behaviour
2. Each party makes an opening statement, first by selecting one party to begin, the mediator
asks open ended questions, then listens and summarizes key points and issues, ask the
party if they want to add anything else, then the process is repeated with the other party.
3. The parties’ opening statement should;
◈ identify the issues to be addressed
◈ show understanding of the situation and context
4. Mediator identifies common ground
5. Mediator identifies/ formulates issues and sets agenda
6. Mediator explores issues in joint session to understand underlying needs and interests
7. In joint session or caucus, mediator assists in option generation and reality checks
8. Mediator maintains momentum and overcomes impasses
9. Mediator assists parties to reach agreement and reality checks proposed settlements
10. Mediator drafts legally binding agreement and concludes session
POST MEDIATION
◈ • May file any necessary paper work with court/ draft the agreement
◈ • Monitor implementation of terms of settlement/ follow-up sessions
◈ • Release documents or funds held pending settlements
◈ PURPOSE OF CAUCUS
1 . Gather information
2. Exchange information
3. Help parties negotiate
4. Build trust and rapport
BENEFITS OF MEDIATION
◈ Informal
◈ Quick- while a case in court can take months and years, mediation usually achieves resolution in a
matter of hours
◈ Flexible
◈ Cost-effective as compared to taking the matter to court
◈ Confidential- as compared to court hearings which are public
◈ Preserves relationships- improves understanding between the parties.
◈ Control remains within parties
◈ Allows for creative solutions
◈ High success rate of 80% and the compliance among parties is usually high
DISADVANTAGES OF MEDIATION
◈ • Even a binding agreement which is written down and signed, has the same
level of enforceability as an ordinary contract. It does not compare with a court order.
◈ • The parties have to agree to mediate
2. NEGOTIATION
◈ Is defined as an informal method of bargaining by the parties to settle a dispute. It involves the parties
communicating with each other.
◈ It is by far the most efficient conflict management mechanism in terms of management of time, costs
and preservation of relationships and has been seen as the preferred route in most disputes.
◈ In negotiation the parties themselves attempt to settle their differences using a range of techniques from
concession and compromise to coercion and confrontation.
◈ Advantages Of Negotiation
● Quick
● Cheap
● Private
● Preserves relationships
● Provides a range of possible solutions
Disadvantages of negotiation
● Costs increase if solicitors become involved
● No guarantee it will be successful
● It requires the goodwill of the parties
● Endless proceedings
● Can create power imbalances
● It is non-binding unless parties reduce the agreement into writing;
● Creates no precedents
● It is not suitable when one party needs urgent protection like an injunction.
4.TRADITIONAL METHODS OF CONFLICT RESOLUTION
◈ Conflict is as natural as the concept of peace contrary to the global or universal
conception. Africans have particular ways of conceptualizing conflict.
◈ Traditional definitions of conflict regard it as ―a struggle over values and claims to
scarce status, power and resources in which the aims of the opponents are to
neutralize, injure or eliminate their rivals.
◈ Conflicts are in the magnitude of rage, rift, misunderstanding, family and market
brawls, skirmishes and wars, public insurrections and assaults; it also includes
chieftaincy and boundary disputes.
Principles of conflict resolution in traditional African society
◈ Those who wanted their disputes resolved had to have confidence in the tribunal which would
consequently resolve the dispute; it comprised:
• Elders
• Chiefs
• Priests and priestesses
• Secret cults etc.
◈ In traditional African societies, the law enforcement agents, traditional police and courts were
responsible for ensuring compliance with the laws of the land.
◈ Among the Yoruba peoples, indigenous law derives essentially from customs and traditions. Literacy
was not associated only with the written word, but also very essentially, with verbal art and
remembrance.
◈ In Africa, there were levels or phases of conflict resolution; there were dispute
resolutions at the inter-personal or family level, the extended family level and village or
town level (chief in council
Methods engaged in Conflict Resolution in Traditional African Societies
◈ They included: mediation, adjudication, reconciliation, arbitration and negotiation.
1.Mediation
◈ It is an old method of conflict management surrounded by secrecy. It involves non-coercive
intervention of the mediators(s), called third party either to reduce or go beyond or bring
conflict to peaceful settlement.
◈ The mediators usually endeavored that peace and harmony reigned supreme in the society at
whatever level of mediation. Mediators are sought from within the communities or societies of
the parties concerned. Elders are respected as trustworthy mediators all over Africa, because
of their accumulated experiences and wisdom.
◈ Their roles depend on traditions, circumstances and personalities, accordingly.
◈ These roles includes, pressurizing, making recommendations giving assessments, conveying
suggestions on behalf of the parties, emphasizing relevant norms and rules, envisaging the
situation if agreement is not reached, or repeating of the agreement already attained.
2. Adjudication
◈ In traditional African society, adjudication involves bringing all disputants in the conflict to a
meeting usually in the chambers or compounds of family heads, quarter heads and palace
court as the case maybe. Dialogue was linked with the adjudicatory process.
3. Reconciliation
◈ This was the most significant aspect of conflict resolution. It is the end product of adjudication.
After the disputants have been persuaded to end the dispute, peace was restored.
◈ The reconciliation function is practiced by an authority figure that mediates between
conflicting parties but is empowered to make binding judgments. The purpose is not to render
a judgment in law but to reconcile the conflicting parties and its norms.
4. Negotiation
◈ In negotiation, the secret is to harmonize the interests of the parties concerned.
◈ In traditional Yoruba society, peace was negotiated. Apology for wrongs done to
individuals and the entire community was a feature of negotiation.
◈ Such apology was channeled through Yoruba elders, compound heads and chiefs of
high caliber in the society. It is done on the representative level or quasi-
representation.
ADJUDICATION
◈ Adjudication is defined as the dispute settlement mechanism where an impartial, third-
party( neutral person known as an adjudicator) makes a fair, rapid and inexpensive
decision on a given dispute arising under a construction contract.
◈ More specifically, adjudication may be defined as a process where a neutral third party
gives a decision, which is binding on the parties in dispute unless or until revised in
arbitration or litigation.
◈ It is preferred when there is power imbalance between the disputants and is suitable
for construction disputes.
◈ It is a process operating under very tight time scales (the adjudicator is supposed to
reach a decision within 28 days or the period stated in the contract), flexible and
inexpensive process; which allows the power imbalance in relationships to be dealt
with so that weaker subcontractors have a clear route to deal with more powerful
contractors.
◈ Adjudication is thus effective in simple construction disputes that need to be settled
within some very strict time schedules.
CHARACTERISTICS
Adjudication in the construction industry has displayed certain characteristics.
◈ The adjudicator is a neutral individual who is not involved in the day to day running of
the contract. He or she is neither an arbitrator, nor a State appointed Judge.
◈ The adjudicator enjoys his or her powers by virtue of the agreement between the
parties. In other words the parties have agreed by contract that the decision of the
adjudicator shall decide the matter for them.
◈ The adjudicator’s decision is binding on the parties, and therefore, unlike mediation,
the process does not require the co-operation of both parties.
◈ Adjudicators decisions are usually expressed as being binding until the end of the
contract when either party may seek a review of the decision, most commonly by
arbitration.
ADJUDICATION
◈ Adjudication describes the legal process that helps expedite and deliver a court's
resolution regarding an issue between two parties.
◈ IT IS important to note the difference between adjudication and arbitration
Adjudication vs. Arbitration
Adjudication specifically refers to the process and decision issued by a government-
appointed (or elected) judge, as opposed to a decision issued by an arbitrator in a private
proceeding or arbitration. While both judges and arbitrators are expected and required to
follow the law, judges' adjudications also must take into account the interests of the
government and general public interest. Arbitration, meanwhile, only needs to consider
the interests of the parties involved.
Adjudication Disputes
The types of disputes handled or resolved through adjudication include the following:
◈ Disagreements between private parties, such as single-persons, individual entities,
or corporations
◈ Disagreements between private parties and public officials
◈ Disagreements between public officials and/or public bodies
Requirements for full adjudication include requisite notice to all interested parties (all
legally-interested parties or those with a legal right affected by the disagreements) and an
opportunity for all parties to have their evidence and arguments heard.
Process of adjudication
◈ Formal rules of evidence and procedure govern the process where the initiating party,
or trier, gives a notice establishing the facts in controversy and defines any applicable
laws. The notice also sometimes outlines the nature of the dispute between the parties
and recounts where and when the dispute occurred, and the desired result based on
law. However, there are no specific requirements regarding the notice of adjudication.
◈ An adjudicator is then appointed and a notice is sent to the defending party, who
responds by submitting a defense to the claim of adjudication by the plaintiff. The
adjudicator gives the plaintiff and defendant a chance to present their arguments at a
hearing and makes a final ruling. This is not too dissimilar from an arbitrator in an
arbitration hearing settling a business dispute.
Advantages and disadvantages of adjudication
Advantages of adjudication
◈ Adjudications have a 28-day time scale, which means it is a quick way to resolve disputes. It should be
noted, however, that this deadline can be extended with the consent of both parties.
◈ As a result of this tight timescale, adjudication is usually cheaper for parties than litigation. Note, however,
that the costs involved in instructing solicitors or other professionals cannot be recovered, regardless of
the outcome.
◈ Adjudication can resolve a dispute whilst the contract is ongoing, rather than waiting until the end of the
project and embarking on litigation.
◈ In contrast to litigation, an adjudication decision is private, unless the decision of the adjudicator is
ultimately the subject of enforcement proceedings raised in court.
◈ The decision maker is someone experienced in construction disputes – usually a quantity surveyor or
engineer.
Disadvantages of adjudication
◈ In terms of expenses, adjudication costs are not usually recoverable. This means that the responding party
cannot recover their associated professional costs (most obviously, legal costs) from the referring party, as
they could do in a litigation or arbitration.
◈ Because a dispute can be referred ‘at any time’, they can come from out of the blue and the opposing party
can feel ‘hijacked’, especially where the dispute is high value and complex. This is generally avoided in
litigations.
◈ Although the short time scales of the adjudication process have many advantages, it can mean that parties
have a very limited time in which to investigate the claim and prepare their response. This can lead to a
rushed decision which neither party is happy with.
◈ Despite the fact that Courts will generally uphold adjudicator’s decisions, there is considerable scope for the
responding party to create mischief by arguing that the decision is unenforceable, meaning that costly
enforcement proceedings need to be raised through the Courts.
DISPUTES IN THE BUILT ENVIRONMENT
◈ The built environment refers to human made surroundings that provide setting for human activity
ranging in scale from buildings and park or green spaces to neighbourhoods and cities which can often
include their supporting infrastructure such as water supply or energy networks
STAKEHOLDERS IN THE BUILT ENVIRONMENT
◈ These are people involved or associated with the built environment whom without their support, the
organization would not exist
◈ The investor - sponsors the project
◈ Manufacturer – supplies building materials eg paints, iron sheets, stones stc
◈ Banks/ financial institutions – helps in funding the project eg through loans
◈ Planners/ designers – designs the spaces to be built
◈ Government – have set standards for the designers eg through building codes
◈ End-user – the person who uses the designed spaces
There are various causes of construction disputes being
◈ Contractual Problems
• Ambiguities in construction contracts - Ambiguity in contract documentation may present
itself as being unclear about the activities, responsibilities and the risks that the project at hand
would involve. These are the core issues in a contract and if they are not clearly put across then
inevitably conflicts arise.
• errors and omissions in the contract - These can present themselves as
misinterpretations on the design plan, miscalculations on costs and possible timelines or
omissions on the required contract material or processes.
• unclear payment terms – delay in payments may result in delay in the project timelines
as some of the contracted persons may choose to put down their tools until these payments are
made.
◈ Design related problems
• changes in the original design project scope hence there may be lots of
demolition by the contractor which not only results to a delay in the timeline of the project
but also increase in the cost of the project.
• errors and omissions in the design scope just as in the contract drafting and
implementation also lead to construction disputes.
• differing site conditions which are indicated when the physical site conditions are
different from what was originally shown in the contract as well as the construction plans.
◈ Behavioural and Relationship Conflicts – relationships emanate from human interaction,
personality, cultures and professional background among the project team. Every stakeholder
has their own goals in the projects and when things on site are not in synch with their
expectations, it can lead to some conflict between involved stakeholders. The lack of team spirit
and poor communication among the project teams
◈ Uncertainty - uncertainty is the difference between the amount of information required to do the
task and the amount of information already processed by the organization. This means that it
can lead to delivery of the wrong design or with wrong specifications which can lead to conflict
between different parties.
◈ Leadership and Project Implementation Conflicts – lack of a leader/ efficient leader giving
instructions to the involved parties during the construction can lead to conflicts and arguments
and at time wrong delivery of the expected works.
REFERENCES
 Bennett, T.W. (1993). Human Right and the African Cultural Tradition
Transformation
 Isurmona V.A. (2005). Problems of Peacemaking and Peace Keeping.
 Olaoba, O.B. (2005). ―Ancestral Focus and the process of conflict Resolution in
Traditional African societies
 Williams, Z.I. (ed.). (2000). Traditional Cures for Modern Conflict. African Conflict
Medicine 2000, Lynne Reiner Publisher
❑ https://www.investopedia.com/terms/a/adjudication.asp
❑ https://www.albaclaims.com/2021/05/26/the-pros-and-cons-of-adjudication/

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SEMINAR_4_ALTERNATIVE_DISPUTE_ESOLUTION_MECHANISM[3].pdf

  • 2. Introduction ◈ Nature of disputes within the built environment ◈ The built environment is a large industry that brings together a variety of different professionals to work on a construction project for a given client. The complex and specialized nature of construction projects often contributes to disputes arising between various parties playing different roles in the project such as the client, the contractor and consultants like engineers and architects. ◈ The major causes of disputes in the built environment include: -use of improperly drafted contracts -financial issues and claims -poor communication from clients, contractors and consultants -poor management of the programme ,time and funds allocated. Inability to handle work related stress may also lead to disputes.
  • 3. Background of Alternative Dispute Resolution mechanisms ◈ Disputes must be managed and resolved effectively since development is not feasible in a conflict situation. Alternative dispute resolution(ADR) mechanisms should therefore be adopted by professionals in the construction industry such as architects since they play a quasi-judicial role in project contracts. ◈ In Kenya, the ADR mechanisms were fully integrated into the legal system by the Constitution of Kenya in the year 2010. The adoption and utilisation of ADR mechanisms was provided for under Article 159 (2) (c) which states that " alternative forms of dispute resolution including reconciliation, mediation, arbitration and traditional dispute resolution mechanisms shall be promoted.'' ◈ Nevertheless, the application of ADR mechanisms is limited by clause 3 of Article 159 which states that they cannot be utilized if " (a) they contravene the Bill of Rights;(b) if they are repugnant to justice or morality; (c) are inconsistent with the Constitution or any written law.
  • 4. ◈ The Alternative Dispute Resolution Bill, 2021 is an ACT of Parliament to provide for the settlement of civil disputes by conciliation, mediation and traditional disputes resolution mechanism; to set out the guiding principles applicable; and for connected purposes enacted by the Parliament of Kenya. ◈ In this Act, alternative dispute resolution - refers to constitutionally compliant mechanisms, processes and methods of dispute resolution other than judicial determination. The ADR process covers covers the time from when steps are taken to resolve a dispute Upton the time the parties reach an agreement or the ADR report is drawn up.
  • 5. ◈ ADR mechanisms can be further classified into 3 main categories i.e ◈ -facilitative - Includes mediation; where parties are assisted into identifying issues in dispute and in coming to an agreement about the disputes ◈ - evaluative - Includes expert appraisal or early neutral evaluation whereby the third party is more actively involved in advising the parties about the issues and various possible outcomes. ◈ -determinative- Such as arbitration and expert determination; after the parties have presented their arguments and evidence of a dispute,the third party makes a determination. ◈ Efficient and cost effective settlement of disputes through ADR saves people time and resources which can therefore be used to carry out other development activities.
  • 6. 1. ARBITRATION ◈ What is arbitration? ◈ Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. ◈ Arbitration is a contract-based form of binding dispute resolution. In other words, a party’s right to refer a dispute to arbitration depends on the existence of an agreement (the “arbitration agreement”) between them and the other parties to the dispute that the dispute may be referred to arbitration. ◈ Commercial contracts will commonly include provision for how disputes relating to that contract are to be resolved. If the parties choose arbitration, the arbitration agreement will generally be part of the document recording the terms of the commercial transaction. Parties can also enter into an arbitration agreement after a dispute has arisen. ◈ In entering into an arbitration agreement, the parties agree to refer their dispute to a neutral tribunal to decide their rights and obligations. Although sometimes described as a form of alternative dispute resolution, arbitration is not the same as mediation or conciliation. A mediator or conciliator can only recommend outcomes and the parties can choose whether or not to accept those recommendations. By contrast, an arbitration tribunal has the power to make decisions that bind the parties.
  • 7. ◈ Arbitration is consensual - can only take place if both parties have agreed to it ◈ Arbitration is neutral - parties are able to choose such important elements as the applicable law, language, and venue of the arbitration. ◈ Arbitration is a confidential procedure - A private mechanism for dispute resolution whereby the law protects the confidentiality of the existence of the arbitration, any disclosures made during that procedure, and the award. ◈ The parties choose the arbitrator(s) - the parties can select a sole arbitrator together. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two persons then agree on the presiding arbitrator. ● The decision of the arbitral tribunal is final and easy to enforce - a final and binding determination of parties' rights and obligations. Features of Arbitration:
  • 8. Arbitration Process ◈ Below we go through the steps which make up the arbitration process from the initial agreement to appealing and enforcement. The arbitration agreement The arbitration agreement will determine key elements of the arbitration process. For example: ◈ • Will the tribunal comprise one person or three? ◈ • How will the arbitrators be selected? ◈ • Where will the arbitration take place and (possibly different) where will the legal ‘seat’ or place of the arbitration be? ◈ • Will the arbitration be conducted in accordance with the rules of a particular arbitration institution or will it be ‘ad hoc’?
  • 9. ◈ All these factors can have a significant effect on the time and cost of the arbitration. So, if you are considering entering into an arbitration agreement, you should ensure that you take expert legal advice first. ◈ (Examples of major international arbitration institutions include: the London Court of International Arbitration (LCIA), the International Chamber of Commerce (ICC), the Singapore International Arbitration Centre, the Hong Kong International Arbitration Centre, and the Stockholm Chamber of Commerce. There are many others, who have varying degrees of experience in administering international disputes.)
  • 10. How is an arbitration started? ◈ As arbitration is a contract-based dispute resolution mechanism, there may be steps set out in the contract which have to be followed before you can start arbitration. These can include holding meetings between senior people in the two organisations to attempt to resolve the dispute or mediation. ◈ A claimant will typically start arbitration by sending a document known as a “request for arbitration” or a “notice to arbitrate” to its opponent. ◈ If your arbitration is to be conducted in accordance with the rules of a particular arbitration institution, that institution’s rules will typically prescribe what should be in your notice to arbitrate. Usually, the notice includes at least a description of the issue in dispute. Also, if the arbitration agreement stipulates that a disputing party should nominate an arbitrator, the notice should include the identity of the individual the claimant wishes to select. ◈ The other party (or parties) will then have the opportunity to respond briefly within a set period of time and, where appropriate, also select an arbitrator.
  • 11. What happens next? ◈ The tribunal must be formally constituted – if there are to be three arbitrators in a two party dispute, each party will typically select one arbitrator. The nominees or the arbitral institution will select a third arbitrator to act as chair. Where there is to be one arbitrator and/or more than two parties, the agreement or the arbitral institution’s rules will usually set out the appropriate approach to selecting the tribunal. ◈ The issues for determination must be identified - It is not unusual for one party to contest the tribunal’s jurisdiction to decide part or all of a particular issue. ◈ The process and timetable must be decided – these will be worked out between the parties and the tribunal. Both should be designed to fit the requirements of the particular dispute.
  • 12. Conduct of the arbitration ◈ The arbitration will then proceed in accordance with the procedure that has been adopted. ◈ It is likely to include each party producing written submissions. Typically, these will be supported by written witness statements and reports of technical experts, where appropriate. ◈ It often includes the parties providing documents to the other parties and the tribunal. These will include documents they rely upon and documents the other parties have requested them to produce. This is often a point of contention between the parties. It is important to take legal advice early on the probable extent of your obligations to ensure that you can : ◈ (a) comply with them ◈ (b) manage the arbitration process as efficiently as possible.
  • 13. The arbitration hearing ◈ Arbitrations usually involve one or more hearings before the tribunal, where the parties’ lawyers put forward arguments and question the other party’s witnesses and experts. ◈ Hearings can last from half a day to many weeks or even months depending on the issues at stake.
  • 14. The award ◈ After the hearing, the tribunal will produce its award. This will set out the decisions it has reached on the issues between the parties. Unless the award is challenged, it determines the rights and obligations of the parties.
  • 15. Challenging/appealing the award ◈ The grounds on which an award can be challenged or appealed vary depending on factors such as the terms of the arbitration agreement, the arbitral ‘seat’ and the institutional rules. A tribunal’s findings of fact can rarely be challenged. However, if the tribunal has not conducted itself properly, has answered questions it should not have answered or, in some cases, made an error of law, a party can go to court to ask for the award to be set aside or sent back to the tribunal to make its decision properly.
  • 16. International arbitration enforcement ◈ One of the main attractions of arbitration is that awards can typically be enforced in most countries worldwide without a rehearing of the issues and after following a relatively short process. The realities of enforcement vary depending on such factors as: ◈ The jurisdiction in which enforcement is likely to be sought ◈ The status of the party against whom enforcement is sought eg certain assets may be immune from execution if the award is against a State ◈ Whether it is possible to take steps to ensure the other side does not get rid of its assets to frustrate enforcement.
  • 17. Advantages and Disadvantages of Arbitration ◈Advantages ◈ Efficient and Flexible - The dispute will normally be resolved much sooner. It may take several years to procure a court trial date, while an arbitration date can usually be obtained within a few months. ◈ Less Complicated due to simplified rules of evidence and procedure. Litigation inevitably leads down a long path of filing papers and motions and attending court processes such as motion hearings. The normal rules of evidence used in court may not be strictly applied in arbitration proceedings, making it much easier to admit the evidence. Discovery, the time-consuming and expensive procedure that involves taking and answering interrogatories, depositions, and requests to produce documents, may be largely reduced in arbitration.
  • 18. Advantages of Arbitration ◈ Privacy - Unlike a trial, arbitration leads to a private resolution, so the information brought up in the dispute and resolution can be kept confidential. ◈ Impartiality - The parties to the dispute usually pick the arbitrator together, so the arbitrator will be someone that both sides have confidence will be impartial and unbiased. ◈ Usually less expensive - Most of the time, but not always the case, arbitration is a lot less expensive than litigation. Arbitration is often resolved much more quickly than court proceedings, so attorney fees are reduced. Also, there are lower costs in preparing for the arbitration than there are in preparing for a jury trial.
  • 19. Disadvantages of Arbitration ◈ 1. Questionable Fairness ◈ 2. Finality: No appeals ◈ 3. Can be more expensive ◈ 4. Unpredictability: Unconventional outcomes
  • 20. 2. MEDIATION ◈ Mediation is a process that, together with a number of other processes, is collectively known as Alternative Dispute Resolution. ◈ it is when a neutral third party(mediator) helps two or more parties to solve a dispute or conflict by facilitating their negotiations ◈ FOUR PRINCIPLE CHARACTERISTICS OF MEDIATION ◈ 1. Accessible ◈ 2. Voluntary ◈ 3. Confidential ◈ 4. Facilitative ◈ WHEN TO USE MEDIATION ◈ • Time pressure to settle the dispute ◈ • When privacy is important ◈ • When the ongoing relationship between the parties is important
  • 21. ◈ TYPES OF DISPUTE SUITABLE FOR MEDIATION ◈ • Business and commercial ◈ • Partnership ◈ • Workplace ◈ • Family ◈ • Industrial and constructions
  • 22. TYPES OF MEDIATION ◈ 1. FACILITATIVE MEDIATION ◈ A mediator attempts to facilitate negotiation between the parties in conflict. Rather than making recommendations or imposing a decision, the mediator encourages the disputants to reach their own voluntary solutions by exploring each other’s deeper interests. In this type of mediation, the mediator keeps their own views regarding the conflict hidden. ◈ 2. EVALUATIVE MEDIATION ◈ It is when a mediator makes recommendations and suggestions and expresses their opinion. Instead of focusing on the underlying interests primarily, they help the parties assess the legal merits of their arguments. This kind of mediation is mostly used in court-mandated mediation, and the mediators are often attorneys who have legal expertise in the area of the dispute. ◈ 3. TRANSFORMATIVE MEDIATION ◈ In this case, mediators focus on empowering disputants to resolve their conflict and encourage them to recognize each other’s needs and interest. In the process, it aims to transform the parties and their relationship through the process of acquiring the skills they need to make constructive change.
  • 23. ◈ SKILLS NEEDED BY MEDIATOR ◈ Negotiation skills- must be a problem solver and be able to suggest possible offers and counter-offers to each party ◈ Be able to build trust for both parties ◈ Must maintain neutrality ◈ Maintain impartiality ◈ Facilitating the process of mediations ◈ Be able to control the process and the people ◈
  • 24. ◈ MEDIATOR’S ROLE ◈ Serves as a neutral facilitator ◈ Summarizes, restates and prioritizes issues in a non-judgemental manner ◈ Assist in the generation or clarification of options ◈ Evaluates options and possible consequences ◈ Enforces the ground rules ◈ Identifies areas of mutual interest
  • 25. A TYPICAL MEDIATION SESSION ◈ Standard format; ◈ There will be the opening joint session, followed by private sessions between the mediator and each party, followed by more joint sessions ◈ Mediation ends with a final joint session.
  • 26. A TYPICAL MEDIATION SESSION ◈ 1. Mediator’s opening statement- so as to set stage for productive constructive dialogue and to educate the parties about the mediation process. ◈ The opening statement should; ◈ • welcome and make introductions of both parties. ◈ • Explain the mediator’s role and authority ◈ • Review the mediation process ◈ • Define confidentiality ◈ • Deal with logistics ◈ • Get a commitment to answer questions ◈ • Establish neutrality and impartiality ◈ • Explain possibility of caucus ◈ • Establish ground rules or agreement on standards of behaviour
  • 27. 2. Each party makes an opening statement, first by selecting one party to begin, the mediator asks open ended questions, then listens and summarizes key points and issues, ask the party if they want to add anything else, then the process is repeated with the other party. 3. The parties’ opening statement should; ◈ identify the issues to be addressed ◈ show understanding of the situation and context 4. Mediator identifies common ground 5. Mediator identifies/ formulates issues and sets agenda 6. Mediator explores issues in joint session to understand underlying needs and interests 7. In joint session or caucus, mediator assists in option generation and reality checks 8. Mediator maintains momentum and overcomes impasses 9. Mediator assists parties to reach agreement and reality checks proposed settlements 10. Mediator drafts legally binding agreement and concludes session
  • 28. POST MEDIATION ◈ • May file any necessary paper work with court/ draft the agreement ◈ • Monitor implementation of terms of settlement/ follow-up sessions ◈ • Release documents or funds held pending settlements ◈ PURPOSE OF CAUCUS 1 . Gather information 2. Exchange information 3. Help parties negotiate 4. Build trust and rapport
  • 29. BENEFITS OF MEDIATION ◈ Informal ◈ Quick- while a case in court can take months and years, mediation usually achieves resolution in a matter of hours ◈ Flexible ◈ Cost-effective as compared to taking the matter to court ◈ Confidential- as compared to court hearings which are public ◈ Preserves relationships- improves understanding between the parties. ◈ Control remains within parties ◈ Allows for creative solutions ◈ High success rate of 80% and the compliance among parties is usually high
  • 30. DISADVANTAGES OF MEDIATION ◈ • Even a binding agreement which is written down and signed, has the same level of enforceability as an ordinary contract. It does not compare with a court order. ◈ • The parties have to agree to mediate
  • 31. 2. NEGOTIATION ◈ Is defined as an informal method of bargaining by the parties to settle a dispute. It involves the parties communicating with each other. ◈ It is by far the most efficient conflict management mechanism in terms of management of time, costs and preservation of relationships and has been seen as the preferred route in most disputes. ◈ In negotiation the parties themselves attempt to settle their differences using a range of techniques from concession and compromise to coercion and confrontation. ◈ Advantages Of Negotiation ● Quick ● Cheap ● Private ● Preserves relationships ● Provides a range of possible solutions
  • 32. Disadvantages of negotiation ● Costs increase if solicitors become involved ● No guarantee it will be successful ● It requires the goodwill of the parties ● Endless proceedings ● Can create power imbalances ● It is non-binding unless parties reduce the agreement into writing; ● Creates no precedents ● It is not suitable when one party needs urgent protection like an injunction.
  • 33. 4.TRADITIONAL METHODS OF CONFLICT RESOLUTION ◈ Conflict is as natural as the concept of peace contrary to the global or universal conception. Africans have particular ways of conceptualizing conflict. ◈ Traditional definitions of conflict regard it as ―a struggle over values and claims to scarce status, power and resources in which the aims of the opponents are to neutralize, injure or eliminate their rivals. ◈ Conflicts are in the magnitude of rage, rift, misunderstanding, family and market brawls, skirmishes and wars, public insurrections and assaults; it also includes chieftaincy and boundary disputes.
  • 34. Principles of conflict resolution in traditional African society ◈ Those who wanted their disputes resolved had to have confidence in the tribunal which would consequently resolve the dispute; it comprised: • Elders • Chiefs • Priests and priestesses • Secret cults etc. ◈ In traditional African societies, the law enforcement agents, traditional police and courts were responsible for ensuring compliance with the laws of the land. ◈ Among the Yoruba peoples, indigenous law derives essentially from customs and traditions. Literacy was not associated only with the written word, but also very essentially, with verbal art and remembrance.
  • 35. ◈ In Africa, there were levels or phases of conflict resolution; there were dispute resolutions at the inter-personal or family level, the extended family level and village or town level (chief in council
  • 36. Methods engaged in Conflict Resolution in Traditional African Societies ◈ They included: mediation, adjudication, reconciliation, arbitration and negotiation.
  • 37. 1.Mediation ◈ It is an old method of conflict management surrounded by secrecy. It involves non-coercive intervention of the mediators(s), called third party either to reduce or go beyond or bring conflict to peaceful settlement. ◈ The mediators usually endeavored that peace and harmony reigned supreme in the society at whatever level of mediation. Mediators are sought from within the communities or societies of the parties concerned. Elders are respected as trustworthy mediators all over Africa, because of their accumulated experiences and wisdom. ◈ Their roles depend on traditions, circumstances and personalities, accordingly. ◈ These roles includes, pressurizing, making recommendations giving assessments, conveying suggestions on behalf of the parties, emphasizing relevant norms and rules, envisaging the situation if agreement is not reached, or repeating of the agreement already attained.
  • 38. 2. Adjudication ◈ In traditional African society, adjudication involves bringing all disputants in the conflict to a meeting usually in the chambers or compounds of family heads, quarter heads and palace court as the case maybe. Dialogue was linked with the adjudicatory process. 3. Reconciliation ◈ This was the most significant aspect of conflict resolution. It is the end product of adjudication. After the disputants have been persuaded to end the dispute, peace was restored. ◈ The reconciliation function is practiced by an authority figure that mediates between conflicting parties but is empowered to make binding judgments. The purpose is not to render a judgment in law but to reconcile the conflicting parties and its norms.
  • 39. 4. Negotiation ◈ In negotiation, the secret is to harmonize the interests of the parties concerned. ◈ In traditional Yoruba society, peace was negotiated. Apology for wrongs done to individuals and the entire community was a feature of negotiation. ◈ Such apology was channeled through Yoruba elders, compound heads and chiefs of high caliber in the society. It is done on the representative level or quasi- representation.
  • 40. ADJUDICATION ◈ Adjudication is defined as the dispute settlement mechanism where an impartial, third- party( neutral person known as an adjudicator) makes a fair, rapid and inexpensive decision on a given dispute arising under a construction contract. ◈ More specifically, adjudication may be defined as a process where a neutral third party gives a decision, which is binding on the parties in dispute unless or until revised in arbitration or litigation. ◈ It is preferred when there is power imbalance between the disputants and is suitable for construction disputes.
  • 41. ◈ It is a process operating under very tight time scales (the adjudicator is supposed to reach a decision within 28 days or the period stated in the contract), flexible and inexpensive process; which allows the power imbalance in relationships to be dealt with so that weaker subcontractors have a clear route to deal with more powerful contractors. ◈ Adjudication is thus effective in simple construction disputes that need to be settled within some very strict time schedules.
  • 42. CHARACTERISTICS Adjudication in the construction industry has displayed certain characteristics. ◈ The adjudicator is a neutral individual who is not involved in the day to day running of the contract. He or she is neither an arbitrator, nor a State appointed Judge. ◈ The adjudicator enjoys his or her powers by virtue of the agreement between the parties. In other words the parties have agreed by contract that the decision of the adjudicator shall decide the matter for them. ◈ The adjudicator’s decision is binding on the parties, and therefore, unlike mediation, the process does not require the co-operation of both parties. ◈ Adjudicators decisions are usually expressed as being binding until the end of the contract when either party may seek a review of the decision, most commonly by arbitration.
  • 43. ADJUDICATION ◈ Adjudication describes the legal process that helps expedite and deliver a court's resolution regarding an issue between two parties. ◈ IT IS important to note the difference between adjudication and arbitration Adjudication vs. Arbitration Adjudication specifically refers to the process and decision issued by a government- appointed (or elected) judge, as opposed to a decision issued by an arbitrator in a private proceeding or arbitration. While both judges and arbitrators are expected and required to follow the law, judges' adjudications also must take into account the interests of the government and general public interest. Arbitration, meanwhile, only needs to consider the interests of the parties involved.
  • 44. Adjudication Disputes The types of disputes handled or resolved through adjudication include the following: ◈ Disagreements between private parties, such as single-persons, individual entities, or corporations ◈ Disagreements between private parties and public officials ◈ Disagreements between public officials and/or public bodies Requirements for full adjudication include requisite notice to all interested parties (all legally-interested parties or those with a legal right affected by the disagreements) and an opportunity for all parties to have their evidence and arguments heard.
  • 45. Process of adjudication ◈ Formal rules of evidence and procedure govern the process where the initiating party, or trier, gives a notice establishing the facts in controversy and defines any applicable laws. The notice also sometimes outlines the nature of the dispute between the parties and recounts where and when the dispute occurred, and the desired result based on law. However, there are no specific requirements regarding the notice of adjudication. ◈ An adjudicator is then appointed and a notice is sent to the defending party, who responds by submitting a defense to the claim of adjudication by the plaintiff. The adjudicator gives the plaintiff and defendant a chance to present their arguments at a hearing and makes a final ruling. This is not too dissimilar from an arbitrator in an arbitration hearing settling a business dispute.
  • 46. Advantages and disadvantages of adjudication Advantages of adjudication ◈ Adjudications have a 28-day time scale, which means it is a quick way to resolve disputes. It should be noted, however, that this deadline can be extended with the consent of both parties. ◈ As a result of this tight timescale, adjudication is usually cheaper for parties than litigation. Note, however, that the costs involved in instructing solicitors or other professionals cannot be recovered, regardless of the outcome. ◈ Adjudication can resolve a dispute whilst the contract is ongoing, rather than waiting until the end of the project and embarking on litigation. ◈ In contrast to litigation, an adjudication decision is private, unless the decision of the adjudicator is ultimately the subject of enforcement proceedings raised in court. ◈ The decision maker is someone experienced in construction disputes – usually a quantity surveyor or engineer.
  • 47. Disadvantages of adjudication ◈ In terms of expenses, adjudication costs are not usually recoverable. This means that the responding party cannot recover their associated professional costs (most obviously, legal costs) from the referring party, as they could do in a litigation or arbitration. ◈ Because a dispute can be referred ‘at any time’, they can come from out of the blue and the opposing party can feel ‘hijacked’, especially where the dispute is high value and complex. This is generally avoided in litigations. ◈ Although the short time scales of the adjudication process have many advantages, it can mean that parties have a very limited time in which to investigate the claim and prepare their response. This can lead to a rushed decision which neither party is happy with. ◈ Despite the fact that Courts will generally uphold adjudicator’s decisions, there is considerable scope for the responding party to create mischief by arguing that the decision is unenforceable, meaning that costly enforcement proceedings need to be raised through the Courts.
  • 48. DISPUTES IN THE BUILT ENVIRONMENT ◈ The built environment refers to human made surroundings that provide setting for human activity ranging in scale from buildings and park or green spaces to neighbourhoods and cities which can often include their supporting infrastructure such as water supply or energy networks STAKEHOLDERS IN THE BUILT ENVIRONMENT ◈ These are people involved or associated with the built environment whom without their support, the organization would not exist ◈ The investor - sponsors the project ◈ Manufacturer – supplies building materials eg paints, iron sheets, stones stc ◈ Banks/ financial institutions – helps in funding the project eg through loans ◈ Planners/ designers – designs the spaces to be built ◈ Government – have set standards for the designers eg through building codes ◈ End-user – the person who uses the designed spaces
  • 49. There are various causes of construction disputes being ◈ Contractual Problems • Ambiguities in construction contracts - Ambiguity in contract documentation may present itself as being unclear about the activities, responsibilities and the risks that the project at hand would involve. These are the core issues in a contract and if they are not clearly put across then inevitably conflicts arise. • errors and omissions in the contract - These can present themselves as misinterpretations on the design plan, miscalculations on costs and possible timelines or omissions on the required contract material or processes. • unclear payment terms – delay in payments may result in delay in the project timelines as some of the contracted persons may choose to put down their tools until these payments are made.
  • 50. ◈ Design related problems • changes in the original design project scope hence there may be lots of demolition by the contractor which not only results to a delay in the timeline of the project but also increase in the cost of the project. • errors and omissions in the design scope just as in the contract drafting and implementation also lead to construction disputes. • differing site conditions which are indicated when the physical site conditions are different from what was originally shown in the contract as well as the construction plans.
  • 51. ◈ Behavioural and Relationship Conflicts – relationships emanate from human interaction, personality, cultures and professional background among the project team. Every stakeholder has their own goals in the projects and when things on site are not in synch with their expectations, it can lead to some conflict between involved stakeholders. The lack of team spirit and poor communication among the project teams ◈ Uncertainty - uncertainty is the difference between the amount of information required to do the task and the amount of information already processed by the organization. This means that it can lead to delivery of the wrong design or with wrong specifications which can lead to conflict between different parties. ◈ Leadership and Project Implementation Conflicts – lack of a leader/ efficient leader giving instructions to the involved parties during the construction can lead to conflicts and arguments and at time wrong delivery of the expected works.
  • 52. REFERENCES  Bennett, T.W. (1993). Human Right and the African Cultural Tradition Transformation  Isurmona V.A. (2005). Problems of Peacemaking and Peace Keeping.  Olaoba, O.B. (2005). ―Ancestral Focus and the process of conflict Resolution in Traditional African societies  Williams, Z.I. (ed.). (2000). Traditional Cures for Modern Conflict. African Conflict Medicine 2000, Lynne Reiner Publisher ❑ https://www.investopedia.com/terms/a/adjudication.asp ❑ https://www.albaclaims.com/2021/05/26/the-pros-and-cons-of-adjudication/