Dispute Resolution in Con Truction Industry (Msc Thesis Proposal)

Topics: Alternative dispute resolution, Construction, Dispute resolution Pages: 12 (3373 words) Published: August 6, 2011
BACKGROUND OF STUDY
INTRODUCTION
1.0 NATURE OF CONSTRUCTION INDUSTRY
The construction industry is a conglomeration of diverse fields and participants that have been loosely lumped together as a sector of the economy. The construction industry plays a central role in national development, including the development of the nation’s infrastructure and other public facilities. The importance of the construction industry lies in the function of its products which provide the foundation for industrial production, and its impacts on the national economy cannot be measured by the value of its output or the number of persons employed in its activities alone.

To be more specific construction refers to all types of activities usually associated with the erection, and repairs of immobile facilities such as buildings, offices, dams, bridges, motorways, home extensions, chimneys, factories and airports.

The fragmentation of construction in to a larger number of diverse skills is an inevitable consequence of the economy, technology and sociological environment, there is an extra ordinary diversity of professions, specialist and suppliers. It is important to approach construction contract problems in an organized, rational way. Although each professional discipline likes to focus upon its own contribution and the way that it relates to other project team members, a deeper understanding can be gained by considering how the industry provides a service to clients and the society at large.

1 The characteristics grouping of project teams very often results in dispute at a variety of levels. Each project participant has particular aims and it is rare to find contact structures that encourage harmony among these aims. Project participantly expect to enter into confrontations with each other and with the client. One of the purposes of assembling a team of people from different professions is to achieve standard. It should be expected that each person brings his own idea for discussion-making; they all have their own agenda and this as it should be. The tension thus generated should precipitate debate and dialogue so that clear choices can be made.

Tjosvold (1992): The idea that dispute is destructive and causes misery is so self-evident that it is seldom debated. Employees fight about many issues, but the wisdom of avoiding dispute is too often not one of them. However , it is the failure to use dispute that causes the distress and low productivity, associated with escalating dispute. Dispute avoidance and the failure to develop an organization equipped to manage it, not dispute itself. Open, skilful discussion is needed to turn differences into synergistic gain rather than squabbling losses.

CONSTRUCTION DISPUTE
Dispute is inevitable in construction projects and it can be regarded as endemic in the construction industry. Disputes can either be avoided from the start by way of efficient risk allocation and management or resolved once it is occurs. The former seems to be more suitable to avoid unnecessary time and cost. However, the latter may be practical for complex issues which require third party’s interference (Edwards & Shaoul, 2003). 2 Construction disputes are fairly common, and they vary in their nature, size, and complexity. Mark Appel, senior vice president of the American Arbitration Association, stated that “[t]he construction industry…[is] really the industry that sponsors our work.” (ENR 2000). Although this statement may initially appear to be an indictment, it simply reflects the complexity of a contemporary construction project, which requires the orchestration of numerous interdependent components, including information, materials, tools, equipment,...

References: 1 Adams, O. (1997), ‘Contractor development in Nigeria: perceptions of contractors
and professionals’, Construction Management & Economics, 15(1), pp 95-108
2 Aibinu, A.A. and Odeyinka, H.A. (2006), ‘Construction delays and their causative
factors in Nigeria’, Journal of Construction Engineering
5 Brooker, P. (1999), 'Survey of construction lawyers ' attitudes and practice in the
use of ADR in contractors ' disputes ', Construction Management
8 Cheung, S.O. and Yiu, K.T.W. (2007), ‘A study of construction mediator tactics
—Part I: taxonomies of dispute sources, mediator tactics and mediation outcomes’, Building and Environment, 42(2), 752-761
9 a (DBIA 1998a) Design-Build Institute of America. 1998. Standard Form of Preliminary Agreement Between Owner and Design-Builder, Document No. 520, First Edition, Design-Build Institute of America, Washington, DC.
9b (DBIA 1998b) Design-Build Institute of America. 1998. Standard Form of
General Conditions Between Owner and Design-Builder, Document No
11 Funmi Roberts F.(2010),” Cultureal Nuances in Mediating Commercial Disputes
in Nigeria” in ARBITRATION, the International Jirnal of Arbitration, Mediation and Dispute Management
12 Gebken, R.J. and Gibson, G.E. (2006), ‘Quantification of costs for dispute resolution
procedures in the construction industry’, Journal of Professional Issues
14 Groton, J.P. (1997), ‘Alternative dispute resolution in the construction industry’,

15 Hinchey, J. and L. Schor. 2002. “The Quest for the Right Questions In
the Construction Industry.” Dispute Resolution Journal, August/October, 10-20.
16 Marcellina H. and Okehia O. (1996), Ethnic and Cultural Diversity in Nigeria
(Trenton, NJ: African World Press Inc) pg
17 Peña-Mora, F., C. E. Sosa, and D. S. McCone. 2003. Introduction to
Construction Dispute Resolution
19 Slaikeu, K. A. and R. H. Hasson. 1998. Controlling the Costs of Conflict: How to Design a System for Your Organization. Jossey-Bass Publishers, San Francisco.
21 Teo, A.I.L. and Aibinu, A.A. (2007), ‘Legal framework for alternative dispute
resolution: examination of the Singapore national legal system for arbitration’, Journal of Professional Issues in Engineering Education and Practice, 133(2), pp 148–157
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Online Dispute Resolution Essay
  • Alternatve Dispute Resolution Essay
  • Alternative Dispute Resolution Essay
  • Dispute Resolution Parties Essay
  • Alternative Dispute Resolution Essay
  • Analysis Alternative Dispute Resolution Essay
  • Appropriate Dispute Resolution Essay
  • International Dispute Resolution Essay

Become a StudyMode Member

Sign Up - It's Free