Abstract

The purpose of this thesis is to study the effectiveness of dispute resolution in construction. Current trends in case filings and costs are addressed through industry statistics and literature review. Data from government sources and from the American Arbitration Association is analyzed to identify national and regional trends. Impacts of these trends are discussed using insurance data and industry studies. These impacts take many forms including lost construction time and higher cost of insurance due to losses. Long term insurance rate trends are compared to long term dispute trends. Means of mitigating the impacts are discussed through industry interviews and case studies. Internal methods of reducing opportunity for dispute are discussed with the view that no system can be perfect. Methods of dealing effectively with the disputes that do arise are analyzed in detail. Costs and duration of different dispute resolution methods are presented. Lessons learned from industry are compiled and recommendations for proper application of alternate dispute resolution is proposed. It appears that time and cost savings could be realized in construction by greater application of some proven but as yet little used alternate dispute resolution techniques.