Alternative Dispute Resolution Methods in Construction Industry: An Assesment of Ethiopian Situation

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2005-07

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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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Ethiopian situation

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