How can you stay ahead of emerging trends in construction dispute resolution?

1 Online dispute resolution

Online dispute resolution (ODR) is the use of digital platforms and tools to facilitate communication, negotiation, mediation, arbitration, or adjudication of disputes. ODR can offer several benefits for construction disputes, such as reducing travel costs and delays, enhancing accessibility and convenience, and enabling faster and more flexible outcomes. However, ODR also poses some challenges, such as ensuring security, confidentiality, and quality of the process and the evidence, as well as maintaining trust and rapport among the parties and the neutrals.

2 Collaborative contracting

Collaborative contracting is an approach to contract design and management that aims to foster a cooperative and transparent relationship among the parties, based on shared goals, values, and risks. Collaborative contracting can help prevent or minimize construction disputes by encouraging early identification and resolution of issues, promoting mutual trust and respect, and providing incentives for performance and innovation. Some examples of collaborative contracting models are alliance contracts, integrated project delivery contracts, and relational contracts.

3 Dispute avoidance boards

Dispute avoidance boards (DABs) are independent panels of experts that are appointed at the outset of a construction project to provide ongoing guidance, advice, and assistance to the parties on technical, contractual, or other matters that may arise during the project. DABs can help avoid or reduce construction disputes by facilitating communication and understanding, resolving potential problems before they escalate, and issuing non-binding recommendations or determinations on disputed matters. DABs are different from dispute adjudication boards (DABs), which are also independent panels of experts, but only intervene when a dispute has arisen and issue binding decisions on the dispute.

4 Hybrid dispute resolution

Hybrid dispute resolution is the combination of two or more dispute resolution methods in a single process or agreement. Hybrid dispute resolution can offer more flexibility, efficiency, and creativity for construction disputes, as it can allow the parties to tailor the process to their specific needs and preferences, and to take advantage of the strengths and synergies of different methods. Some examples of hybrid dispute resolution methods are med-arb (mediation followed by arbitration), arb-med (arbitration followed by mediation), and expert determination with an appeal option.

5 Data-driven dispute resolution

Data-driven dispute resolution is the use of data analytics and artificial intelligence (AI) to support or enhance the dispute resolution process. Data-driven dispute resolution can help improve the quality, speed, and cost-effectiveness of construction dispute resolution, by providing insights, predictions, recommendations, or decisions based on data. For instance, data analytics can help identify patterns, trends, and risks of disputes, while AI can help automate or assist tasks such as document review, evidence analysis, or outcome evaluation.

By staying ahead of these emerging trends in construction dispute resolution, you can improve your skills and competencies as a construction manager, and gain a competitive edge in the dynamic and complex construction industry.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?