Effectiveness of Arbitration in Construction Projects

Purpose: It is impossible to specify remedies against every possible situation that may be encountered in construction projects. Any dispute can settled timely either by negotiation, mediation, adjudication, arbitration, or litigation. This study was based on the context of Road contracts selected from Dispute Resolution Unit Department Roads (DoR, Nepal. The emphasis this particular research work evaluate effectiveness arbitration. Design/Methodology/Approach: sixteen case studies were major basis as a quantitative for assessment adjudication assessing success rate Also, familiarities parties about provision and procedure arbitration its spirit/strength resolve disputes responses regarding award assessed qualitative study. content analysis terms percentage main tool data analysis. Findings/Result: not accepted 78.57% disputed issues these cases referred litigation, 42.86% Employers, 25.00% Contractors 3.57% both Employers Contractors. 100% agreed they know resolution disputes. majority did accept litigation while mostly except few cases. had perception favorable contractors most argued decisions fair parties. said it comfortable concerning award. prompt, cost-effective, efficient, easy way resolving rejection has negative consequences efficiency public spending which associated with extensive delay project completion cost overrun. While acceptance delivery project. enforcement awards critical In those countries where backed up statute acts enforceable law, found more successful effective. Originality/Value: helps DoR, Contractors, other agencies such Public Procurement Monitoring Office (PPMO), Nepal council Arbitration (NEPCA), different Auditors arbitrators gives contracting towards process familiarize spirit Nepalese industry. Paper Type: Policy Research