An investigation into the effectiveness of Arbitration as an Literature review

An investigation into the effectiveness of Arbitration as an Alternative Dispute Resolution (ADR) within the U.K construction in - Literature review Example Corporate social responsibility calls for taking care of the interests of the various stakeholders of the business and amicable settlement of the disputes in the industry through ADR by avoiding litigations. According to the research conducted by Conlin et al (2009, p. 362) the causes of conflicts include technical problems commercial problems and interpersonal differences. Construction industry is complex in nature and the contracts between the parties envisage generally provision for arbitration of the disputes likely to arise in the course of business. According to Harmon (2003, p. 187) complex construction projects result into complex disputes inter alia due to poor documentation. The effectiveness of arbitration as an alternative dispute resolution depends upon these provisions clearly spelt out in the contracts and the effective mechanisms for the arbitration available in the country. Apart from the commercial disputes, arbitration in respect of disputes arising out of employme nt of labour is also very important since this industry is labor intensive and involves employment of workers of the company or contractor, labour contractors and other sub-contractors. Objectives This paper seeks to analyze the effectiveness of arbitration as an alternative dispute resolution (ADR) within the U.K. ... Arbitration as ADR provides a forum for the experts in the construction field for taking decisions in line with the industry norms and established practices which makes the settlement process more effective. Simplicity and flexibility in the arbitration process enhances the working relationship among the parties to the dispute. Evolution of Arbitration in the United Kingdom Noussia (2010, p. 9) stated â€Å"Arbitration is the most traditional and well-known form of alternative dispute resolution. It arises mostly, though not exclusively, from pre-dispute contracts in which the parties agree that if a dispute arises, it will be resolved by arbitration.† Proliferation of industries in the aftermath of industrial revolution which started in the UK and the rise of Labor Party to prominence led to the passage of Trade Dispute Act in 1906. The intent of the legislations and regulations is to encourage conciliation and arbitration in the proceedings for resolving the trade disputes a nd avoid legal proceedings in the courts of law. In the Trade Union and Labour Relations (Consolidation) Act, 1992, Mediation, Conciliation and Arbitration have been recognized as important Alternative Dispute Resolution methods. The procedures relating to the commercial arbitrations have been streamlined as a systematic code of law by the Arbitration Act 1889 incorporating the established practices earlier adopted with suitable amendments. Brooker and Lavers (1997, p. 519) stated â€Å"disputes are a significant phenomenon within the UK construction industry and that they are a matter of importance to the disputants as well as to the other stakeholders such as developers, owners, non-owning occupiers,