Submitted to partially comply (in the module PPR 404) with the conditions for the degree
B.Sc (Quantity Surveying) Honours
Department of Quantity Surveying and Construction Management Faculty of Natural and Agricultural Sciences
UNIVERSITY OF THE FREE STATE
Mrs M-M Els
TABLE OF CONTENTS
ALTERNATIVE DISPUTE RESOLUTION
1. Chapter 1 Introduction3
2. Chapter 2 What is Alternative Dispute Resolution3
3. Chapter 3 The Concepts of Conflict and Disputes3
4. Chapter 4 The Development of Alternative Dispute Resolution3 5. Chapter 5 Types of Alternative Dispute Resolution3 6. Chapter 6 Negotiation3
7. Chapter 7 Conciliation/Mediation3
8. Chapter 8 Arbitration4
9. Chapter 9 Adjudication4
ALTERNATIVE DISPUTE RESOLUTION
1. Chapter 1 Introduction
In all aspects of life conflict can be found and solutions need to be found. In business disagreements arise that cannot be simply resolved. These disputes used to often lead directly to the courtroom and the process of litigation. Litigation is a slow and extremely costly exercise that many businesses simply cannot afford. A faster, cheaper solution had to be found and this came in the many different forms of Alternative Disputes Resolution processes. Depending on the dispute and the solution that needs to be found an alternative solution is available. Alternative Dispute Resolution processes can be either fairly passive, such as negotiation where the two parties agree on a way forward on their own. Or it can be more active where a neutral third party will hear both sides of the story and then pass judgement. This judgement is not always legally binding, as it is in litigation, but the resolution to the dispute is definitely faster and cheaper. In the modern economy where time spent not creating money is money lost to the business.
The Research Assignment will include a detailed look at the various alternative dispute resolution processes as well as a look at the concept of dispute and conflict. An in-depth look into the development of the various processes is also included to give a fuller understanding into why alternative dispute resolution exists.
2. Chapter 2 What is Alternative Dispute Resolution?
Alternative Dispute Resolution was developed as an alternative to the traditional method of dispute resolution, namely Litigation. Litigation is an extremely costly and time consuming form of dispute resolution. It also does not give the parties involved sufficient control over the outcomes of their disputes. Serious concerns have been raised over the spiralling costs, fees and delays commonly found in traditional litigation. The adversarial nature of litigation with its “win all or lose all” attributes, have been found to be significant detrimental to business relationships. Alternative dispute resolution (ADR) was seen as a method by advocates to resolve a client’s disputes more efficiently and economically, with less risks and better results. The concept is premised on the principle of consensus. ADR operates within a structure of a specific community according to the culture of the community’s moral norms. Western societies have come to appreciate the necessity for justice through ADR techniques based on the process of conciliatory solutions. The worldwide trend over the 2 decades has been a move towards ADR to the observed shortcomings of the traditional justice systems. Alternative dispute resolution refers to a variety of different methods and techniques that can be used for resolving disputes without having to resort to the litigation process.
The main purpose of ADR was to reduce the costs and time delays associated with litigation, and to...