International Construction Law Review
THE CONTRIBUTION OF THE NEUTRAL THIRD PARTY TOWARDS AMICABLE CONSTRUCTION DISPUTE RESOLUTION*
DR SAI-ON CHEUNG AND HENRY C H SUEN
Construction Dispute Resolution Research Unit Department of Building and Construction, City University of Hong Kong
ABSTRACT
Construction dispute resolution has been topical and various reported researches have identified a range of factors of the alternative dispute resolution process that may affect the outcome of the resolution process. This paper reports a study that seeks to identify the important factors of the ADR process as well as the means to achieve these. In the literature review, a total of 19 important factors were identified and seven more-important factors were short-listed by using the Analytical Hierarchy Process1
(AHP) methodology. With the help of experts in the field, means to achieve the seven more-important factors were listed. It is found that a common thread is exhibited among these means in which the contributions of the neutral third party have a profound influence in achieving an amicable resolution. The skills and knowledge of the neutral third party play a significant role in shaping and directing the ADR process and, in turn, the outcome. The important characteristics of the neutral third party’s personality are also discussed.
INTRODUCTION
Researches on the problems of the construction industry have pointed to some fundamental causes of project failure, one of which is the proliferation of disputes.2
To study dispute resolution in the construction industry, there is a need to understand the basic characteristics of disputes and the nature of the construction industry. The construction process is characterised by the many discrete groups which often form as a Temporary Multiple
* The authors would like to express their appreciation to the accredited mediators and arbitrators of the HKIAC for their information and participation in the research. The work described in this study was fully supported by a CityU research grant (Project No 7100103).
1 T L Saaty, The Analytical Hierarchy Process
(New York: McGraw-Hill, 1980).
2 J Egan, Rethinking Construction
(London: Department of the Environment, Transport and the Regions (HMSO), 1998).
[2002
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