Types of Dispute Resolution Mechanisms PDF

Types of Dispute Resolution Mechanisms 16 July 2024 By: Dr D.M.Tshobotlwane  1. Negotiation  Negotiation is often the first step in resolving disputes in the construction industry.  It involves the parties involved in the dispute sitting down and discussing their issues in a constr...

Types of Dispute Resolution Mechanisms 16 July 2024 By: Dr D.M.Tshobotlwane  1. Negotiation  Negotiation is often the first step in resolving disputes in the construction industry.  It involves the parties involved in the dispute sitting down and discussing their issues in a constructive manner with the aim of reaching a mutually acceptable solution.  Negotiation is a flexible and informal process that allows for creative problem-solving and can help preserve relationships between the parties.  2. Mediation  Mediation is a voluntary and confidential process in which a neutral third party, known as a mediator, helps the parties involved in the dispute to reach a resolution.  The mediator does not impose a decision on the parties but instead assists them in communicating effectively and exploring possible solutions.  Mediation is often faster and less expensive than litigation and can result in more satisfactory outcomes for all parties involved.  3. Arbitration  Arbitration is a more formal dispute resolution process in which the parties agree to have their dispute resolved by a neutral third party, known as an arbitrator.  The arbitrator makes a binding decision based on the evidence presented by the parties.  Arbitration can be less time-consuming and costly than litigation, and the parties have more control over the process and outcome.  However, the decision of the arbitrator is final and legally binding.  Arbitrator must act fairly and impartially between the parties  Court can intervene if the arbitrator does not act fairly  4. Adjudication  Adjudication is a dispute resolution process commonly used in construction contracts.  It involves a neutral third party, known as an adjudicator, making a provisional decision on the dispute within a specified timeframe.  The decision of the adjudicator is binding on the parties unless and until it is overturned by arbitration or litigation. Adjudication is a quick and cost-effective way to resolve disputes in the construction industry. Difference arbitration and adjudication  Arbitration is binding and it can be a much longer and more formal process.  Adjudication involves the quick resolution of disputes between parties where an adjudicator hears the outline of both sides of the argument and makes a fast decision within 28 days.  Often the dispute is decided on paper only.  Arbitration reviews the dispute fully 5. Litigation  Litigation is the most formal and adversarial dispute resolution process in which the parties involved in the dispute present their case before a court of law.  Litigation can be time-consuming, expensive, and unpredictable, and can damage relationships between the parties.  Sometimes more money can be spent going through the courts than just accepting the loss (magistrate, high court, appeal court, and constitution court)  However, it may be necessary in cases where other dispute resolution mechanisms have failed or are not suitable. Conclusion  In conclusion, dispute resolution mechanisms play a crucial role in the construction industry of South Africa and can help parties resolve their disputes in a timely and cost-effective manner.  It is important for construction professionals to be aware of the different dispute resolution mechanisms available to them and to choose the most appropriate one based on their specific circumstances.  By using the right dispute resolution mechanism, parties can avoid costly litigation, preserve relationships, and ensure successful project outcomes.  Thank you for your attention, and I hope you found this presentation on dispute resolution mechanisms in the construction industry of South Africa informative and helpful.  List of references  Maphumulo, S. L., & Mandela, N. P. (2015). The Role of Mediation in Resolving Disputes Among Members of a South African Community. Journal of African Studies and Development, 7(5), 117-122.  Blom, I., & De Visser, J. (2012). The Role of Mediation in Resolving Labour Disputes in South Africa. African Journal on Conflict Resolution, 12(1), 61-78.  Nhlapo, T. l. (2013). The Use of Alternative Dispute Resolution Mechanisms in Resolving Family Disputes in South Africa: An Evaluative Perspective. Social Work, 49(2), 180-197.  List of references  Cuny, B. (2011). Dispute Resolution in South Africa: An Overview of the Legal Framework. CERIL Law Reports, 2(1), 33-49.  Madonsela, T. (2014). The Role of the South African Human Rights Commission in Resolving Disputes Related to Human Rights Violations. Journal of Human Rights and Human Dignity, 2(1), 56- 68.  Quinlan, T. K. (2016). The Use of Arbitration in Resolving Commercial Disputes in South Africa: Challenges and Opportunities. South African Law Journal, 34(3), 451-467.  De Jager, J., & Mpindis, L. (2020). The Effectiveness of Judicial Dispute Resolution Mechanisms in South Africa: A Case Study