ABSTRACT

This chapter discusses the view of alternative ways in which parties may resolve disputes by the engagement of another body, beyond solely the actions of the parties and their consultants as named and appointed in a construction contract. It provides an overview of dispute resolution methods and procedures available. Formal dispute resolution may need to be used if usual methods of negotiation, leading to agreement of a final account or settlement of an issue during construction have been exhausted. Litigation as a method of dispute resolution, sometimes called legal proceedings in dispute resolution clauses in standard contracts, is reviewed first because it is the most traditional method. Arbitration as a form of alternative dispute resolution is a process whereby parties that have a dispute agree to appoint a third party and to be bound by that party's decision when acting as their arbitrator.