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|Title: ||ALTERNATIVE DISPUTE RESOLUTION METHODS IN CONSTRUCTION INDUSTRY: AN ASSESMENT OF ETHIOPIAN SITUATION|
|Authors: ||ABERRA, BEKELE|
|Advisors: ||Dr.-Ing. Abebe Dinku|
|Keywords: ||Alternative Dispute Resolution (ADR)|
|Copyright: ||2005 |
|Date Added: ||16-Oct-2008 |
|Publisher: ||Addis Ababa University|
|Abstract: ||The aim of every construction project stakeholder is the completion of a project that meets the
objectives of time, cost and quality. However, the construction process is often fraught with
disputes over the interpretation of construction documents, existing conditions, the legitimacy
of variations, timely payments, etc. The emerging Alternative Dispute Resolution (ADR)
methods which are non-litigation alternatives offer opportunities for effectively resolving
disputes in the construction industry. Depending on the nature of the relationship between the
parties involved in the disputes and the circumstances under which the dispute is evolved,
different methods of dispute resolution mechanism may be preferable. This research reviews
alternative dispute resolution methods in construction industry with an assessment of the
Ethiopian situation. It provides insights into decisions making on appropriateness of dispute
resolution method that suit their needs.
These days both public and privately owned construction projects are increasing through out
the country. The industry must change its treatment of conflicts, claims and disputes. Time
should be used for works instead of wasting time for unnecessary litigation, and out-of-court
dispute resolution methods need to be developed in the processing of construction
management and project contract administration.
The Ethiopian civil codes that deal with contract in general and construction contract in
particular are reviewed in this thesis. Construction of public works made by the Statutory or
other administrative authorities that is governed by administrative contract as stated in civil
code is also considered in the research.
Compromise and Arbitral Submission proceedings are addressed in the civil code with due
procedure for detail implementation. The legal application of conciliation and arbitration
relevant to public works and administrative contract, are examined in the research. The
arbitrability of administrative contracts has controversial implications on the civil procedure
code article 315 sub articles (2) and (4).
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Construction law is a component of the major constituent of contracts in general in the
Ethiopian civil code. Article 3019 (1) describes the provision of this chapter that is applied to
contracts of work and labour relating to work to be done in connection with building repair or
installation of immovable (civil code article 3019).
Applicable to Ethiopian construction projects, there are three main known standard conditions
of contracts, the MoWUD, FIDIC and the ERA’s standards. These conditions have clauses for
treatment of Settlements of Disputes with initial provisions of Engineer’s decision, and
successive other appeals.
Conflicts and disputes are not synonymous concepts: conflict is the process of expressing
dissatisfaction, disagreement and unmet expectations. On the other hand dispute is associated
with distinct justifiable issues. This concept is discussed with references to different
researchers’ opinions. However, the resolution or management of disputes and conflicts in the
construction industry may have three types of approaches;
ii. Amicable and
iii. Judgmental resolutions systems.
Disputes and conflicts in the Ethiopian construction projects are assessed during the research
work. The disputes between the stakeholders in the industry are enumerated, and existing
trends of dispute resolution in Ethiopian construction projects relevant with the conditions of
contract are also considered.
The proceedings of claims are not yet widely shown itself to the construction projects
executed by domestic contractors. The attitude towards claim requires proper concept.
Someone who asks claim does not mean he/she is insubordinate to the construction industry. If
one suffers from loss of money or time or both there is no reason for not providing
compensation if his/her request is legitimate. Ethiopian domestic contractors have to
understand their rights and get involved in the construction business professionally and
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Case studies are carried out in disputed projects. The resolution options applied to these
projects support the preference of Alternative Dispute Resolution Mechanisms over Litigation.
Normal court tribunals do not perform construction disputes as required. This fact is witnessed
in one of the case studies.
When disputes or conflicts occur, stakeholders need to give due attention and facilitate
amicable resolution. Once disputes escalate out of control and reach litigation, it means loss to
either or both parties, since the out come is unpredictable.
Dispute occurrences between stakeholders are witnessed by the respondents during the
assessment. On dispute- conflict existence between client and consultant 62.07% of them cited
that consultants do not complete the services in the scope, inadequate quality of design,
drawings, and specifications. 42.11% of the responses from client-contractor dispute, ascertain
that contractors’ delay on progress and completion of works, contractors do not follow their
plans and occurrences of liquidated damages. Not approving payment on time, not responding
and deciding timely on variations, decisions, drawings, clarifications and instructions required
from consultants is 41.38% in dispute occurrences between consultant and contractor.
Alternative Dispute Resolution Mechanisms in the construction industry have wide
application all over. However, due to absence of general construction policy, and weak
relationship between the stakeholders’, Ethiopian construction projects suffer from a lack of
legitimate ADR application. The litigation option does not show itself compatible option for
dispute resolution as witnessed. Hence, Alternative Dispute Resolution methods have to be
developed in the Ethiopian construction projects administrations and managements.|
|Description: ||A THESIS SUBMITTED TO
THE SCHOOL OF GRADUATE STUDIES
ADDIS ABABA UNIVERSITY
FACULITY OF TECHNOLOGY|
|Appears in:||Thesis - Civil Engineering|
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