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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)
Arbitration
Claim
Conflict
Dispute
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). - 11 - 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; i. Preventive, 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 ethically. - 12 - 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
URI: http://hdl.handle.net/123456789/1433
Appears in:Thesis - Civil Engineering

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