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