Selecting the best dispute resolution method with choosing by advantages approach

OpenAlex English

The construction industry is fragmented and complex. The involvement of multiple stakeholders can lead to disputes that result in serious time and cost burdens. Developing effective strategies to best address the conflicts is significant for the successful completion of projects. Even though there are studies selecting Dispute Resolution Methods (DRMs), the literature lacks a step-by-step methodology for the proper selection of DRMs for contractual and relational conflicts. To address the gap, this study utilizes the Choosing-by-Advantages (CBA) method to select among the DRMs based on a set of identified construction risks. According to the CBA method, alternatives, factors, criteria, attributes, and advantages are determined. The study proposes several factors, including “claims management”, “design management”, “construction management”, “contract”, and “coordination and relationship”. The alternatives are considered as negotiation, mediation, arbitration, and litigation. Thirteen interviews were conducted with industry experts. The findings implied that “negotiation” was the best option regarding the highest Importance of Advantages with the lowest cost. This study contributes to the literature by systematically implementing CBA in dispute resolution to guide industry practitioners in managing conflicts. This study presents a novel application of the CBA method in the context of DRM selection, extending its application beyond the traditional selection problems, such as designer and subcontractor selection. Moreover, the study helps practitioners, mediators, and policymakers assess existing DRMs and select the most suitable option using the CBA framework